• UK to increase defense spending to 2.6% of GDP by 2027 amid security concerns.
• National Health Service (NHS) receives a record £29 billion annual funding boost.
• Other departments face budget cuts as the government reallocates funds for key investments.

On June 11, the UK's Labour government laid out its Spending Review, introducing significant funding increases for healthcare and defense while tightening budgets in other areas. Finance Minister Rachel Reeves aims to address the nation's sluggish growth that is compounded by pressures from US tariffs. She emphasized an investment strategy geared towards security, health, and overall economic renewal, stating that the government intends to ensure “working people all over our country are better off,” according to The Jakarta Post and India Times.

The NHS is set to receive a historic funding boost of £29 billion annually, marking a response to its chronic underfunding and recent strike actions stemming from low morale, according to Le Monde. Reeves aims to reduce waiting times for medical services significantly while reinforcing the healthcare infrastructure, pledging an investment in making the NHS “fit for the future.”

Concurrent with the health funding, defense spending is set to increase from 2.5% to 2.6% of economic output by 2027, largely attributed to the ongoing conflict in Ukraine and a strategic shift in the government's policy to prioritize national security. This allocation will be facilitated by cuts to international aid budgets, as Reeves explained, emphasizing a changing focus amid new global threats, as reported by India Times and Le Monde.

However, these increases in defense and health expenditure lead to reduced funding in other sectors. Departments such as foreign policy and local authorities are expected to bear the brunt of these cuts. Analysts note the need for balancing the fiscal projections, indicating that tax revenues will need to meet the day-to-day spending to avoid further budgetary constraints in the future, as mentioned by The Jakarta Post and India Times.

Additionally, the government has announced ambitious investments across vital sectors including housing, technology, and nuclear energy, with plans to allocate £86 billion for science and technology by 2030 and £39 billion designated for affordable housing initiatives over the next decade. This move is poised to address the increasing demands for housing and improve public service infrastructure, according to Le Monde.