Spending Review 2025: what time is Rachel Reeves' announcement today – what UK government plans mean for you

• Rachel Reeves unveils her 2025 spending review today, promising to prioritise ‘working people’ and drive Britain’s economic renewal
• Big spending boosts are expected to include £30bn for the NHS, £4.5bn for schools, and £39bn for social housing
• Transport and energy upgrades should also feature heavily, including billions for public transport, nuclear power, and a £3 bus fare cap extension
• No tax hikes (on income tax, National Insurance, or VAT) are expected, but other departments may face cuts to balance the books
• Watch live around 12:30pm on Parliament TV, BBC News, Sky News or BBC Parliament

Rachel Reeves will today (June 11) unveil her much-anticipated 2025 spending review, pledging to align government priorities with those of “working people” and spearhead what she is calling “Britain’s renewal.”

The Chancellor is expected to focus heavily on boosting core public services and infrastructure while juggling tough monetary constraints – all without raising income tax, National Insurance or VAT.

Reeves will outline day-to-day spending plans for the next three years and capital investment plans stretching into 2029. Here’s what’s expected to be announced, and how it might impact your money:

Major spending increases

Headline commitments expected to be or already announced include:

• £30 billion increase in NHS funding – a 2.8% real-terms rise, aimed at tackling record waiting lists and modernising healthcare.
• £4.5 billion extra for schools, enhancing classroom resources and teacher support.
• Defence spending rise to 2.5% of GDP, in line with NATO obligations and national security priorities.
• £39 billion over 10 years for affordable and social housing, nearly doubling annual housing investment to £4 billion by 2029/30.
• £15.6 billion for public transport in English city regions, supporting tram and bus upgrades outside the capital.
• £16.7 billion for nuclear energy, most of it going to build the new Sizewell C power plant in Suffolk.
• £445 million for Welsh rail upgrades, and an extension of the £3 bus fare cap until March 2027.

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One of the notable omissions in the spending review is the lack of major infrastructure funding for London, and no sign of a tourist levy – a key request from Mayor Sadiq Khan.

While the Government promises reform of the Treasury’s “green book” rules – which decide how investment is distributed – the shift is designed to favour regions outside London and the South East.

Will there be tax hikes?

Despite the expanded spending commitments, Reeves has repeatedly stressed that Labour’s “fiscal rules” remain in place, and that there will be no increases to income tax, National Insurance, or VAT – raising the question of where future savings or revenues will come from.

The Institute for Fiscal Studies (IFS) has warned that real-terms increases to the NHS above 2.5% may mean squeezes elsewhere – particularly for departments like local government, justice, and the Home Office.

Although some departments, such as policing, may receive inflation-beating settlements, others are likely to face tightening belts.

Additionally, the Government’s recent U-turn on winter fuel payments – now extended to pensioners earning up to £35,000 – adds around £1.25 billion to public spending, reducing Reeves’ fiscal headroom even further.

What it means for you

Better public services, particularly in health and education, may mean improvements in access and quality – though not immediately.

More affordable housing could ease rental pressure and improve supply, especially for lower-income households.

The extended bus fare cap and transport upgrades could mean cheaper and more reliable travel, particularly in city regions outside London.

No major tax rises (yet) will be a relief for household budgets, though future tax tweaks or spending cuts in other areas remain a possibility.

What time is the Spending Review?

The Chancellor’s speech is expected around 12:30 pm BST, shortly after Prime Minister’s Questions, which start at noon in the House of Commons.

Major broadcasters, including BBC News and Sky News, will carry live coverage.

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