Chancellor announces record investment to rebuild National Health Service
Source: gov.uk (2025-06-10)

The Chancellor has today (Wednesday 11 June) announced a record £29 billion investment to get the NHS back on its feet and fit for the future.

- Rachel Reeves announces record £29 billion funding boost to get the NHS back on its feet and fit for the future.
- New investment includes up to £10 billion on technology and digital transformation, GP training to deliver millions more appointments and rolling out mental health support to all schools.
- Reeves tells the House of Commons: “There’s no strong economy without a strong NHS.”
New investment announced at the Spending Review will enable the NHS to deliver on the government’s Plan for Change to cut waiting lists, improve patient care and modernise services.

Up to £10 billion allocated towards technology and digital transformation, thousands more GPs to be trained and funding allocated to deliver an additional 700,000 urgent NHS dentist appointments a year.

The funding boost came as the Chancellor unveiled a Spending Review to deliver Britain’s renewal, with record investment in the country’s security, health and economy.

Security

The Chancellor confirmed a £11 billion real-terms increase in defence spending over the spending review period, backing our Armed Forces, creating British jobs in British industries, and prioritising the security of Britain when it is most needed.

Today’s funding will provide the Ministry of Defence with the resources and capital necessary to start delivering the Strategic Defence Review, rebuilding the armed forces and investing heavily in UK intelligence capabilities. This includes £15 billion for a nuclear sovereign warhead programme, supporting over 9,000 jobs in the UK, £7 billion of infrastructure funding for a once-in-a-generation renewal of military accommodation, and £6 billion for munitions, investing in supply chains and factories in the UK and generating over 1,000 jobs and export potential.

At least £280 million a year will also be invested into border security by 2028-29, including into the Border Security Command, to tackle people-smuggling gangs running small boats. Funding of at least £400 million a year by 2028-29 will speed up the process of asylum processing, increase appeals capacity and continue asylum returns alongside ending the costly use of hotels for accommodation.

Police spending power will see an average 2.3% real terms increase over the Spending Review period as the government puts police back on the beat in communities across England and Wales, supporting the government’s Plan for Change commitment to put an additional 13,000 police officers, PCSOs and special constables into neighbourhood roles.

Growth

Roads, infrastructure and towns outside of London and the South East will receive investment to ensure Britain’s renewal is one that is truly national. Revisions to the Treasury’s Green Book announced by the Chancellor mark a new approach to appraisal in the public sector, one which will enable the more effective assessment of place-based interventions.

The Chancellor announced £15.6 billion funding in total by 2031-32 for local transport projects in England’s city regions and £2.3 billion from 2026-27 to 2029-30 for local transport improvements outside of these nine regions, improving everyday journeys for all. The Chancellor announced a further £2.5 billion to connect Oxford and Cambridge through the continued delivery of East-West Rail and confirmed she will set out plans to take forward work on Northern Powerhouse Rail in the coming weeks.

Funding announced today will deliver upgrades to Cardiff Central station, reduce journey times between Manchester and Leeds through continued investment in the TransPennine Route Upgrade, and progress the delivery of Midlands Rail Hub, enhancing connections from Birmingham across the West Midlands and to other regions.

The Chancellor also confirmed the biggest boost to social and affordable housing in a generation, confirming £39 billion of investment over ten years through a new Affordable Homes Programme, turbocharging the Plan for Change commitment to get the country building and deliver the 1.5 million homes Britain needs.

This significant settlement represents the first time in living memory that the government has set out a programme that provides ten years of certainty – giving the sector the confidence to deliver for now and for the future of housing in Britain and turning the tide on the housing crisis in this country.

Today’s Spending Review also supports the development of home-grown, clean power to deliver energy security by committing £14.2 billion for Britain’s first state-funded nuclear power station since 1988 in Sizewell C, providing over £2.5 billion for one of Europe’s first Small Modular Reactor programmes and allocating £9.4 billion to UK carbon capture and storage over the Spending Review period - all while supporting Britain’s acceleration to net zero and driving growth.

The Chancellor also confirmed additional funding for up to 350 deprived communities including giving new long-term regeneration funding to neighbourhoods, and supporting councils to deliver improvements to high streets and public spaces – focusing on the changes that matter to local people.

The government will also establish a Growth Mission Fund to expedite local projects that are important for growth but have been forgotten, such as Southport Pier, Kirkcaldy’s seafront and High Street, and a new sports quarter in Peterborough.

In the coming weeks, the government will release its Infrastructure and Industrial Strategies – providing the certainty and stability sectors need to invest and work to drive our growth mission.

Devolved nations

The devolved administrations will receive their largest real terms settlements since devolution began in 1998, enabling them to deliver on local priorities that matter most to communities.

The Scottish Government will receive an average extra £2.9 billion across the duration of this Spending Review through the operation of the Barnett formula. In recognition of Scotland’s unique needs, they will have 20% more to spend per individual than comparable UK Government spending for people in the rest of the UK.

The Welsh Government will benefit from an average extra £1.6 billion over the Spending Review period through the Barnett formula to deliver against the priorities of working people in Wales, and 20% more to spend per individual than comparable UK Government does for people in the rest of the UK.

The Northern Ireland Executive will receive an average extra £1.2 billion through the Barnett formula, 24% more to spend per person than the comparable UK Government spending in the rest of the UK, reflecting Northern Ireland’s unique circumstances.

These record settlements are made possible by the tough but necessary decisions taken in the October Budget.