What's happened
On June 11, 2025, Chancellor Rachel Reeves will announce a significant spending review, focusing on increased funding for the NHS, defence, and affordable housing. The review aims to address the housing crisis and improve public services, with a total investment of £113 billion over the next decade.
What's behind the headline?
Key Points of the Spending Review
- NHS Funding: An expected £30 billion increase, aiming for a 2.8% real-term rise.
- Affordable Housing: Nearly £39 billion allocated over ten years, nearly doubling previous funding levels.
- Defence Spending: Set to rise to 2.5% of GDP, reflecting heightened security concerns.
Implications
- Housing Crisis: The substantial boost in affordable housing funding is a direct response to the ongoing housing crisis, with the government aiming to meet its target of 1.5 million homes by the next election.
- Public Services: Increased investment in public services is positioned as a means to ensure that economic renewal is felt by working people across the country.
- Political Landscape: This review may reshape the political narrative, positioning the government as proactive in addressing pressing social issues, despite recent criticisms regarding fiscal management and rising unemployment.
What the papers say
According to The Independent, Rachel Reeves is set to unveil a spending review that prioritizes working people's needs, stating, "This government's task - my task - is to ensure that renewal is felt in people's everyday lives." The Guardian highlights the nearly £40 billion boost for affordable housing, emphasizing that this is the largest investment in a generation, with a government source claiming, "We’re turning the tide against the unacceptable housing crisis in this country." Meanwhile, Christopher McKeon from The Independent notes that the review will also include significant funding for public transport and nuclear projects, indicating a broad approach to economic renewal. These contrasting perspectives underline the government's commitment to addressing both immediate social needs and long-term infrastructure goals.
How we got here
The spending review follows a period of negotiation among government departments, with Reeves adjusting fiscal rules to allow for increased borrowing. This comes amid rising unemployment and a recent U-turn on winter fuel payments for pensioners.
Go deeper
- What specific changes will the spending review bring?
- How will this impact housing availability in the UK?
- What are the expected outcomes for public services?
Common question
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What are the key highlights of the Chancellor's spending review?
On June 11, 2025, Chancellor Rachel Reeves announced a significant spending review aimed at revitalizing public services and addressing pressing social issues. This review is set to impact various sectors, including healthcare and housing, raising questions about its long-term implications and immediate effects.
More on these topics
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Rachel Jane Reeves is a British Labour Party politician serving as Shadow Chancellor of the Duchy of Lancaster and Shadow Minister for the Cabinet Office since 2020. She has been the Member of Parliament for Leeds West since 2010.
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northwestern coast of the European mainland.
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The National Health Service (NHS) is the term for the publicly funded healthcare systems of the United Kingdom, comprising the NHS in England, NHS Scotland and NHS Wales. Health and Social Care in Northern Ireland was created separately and is often local