The chancellor will today reveal how the government will allocate its £600 billion budget as she delivers her highly-anticipated spending review.
Rachel Reeves will announce the outcome of the review at 12:30pm, as she sets out spending plans across all government departments until the next general election.
Ms Reeves is expected to tell the Commons that her proposal will focus on "Britain's renewal", but financial experts have warned it could prompt future tax raises.
The NHS, transport in England’s city regions and nuclear projects are all expected to receive big funding boosts as part of the review.
£39 billion for social and affordable housing has also been promised over the next decade, as the government aims to meet its target of building 1.5 million new homes by the next election.
However, the director of the Institute for Fiscal Studies has suggested that the chancellor has left very little room for error in her forecasts.
“The risk in terms of further tax rises is if anything at all goes wrong with any of the current forecasts then they will come again in the autumn,” Paul Johnson said.
Key Points
- Review could prompt tax rises, IFS warns
- The announcements expected in today's review
- What time is the spending review?
- Spending review to include decade-long plan to deliver 1.5 million new homes
- What is the spending review?
Reeves pictured leaving Downing Street ahead of review
11:30
,
Athena Stavrou
Starmer: Review will help fix the housing crisis
11:25
,
Athena Stavrou
The government’s highly-anticipated spending review is set to be unveiled in just over an hour.
One of the areas getting a boost is housing, as £39 billion is allocated over the next 10 years to build affordable and social housing.
Sir Keir Starmer has said the move will help “make the dream of homeownership a reality”.
He wrote on X: “We are fixing the housing crisis with the biggest boost to affordable housing in a generation – to build the 1.5 million new homes this country needs.”
I am determined to make the dream of homeownership a reality.
— Keir Starmer (@Keir_Starmer) June 11, 2025
We are fixing the housing crisis with the biggest boost to affordable housing in a generation – to build the 1.5 million new homes this country needs.
'No job is safe': Tories criticise chancellor with Jaws jibe
11:09
,
Athena Stavrou
The Conservatives have launched a satirical attack on the chancellor ahead of her spending review announcement.
Posting a parody of a Jaws film poster to X, the party wrote: “Rachel Reeves is hungry for cash...and she's looking for it in your pocket.”
Rachel Reeves is hungry for cash...and she's looking for it in your pocket.
— Conservatives (@Conservatives) June 11, 2025
Whatever happens today, one thing's for sure...
You're gonna need a bigger wallet. pic.twitter.com/03stU9BuxC
Why Reeves is unveiling a Spending Review - not a budget
11:01
,
Athena Stavrou
Analysis by Kate Devlin, Whitehall Editor
What’s the difference? This is not a day filled with consumer policies.
The price of pints and cigarettes won’t go up or down depending on what Ms Reeves says.
But it is potentially more seismic than a yearly budget.
What the chancellor will do is set out the budgets for government departments for the next three years.
This will define - with potential tweaks along the way - how much the UK will spend on the NHS, defence, building more houses etc.
All of which in turn has knock-on effects for economic prosperity and quality of life.
It might not lead to punters handing over more money in the pub tonight.
But the Spending Review will impact how much cash they have in their pockets for years to come.
Review could prompt tax rises, IFS warns
10:43
,
Athena Stavrou
Financial experts have warned that Rachel Reeves could be forced to raise taxes as a result of today’s spending review.
The director of the Institute for Fiscal Studies suggested that the chancellor has left very little room for error in her forecasts.
“The risk is certainly that when we get to the next Budget this coming autumn, if the economic forecasts move at all in the wrong direction then we may have to have some more tax increases,” Paul Johnson told the BBC Radio 4 Today programme.
“It is important to be clear about this spending review, it is not announcing any new money. The Chancellor is sticking to the spending plans, at least we assume she is, she set out back in October and what she is doing is allocating that money.
“The risk in terms of further tax rises is if anything at all goes wrong with any of the current forecasts then they will come again in the autumn.”
Review to get NHS 'back on its feet', say Streeting
10:32
,
Athena Stavrou
Wes Streeting has promised today’s spending review will get the NHS “back on its feet”.
The health minister, who has just attended a Downing Street meeting to sign off on the plans, said they will help “build an NHS fit for the future”.
Under the review, the NHS has been given a £30 billion increase in funding - a rise of around 2.8 per cent in real terms.
It’s because of the choices made by this Labour government that waiting lists are lower now than when we came in.
— Wes Streeting (@wesstreeting) June 11, 2025
Thanks to the Chancellor’s Spending Review today, we’ll be able to deliver our Plan for Change, get our NHS back on its feet and build an NHS fit for the future.
Ministers leave Downing Street
10:17
,
Athena Stavrou
Government ministers have been pictured leaving Downing Street ahead of today’s spending review.
Sir Keir Starmers cabinet gathered on Wednesday morning to sign off on the chancellor’s review.
Some ministers began to arrive at just before 9am, and were seen leaving at just after 10am.
What is the spending review? Everything Rachel Reeves could announce to fix UK economy
10:00
,
Athena Stavrou
Rachel Reeves will today make one of her biggest statements to MPs since Labour’s general election victory.
The Independent looks at what the spending review is likely to include and the rows it is already causing:
Labour's economic plans 'disappointing' so far: Lib Dems
09:49
,
Athena Stavrou
The Liberal Democrats have said Labour’s economic plans have been underwhelming so far.
Lib Dem MP and spokesperson Sarah Olney told Sky News that the party would like to see a “real commitment” from Labour to invest in high streets and small businesses.
She also joined other major parties in disagreeing with the government’s decision to raise employer national insurance contributions.
Pictured: Ministers arrive at Downing Street ahead of spending review
09:38
,
Athena Stavrou
Government ministers have assembled at Downing Street this morning ahead of the spending review.
The cabinet will sign off on Rachel Reeves’ review before its presented to parliament today.
What are we expecting in today’s review?
09:26
,
Athena Stavrou
After PMQs, the chancellor will stand in the Commons to deliver the government’s spending review.
Some of the announcements have already been made over the last few weeks, but they will now be formally presented to parliament.
Here is a look at some of the things we are expecting Rachel Reeves to announce:
- A £30 billion increase in NHS funding, a rise of around 2.8 per cent in real terms.
- An extra £4.5 billion for schools.
- A rise in defence spending to 2.5 per cent of GDP.
- £39 billion for social and affordable housing over the next decade as the Government aims to meet its target of building 1.5 million new homes by the next election.
- £15.6 billion of spending on public transport in England’s city regions
- £16.7 billion for nuclear power projects, the bulk of which will fund the new Sizewell C plant in Suffolk.
- An extension of the £3 bus fare cap until March 2027.
- An extra £445 million for upgrading Welsh railways.
- The Government has also promised £750 million for a new supercomputer – the UK’s most powerful – in Edinburgh.
Winter fuel payments: Am I eligible and how much can I get?
09:18
,
Athena Stavrou
In the latest U-turn after months of backlash, the government has announced a massive expansion of who will receive winter fuel payments.
After weeks of speculation over what the changes would look like, it has now been confirmed that 9 million pensions will be eligible for the payment - a huge uplift from the 1.5 million pensioners who received the payment in winter 2024-25.
Here, The Independent looks at how the new system will work and who will be affected by the uplift:
A look at the market ahead of today's spending review
09:11
,
Athena Stavrou
The Independent’s Business and Money Editor Karl Matchett reports:
The FTSE 100 closed just shy of an all time record high on Tuesday - and today, ahead of the spending review, trading is looking cautious with the benchmark index almost flat now, after a positive start.
It remains 0.14 per cent in the green, with the FTSE 250 faring slightly better at 0.24pc to the positive.
Financials and housebuilders are leading the way, with Prudential (2.7pc), Barratt Redrow (2.0pc) and Persimmon (1.6pc) notably higher.
Analysis: Tories try to restore image as ‘the party of sound money’
09:06
,
Athena Stavrou
The Independent’s Political Correspondent Millie Cooke reports:
The Tory Party has failed to win back the trust of voters since Liz Truss’ disastrous mini budget which sent the markets into free fall.
But as Labour struggles in the polls amid criticism over its first year in office, the opposition is now trying to restore their image as the party that can be trusted with the public finances.
Speaking to Sky News ahead of Labour’s spending review, shadow Treasury secretary Richard Fuller has insisted that, for the party, “fiscal responsibility is the most important thing”.
While Labour’s struggles since taking office will perhaps make the Tories’ mission to regain trust easier, they should avoid assuming that voters’ memories are quite that short term.
Ministers arrive at Downing Street ahead of spending review
08:54
,
Athena Stavrou
Sir Keir Starmer’s cabinet has assembled in Downing Street this morning to sign off Rachel Reeves’ spending review.
Ministers were seen entering No 10 ahead of the announcement at 12:30pm.
Several investment announcements already made
08:48
,
Athena Stavrou
The full details of Rachel Reeves’ spending review will be revealed in the Commons on Wednesday, but several announcements have already been made.
These include:
- £15.6 billion for public transport projects in England’s city regions.
– £16.7 billion for nuclear power projects, including £14.2 billion for the new Sizewell C power plant in Suffolk.
– £39 billion over the next 10 years to build affordable and social housing.
– An extension of the £3 bus fare cap until March 2027.
– £445 million for upgrades to Welsh railways.
Analysis: Reeves’s spending review is not the end of Labour’s bitter civil war – it’s only the beginning
08:40
,
Athena Stavrou
Ongoing rows over cuts and economic policy will not go away with the announcement on Wednesday and will continue to fuel questions over the futures of Reeves and Starmer, says David Maddox.
What time is the spending review?
08:37
The government’s spending review will be unveiled at 12:30pm.
The chancellor will deliver the review in the Commons after this week’s PMQs.
Before the announcement, the prime minister will chair a cabinet meeting to sign off the review.
After the announcement, the review will be analysed by the Institute for Government.
What is a spending review?
08:32
,
Athena Stavrou
Rachel Reeves will today unveil the government’s spending review.
The review is the process government uses to set all departments’ budgets for the years ahead.
Today’s announcement will set out day-to-day spending plans for the next three years and capital spending plans for the next four.
It covers public services such as the NHS, schools and transport as well as how the government will invest in research, energy security and how to drive economic growth.
The term spending review may feel less familiar than the budget. This is because they happen less often - around every two years.
What can we expect today?
08:13
,
Athena Stavrou
The Independent’s Political Correspondent Millie Cooke reports:
In an hour’s time, Sir Keir Starmer’s cabinet will assemble to sign off Rachel Reeves’ spending review – a line by line audit of departmental budgets which will set out spending for the next three years.
Then, the chancellor will stand up in the Commons at 12.30pm and attempt to reassure voters that Labour is taking the economy in the right direction.
In recent weeks, we’ve seen an increasing number of big ticket spending pledges – the £1.25bn decision to reverse winter fuel cuts, £38bn for affordable housing, £14.2bn for Sizewell C – alongside the pledge to increase defence spending to 2.5 per cent of GDP and protect the NHS budget.
As nice as all of those pledges sound, in practice, they mean that unprotected departments will see cuts.
This is likely to manifest as an overall squeeze on public services and day to day spending, particularly when it comes to policing, the environment and local government.
Reeves: 'my priorities are the priorities of working people'
08:02
,
Bryony Gooch
Rachel Reeves will unveil her spending review on Wednesday, arguing that her priorities are “the priorities of working people”.
The Chancellor is expected to focus on “Britain’s renewal” as she sets out her spending plans for the coming years, with big increases for the NHS, defence and schools.
Arguing that the Government is “renewing Britain”, she will acknowledge that “too many people in too many parts of the country are yet to feel it”.
She will say: “This Government’s task – my task – and the purpose of this spending review is to change that, to ensure that renewal is felt in people’s everyday lives, their jobs, their communities.”
Spending review a 'crucial moment' for Labour, says MP
07:52
,
Bryony Gooch
Dr Jeevun Sandher has said the spending review is a "crucial moment" for the Labour Party, and is all "about making us better off".
The Labour MP, who sits on the Commons Treasury committee, says that Britain has faced the "most serious and difficult times in almost a century".
He told Sky News: “These are the most serious times for any government in this century, we have to rise to the challenge, and part of rising to the challenge in a democracy is being honest with people about where we stand.”
“We're making decisions today, yes making people better off in the short-run, but also years to come, decades and even generations.”
Tories accuse government of 'spending money it doesn't have'
07:37
,
Bryony Gooch
Shadow chancellor Mel Stride made a video on social media last night ahead of Labour’s spending review where he called Rachel Reeves the ‘Spend Today, Tax Tomorrow Chancellor’.
He said: “Labour is spending money it doesn’t have, with no credible plan to pay for it. That means more borrowing, more debt, and, inevitably, more tax rises in the Autumn Budget. Don't be fooled. We can't afford Labour.”
Tomorrow we will hear from Rachel Reeves - the 'Spend Today, Tax Tomorrow Chancellor', as she delivers her Spending Review.
— Mel Stride (@MelJStride) June 10, 2025
Labour is spending money it doesn’t have, with no credible plan to pay for it. That means more borrowing, more debt, and, inevitably, more tax rises in… pic.twitter.com/WODS5n8hYA
Pledges already made ahead of Rachel Reeves' spending review
07:28
,
Bryony Gooch
- £15.6 billion for public transport projects in England’s city regions
- £16.7 billion for nuclear power projects, including £14.2 billion for the new Sizewell C power plant in Suffolk
- £39 billion over the next 10 years to build affordable and social housing
- An extension of the £3 bus fare cap until March 2027
- £445 million for upgrades to Welsh railways
What are the challenges before chancellor as she lays out budget plans
06:39
,
Namita Singh
Rachel Reeves' spending review could present a tough prospect for other government departments as the chancellor seeks to balance Labour's commitments on spending with her fiscal rules.
The Institute for Fiscal Studies has already warned that any increase in NHS funding above 2.5 per cent is likely to mean real-terms cuts for other departments, or further tax rises to come in the budget this autumn.
This could mean a budgetary squeeze for areas such as local government, the justice system and the Home Office, despite reports that policing would receive an above-inflation settlement.
The chancellor has already insisted that her fiscal rules remain in place, along with Labour's manifesto commitment not to increase income tax, national insurance or VAT.
"I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal," she will say on Wednesday.
"These are my choices. These are this government's choices. These are the British people's choices."
Reeves to say spending review will reflect ‘priorities of working people’
05:43
,
Namita Singh
Rachel Reeves will unveil her spending review on Wednesday, arguing that her priorities are "the priorities of working people".
The chancellor is expected to focus on "Britain's renewal" as she sets out her spending plans for the coming years, with big increases for the NHS, defence and schools.
Arguing that the government is "renewing Britain", she will acknowledge that "too many people in too many parts of the country are yet to feel it".
She will say: "This government's task - my task - and the purpose of this spending review is to change that, to ensure that renewal is felt in people's everyday lives, their jobs, their communities."
Among the main announcements is expected to be a £30 billion increase in NHS funding, a rise of around 2.8 per cent in real terms, along with an extra £4.5 billion for schools and a rise in defence spending to 2.5 per cent of GDP.
Government urged to disrupt ‘addictive grip’ of smartphones on children’s life
05:00
,
Namita Singh
The government is being urged to create child-friendly playful neighbourhoods and disrupt the "addictive grip" of smartphones on children's lives.
Closures of playgrounds, busier roads, shortened school break times and the dominance of screentime have restricted children's opportunities to play, a report has suggested.
Urgent action is needed to create more opportunities for children to play outdoors and away from digital devices and social media, according to a report by the Raising the Nation Play Commission inquiry.
It warned: "Too many of our children are spending their most precious years sedentary, doomscrolling on their phones and often alone, while their health and wellbeing deteriorates."
Key points announced ahead of Rachel Reeve’s spending review
04:59
,
Namita Singh
Rachel Reeves will set out her spending plans for the coming years today as she unveils her spending review.
The review, which will set out day-to-day spending plans for the next three years and capital spending plans for the next four, is expected to see boosts for the NHS, defence and schools.
But it is also likely to involve squeezes for other departments as the Chancellor seeks to keep within the fiscal rules she has set for herself.
Her room for manoeuvre has also been further constrained by the government's U-turn on winter fuel payments, which will see the benefit paid to pensioners receiving up to £35,000 per year at a cost of around £1.25 billion to the treasury.
The full details will be revealed in the Commons on Wednesday, but several announcements have already been made.
They include:
- £15.6 billion for public transport projects in England's city regions;
- £16.7 billion for nuclear power projects, including £14.2 billion for the new Sizewell C power plant in Suffolk;
- £39 billion over the next 10 years to build affordable and social housing;
- An extension of the £3 bus fare cap until March 2027;
- £445 million for upgrades to Welsh railways.
The chancellor is also expected to announce changes to the Treasury's "green book" rules that govern whether major projects are approved.The government hopes that changing the green book will make it easier to invest in areas outside London and the South East.
IFS warns of pressure on other departments as chancellor shields NHS, defence and schools
04:50
,
Jabed Ahmed
Chancellor Rachel Reeves will outline tight spending controls for most departments in a move likely to fuel concern over real-terms cuts.
While the NHS, education and defence are expected to see spending rises, other areas – including parts of the Home Office – are facing tighter budgets.
Policing is reportedly in line for a funding boost, but this could come at the expense of cuts elsewhere in the department.
Sources close to London Mayor Sir Sadiq Khan have voiced concerns that the capital is being overlooked in the review.
The Institute for Fiscal Studies has warned that raising NHS funding by more than 2.5 per cent could lead to further tax rises or cuts elsewhere in the autumn budget.
Despite the pressure, Ms Reeves will defend her choices, saying: “I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.”
Labour’s fiscal rules remain in place, including its manifesto pledge not to raise income tax, national insurance or VAT.
Chancellor to unveil £113bn investment plan targeting NHS, defence and schools
04:40
,
Jabed Ahmed
Rachel Reeves will unveil her long-awaited spending review on Wednesday, pledging to “invest in Britain’s renewal” through £113 billion of funding made possible by looser borrowing rules.
The chancellor is expected to outline major increases in public spending on the NHS, defence and education, arguing that the new investment is only possible because of the “stability” she introduced after the autumn budget.
“The priorities in this spending review are the priorities of working people,” Ms Reeves will say.
“To invest in our country’s security, health and economy so working people all over our country are better off.”
She will also announce reforms to the Treasury’s so-called “green book” – the rules that determine which areas receive public investment – in a bid to shift funding away from London and the South East and drive growth in other parts of the UK.
What is Rachel Reeves’ spending review and what might the chancellor announce?
04:30
,
Andy Gregory
Rachel Reeves will today make one of her biggest statements to MPs since Labour’s general election victory.
The chancellor will unveil the results of her line by line spending review, setting out the budgets of government departments until the end of the decade.
The review will be the first conducted by a Labour government since Alistair Darling and Gordon Brown’s comprehensive spending review in 2007. And it will see Ms Reeves walk the tightrope between delivering on the party’s election promises while seeking to squeeze within her self-imposed fiscal rules.
Our political correspondents Archie Mitchell and Millie Cooke have more details on what to expect here:
Spending review to include decade-long plan to deliver 1.5 million new homes
04:20
,
Jabed Ahmed
The government will commit £39 billion over the next 10 years to fund affordable housing, in what it has billed as the biggest investment in a generation.
As part of her spending review, chancellor Rachel Reeves will set out plans to almost double annual investment in affordable homes to £4 billion by 2029/30, compared to £2.3 billion a year between 2021 and 2026.
The announcement is designed to help meet Labour’s promise to build 1.5 million homes by the time of the next election.
A government source said: “We’re turning the tide against the unacceptable housing crisis in this country with the biggest boost to social and affordable housing investment in a generation.”
The funding is expected to sit alongside previously announced plans, including £15.6 billion for transport upgrades in England’s city regions and £16.7 billion for new nuclear projects such as Sizewell C.
United Nations experts call for Starmer’s Chagos deal to be suspended
04:10
,
Andy Gregory
Keir Starmer is facing humiliation on the international stage after experts at the United Nations called for his controversial deal with Mauritius on the Chagos Islands to be suspended.
UN special rapporteurs criticised the agreement – which hands back sovereignty of the archipelago to Mauritius and leases back the UK-US military base on Diego Garcia for £101m per year for 99 years – for failing to protect the rights of Chagossians.
Our political editor David Maddox reports:
Planning reforms ‘critical’ to 1.5m homes pledge delivery clear Commons
04:00
,
Andy Gregory
Flagship planning reforms which are "critical" to the delivery of Labour's pledge to build 1.5 million homes have cleared the Commons.
MPs voted by 306 to 174, majority 132, to approve the Planning and Infrastructure Bill at third reading on Tuesday evening.
Housing minister Matthew Pennycook said the Bill, which aims to improve certainty and decision-making in the planning system, will help to tackle the UK's housing crisis.
Rhiannon James reports:
Tories also considered sanctioning Israeli ministers, says Dame Priti Patel
03:46
,
Andy Gregory
The last Conservative government also considered sanctioning Israeli ministers over the war in Gaza, Dame Priti Patel has said, after the UK government announced travel bans and asset freezes for two far-right members of Benjamin Netanyahu’s coalition.
Speaking in the Commons, the shadow foreign secretary said: “The situation in the Middle East and the suffering we are seeing is serious and completely intolerable.
“We continue to see violence, deaths and casualties, and near aid distribution centres, which is simply incomprehensible and that should simply never happen.”
Dame Priti added: “The minister will be aware that the sanctioning of individuals is always under review, that is the right policy. And in the case of Israel, this has been previously considered even by Lord Cameron, who has spoken of that in the last government.”
