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Day-to-day spending on the NHS will increase by £29bn a year, Rachel Reeves has announced, as she accepted that voters are yet to feel an improvement under Labour.

Delivering her spending review, the chancellor also declared an end to the use of asylum hotels this parliament by investing in cutting the backlog and returning more people with no right to be in the UK – which she said would save taxpayers £1bn a year.

Politics live: Reaction to spending review

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Government to stop housing asylum seekers in hotels

Ms Reeves acknowledged that almost 12 months on from Labour’s landslide election victory, “too many people” are yet to feel their promise of national renewal.

She said the purpose of her spending review is “to change that”, with departmental budgets to grow by an average of 2.3% a year in real terms until 2028-29.

Key settlements include:

NHS: The health service gets £29bn for day-to-day spending – a 3% rise for each year until the next general election;
Housing: £39bn over the next 10 years to build affordable and social housing;
Defence: Spending will rise from 2.3% of GDP to 2.6% by 2027, made up of an £11bn uplift on defence and £600m for security and intelligence agencies;
Science and tech: Research and development funding will hit £22bn, with AI plans getting £2bn;
Transport: £15bn for new rail, tram, and bus networks in the North and the West Midlands, a new rail line between Liverpool and Manchester, and a four-year settlement for TfL, plus the £3 bus fare cap extended to 2027;
Nations: Scotland gets £52bn, Northern Ireland £20bn, and Wales £23bn, including for coal tips;
Education: Free school meals extended to 500,000 children, while the extra £4.5bn per year will also go on fixing classrooms and rebuilding schools;
Nuclear: A £30bn commitment to nuclear power, including £14.2bn to build Sizewell C plant in Suffolk and £2.5bn in small modular reactors;
Prisons: 14,000 new prison places will be funded with a £7bn injection;
Police: 13,000 more police officers will be paid for with £2bn.

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£11bn increase in defence spending

Read more: The key announcements

Many of Wednesday’s announcements have been front-loaded by cash injections made since Labour took office, meaning that from 2025-26 the increase is a more modest 1.5% on average.

Over the course of the whole parliament, it equates to spending £190bn more on the day-to-day running of public services and £113bn more on capital investments than under the previous government’s spending plans, the chancellor said.

Ms Reeves drew a distinction between her review and the Tories’ austerity agenda in 2010, saying they cut spending by 2.9%.

She said austerity was a “destructive choice for the fabric of our society” and “different choices” would be made under Labour.

However, while overall departmental spending will increase day to day, some departments face a squeeze.

Home Office budget squeezed

This includes the Home Office, whose spend will reduce by 1.4% over the next three years, including daily spend and capital investments.

Daily spend covers the daily running costs of public services, while capital investment is spending by the state on the creation of fixed, long-term assets, such as roads and railways.

Combined, the Foreign Office and Department for Environment, Food and Rural Affairs (DEFRA) also face reductions, as does the Department for Digital, Culture, Media and Sport, and the Cabinet Office.

Paul Johnson, the director of the Institute for Fiscal Studies, said 3% a year increases in NHS spending “does mean virtually nothing on average for current spending elsewhere”.

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Reeves attacks Tory economic record

Ms Reeves said the cash boost for the NHS would fund more appointments, more doctors and more scanners.

She used this to draw dividing lines with Reform UK, saying they have called for an ‘”insurance-based system” whereas Labour created the NHS, protected the NHS and under this government would “renew the NHS”.

Read more:
The spending review: Five things you need to know

Speculation of tax rises

Ms Reeves said she was able to raise the money through decisions made in her autumn budget and spring statement, which saw taxes raised by £40bn and cuts made to the welfare budget.

However, the Tories said the review “isn’t worth the paper it’s written on” and further tax hikes will be needed.

Shadow chancellor Sir Mel Stride said that “this is the spend-now, tax-later review”, adding Ms Reeves “knows she will need to come back here in the autumn with yet more taxes and a cruel summer of speculation awaits”.

The Liberal Democrats said the “smoke and mirrors” spending review would leave a black hole in social care as local government budgets remain at breaking point.

“Putting more money into the NHS without fixing social care is like pouring water into a leaky bucket,” said the party’s Treasury spokesperson Daisy Cooper.

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Lucy Hargreaves was shot dead in 2005 – her home set on fire. A suspect in her murder is still at large

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Lucy Hargreaves was shot dead in 2005 - her home set on fire. A suspect in her murder is still at large

Britain’s most-wanted fugitive is still on the run – exactly 20 years after the fatal shooting of a young mother of three.

Kevin Parle is a suspect in the murder of Lucy Hargreaves, 22, who was shot dead at her home in Liverpool before the house was set on fire on 3 August 2005.

Since then, after many appeals for information, there has been no confirmed sighting, word or trace of him.

Two decades on, Ms Hargreaves’ family have had no justice. Two young men prosecuted for her murder had charges dropped when a judge ruled there was insufficient evidence against them.

In a statement marking the anniversary of her death, they said: “The way we lost Lucy is not something families can ever truly come to terms with – it is still incredibly difficult and painful to think about.

“Over the past 20 years, people will have talked with family and friends. A number of people were contacted by males using a phone that was stolen along with a vehicle used in Lucy’s murder.

“We appeal directly to them to please come forward. Now is the time.”

Kevin Parle age progression prediction pics
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Police prediction of how Kevin Parle has aged since 2005. Pic: Merseyside Police

Three men burst into Lucy’s home 20 years ago today, shot her dead as she slept on a sofa, and set alight the duvet she’d been sleeping under.

It’s believed the gang were looking for her boyfriend Gary Campbell, who was upstairs. He fled from a window with their two-year-old daughter and then tried in vain to save Ms Hargreaves.

Mr Campbell had allegedly been a passenger in a stolen car that had hit and killed a young boy 12 years earlier, supposedly the motive for the shooting. He denied he was in the car at the time.

Lucy Hargreaves with her three children
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Ms Hargreaves with her three children

Howard Rubbery, head of the Serious Crime Review Unit at Merseyside Police said: “The family remain absolutely devastated by Lucy’s death.

“It’s important to note Lucy is an absolutely innocent victim. She’s not from a family of criminality. She wasn’t involved in criminality.

“The hunt for Kevin Parle is very much on, and we ask anybody with information, anybody who is close to Parle and knows where he is, to please come forward.

“There were three males responsible for this offence and we are looking for justice for Lucy’s family in relation to all three.

“I do believe that there are people out there who have yet to speak to the police, even though it’s 20 years on, who hold information that’s absolutely vital to our investigation.”

Police believe Parle, now in his 40s, fled to Spain where he hid among the vast expat community with criminal help.

Several years later, I tracked his movements to a holiday complex near Torrevieja, where staff convinced me he had stayed there for several weeks.

Former Scotland Yard detective Peter Bleksley
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Former detective Peter Bleksley says Parle is being protected

‘Huge value to organised crime’

Former Scotland Yard detective Peter Bleksley, who recently spent four years on a personal hunt for Parle, also visited the complex and said: “He was bold and he was brash and he had a girlfriend at one point.

“The police actually should have captured him there, but they were too late.”

He claimed he nearly caught up with Parle at a villa elsewhere in Spain, but spooked him into disappearing again.

Mr Bleksley hosted an award-winning podcast and wrote a book in which he chronicled his manhunt.

He said: “Kevin Parle has remained hidden because he is funded, protected, looked after and of huge value to global, serious and organised crime.”

Parle can’t be hard to spot – he’s well-built, 6ft 5in tall, red-haired with a face scar and, originally at least, has a Liverpool accent. Of course, he might be dead.

Mr Bleksley said: “I can think of many reasons why certain criminals would want to get rid of Kevin Parle because he could, in terms of evidence about the cases that he’s wanted for, should he flip and become a witness for the Crown, be highly damaging for a lot of very tasty criminals.”

16-year-old Liam Kelly
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16-year-old Liam Kelly was shot dead a year before Ms Hargreaves. Pic: Merseyside Police

Parle is also wanted in connection with the murder of 16-year-old Liam Kelly, who was shot dead over an alleged £200 debt in June 2004, a year before Lucy’s death. Parle was arrested and questioned, but then freed on bail.

There have been reports of the fugitive in Australia and Dubai, but nothing to corroborate any of them.

If he’s alive and if no one is prepared to shop him, what might lead to his capture?

“I think when he has a fallout with those who have guarded him, funded him, fed him, put a roof over his head and all of that, maybe even paid for his plastic surgery that could have altered his appearance,” Mr Bleksley said.

“When he finally has a fallout, when he’s no longer of use, then perhaps that will be the day that somebody goes, Peter, he’s here.”

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Rival groups face off outside migrant hotel – as asylum seekers ‘blow kisses’ at protesters

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Rival groups face off outside migrant hotel - as asylum seekers 'blow kisses' at protesters

Several demonstrators have been detained after rival groups faced off over a hotel accommodating asylum seekers in north London, with police breaking up brief clashes.

The Metropolitan Police has since imposed conditions on the protest and counter-protest outside the Thistle City Barbican Hotel in Islington.

The protest was organised by local residents under the banner “Thistle Barbican needs to go – locals say no”.

The group of several hundred people waved union flags and banners, and one man chanted: “Get these scum off our streets.”

Anti-immigration protesters outside the Thistle City Barbican Hotel in central London, which houses asylum seekers. Pic: PA
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Anti-immigration protesters waved Union Jack flags. Pic: PA

A larger group staged a counter demonstration to voice support for asylum seekers, bearing a banner that read: “Refugees are welcome.”

People inside the hotel, believed to be migrants, watched on, with some waving and blowing kisses from the windows.

More on Migrant Crossings

People believed to be asylum seekers waved from the windows of Thistle City Barbican Hotel. Pic: PA
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People believed to be asylum seekers waved the hotel windows. Pic: PA

Pro-immigration protesters gather outside the Thistle City Barbican Hotel in central London, which houses asylum seekers. Pic: PA
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Pro-immigration protesters gathered by the Thistle City Barbican Hotel. Pic: PA

A man wearing an England football shirt was detained by police after getting into an altercation with officers.

There have been nine arrests so far, seven of which were for breaching conditions police put on the protests under the Public Order Act.

Rival groups separated by police

Another protest was scheduled in Newcastle on Saturday, outside The New Bridge Hotel, as anti-migrant sentiment ripples through some communities around the country, also flaring up recently in Epping.

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Last week: Protesters divided over migrant hotels

The counter-protest in London was organised by local branches of Stand Up To Racism, and supported by former Labour leader and Islington North MP Jeremy Corbyn.

Other community groups including Finsbury Park Mosque and Islington Labour Party were also involved.

Groups online that backed the original protest include “Patriots of Britain” and “Together for the Children”.

At one point, a large group of masked protesters dressed in black, calling themselves anti-fascists, appeared from a side street and marched towards the rival group outside the hotel.

The two groups briefly clashed before police rushed in to separate them.

Masked protesters gather outside the Thistle City Barbican Hotel in central London, which houses asylum seekers. Pic: PA
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Pic: PA

Supporters of local protest group "Thistle Barbican needs to go - locals say no" gathering outside the Thistle City Barbican Hotel. Pic: PA
Image:
Supporters of local protest group ‘Thistle Barbican needs to go – locals say no’. Pic: PA

Why are asylum hotels used?

The government is legally required to provide accommodation and subsistence to destitute asylum seekers while their claims are being decided, most of whom are prohibited from working.

A jump in the use of hotels since 2020 has been attributed to the impacts of the COVID pandemic, a backlog in unresolved asylum cases, and an increase in the number of migrants crossing the Channel in small boats.

However, the number of asylum seekers living in hotels has fallen recently, from 38,079 at the end of 2024 to 32,345 at the end of March 2025, according to the Refugee Council.

How police tried to keep groups apart

The police imposed conditions on both groups in London to prevent “serious disorder” and minimise disruption to the community.

Those in the anti-asylum hotel protest were told to remain within King Charles Square, and to gather not before 1pm and wrap up by 4pm.

Those in the counter-protest were to required to stay in an area in Lever Street, and assemble only between 12pm and 4pm, but were still in eye and ear shot of the other group.

Chief Superintendent Clair Haynes, in charge of the policing operation, said: “We have been in discussions with the organisers of both protests in recent days, building on the ongoing engagement between local officers, community groups and partners.

“We understand that there are strongly held views on all sides.

“Our officers will police without fear or favour, ensuring those exercising their right to protest can do so safely, but intervening at the first sign of actions that cross the line into criminality.”

Meanwhile, the protest in Newcastle was promoted by online posts saying it was “for our children, for our future”.

The “stop the far right and fascists in Newcastle” counter-protest was organised by Stand Up To Racism at the nearby Laing Art Gallery.

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Jon Ruben remanded into custody on child cruelty charges after children fell ill at summer camp

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Jon Ruben remanded into custody on child cruelty charges after children fell ill at summer camp

A man has been remanded into custody charged with child cruelty offences after allegedly lacing sweets with sedatives.

Jon Ruben, 76, of Ruddington, Nottinghamshire, appeared at Leicester Magistrates’ Court on Saturday after youngsters fell ill at a summer camp in Stathern, Leicestershire.

He has been charged with three counts of wilfully assaulting, ill-treating, neglecting, abandoning or exposing children in a manner likely to cause them unnecessary suffering or injury to health.

The charges relate to three boys at the camp between 25-29 July.

A general view of the scene in Stathern, Leicestershire, after a 76-year-old man was arrested on suspicion of administering poison at a summ
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The scene in Stathern, Leicestershire. Pic: PA

Ruben spoke only to confirm his name, age and address.

Police received a report of children feeling unwell at a camp being held at Stathern Lodge, near Melton in Leicestershire, last Sunday.

Officers said paramedics attended the scene and eight boys – aged between eight and 11 – were taken to hospital as a precaution, as was an adult. They have since been discharged.

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Police said the “owners and operators of Stathern Lodge are independent from those people who use or hire the lodge and are not connected to the incident”.

Leicestershire Police has referred itself to the Independent Office for Police Conduct, after officers initially reported the incident as having happened on Monday, only to later amend it to Sunday.

It is still unclear when officers responded and whether that is why the watchdog referral has been made.

Ruben will next appear at Leicester Crown Court on 29 August.

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