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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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David Beckham says knighthood ‘truly humbling’ – as rock star and acting great also honoured

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David Beckham says knighthood 'truly humbling' - as rock star and acting great also honoured

David Beckham has called it “truly humbling” and an “emotional moment” to be made a knight in the King’s Birthday Honours.

The former England captain receives the honour alongside The Who frontman Roger Daltrey and Oscar-winning actor Gary Oldman.

Singer and actress Elaine Paige, novelist Pat Baker, and former defence secretary Penny Mordaunt have been awarded damehoods.

Britain's King Charles talks with David Beckham and Penny Lancaster as they attend the King's Foundation Awards ceremony, on the 35th annive
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Sir David chatted to the King at an event on Thursday. Pic: PA

Meanwhile, Strictly Come Dancing hosts Tess Daley and Claudia Winkleman, as well as darts stars Luke Littler and Luke Humphries, will all get MBEs.

Beckham was made an OBE in 2003, but now finally becomes Sir David after being in the running for many years. He gets the honour for his services to sport and charity.

Sir David was said to be close to a knighthood in 2014, but reportedly lost out after HM Customs and Revenue flagged his involvement in an alleged tax avoidance scheme.

“Growing up in east London with parents and grandparents who were so patriotic and proud to be British, I never could have imagined I would receive such a truly humbling honour,” he told PA news agency.

David Beckham received an OBE in 2003. Pic: PA
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It’s been 22 years since the ex-footballer got an OBE. Pic: PA

“To have played for and captained my country was the greatest privilege of my career, and literally a boyhood dream come true,” added the former Manchester United and Real Madrid star.

Sir David, who recently turned 50, was seen chatting to the King the day before his honour was announced as part of his role as an ambassador for the monarch’s foundation.

He said he’d been fortunate to “represent Britain around the world and work with incredible organisations that are supporting communities in need and inspiring the next generation”.

Gary Oldman. Pic: Reuters
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Actor Gary Oldman now also becomes a knight. Pic: Reuters

Luke Littler during a match in Aberdeen earlier this week. Pic: PA
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Teenage world darts champion Luke Littler is also on the list. Pic: PA

Sir David added: “I’m so lucky to be able to do the work that I do and I’m grateful to be recognised for work that gives me so much fulfilment.

“It will take a little while for the news to sink in but I’m immensely proud and it’s such an emotional moment for me to share with my family.”

On the music front, The Who’s singer got a knighthood at age 81.

Sir Roger – known for hits such as My Generation and Pinball Wizard – led the Teenage Cancer Trust at Royal Albert Hall concert series for more than two decades.

Pete Townshend and Roger Daltrey of the rock band The Who perform on stage during the Teenage Cancer Trust show at the Royal Albert Hall, London. Picture date: Thursday March 27, 2025.
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Sir Roger with The Who at this year’s Teenage Cancer Trust show. Pic: PA

“It’s kind of weird, but I am deeply honoured to get this, especially for the charity for the Teenage Cancer Trust, and I accept it on their behalf really, because this honour is really for all unsung heroes,” said Sir Roger.

“It’s a dream come true for me, but it’s especially a dream because the charity means so much.”

TV presenter Tess Daly called her MBE “the greatest surprise of my life”.

“I don’t think I’ve come back down to earth yet,” she told PA. “I didn’t see it coming, and it almost didn’t happen because the letter went to the wrong address.

“And thank goodness someone very kind found me. And so by the time I got it, I only had, I think it was two or three days left to accept it.”

Strictly Come Dancing presenters Claudia Winkleman and Tess Daly. Pic: BBC/Ray Burmiston
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Strictly duo Claudia Winkleman and Tess Daly get MBEs. Pic: BBC/Ray Burmiston

Her co-star on Strictly, Claudia Winkleman, said she was “incredibly grateful” to be recognised.

“I will buy a hat and am taking my mum [to receive the honour]. I am ridiculously lucky and will celebrate with Tess by doing a paso doble,” she said.

West End legend Elaine Page – who has starred in shows such as Cats and Evita – was also honoured for services to music and charity.

The singer said she was in “shock” at becoming a dame

“I’ve got all these different emotions coming at me all at once,” said the 77-year-old. I’m proud and I feel grateful and I’m thrilled and surprised, and so it’s been quite a lot to take in.”

Dame Elaine has roles at two charities – The Children’s Trust and The Dan Maskell Tennis Trust, which supports disabled tennis players.

She’s also presented a BBC radio show for more than 20 years.

Read more:
Men jailed for their roles in theft of £4.75m gold toilet
Police issue mosh pit warning ahead of Download festival

Sir Anthony Gormley poses next to his sculpture LOOK
Image:
Sir Anthony Gormley has been awarded the rarest honour of all. Pic: Reuters

More than 1,200 people from across the country were given honours in the latest list, including Sky Group chief executive Dana Strong – awarded a CBE for services to business and the media.

Eleven-year-old disability campaigner Carmela Chillery-Watson is the youngest to be recognised after helping raise more than £400,000 for Muscular Dystrophy UK.

The oldest is 106-year-old William Irwin, founder of the Coleraine Winemakers Club, who gets a BEM (British Empire Medal) for services to the community.

Dana Strong. Pic: PA
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Sky Group chief executive Dana Strong has been awarded a CBE. Pic: PA

Carmela Chillery-Watson. Pic: PA
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Carmela Chillery-Watson, 11, is the youngest on the list. Pic: PA

However, the top accolade has been awarded to sculptor Sir Antony Gormley, the man behind the Angel of the North, who is made Companion of Honour for services to art.

There can only be 65 companions at any one time.

Other notable names on the list include former defence secretary Penny Mordaunt – who famously had a prominent role holding a sword at the King’s coronation – and is now a dame; and former EastEnders actress Anita Dobson, who gets an OBE.

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Air India plane crash: Only survivor thought he was ‘going to die’

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Air India plane crash: Only survivor thought he was 'going to die'

The only survivor of the Air India plane crash says he thought he was “going to die”.

Vishwash Kumar Ramesh, a 40-year-old British national, managed to walk away from the wreckage. He was “disoriented with multiple injuries all over his body… but he seems to be out of danger”, according to a doctor who examined him.

There had been 242 people on board flight AI171 when it came down. Among the passengers and crew on the Gatwick-bound aircraft were 169 Indian nationals, 53 Britons, seven Portuguese nationals and one Canadian national.

The Boeing 787-8 Dreamliner crashed into a doctors’ hostel in a residential area on Thursday, moments after taking off from Ahmedabad airport, in western India.

India plane crash: Follow live updates

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Indian PM meets lone survivor of plane crash

Vidhi Chaudhary, a senior police officer in Ahmedabad, said Mr Ramesh was sat in seat 11A, located next to an emergency exit, and “managed to escape by jumping out the emergency door”.

Speaking from his hospital bed, Mr Ramesh said he “still can’t believe” he survived.

He said he thought he “was also going to die” but he then “opened [his] eyes”.

“I pulled out the belt from under my seat and tried to escape. Then I managed to do it,” he told DD India.

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Moment of fatal plane crash in India

Mr Ramesh said “within the first mile” after take-off “it felt like the plane was stuck” and “like something had happened”.

“Then a light came on, like a green and white light came on inside the plane,” he added.

“The pilot was trying to give it a bit of a push to push it forward, but it was struggling. But it went straight into a building.”

He said the side where he landed was not the hostel side and as soon as the plane door broke, he “could see that it was open for [him] and [he had] a chance to get out”.

He said that his brother, Ajay, was seated in a different row on the plane. “He was travelling with me and I can’t find him anymore. Please help me find him,” he told the Hindustan Times.

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What could have caused the India plane crash?

‘Bodies all around me’

Mr Ramesh continued: “It all happened so quickly. When I got up, there were bodies all around me. I was scared. I stood up and ran. There were pieces of the plane all around me.

“Someone grabbed hold of me and put me in an ambulance and brought me to the hospital.”

From his hospital bed, Mr Ramesh also met India’s prime minister Narendra Modi.

Speaking in Leicester, Mr Ramesh’s brother Nayan told Sky’s Shamaan Freeman-Powell that their father was on the phone to Mr Ramesh while the plane was still on the runway.

“My dad called him,” the 27-year-old said. “And Vishwash said ‘oh we’re going to take off soon’.”

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Plane crash survivor’s brother speaks to Sky News

Two minutes later, their father received a video call from Mr Ramesh to say the plane had crashed and he had survived.

“He video-called my dad as he crashed and said ‘Oh the plane’s crashed. I don’t know where my brother is. I don’t see any other passengers. I don’t know how I’m alive – how I exited the plane’,” Nayan said.

Air India has confirmed 229 passengers and 12 crew members died, but authorities have not confirmed how many people on the ground were killed or injured.

Read more:
Everything we know about the crash
Plane wreckage rips apart medical hostel

Akeel Nanabawa, his wife Hannaa and their four-year-old daughter Sara. Pic: PA
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Akeel Nanabawa, his wife Hannaa and their four-year-old daughter Sara. Pic: PA

Who were the victims?

Among the British citizens killed in the crash were Akeel Nanabawa, his wife Hannaa, and their four-year-old daughter Sara.

Gloucester Muslim Community said in a statement on Facebook that “no words can truly ease the pain of such a profound loss”.

Fiongal and Jamie Greenlaw-Meek. Pic: Instagram
Image:
Fiongal and Jamie Greenlaw-Meek. Pic: Instagram

Also on the flight were married couple Fiongal and Jamie Greenlaw-Meek from west London, who had posted a video from the airport on their Instagram feed shortly before boarding.

Gatwick Airport said in a statement that a reception centre was being set up where information and support will be provided for relatives of those on board.

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Tata Sons, Air India’s owner, said it would give around £86,000 to the families of each person who died, cover the medical costs of those injured and support the rebuild of the medical hostel.

British nationals who require consular assistance are advised to call 020 7008 5000, while Air India has set up hotlines to provide information on +91 806 2779 200 for foreign nationals or 1800 5691 444 if calling from India.

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UK calls for restraint after Israel launches airstrikes on Iran

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UK calls for restraint after Israel launches airstrikes on Iran

Prime Minister Sir Keir Starmer has called for “restraint” and “diplomacy” after Israel launched a barrage of airstrikes on Iran early on Friday.

He called reports of Israel’s so-called Operation Rising Lion “concerning”, but stopped short of condemning it.

Israeli Prime Minister Benjamin Netanyahu said Israel had targeted the “heart of Iran’s nuclear enrichment programme”, which he feared would eventually be aimed at Israel.

Iran promised “severe punishment” for the attacks, which killed several top commanders and nuclear scientists, and launched 100 drones towards Israel in an initial response.

Follow latest: Israel attacks Iran’s nuclear sites

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Analysis: ‘This is the big one’

In a statement on Friday, Mr Starmer urged “all parties to step back and reduce tensions urgently”.

He added: “Escalation serves no one in the region. Stability in the Middle East must be the priority and we are engaging partners to de-escalate.

“Now is the time for restraint, calm and a return to diplomacy.”

The UK does not appear to have been warned in advance of Israel’s plan to attack Iran.

David Lammy, the foreign secretary, had been due to travel to Washington on Friday to meet his American counterpart.

The trip was cancelled once it became known that Israel had launched its operation.

A Whitehall source said the late cancellation of Mr Lammy’s travel plans indicated the UK had not been alerted in advance to the timing of the attack.

However, the UK had been aware of the increasing likelihood of an Israeli mission to strike Iran’s nuclear facilities, given the rhetoric from the Israeli government in recent weeks.

Mr Lammy called it a “dangerous moment” and said “stability in the Middle East is vital for global security”.

Speaking to Sky News this morning, British industry minister Sarah Jones also said the UK had not been involved in the Israeli military operation.

It is understood British warplanes are not currently involved in helping to defend Israel’s skies from any Iranian counterattacks.

This could change as the situation develops.

Additional forces could well be sent to a key Royal Air Force base in Cyprus, where Typhoon jets are stationed.

The deployment of reinforcements to RAF Akrotiri has happened in the past during times of crisis in the Middle East.

The US also said it had not been involved in Israel’s attack on Iran, and warned against any retaliation targeting American interests or personnel.

US President Donald Trump had previously urged Israeli Prime Minister Benjamin Netanyahu not to attack Iran while Washington negotiates a nuclear deal with the country.

In his first public comment about the attacks, he again urged Iran to reach a deal with Washington on its nuclear programme, warning on his Truth Social platform that Israel’s attacks “will only get worse”.

Without saying whether he was privy to specific Israeli plans, the US president said “there is still time to make this slaughter, with the next already planned attacks being even more brutal, come to an end”.

Read more from Sky News:
Charges over Ballymena riots
MPs to vote again on assisted dying – will it pass?
Everything we know about the Air India plane crash

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But China, Saudi Arabia and Russia condemned Israel’s strikes, while Japan called the use of military force “deeply regrettable”.

Russia’s foreign ministry called the attack “unprovoked” and “categorically unacceptable” and said it was in breach of the United Nations charter.

Spokesperson for the Chinese foreign ministry Lin Jian said: “China opposes the violation of Iran’s sovereignty, security and territorial integrity, opposes the intensification of contradictions, the expansion of conflicts, and the sudden
rise in temperature of the regional situation.”

Takeshi Iwaya, Japan’s foreign minister, said: “Amid ongoing diplomatic efforts, including talks between the United States and Iran, to achieve a peaceful resolution of the Iranian nuclear issue, the use of military force is deeply regrettable.”

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