The New Statesman | UK politics and culture Spending review: NHS wins - but tax rises are coming
Jun 13, 2025
The latest financial statement reveals significant changes in UK funding priorities. Key sectors like the NHS benefit from increased resources, but challenges persist for local governments and social housing. Political tensions arise over necessary tax hikes and the balance between immediate needs and long-term investments. Additionally, the podcast discusses the evolving dynamics of UK-EU relations post-Brexit, highlighting possible trade benefits. Overall, the analysis navigates the complex interplay of public sentiment, economic strategies, and political narratives.
AI Snips
Chapters
Transcript
Episode notes
Health Wins, Local Government Loses
- The biggest winner of Labour's spending review is health, with significant funding increase aimed at tackling NHS issues.
- However, local government faces cuts, likely to result in a 5% council tax rise to fund policing and other services.
Defence Gains, Foreign Office Cuts
- Defence is a major winner, absorbing cuts from international aid reductions, while the Foreign Office faces a nearly 7% spending cut.
- Transport investment grows via infrastructure projects, but day-to-day spending cuts rely on hoped-for efficiency from nationalising railways.
Tax Rises Likely Despite Promises
- Spending review shows it's a "spend now, tax later" plan, with little fiscal headroom for shocks or pay pressures.
- Future unexpected costs may force the government to raise taxes despite current spending announcements being pre-accounted for.