UK spending review: What departments will face Rachel Reeves' budget cuts?

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29 billion pounds more for the NHS 39
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billion pounds for affordable housing
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and billions pumped into artificial
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intelligence Those are the spending
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pledges made by Chancellor Rachel Reeves
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at this afternoon's spending review But
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how will she fund it all and what are
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analysts across London saying after
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Reeves delivered her statement the
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government published a document
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detailing cuts and savings to fund
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increases in budgets for health and net
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zero Departments that will face a real
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terms cut include the home office the
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department for transport the foreign
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office and the department for culture
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media and sport Whiteall where civil
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servants do their work will also face
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cuts as the office for value for money
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believes the government can save 14
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billion pounds a year in efficiency
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gains All departments will have to
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radically cut admin costs totaling
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around 1.5 billion over the next four
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years to fund huge increases in
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infrastructure spending Reeves told MP
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she would take more care with taxpayer
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money and would be relentless in finding
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cuts across government departments But
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other spending pressures particularly
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after government U-turn on a small cut
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of 2 billion pounds for winter fuel
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payments have put city analysts on high
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alert Economists at the consultancy KPMG
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said the government may need a fresh 20
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billion pound top up to finances which
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otherwise means tax hikes may be coming
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as several other analysts have warned
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City investors also remain nervous about
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guilt yields which influence the
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government's cost of borrowing and they
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did slightly decrease after the spending
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review Economists at the Productivity
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Institute said that spending on
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infrastructure should not dissolve into
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what it called the bureaucratic fog And
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the spending review comes ahead of the
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government's next set piece event the
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industrial strategy which will set out
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policies on energy and more on
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infrastructure And the industrial
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strategy may be one of the last
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opportunities the government has to
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persuade the fiscal watchdog the office
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for budget responsibility that growth
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projection should be higher than
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previously expected in March Reeves will
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hope investment announcements on science
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and technology at the spending review
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could ease worries at city firms hoping
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for growth An upgraded forecast to the
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UK economy would lower the chances of
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Reeves small 9.9 billion pound headroom
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getting wiped out by the autumn That
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would help to allay fears that the
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government will raise taxes in the
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autumn But the city of London is not yet
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holding its breath For more news on
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government spending head over to
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cityam.com
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UK spending review: What departments will face Rachel Reeves' budget cuts?

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