Mon, 09 Jun 2025

Mon, 09 Jun 2025 Spending review now settled, says Downing Street

Home Secretary Yvette Cooper was the last to agree a deal with Reeves on Monday afternoon.
Spending Review Settled, Chancellor to Announce Funding Increases The government's spending plans are now settled, according to the Prime Minister's official spokesman. Chancellor Rachel Reeves will announce funding increases for various departments, including the NHS, schools, and defence. Reeves has loosened Treasury borrowing rules, freeing up £113 billion for infrastructure projects. However, she must also squeeze budgets elsewhere to meet her own rules, which include not borrowing for day-to-day spending. The Chancellor is expected to announce a number of funding increases, including:
* NHS: increased funding
* Schools: increased funding
* Defence: increased funding
* Infrastructure projects: £86 billion investment In order to balance the books, Reeves has announced a £14 billion package of savings, which includes £4.8 billion in welfare cuts. Police Funding Under Pressure The Home Office had argued that police numbers must be maintained for the government's policy commitments on neighbourhood policing to be delivered. However, under the current spending proposals, this would not be possible. Reeves has also U-turned on removing Winter Fuel payments from all but the poorest pensioners, and will now give these 75% of pensioners, which will cost an estimated £1.25 billion. Opposition Criticism The government's spending plans have been criticized by opposition parties, with Conservative shadow home secretary Chris Philp saying that the government has chosen to prioritize "Ed Miliband's mad green projects" and inflation-busting pay rises for trade unions. Liberal Democrat leader Sir Ed Davey has urged the Chancellor to rule out cuts to social care, which is financed through local councils.
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