Although there’s set to be a large increase in NHS spending whilst other areas such as defence will also see a boost, other arms of the Government will not be so lucky.
We take a look at where Rachel Reeves’ cuts will hit and which departments will be affected.
The figures cover the annual percentage change in the money that will be allocated to each department for their day-to-day costs.
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Of the major departments, one of the biggest winners will be the Department for Health and Social Care.
The Ministry of Defence will also see high average annual growth, from £62.2bn in 2025/26, to £73.5bn by 2028/29 – an increase of 3.8 per cent.
Other areas that will see a contraction in spending include the Treasury, HMRC and the Home Office.
“With overall day-to-day spending rising at a slower pace of 1.2 per cent per year until 2028/29, the Home Office and transport among others are now facing real terms cuts to overall spending.”
Spending on equipment and building will also fall for some departments
Some departments will also see the money they are allocated to spend on capital projects – which covers infrastructure and other fixed costs – go down over the next few years in real terms.
HMRC will see a large deduction in spending equating to a drop of 24.3 per cent on average annually between 2025/26 and 2029/30.
This department will see its annual limits drop 1.8 per cent on average over the same period.
Below shows the average annual real growth in capital spending for each department between 2025/26 and 2029/30.
Speaking specifically about HMRC’s plans, Nimesh Shah, CEO of accountancy firm Blick Rothenberg, said that his reading was that the Department would be relying on its “digital transformation agenda to reduce HMRC spending – this is a huge bet, if my suspicion is right, because recent history says that HMRC has a poor track record with these digital projects.”
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Finally We wish PressBee provided you with enough information of ( Where Rachel Reeves’ spending cuts will hurt the most – in charts )
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