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Comprehensive spending review
The NHS the biggest beneficiary

Health emerged as the biggest winner in the comprehensive spending review with council tax payers the likely losers. The National Health Service (NHS) it was announced will receive a 4 per cent real-term increase, taking NHS spending in England up by nearly £19.5bn to £110bn by 2010-11. Total health spending across the UK will rise from just under £105bn this year to £126.7bn next.

Spending will now rise by 2.1 per cent a year on average until 2010, rather than the 2.0 per cent announced at the time of the Budget. Total managed expenditure will now increase from an estimated £589bn this year to just over £678bn in 2010-11.

The extra cash announced will ultimately benefit education, counter-terrorism and security, and social housing. Local government at the other end of the spectrum secured only a 1 per cent real-terms rise.

Education spending rises by 2.8 per cent a year in real terms, with an extra £250m of revenue allocated over three years and £200m of capital to build an extra 75 schools.

Counter-terrorism and security receives a boost, with the budget for the intelligence agencies rising by 9.6 per cent a year in real terms, with £3.5bn a year being spent on the police, security and intelligence services by 2010-11. The Home Office will now see 1 per cent real-terms growth.

The work and pensions and revenue and customs are to face cuts in their administrative budgets, down 5 per cent a year in real terms over the next three years.

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Levels and bases of, and reliefs from, taxation are subject to change.

This article is for your general information and use only and is not intended to address your particular requirements. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. Any references made to the Pre-Budget Report may be subject to the Finance Bill becoming law.

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