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IFS says tough public spending choices unavoidable

  • Chancellor Rachel Reeves will announce the UK's spending review on 11 June 2025, setting budgets for NHS, defence, schools, and other departments.
  • The government front-loaded spending in early years but must now slow funding increases, causing a trade-off between NHS growth and cuts in unprotected areas.
  • The Treasury holds about £100 billion capital for investment in neglected towns and city outskirts, aiming to rebalance regional spending and support infrastructure.
  • The Institute for Fiscal Studies warned that increasing NHS and defence budgets means real-terms cuts elsewhere and that 'ruthless prioritisation' is needed for public services.
  • The spending review's outcome will determine funding priorities amid pressure from councils facing gaps and opposition parties challenging fiscal policies amid stalled growth.
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The Times broke the news in United Kingdom on Thursday, May 29, 2025.
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