Frimmel and Cyan are both correct. The answer to your questions is “no”.
SS
do they get to choose each round how they will spend that money,
or is it chosen at the start of the game how the brits will spend the points between india and australia²
It can be different each round.
ok thanks very nice, been playing it wrong for years now :-D
Does it say that in the rulebook?
Yes, on page 25.