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British Chancellor Cassie Rachel Rivz on a roundtable during a visit to the British steel platform on April 17, 2025 to Skuntorp, England.
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The UK Treasury is ready to outline daily expenses and investment plans for all government agencies, and markets and voters watch where the budget reduction can reduce.
In its “expense review”, the Labor Government will teach how state money will be distributed over the next three -four years, starting from public services, such as schools and police, to the well -being and investment budget, infrastructure, infrastructure, infrastructure, infrastructure, infrastructure. Science and technical projects This can provide economic growth.
The review covers the expenses for resources-day work and administration, also capital costs that go to improve infrastructure and public services such as new roads, hospitals and military equipment.
The UK observers are now waiting to find out where the ax is when it comes to the individual government’s individual budgets, and which of them are obtained on windows or limited ones. The government has already pledged Higher protection costs. ship and healthBut cuts are expected elsewhere.
Departments controlling law enforcement, affordable housing, environment and local government Reportedly faced with the squeezing financingForcing inconvenient negotiations in recent weeks between UK Minister Rachel Rivz and various government ministers when they were looking for large treasury budgets.
Metropolitan police on June 7, 2025 in London, UK.
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The Prime Minister’s press -secretary said on Monday that negotiation negotiations finally ended.
“The cost review is settled – we will focus on investing in UK upgrade so that all working people are better,” he said. “The first task of the government was to stabilize the British economy and state finance, and now we are moving to a new chapter to make promises and changes.”
The cost review will open a lot about the priorities of the British Prime Minister Keira Starmer and the choice of costs Riviz, the Independent Institute of Government Analytical Center, noted on the eve of the announcement, indicating that disappointment was inevitable to some state departments.
“The government will not choose, but put priorities where money goes to this expense review, which means some departments will be disappointed,” is said in the analysis Last week.
“Daily costs should only increase by 1.2% per year in real terms, which provides an average of 1.3% for many areas after accounting, probably higher than medium settlements for health, child care and protection.”
Investment costs will be much higher than in previous years, but there will still be enough state financing to meet the long list of the department’s requirements, warned IFG, “especially since the government’s ambitions fight the NHS waiting lists, accelerate the network decorbony, and the growth of support requires sufficiently well -groomed state expenses.”
Buyers are going through the high -end Medston, UK, Wednesday, April 16, 2025.
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The 2025 expense review is exhibited as a huge moment for the government and a sophisticated balancing act for the shi.
Governments often increase borrowing to financing public expenses, but Reivz promised to obtain UK state finances in order. She pledged to set up on her own “Fiscal rules” This dictates that daily expenses must be fulfilled on tax revenues and that state debt falls as a share of economic products up to 2029-30.
Thus, Chancellor Reeves left itself a small place for maneuver if it does not violate its own restriction
“Everything in this (the cost review) is political – whether the chancellor wants to lean towards the reduction of well -being – probably not. We know that the defense is allocated for more money. We know that the chancellor will follow its financial rules, although it can set them up to post more expenses,” Nile Wilson, UK, Strategic Investors.
“The easiest way to balance books is not surprising that, given the big costs, we also hear problems about the potential changes in investment in the fall,” he added.
Some economists are skeptical of the fact that the cost and investment plans of the government will lead to the growth of hope, which means that to increase economic activity will need further tax increase.
“With a weak business and confidence consumers consisting of world uncertainty, the UK’s economic state seems to be unlikely to improve in the near future,” said Andrew Hunter, Senior Economist Moody’s Analytics, said in the note the day before.
“As the government approaches violations of its financial rules, further taxes on the next budget look everything, but inevitably.”