Rachel Reeves has set out her spending review in the House of Commons.
It outlines how much day-to-day funding government departments will get over the next three years, until 2029, which is used on things like wages.
It also covers a department’s investment (also known as capital) budget over the next four years, until the end of 2030. This money is used to pay for things like new infrastructure projects.
The last spending review was held during the COVID-19 pandemic, and before that, in 2015.
Here’s what’s been announced:
Department winners and losers
Sky News’ data and economics editor, Ed Conway, has crunched the numbers to see which government departments have benefited after the spending review, and which have seemingly lost out.
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Ed Conway analyses the spending review
In the chart below sets out which departments are getting the biggest increase in their day-to-day budgets.
The second chart maps the biggest increases in capital spending.
Defence
A major recipient of funds is the Ministry of Defence. Defence spending will rise from 2.3% of gross domestic product (GDP) to 2.6% by 2027. This equates to an £11bn uplift and a £600m uplift for security and intelligence agencies.
Within that there’ll be £4.5bn of investment in munitions made across the country and more than £6bn to upgrade to nuclear submarine production.
The department is one of the biggest winners of the spending review.
In total, an extra 3.8% will be spent from this year to the end of 2029, when the spending period ends.
Much of that increase will be capital spending – a rise of 7.3%, whereas day-to-day spending will only go up 0.7% in the same period.
Ms Reeves said it was because of cuts to foreign aid that such defence rises are possible.
The Foreign, Commonwealth and Development Office was among the biggest losers, with spending set to fall 8.3% in total over the next three years.
Its capital spending will drop 6.8%, with day-to-day spending down 6.9%.
NHS
The chancellor announced an extra £29bn a year will be spent on the NHS, an annual rise of 3% on current levels.
She says she is increasing the NHS technology budget by almost 50%, and £10bn to bring the “analogue health system into the digital age”.
The department in control of the NHS, the Department of Health and Social Care, is also a “real big winner”, Ed Conway says.
Day-to-day spending will rise 2.8%, while there will be no increase in capital expenditure.
Asylum and border security
The chancellor says border security funding will increase, with up to £280m more per year by the end of the spending review for the new Border Security Command.
She said the Home Secretary Yvette Cooper will end hotels being used to house asylum seekers by 2029.
The chancellor says funding she has announced today, including from the transformation fund, will also cut the asylum backlog, see more appeal cases heard and “return people who have no right to be here”.
This will save the taxpayer £1bn a year, she claimed.
As a result of these savings, the Home Office will have 1.4% less to spend by 2029, compared to this year.
Broken down on a day-to-day basis, it’s a 1.7% drop but a 0.7% rise in capital expenses.
Education and training
The chancellor confirmed that free school meals will be extended to over half a million more children and said that the policy will lift 100,000 children out of poverty.
Nearly £2.3bn a year will go to fix crumbling classrooms. A further £2.4bn will be spent on rebuilding 500 schools.
Another record investment amount was announced by Ms Reeves for training and upskilling – £1.2bn a year by the end of the spending review will go to support more than a million young people into training and apprenticeships.
School-based nurseries have been given £370m. The core schools budget is rising by £3.5bn a year.
Housing
Government funding of social and affordable housing has been allocated £39bn, over the next 10 years – which Ms Reeves called the “biggest cash injection into social housing in 50 years”.
She says she is providing an additional £10bn for financial investments, to be delivered through Homes England, to help unlock hundreds of thousands more homes.
Energy
A commitment to nuclear power was reiterated, with £30bn allocated.
Another £2.5bn will be invested in a new small modular reactor programme.
Science and technology
The chancellor says she wants the country’s high-tech industries in Britain to continue to lead the world in the years to come.
Research and development funding will go to a record high of £22bn a year by the end of the spending period.
Artificial Intelligence
The chancellor has backed “home-grown AI” with a £2bn investment.
She says the technology has the potential to “solve diverse and daunting challenges” and create “good jobs”.
Transport
The chancellor announced £15bn for new rail, tram and bus networks across the West Midlands and the North. She’s also given the green light to a new rail line between Liverpool and Manchester.
She says investments in buses, train stations, metro lines and transit will be made in places including Rochdale, Merseyside, Birmingham and West Yorkshire.
In London, Ms Reeves says there will be a “four-year settlement” for the Transport for London and a “fourfold increase” in local transport grants by the end of this parliament.
As expected, the £3 bus cap has been extended to March 2027. It had been £2 up to the end of 2024.
Justice
To fund 14,000 new prison places, £7bn will be invested, with £700m a year going to reform the probation system.
In order to reach the goal of 13,000 more police officers in England and Wales, £2bn will be allocated.
Nations
On the nations of the UK, the chancellor announced:
• Scotland has been allocated £52bn • Northern Ireland has been allocated £20bn • Wales has been allocated £23bn.
The child who died in a school coach crash in Somerset on Thursday was a 10-year-old boy, Avon and Somerset Police have said.
A specially trained officer is supporting the child’s family, the force said, adding that two children taken to Bristol Royal Hospital for Children by air ambulance remain there as of Friday.
Four children and three adults also remain in hospital in Somerset.
There were between 60 to 70 people on board when the incident happened near Minehead, just before 3pm on Thursday.
The coach was heading to Minehead Middle School when it crashed on the A396 between Wheddon Cross and Timbercombe.
Image: Pic: PA
Police said that 21 people were taken to hospital, including two children who were taken via air ambulance.
Gavin Ellis, chief fire officer for Devon and Somerset, said the coach “overturned onto its roof and slid approximately 20ft down an embankment”.
Rachel Gilmour, MP for Tiverton and Minehead, said the road where it happened is “very difficult to manoeuvre”.
“You have a very difficult crossing at Wheddon Cross, and as you come out to dip down into Timbercombe, the road is really windy and there are very steep dips on either side,” she told Sky’s Anna Botting.
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“You have looked after each [other] in what was a life-changing event, we will get through this together,” they wrote on Facebook.
“I feel so lucky to be your teacher. I am so grateful to my wonderful colleagues during this time who were also fighting to help as many people as we could.”
Maria’s treatment by Greater Manchester Police (GMP) was so shocking the chief constable described it as “undefendable” and yet a year after a high-profile inquiry found she had been “unlawfully” arrested and strip-searched, Maria now has a criminal conviction for the crime the inquiry said she should never have been arrested for.
Warning: This story includes graphic descriptions of strip searches and references to domestic violence.
The Baird Inquiry – named after its lead Dame Vera Baird – into GMP, published a year ago, found that the force made numerous unlawful arrests and unlawful strip searches on vulnerable women. A year on, the review has led to major changes in police processes.
Strip searches for welfare purposes, where the person is deemed at risk of harming themselves, are banned, and the mayor’s office told Sky News only one woman was intimately strip-searched to look for a concealed item by GMP last year.
Women had previously told Sky News the practice was being used by police “as a power trip” or “for the police to get their kicks”.
However, several women who gave evidence to the Baird Inquiry have told Sky News they feel let down and are still fighting for accountability and to get their complaints through the bureaucracy of a painfully slow system.
The case of Maria (not her real name) perhaps best illustrates how despite an inquiry pointing out her “terrible treatment”, she continues to face the consequences of what the police did.
Image: ‘Maria’ said she was treated like a piece of meat by GMP
‘Treated like a piece of meat’
The story begins with an act of poor service. A victim of domestic violence, Maria went to the police to get keys off her arrested partner but was made to wait outside for five-and-a-half hours.
The Baird Inquiry said: “This domestic abuse victim, alone in a strange city, made 14 calls for police to help her.
“She was repeatedly told that someone would contact her, but nobody did. The pattern didn’t change, hour after hour, until eventually she rang, sobbing and angry.”
The police then arrested her for malicious communications, saying she’d sworn at staff on the phone.
Inside the police station, officers strip-searched her because they thought she was concealing a vape. Maria told Sky News she was “treated like a piece of meat”.
The Baird Inquiry says of the demeaning humiliation: “Maria describes being told to take all her clothes off and, when completely naked, to open the lips of her vagina so the police could see inside and to bend over and open her anal area similarly.”
Image: Chief Constable Stephen Watson said the actions towards Maria were ‘inexplicable’
After the inquiry found all this not only “terrible” but “unlawful”, Chief Constable Stephen Watson described the actions of his officers towards Maria as “an inexplicable and undefendable exercise of police power”.
He added: “We’ve done the wrong thing, in the wrong way and we’ve created harm where harm already existed.”
Despite all of this, the charges of malicious communication were not dropped. They hung over Maria since her arrest in May 2023. Then in March this year, magistrates convicted her of the offence, and she was fined.
Dame Vera’s report describes the arrest for malicious communications as “pointless”, “unlawful”, “not in the public interest” and questions whether the officer had taken “a dislike to Maria”. Yet, while Maria gained a criminal record, no officer has been disciplined over her treatment.
A GMP spokesperson said: “The court has tested the evidence for the matter that Maria was arrested for, and we note the outcome by the magistrate. We have a separate investigation into complaints made about the defendant’s arrest and her treatment whilst in police custody.”
The complaint was referred to the Independent Office for Police Conduct (IOPC) in August 2023 and Maria was told several months ago the report was completed, but she has not heard anything since.
Image: Dame Vera Baird’s report catalogues the ‘unlawful’ arrest and strip search of various individuals by GMP
‘There’s been no accountability’
Dame Vera’s report also catalogues the “unlawful” arrest and strip search of Dannika Stewart in October 2023 at the same police station. Dannika is still grinding through the police complaints service to get a formal acknowledgement of their failings.
She told Sky News: “Everyone involved in it is still in the same position. There’s been no accountability from the police. We’re still fighting the complaint system, we’re still trying to prove something which has already been proved by an independent inquiry.”
Image: Body cam footage of Dannika Stewart being arrested
Asked if anyone had been disciplined, Chief Constable Watson told Sky News: “There are ongoing investigations into individual failings, but for the most part the Baird review talked about systemic failings of leadership, it talked of failings in policy and failings of systems.
“In some cases, those people who may have misconducted themselves at the level of professional standards have retired. There are no criminal proceedings in respect of any individual.”
He added: “Every single element of the Baird inquiry has been taken on board – every single one of those recommendations has been implemented – we believe ourselves to be at the forefront of practice.”
‘It’s been three years’
Mark Dove who was also found by the inquiry to have been unlawfully arrested three times and twice unlawfully stripped-searched says he’s been in the complaints system for three years now.
He told Sky News: “There have been improvements in that I’m being informed more, but ultimately there’s no timeline. It’s been three years, and I have to keep pushing them. And I’ve not heard of anyone being suspended.”
Image: Mark Dove was found to have been unlawfully arrested three times and unlawfully strip-searched twice
Sophie (not her real name), a domestic violence victim who was also found by the review team to have been unlawfully arrested by GMP, told Sky News that although most of her complaints were eventually upheld they had originally been dismissed and no officer has faced any consequences.
She said: “They put on record that I’d accepted a caution when I hadn’t – and then tried to prosecute me. Why has no one been disciplined? These are people’s lives. I could have lost my job. Where is the accountability?”
Since the Baird Inquiry, every strip search by GMP is now reviewed by a compliance team. GMP also provides all female suspects in custody with dignity packs including sanitary products, and they work with the College of Policing to ensure all officers are trained to recognise and respond to the effects of domestic and sexual trauma on survivors.
Image: Kate Green, deputy mayor for Greater Manchester for policing and crime
The deputy mayor for Greater Manchester for policing and crime, Kate Green, says the lessons of the Baird Inquiry should reach all police forces.
She said: “I would strongly recommend that other forces, if they don’t already follow GMP’s practise in not conducting so-called welfare strip searches, similarly cease to carry out those searches. It’s very difficult to see how a traumatising search can be good for anybody’s welfare, either the officers or the detainees. We’ve managed to do that now for well over a year.”
Ms Green also suggests a national review of the police complaints system.
Deputy Chief Constable Terry Woods, of GMP, said: “Our reformed Professional Standards Directorate (PSD) has increased the quality of complaints handling and improved timeliness.
“Where officers have been found to breach our standards then we have not hesitated to remove them from GMP, with more than 100 officers being dismissed on the chief constable’s watch.
“Out of 14 complaints relating to Dame Vera’s report, four have been completed. Our PSD continues to review and investigate the other complaints.
“We’re committed to being held to account for our use of arrests and our performance in custody.
“By its nature, custody has – and always will be – a challenging environment.
“However, basic provisions and processes must always be met and, while we’re confident our progress is being recognised across policing, we stand ready to act on feedback.”
One child has died after a coach bringing children back from a school trip crashed and overturned near Minehead, Somerset, police have said.
A major incident was declared after the vehicle, which had 60-70 people on board, crashed on the A396 Cutcombe Hill, between Wheddon Cross and Timbercombe, shortly before 3pm on Thursday afternoon.
The coach was heading to Minehead Middle School at the time.
At a news conference on Thursday night, officials confirmed one child died at the scene.
A further 21 patients were taken to hospital, including two children who were transported via air ambulance. “Several” other people were treated at the scene, they added.
Image: A police officer near the scene of the coach crash in Somerset. Pic: PA
“This has been an incredibly challenging scene for all emergency services,” Chief Superintendent Mark Edgington said.
“Today’s events are truly tragic, we know the whole community and wider area will be utterly devastated to learn of this news.”
An investigation into what caused the crash will be carried out, he added.
Gavin Ellis, the chief fire officer for Devon and SomersetFire & Rescue Service, said the coach “overturned onto its roof and slid approximately 20ft down an embankment”.
He praised an off-duty firefighter who was travelling behind the vehicle for helping at the scene, before crews then arrived to carry out rescues “in extremely difficult circumstances”.
“I’m grateful for the tireless effort and actions of the crews in doing everything they could for those who were trapped and as quickly as safely as possible,” he said.
“I’m extremely proud of the efforts that my firefighters took today at this tragic event.”
Eight fire engines were sent to the scene, with two specialist rescue appliances and around 60 fire personnel, Mr Ellis said.
A total of 20 double-crewed ambulances, three air ambulances and two hazardous area response teams were also sent to the scene, a representative for the South Western Ambulance Service said.
Image: Pic: PA
Ch Supt Mark Edgington said: “Many passengers either sustained minor injuries or were physically unharmed and were transferred to a rest centre.
“Work to help them return to Minehead has been taking place throughout the evening.
“An investigation into the cause of this incident will be carried out.”
Minehead Middle School has pupils aged between nine and 14, and is five days away from the end of term.
‘I don’t have words,’ says local MP
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‘From one mother to another, I feel your pain’
Rachel Gilmour, MP for Tiverton and Minehead, has said the road where the coach crashed is “very difficult to manoeuvre”.
Speaking to Sky News chief presenter Anna Botting, Ms Gilmour said she visited Minehead Middle School recently, where she “met the children and they were full of joy, enthusiasm and were very positive”.
“I know many of their parents,” she said. “I don’t have words.”
Describing the scene, Gilmour continued: “You have a very difficult crossing at Wheddon Cross, and as you come out to dip down into Timbercombe, the road is really windy and there are very steep dips on either side.
“If the coach, as the police are saying, went 20ft off the road, you are literally on a really, really steep bank.”
The MP, whose constituency is partly in Devon and partly in Somerset, said there is a “really, really close community”.
“We will pull together, but it would be crass of me to say to a parent who’s just lost their child that I could make things better, I can’t,” she said.
“All I can say is that from one mother to another, I feel your pain.”
Image: Cutcombe Hill near Minehead, where the accident took place. Pic: Google Maps
Sir Keir Starmer said in a post on X: “There are no adequate words to acknowledge the death of a child. All my thoughts are with their parents, family and friends, and all those affected.
“Thank you to the emergency workers who are responding at pace – I’m being kept up to date on this situation.”
Education Secretary Bridget Phillipson wrote: “It is heartbreaking to hear that a child has died and others are seriously injured following the incident in Minehead earlier today.
“My thoughts are with their friends and families, and all those affected by this tragic event.”