Chancellor Rachel Reeves today unveiled Labour’s first multi‑year spending review, outlining more than £2 trillion in departmental allocations through 2029. The plan allocates substantial capital funding within the framework of revised fiscal rules while maintaining constraints on day‑to‑day expenditure growth. Reeves projected a modest 1.2 per cent annual rise in current departmental spending, with real‑terms increases confined to high‑priority areas including defence and health. Defence spending is earmarked to rise to 2.5 per cent of GDP by 2027, signalling an enhanced military budget that includes over £6 billion for submarine production and associated defence projects . The increase reverses earlier overseas aid cuts to allocate additional funding for security and capability, emphasising the government’s focus on national defence rather than external assistance . The National Health Service will receive a real‑terms boost of 2.8 per cent annually, amounting to an additional £30 billion over three years. Despite this uplift, modelling suggests that the NHS will still fall short of Starmer’s 92 per cent target for treating patients within 18 weeks . Health infrastructure and long‑term planning are central to the allocation, though tensions remain over the ability of this increase to resolve entrenched backlog pressures .  Capital investment will reach £113 billion over the course of the parliament, targeting projects in transport, housing, research and nuclear energy. Of this, £39 billion is dedicated to affordable housing over ten years and over £15 billion to transport infrastructure in the North . The review includes approval of the Sizewell C nuclear plant and significant investment in small modular reactors, with £14.2 billion allocated to nuclear energy. Funding for border enforcement has been increased by £680 million, directed towards strengthening police presence and deploying drone surveillance to reduce asylum accommodation costs . Additional security measures are intended to address rising asylum and immigration system pressures. The review strikes a balance between growth‑oriented capital spending and fiscal discipline. Departments outside health, defence and education will face hard limits on current budgets while capital investment is prioritised . Reeves has pledged that no new taxes will be introduced within this review, even as the scope for revenue generation is limited with major thresholds frozen . Public finances show continuing strain, with revised ONS estimates placing 2023‑24 borrowing at £148.3 billion or 5.1 per cent of GDP . The Office for Budget Responsibility projects a narrowing budget deficit of £137.3 billion in the current fiscal year, though it warns of elevated debt levels that will shape future policy . Reeves described the review as an investment in national renewal, with a strategic emphasis on long‑term public services and infrastructure. ...