Spending review: Reeves vows to ‘renew Britain’ with big rises for NHS, housing and defence

Reeves said total departmental budgets would grow by 2.3% a year in real terms. Photograph: House of Commons/PA

Rachel Reeves has pledged to “renew Britain” with a spending review prioritising health, defence and more than £100bn for long-term capital projects, despite leaving some key areas facing a tough squeeze on funding.

In a speech to the Commons setting out Labour’s priorities up to the next general election, the chancellor said her investment programme would be felt in all corners of the country, while decrying austerity as a “destructive choice”.