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The Independent
2 days ago
- Business
- The Independent
Watch live: Rachel Reeves delivers spending review as chancellor pledges to make working people ‘better off'
Watch live: Rachel Reeves delivers her much-anticipated spending review on Wednesday (11 June) as the chancellor pledges to make working people 'better off'. The spending review comes after the government announced a massive expansion of who will receive winter fuel payments in a major U-turn following months of backlash. 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. 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. Reeves is expected 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.
The Independent
2 days ago
- Business
- The Independent
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 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
The Independent
2 days ago
- Business
- The Independent
Watch live: Starmer faces Badenoch at PMQs ahead of Rachel Reeves spending review
Watch live as Keir Starmer faces Kemi Badenoch at Prime Minister 's Questions ahead of Rachel Reeves ' much-anticipated spending review on Wednesday (11 June). PMQs comes after the government announced a massive expansion of who will receive winter fuel payments in a major U-turn following months of backlash. 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. 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. Reeves is expected 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.
The Independent
2 days ago
- Business
- The Independent
Reeves to say spending review will reflect ‘priorities of working people'
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% in real terms, along with an extra £4.5 billion for schools and a rise in defence spending to 2.5% of GDP. But Wednesday could present a tough prospect for other government 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% 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. She will say on Wednesday: '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. 'These are my choices. These are this Government's choices. These are the British people's choices.' Other announcements expected on Wednesday include £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. The Treasury said this would see annual investment in affordable housing rise to £4 billion by 2029/30, almost double the average of £2.3 billion between 2021 and 2026. The additional spending has been welcomed by homelessness charities, with Crisis calling it 'a determined political signal that housing really matters' and Shelter describing the move as 'a watershed moment in tackling the housing emergency'. The Chancellor has also already announced some £15.6 billion of spending on public transport in England's city regions, and £16.7 billion for nuclear power projects, the bulk of which will fund the new Sizewell C plant in Suffolk. There is also expected to be an extension of the £3 bus fare cap until March 2027 and 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. But one of the big losers from the spending review could be London, which is not expected to receive funding for any significant infrastructure projects or powers to introduce a tourist levy – both key requests from Mayor Sir Sadiq Khan.
Telegraph
2 days ago
- Business
- Telegraph
Live Reeves to hand out billions in spending review
Rachel Reeves is set to unveil billions of pounds of new public spending as the Chancellor argues that her priorities are 'the priorities of working people'. Ms Reeves will deliver her eagerly-anticipated spending review at lunchtime and it is expected to include big increases for the NHS, defence and schools. But other Whitehall departments are likely to face real-terms funding cuts. 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. The Institute for Fiscal Studies has 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. Ms Reeves is expected to say: '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. 'These are my choices. These are this Government's choices. These are the British people's choices.'
