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More cash for schools, NHS and defence expected as chancellor unveils spending review

The chancellor will unveil the spending review at lunchtime - with plans to invest billions of pounds across the UK. 11 June, 2025

The chancellor will unveil the spending review at lunchtime - with plans to invest billions of pounds across the UK.

However, Rachel Reeves will admit that "too many people" are yet to feel the benefits of the government's work so far.

In the House of Commons, she will confirm the budgets for each government department over the next three years - with boosts expected for schools, defence and the NHS.

Ms Reeves will vow to spend vast sums of money across the country to "ensure that renewal is felt in people's everyday lives, their jobs, their communities".

She is also pledging to set out "reforms that will guarantee towns and cities outside London and the South East can benefit from new investment".

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Ms Reeves is expected to say: "This government is renewing Britain. But I know too many people in too many parts of the country are yet to feel it.

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"This government's task - my task - and the purpose of this spending review - is to change that ... So that people can see a doctor when they need one. Know that they are secure at work. And feel safe on their local high street.

"The priorities in this spending review are the priorities of working people. To invest in our country's security, health and economy so working people all over our country are better off."

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Watch live coverage of the spending review on Sky News from 12pm

Ms Reeves will formally confirm "the biggest-ever local transport infrastructure investment in England's city regions" - worth £15.6bn - as well as £86bn to "boost science and technology", including by building the Sizewell C nuclear power station.

She will also announce the extension of the £3 cap on bus fares, Sky News understands. The cap - which Labour lifted from £2 - was due to expire at the end of this year.

Meanwhile, £39bn for a new Affordable Homes Programme over the next 10 years is set to be unveiled, with the government seeking to ramp up housebuilding to hit its manifesto pledge of 1.5 million new homes by the end of this parliament.

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The chancellor will argue: "The choices in this spending review are possible only because of the stability I have introduced and the choices I took in the autumn."

One of those choices included cutting the winter fuel allowance for almost all pensioners - a decision the government has now U-turned on at a cost of £1.25bn. However, she is not expected to explain where that money will come from until the budget this autumn.

Ms Reeves will tell MPs: "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."

Read more:
Why the spending review is a massive deal
Five things you need to know

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But shadow chancellor Sir Mel Stride said this will be "the 'spend today, tax tomorrow' spending review" - arguing that the government is "spending money it doesn't have, with no credible plan to pay for it".

He said in a statement: "Rachel Reeves talks about 'hard choices' - but her real choice has been to take the easy road. Spend more, borrow more, and cross her fingers. This spending review won't be a plan for the future - it will be a dangerous gamble with Britain's economic stability."

He went on: "Today, we'll hear slogans, spin and self-congratulation - but not the truth. Don't be fooled. Behind the spin lies a dangerous economic gamble that risks the country's financial future."

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