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• Wed Jun 11 2025

Faisal Islam: This is not a quick fix, but that's the point

Rachel Reeves's key choice in this Spending Review is to prioritise long-term investment over day-to-day spending.

Within that, some cash will be routed to the Midlands and the North of England rather than London.

And against tight limits on day-to-day spending, the chancellor chose to funnel funding towards health.

These are important strategic reprioritisations. The key judgements are longer term.

You will not be riding on these railways, or getting energy from new nuclear plants in this Parliament. It will take a few years to see the inside of a newly-subsidised social house. There are no quick fixes to many years of under-investment.

For Reeves this was the culmination of a planned strategy from the important technical changes she made to her borrowing rules at last year's Budget.

The existence of this extra ?113bn capital spending arises from that decision, and it is borrowed money.