City MP backs record housing and defence funding in spending review
Stephen Morgan MP has responded to Chancellor Rachel Reeves’ first Spending Review, which includes funding increases for housing and defence.
The government has set out its financial plans for the coming years, promising that overall departmental budgets will grow by 2.3 per cent each year in real terms.
However, the increases will not be shared equally across all departments—some will benefit from extra funding, while others face reductions.
Chancellor Reeves described the plans as a demonstration of Labour’s commitment to rebuilding public services after years of austerity. She pledged an additional £190 billion in day-to-day spending over the course of the parliament.
Among the biggest announcements is a £39 billion investment in social and affordable housing over the next decade—described by the Chancellor as the largest cash boost for housing in half a century. The NHS will also see a 3 per cent annual increase above inflation, amounting to £29 billion by the end of the parliament.
Defence is also set to receive a £20 billion uplift, a move that could have a direct impact on Portsmouth, home to one of the Royal Navy’s key bases. While defence, health, and education budgets will grow, departments such as the Home Office and the Foreign Office will see their funding reduced.
Commenting on the Spending Review, Portsmouth South MP Stephen Morgan said: “More jobs, shorter NHS waiting lists and better public services – those are the results from today’s Spending Review which will make Portsmouth people and local families better off.
“As the Chancellor set out, the government is turning our country around but I know too many people including here in Portsmouth are yet to really feel that change.
“That’s why I support the major announcements today including the biggest boost to social and affordable housing investment in a generation, record levels of funding in our NHS and a £20 billion increase in defence spending bringing highly skilled jobs to our city.
“These investments are only possible because of the tough decisions the government has made to unlock economic growth. I strongly welcome these plans which will make a big difference to Portsmouth.”
Critics, including the Conservative Party, have argued that Labour is spending “money it doesn’t have,” warning that this could lead to higher borrowing, rising debt, and potential tax increases in the upcoming Autumn Budget.