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Key Points at a Glance From the Spending Review

  • Chancellor Rachel Reeves delivered the government's Spending Review on Wednesday, 11 June, outlining budgets for the coming years in the UK.
  • The review follows a strong UK economic growth of 0.7% in early 2025 and aims to balance Labour’s election promises with self-imposed fiscal rules.
  • Reeves confirmed plans to invest billions in northern and midlands public transport, cut overseas aid to boost defence spending to 2.5% of GDP by 2027, and reverse winter fuel payment cuts affecting 10 million pensioners.
  • She emphasized no new borrowing for day-to-day spending and no further tax rises, while the Institute for Fiscal Studies warned that ‘‘sharp trade-offs are unavoidable’’ in funding government commitments.
  • The Spending Review sets a modest increase in total spending but signals tough fiscal choices ahead, with some departments facing cuts amid pressures to raise defence spending further by 2034.
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BBC News broke the news in United Kingdom on Wednesday, June 4, 2025.
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