Political Currency Reeves's Spending Review ‘gamble’: continuity or change for Labour?
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Jun 12, 2025 Rachel Reeves' Spending Review has sparked debate, with critics like George Osborne claiming it continues the previous government's economic path. Ed Balls warns that Reeves' substantial promises lack a safety net in uncertain times. Defense and NHS funding are prioritized while cuts loom for the Foreign Office. Meanwhile, Trump's recent tensions with Musk and response to immigration protests shake U.S.-UK relations, complicating Starmer’s diplomatic strategy. Discussions delve into the implications of these political gambles for Labour's future.
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Spending Review Shows Continuity
- Rachel Reeves's Spending Review mainly continues Conservative spending trends, especially in health and defense.
- It does not signal a radical break but sustains the state's size and spending growth set by previous governments.
NHS and Defense Face Pressure
- NHS and defense get most funding but still face challenges like exceeding budget and high demand.
- Spending rises are below historical averages, likely insufficient to reduce NHS waiting times significantly.
Investment Targets Productivity
- Spending on defense and nuclear power targets economic productivity rather than just political gain.
- Investment approach differs from prior Conservative 'leveling up' focused on marginal seat improvements.