On June 11, the UK government will unveil its spending review, outlining how it plans to allocate over £600 billion annually for public services. Chancellor Rachel Reeves faces tough choices due to modest spending growth projections (1.2% above inflation) and a commitment to increase defence spending to 2.5% of national income. Prioritizing both health (NHS) and defence will likely necessitate cuts to other departmental budgets, potentially impacting other government missions. The review will highlight the government's true priorities amidst tight public finances and potential future economic challenges.
Rachel Reeves’s spending review will reveal what this government’s priorities really are
Tax and spendingRachel ReevesLabourEconomicsPoliticsNHSUK
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On June 11, the UK government will unveil its spending review, outlining how it plans to allocate over £600 billion annually for public services. Chancellor Rachel Reeves faces tough choices due to modest spending growth projections (1.2% above inflation) and a commitment to increase defence spending to 2.5% of national income. Prioritizing both health (NHS) and defence will likely necessitate cuts to other departmental budgets, potentially impacting other government missions. The review will highlight the government's true priorities amidst tight public finances and potential future economic challenges.
Trending- 1 March 2025: Spring statement by Rachel Reeves, OBR more optimistic about growth.
- 2 June 11, 2025: Government to unveil spending review.
- Shaping life in the UK for years to come
- Potential cuts to non-NHS/defence departmental budgets
- Impact on government's ability to achieve its five missions
- Continued speculation about potential tax rises
- Disappointment for some departments and ministers
What: The UK government's long-awaited spending review, led by Chancellor Rachel Reeves, will detail how over £600 billion annually will be allocated to public services, revealing the government's priorities amidst tight finances and competing demands from health and defence.
When: To be unveiled on June 11; covers spending for the next few years.
Where: United Kingdom.
Why: To set out the government's financial plans for public services, manage public finances, and address the challenges of modest spending growth, high interest rates, and commitments to increase defence spending while maintaining the NHS.
How: The Chancellor will allocate funds across various government departments, making difficult choices that will inevitably lead to 'winners and losers' among public services. This will involve balancing the NHS budget with defence spending and other government missions.