Spending review 2025 – live: Rachel Reeves to unveil plans for £600bn budget
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.
Coming up:
The government is facing a jam-packed agenda in the next two hours.
At midday, Sir Keir Starmer will face his weekly questions in the Commons.
Immediately after - at around 12:30pm - Rachel Reeves will deliver the government's spending review.
This will be followed by questions from the opposition, which will see Shadow chancellor Mel Stride question Reeves on the review.
Athena Stavrou11 June 2025 11:39
Reeves pictured leaving Downing Street ahead of review
Athena Stavrou11 June 2025 11:30
Starmer: Review will help fix the housing crisis
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.'
Athena Stavrou11 June 2025 11:25
'No job is safe': Tories criticise chancellor with Jaws jibe
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.'
Athena Stavrou11 June 2025 11:09
Why Reeves is unveiling a Spending Review - not a budget
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.
Athena Stavrou11 June 2025 11:01
Review could prompt tax rises, IFS warns
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.'
Athena Stavrou11 June 2025 10:43
Review to get NHS 'back on its feet', say Streeting
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.
Athena Stavrou11 June 2025 10:32
Ministers leave Downing Street
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.
Athena Stavrou11 June 2025 10:17
What is the spending review? Everything Rachel Reeves could announce to fix UK economy
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:
What is the spending review? Everything Reeves could announce today
The Independent looks at what the spending review is, why the government has launched one and what is expected to be in it
Athena Stavrou11 June 2025 10:00
Labour's economic plans 'disappointing' so far: Lib Dems
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.
Athena Stavrou
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