Rachel Reeves is set to publish Labour's first spending review on Wednesday, outlining a £113bn capital spending plan for infrastructure. While capital spending is boosted, day-to-day departmental budgets face tight settlements and expected cuts, leading to cabinet rows. Defence and the NHS are set to be major winners, while policing, local government, civil service, foreign aid, education, and culture face savings. Significant disagreements have emerged between Reeves and other ministers like Yvette Cooper (policing), Angela Rayner (social homes), and Steve Reed (flood defences).
The winners and losers in Labour’s first spending review
Economic policyRachel ReevesTax and spendingPoliticsLabour
AI Summary
TL;DR: Key points with love ❤️Rachel Reeves is set to publish Labour's first spending review on Wednesday, outlining a £113bn capital spending plan for infrastructure. While capital spending is boosted, day-to-day departmental budgets face tight settlements and expected cuts, leading to cabinet rows. Defence and the NHS are set to be major winners, while policing, local government, civil service, foreign aid, education, and culture face savings. Significant disagreements have emerged between Reeves and other ministers like Yvette Cooper (policing), Angela Rayner (social homes), and Steve Reed (flood defences).
Trending- 1 October (presumably 2024) Budget: Reeves announced £3.4bn for household energy efficiency and £15bn for transport in North of England.
- 2 March (presumably 2025): Wes Streeting appointed Oldham as senior adviser.
- 3 Wednesday (presumably June 11, 2025): Rachel Reeves to publish government's spending review.
- 4 September 2026: Free school meals eligibility change to take effect.
- 5 This year (2025): Three new prisons to start building.
- 6 November (presumably 2025): Jails predicted to be full again.
- 7 Imminently after spending review: NHS 10-year plan to be published.
- Tight budgets and potential cuts for various departments (policing, local government, civil service, foreign aid, education, culture)
- Potential 'chunky tax rises' in the autumn
- Increased funding for defence and NHS
- Potential impact on social housing and flood defences
- Potential for new prisons and changes to free school meals eligibility
What: Labour government's first spending review, led by Rachel Reeves, which includes a £113bn capital spending plan for infrastructure but also tight day-to-day departmental budgets leading to internal cabinet disputes. Key areas like defence and NHS are set to receive boosts, while others face cuts or tight settlements.
When: Spending review to be published on Wednesday (presumably June 11, 2025, given the article date); covers a five-year parliament and a three-year spending review period; refers to the autumn budget (presumably 2024) and 2024-25 funding pressures.
Where: United Kingdom.
Why: To outline the government's financial priorities, allocate funds across departments, and manage public finances, while also fulfilling manifesto promises and addressing economic challenges.
How: Through the publication of the government's spending review, which details capital investments and departmental budget allocations, following internal negotiations and disagreements among cabinet ministers.