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.
11 Articles
11 Articles
Spending Review: Rachel Reeves to make big announcement next week - how could taxes and pensions be impacted?
Chancellor Rachel Reeves is set to unveil the Labour Government's spending plans over the next Parliament in the next couple of years, which could have consequences for household finances.This comes amid reports that the UK could be forced to raise defence spending to 3.5 per cent of gross domestic product (GDP) by NATO; a cost which will need to be paid for by the British taxpayer. Furthermore, Labour committed to awarding public sector workers…
What’s the Spending Review and what can expect?
It’s less than a week until the Spending Review announcement, and rumours abound about what departments will get in funding and how it ties in with the Government’s priorities. But how did we get to this system in which departments depend on settlements with the Treasury as part of a broad review of what the government spends its money on? Does it work? How has history influenced it? And what can we expect from next week? We have today published…
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