Wed, 11 Jun 2025

Wed, 11 Jun 2025 Seven ways the Spending Review will affect you

Spending limits for government departments are being outlined by the chancellor. This is how it affects you.
1. Public sector jobs and pay may be affected. 2. Government funding will increase for defence, NHS, science, and technology, but decrease for other areas such as Home Office, Foreign Office, Department for Transport, Environment, and Business and Trade by 1.7-6.9% per year. Specific cuts include:
* Home Office: 1.7% per year
* Foreign Office: 6.9% per year (mainly in aid spending)
* Department for Transport: 5% per year
* Environment and Rural Affairs: 2.7%
* Business and Trade: 1.8% 3. New jobs will be created through long-term projects, such as the Sizewell C nuclear plant (10,000 direct jobs). 4. Free school meals will be available to all children in England whose parents receive universal credit from September 2026. 5. Council tax is likely to rise in the future to improve local authorities' spending power. 6. Local government funding will increase slightly, affecting services such as social care for older people and local services like parking permits. 7. The £2 cap on bus fares in England has been raised to £3 until at least March 2027. Additionally:
* A new nuclear power plant is being built with a total of £17.8bn pledged from taxpayers' money, which will be paid back through household energy bills (estimated £1 per month).
* £39bn is being invested in affordable and social housing to improve the availability of homes for those on lower incomes.
* The government aims to build 1.5 million new homes by 2030.
* Changes to the government's self-imposed rules mean there will be a further £10bn for Homes England to boost housebuilding.
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