Where are spending cuts or bigger budgets likely?

The British Treasury is about to set up daily spending and investment plans for all government services on Wednesday, markets and voters looking at where budget cuts could fall.

In its “ Revue des Lespens ”, the government of labor will explain how public money will be allocated over the next three to four years, ranging from spending to public services such as schools and the police to social budgets and energy investments, infrastructure, infrastructure, infrastructure, infrastructure, infrastructure, infrastructure, infrastructure, infrastructure, Scientific and technological projects This can stimulate economic growth.

The examination covers resource expenditure – daily government and administration costs – as well as capital expenses, which consists in improving infrastructure and public services such as new roads, hospitals and military equipment.

Now, British observers are waiting to see where the ax is concerned with regard to the individual budgets of the Department of the Government of the Government, and which obtain a windfall. The government has already undertaken to higher expenses in defense,, transportation And healthBut cuts are expected elsewhere.

Departments supervising the police, affordable housing, the environment and the local government would have been faced with pressure financingMaking delicate negotiations in recent weeks between the British Minister of Finance Rachel Reeves and various Ministers of the Government when they were looking for larger budgets of the Treasury.

The Prime Minister’s official spokesman said on Monday that negotiations on spending examination were finally completed.

“Expenditure examination is set-we will focus on investment in the renewal of Great Britain so that all workers are better off,” he said. “The government’s first work was to stabilize the British economy and public finances, and now we are moving into a new chapter to deliver promise and change.”

“The government will have no choice but to prioritize where the money goes to this expenditure exam, which means that certain departments will be disappointed”, said in the analysis Last week.

“Daily expenses should only increase by 1.2% per year in real terms, which implies a decrease of 1.3% on average for many areas after taking into account regulations probably higher than the average for health, childcare and defense.”

Investment expenditure will be much higher than in previous years, but there will still be not enough public funding to respond to the long list of department’s requests, warned IFG: “Especially since the government’s ambitions to respond to NHS waiting lists, accelerate the decarbonization of the network and support all require sufficient spending.”

Expense examination in 2025 is presented as a huge moment for the Labor government and a good balance for Reeves.

Governments often increase loans to finance public spending, but Reeves promised to obtain public finances from the United Kingdom. She is committed to self-imposing “Tax rules” Who dictate that daily expenses must be respected by tax revenue and that public debt is decreasing in share of economic production by 2029-30.

As such, Chancellor Reeves has given little room to maneuver unless she breaks her own restrictions, hikes again or does not reduce spending with economists

“All about this [spending review] Is political – Chancellor does he want to look at social cuts – probably not. We know that the defense is assigned to more money. We know that the Chancellor will resolutely stick to her tax rules, although she can modify them to host more expenses, “British investors at Saxo Markets on Tuesday.

“The simplest way to balance books is the tax increases-it is not surprising that, given major reductions in required spending, we also mean concerns about the potential changes in investment tax in the fall,” he added.

Some economists are skeptical about the fact that government spending and investment plans will stimulate hoped -for growth, which means that new tax increases may be necessary to finance future expenses.

“With low confidence in business and consumers aggravated by the uncertainty of global trade, the economic fortune of the United Kingdom seems to be improving anytime soon,” said Andrew Hunter, main economist at Moody’s Analytics, in a note before the expenses.

“While the government is part of a breach of budgetary rules, new tax increases in the next budget later this year seem inevitable.”