Chancellor Rachel Reeves will announce her spending review today, aiming to invest in Britain’s renewal. The announcement comes as the Labour government plans public funding through to the next general election.
Moreover, reeves will outline how departments like health, education, and policing will be funded in the years ahead. However, not all departments will see real-terms increases. Some may face cuts as the chancellor prioritises health, defence, and infrastructure.
Furthermore, the chancellor plans to invest in Britain’s renewal by committing £113bn to key infrastructure. That includes major energy and transport projects, such as £14bn for Sizewell C and £15.6bn for local transport upgrades.
In addition, Reeves will confirm day-to-day spending plans for the next three years. Investment budgets will cover four years, stretching beyond 2029. Government sources say this plan offers stability and growth amid ongoing global uncertainty.
Tensions ran high ahead of the announcement. Cabinet ministers negotiated hard over their departments’ funding. On Sunday, Housing Secretary Angela Rayner secured £39bn to expand affordable housing. This will help deliver 1.5 million new homes by 2030.
On Monday, Home Secretary Yvette Cooper struck a deal after police leaders demanded more funding. Meanwhile, Reeves will also extend the £3 bus fare cap across England until March 2027.
Economic realities limit what Reeves can offer. Sluggish growth and high borrowing costs leave little room for spending increases. Last autumn, she raised taxes by £40bn to support services like the NHS.
Today, she is expected to say, “Invest in Britain’s renewal is possible only because of stability and tough choices.” Reeves has kept her promise not to raise income tax, VAT, or employee National Insurance.
Still, the Institute for Fiscal Studies warns of hard decisions ahead. With 39% of daily spending allocated to the NHS, other departments may face cuts or require higher taxes.
Reeves continues to follow strict fiscal rules. These include covering daily costs through tax income and reducing national debt over five years.
Conservatives claim the Labour plan risks more borrowing and future tax hikes. The Liberal Democrats argue economic growth is vital to avoid further cuts.
In her speech, Reeves will say “These are my choices. These are the people’s choices. These are the government’s priorities.” Her focus remains clear Invest in Britain’s renewal.
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