UK Chancellor Rachel Reeves is set to announce her spending review, outlining allocations for public services and an additional £113bn for infrastructure projects like energy and transport. While prioritizing health and defence, some departments may face real-terms cuts due to sluggish economic growth and borrowing costs. The plan aims for "national renewal" and covers day-to-day spending for three years and investment for four, extending up to the next general election in 2029.
Rachel Reeves to set out spending plans up to next general election
Spending reviewsRachel Reeves
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UK Chancellor Rachel Reeves is set to announce her spending review, outlining allocations for public services and an additional £113bn for infrastructure projects like energy and transport. While prioritizing health and defence, some departments may face real-terms cuts due to sluggish economic growth and borrowing costs. The plan aims for "national renewal" and covers day-to-day spending for three years and investment for four, extending up to the next general election in 2029.
Trending- 1 Autumn last year (2024): Chancellor announced tax rises worth £40bn.
- 2 Sunday (2025-06-08): Housing Secretary Angela Rayner reached an agreement on funding.
- 3 Monday (2025-06-09): Home Secretary Yvette Cooper agreed a deal.
- 4 Wednesday (2025-06-11): Rachel Reeves to unveil her spending review in a speech.
- 5 March 2027: £3 bus fare cap in England extended until this date.
- 6 2025-26: DHSC day-to-day budget planned at £202bn.
- 7 2030: Target to build 1.5 million new homes.
- 8 Likely 2029: Next general election.
- Potential real-terms cuts for some government departments
- Significant investment in infrastructure and housing
- Extension of bus fare cap
- Ongoing political debate over fiscal responsibility and economic growth
What: UK Chancellor Rachel Reeves will unveil her spending review, detailing how money will be allocated to public services (NHS, schools, police) and committing an extra £113bn to infrastructure. Despite this investment, some government departments are expected to face real-terms cuts due to economic constraints, as health and defence budgets are prioritized.
When: Published 2025-06-10. Speech on Wednesday (2025-06-11). Home Secretary agreed deal on Monday (2025-06-09). Housing Secretary agreed deal on Sunday (2025-06-08). Bus fare cap extended until March 2027. Autumn budget last year (2024). Next general election likely in 2029.
Where: UK (national), England (bus fare cap).
Why: To set out the government's financial priorities and investment plans for "national renewal" amidst sluggish economic growth, higher borrowing costs, and global instability, while adhering to self-imposed fiscal rules.
How: The Chancellor will deliver a speech outlining the spending review. Negotiations have taken place with various government departments. The plan includes specific investment figures for infrastructure and housing, and an extension of the bus fare cap.