Britain's finance minister Rachel Reeves will face a pivotal decision over how to balance healthcare funding with other public service demands, Reuters reported on Sunday citing the Institute for Fiscal Studies (IFS). Reeves is expected to unveil multi-year spending limits on June 11, setting departmental budgets through March 2029. The IFS warned the review could be one of the most consequential policy moments of the Labour government's term. According to October budget plans, day-to-day non-investment spending will grow by 1.2 per cent annually in real terms between 2026-27 and 2028-29 — half the rate of recent years. With limited room for borrowing or tax increases, Reeves will be forced to prioritise either the National Health Service (NHS)— strained by long waiting lists and pandemic-induced productivity issues — or other overstretched departments. If health spending continues to grow at historic rates, the IFS forecasts a 1 per cent real-terms cut annually for other areas. Matching health funding to the broader 1.2 per cent target, meanwhile, would fail to reverse recent service deterioration. The IFS urged the government to clearly spell out any planned spending cuts or risk undermining investor confidence. The review excludes pensions and benefits, which are being addressed separately. Attribution: Reuters Subediting: M. S. Salama
