Portsmouth South MP Stephen Morgan has endorsed Chancellor Rachel Reeves’ inaugural Spending Review, featuring substantial increases in housing and defence expenditure alongside broader departmental budget growth.
The administration has outlined its fiscal strategy for upcoming years, committing to departmental budget expansion of 2.3 per cent annually in real terms.
The funding distribution will vary significantly between departments—whilst some receive enhanced resources, others will experience budget cuts.
Chancellor Reeves characterised the proposals as evidence of Labour’s dedication to reconstructing public services following prolonged austerity measures. She committed to an extra £190 billion in daily operational expenditure throughout the parliamentary term.
The most significant announcement includes a £39 billion commitment to social and affordable housing across the next decade—termed by the Chancellor as the most substantial financial injection for housing in fifty years. The NHS will receive annual increases of 3 per cent above inflation, totalling £29 billion by parliament’s conclusion.
Defence spending will receive a £20 billion enhancement, potentially benefiting Portsmouth directly as home to a major Royal Navy installation. Whilst defence, health, and education budgets expand, the Home Office and Foreign Office will face reduced allocations.
Responding to the Spending Review, Portsmouth South MP Stephen Morgan stated: “Enhanced employment opportunities, reduced NHS waiting times and improved public services – these are the outcomes from today’s Spending Review that will benefit Portsmouth residents and local families.
“As the Chancellor outlined, the government is transforming our nation, though I recognise many people, including Portsmouth residents, have yet to experience this change meaningfully.
“Therefore, I endorse today’s major announcements, including the most significant social and affordable housing investment boost in decades, unprecedented NHS funding levels, and a £20 billion defence spending increase delivering skilled employment to our city.
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“These investments are achievable only through the difficult decisions the government has taken to stimulate economic growth. I firmly welcome these proposals which will significantly benefit Portsmouth.”
Opposition voices, including Conservative representatives, have contended that Labour is spending “resources it lacks,” cautioning this could result in increased borrowing, rising debt, and possible tax rises in the forthcoming Autumn Budget.
