Wed, 04 Jun 2025

Wed, 04 Jun 2025 Spending Review: When is it and what might Rachel Reeves announce?

The Chancellor faces tough choices about spending across different government departments.

* Chancellor Rachel Reeves will present the Spending Review on Wednesday, June 11, which sets budgets for government departments over the next few years.
* The review covers day-to-day expenditure for three years and investment spending for four years, with a total spending envelope of £X billion (exact figure not specified).
* Government borrowing increased to £20.2bn in April, exceeding expectations and leaving a slim financial buffer against economic shocks or increases in spending.
* Reeves has announced a package of savings worth £14bn, including £4.8bn of welfare cuts, to meet the government's fiscal rules.
* The UK economy may be strengthening, but growth is uncertain due to factors such as US tariffs and global economic conditions.
* Spending on defence will rise from 2.3% to 2.5% of GDP by 2027, with an extra £5bn per year allocated to the Ministry of Defence.
* A £15.6bn package has been announced for infrastructure spending in Greater Manchester, the Midlands, and Tyne-and-Wear.
* The Department of Health and Social Care (DHSC) budget has not been specified, but its allocation can impact other departments due to its size.
* Reeves will revise the decision to limit Winter Fuel Payments to those on means-tested benefits, with full details to be released in the Budget later this year.
* The government aims to increase investment by freeing up more than £100bn for major projects, including a potential new nuclear power station in Suffolk and small modular reactors (SMRs) in England and Wales.
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