Turning to the Spending Review, the BBC's Charlie Stayt asks Reeves: if these latest growth figures are replicated in the months coming forward, how much does that scupper her plans?

"I don't think we should read too much into one month's GDP numbers - they are notoriously volatile and there are lots of reasons to have expected a poorer performance."

Many businesses were worried about exporting that month she says - a reference to Donald Trump's tariffs.

She adds that while the decisions at the Spending Review were "difficult", Reeves says it was right to focus on defence, health and the economy.

Challenged on this morning's figures, Reeves says weak economic growth has been a challenge in the UK for over a decade.

As chancellor, she says she is "determined" to turn around poor growth numbers and poor living standards.

"That's what this is all about," she says, which is why she hasn't increased taxes on working people.

• As a reminder, fresh figures showed the UK economy shrunk by 0.3% in April - worse than economists had predicted

Chancellor Rachel Reeves tells the BBC the growth figures released this morning are "disappointing".

She says monthly GDP numbers are volatile, adding that April was a "challenging month" with uncertainty.

We're now hearing from the chancellor, who is taking questions on her Spending Review on BBC Breakfast.

You can watch along by clicking watch live at the top of the page.

Chris Mason
Political editor

We are reminded rather starkly this morning of the backdrop – the all too hard to shift backdrop – that shapes our national life and conversation and the trade offs the government confronts.

The latest GDP figures underline the baked in sluggishness, the flatlining, even the shrivelling of the economy.

All this after the prime minister and the chancellor sought to badge their Spending Review as the beginning of a new chapter.

Rachel Reeves hopes her prescription can be part of the cure for our collective economic woes, writing in The Daily Telegraph that “investment” is “with a singular purpose in mind – to make you and your family better off”.

But that repeatedly, under this government and the last, feels like an aspiration for another day, some distance away, rather than an imminent prospect.

The sluggishness has another impact too. There is a widespread recognition, including in the Treasury, that the limits are being reached on what the government can sustainably borrow.

If there is an acceptance there can’t be any more borrowing and the economy remains in the slow lane, that points to more tax rises in the Budget in the autumn.

Liberal Democrat deputy leader Daisy Cooper says the Spending Review was a "missed opportunity" to show the "scale of ambition that's needed to turn our country around."

She tells BBC Breakfast her party "warmly welcomes" investment in the NHS, but is disappointed to see social care "kicked into the long grass" with "almost nothing" for it in the review.

The government could raise more money for public services by raising taxes on gambling companies and tech firms, she says.

And the government should be "going for growth" by securing a better trading relationship with the EU, she adds.

Henry Zeffman
Chief political correspondent

Yesterday Sir Keir Starmer told his cabinet that the Spending Review marked “the end of the first phase of this government”.

Coming two days after the completion of his winter fuel U-turn, it felt like an attempt to draw a line under some of the economic errors of Labour’s first year in government.

It also felt like a cautious tip toe towards a more optimistic mood after some more positive signs of economic growth.

Today’s GDP figures complicate that strategy, to say the least. It is important to stress these are only monthly rather than quarterly figures.

Yet what they show is concerning for the UK economy. And what they mean politically is that a government trying to tell the British public that because of their difficult decisions better days are coming risks looking at odds with reality.

In her first brief comments after the growth figures, Rachel Reeves says they're "clearly disappointing".

"Our number one mission is delivering growth to put more money in people's pockets through our Plan for Change, and while these numbers are clearly disappointing, I'm determined to deliver on that mission.

"In yesterday's spending review we set out how we'll deliver jobs and growth - whether that's improving city region transport, a record investment in affordable homes or funding Sizewell C nuclear power station.

"We're investing in Britain's renewal to make working people better off".

We’ll be hearing more from the chancellor shortly, and you’ll be able to hear what she says by pressing watch live at the top of this page.

Image source, Getty Images

There'll be plenty of reaction to the growth figures - and the Spending Review - coming up from politicians across the political spectrum.

At 07:15, we'll hear from Liberal Democrats deputy leader Daisy Cooper on BBC Breakfast.

Then, we'll then hear from Chancellor Rachel Reeves at 07:30.

Elsewhere, at 07:20, Michael Saunders of Oxford Economics will speak to our colleagues on the Today programme on BBC Radio 4.

He'll be closely followed on the programme by Tory leader Kemi Badenoch at 07:30.

We'll hear from the chancellor again on Today at 08:10.

Finally, Conservative shadow chancellor Mel Stride will speak on BBC Breakfast at 08:35.

• You'll be able to watch Reeves live at the top of the page

Dearbail Jordan
Senior business and economics reporter

The fall in the UK's gross domestic product (GDP) - a key measure of the economy - was far worse than expected in April.

There had been forecasts it would shrink by 0.1% between March and April, but this freshly published figure surpasses that.

The Office for National Statistics, which collates the data, says that law firms and estate agents "fared badly" in April as house buyers rushed to complete deals ahead of changes to stamp duty.

It also says car manufacturing "performed poorly". Economists said it was likely this is due to Trump's tariffs after he put a 25% tax on car imports into the US, though this has subsequently been reduced.

We're going through the figures now and will bring you more shortly.

The British economy shrank by 0.3% in April, official figures show.

That's more than was expected - many economists had predicted a 0.1% fall.

We'll bring you analysis in the next few moments.

Let's have another look now at some of the departments that will see annual growth in the 2025-2029 period, and which ones will see a budget reduction.

In the graph below you can see the health department is walking away with an increase, while the transport department is set to take a hit.

At 07:00 BST, we'll find out if the UK economy grew - or shrank - in April.

Some economists are predicting that it contracted between March and April, due in part to confusion around Donald Trump's stop-start US tariffs.

While some of Trump's import taxes have been paused while negotiations continue, one tariff did come into effect in April: a 10% levy on UK goods shipped into the US.

Domestically, employers had higher costs in April after both National Insurance Contributions and the minimum wage rose.

The government raises and spends more than £1 trillion a year, external. That’s £1,000bn, or a one with 12 zeroes.

About a quarter of the money raised in the 2024/2025 financial year will come from income tax, which people pay on the money they earn.

The next two biggest earners for the government are VAT, which is paid on many purchases, and National Insurance (NI), which is another tax levied on people's earnings.

There is also an "other" tax category - which includes capital gains tax, stamp duty and vehicle excise duty.

And some sources of money for the government don't come from taxation, such as student loan repayments, which are included in the "other non-taxes" category.

• How much tax money does the UK government raise and spend?

We're expecting politicians around the country to continue reacting to yesterday's Spending Review.

The plans were revealed yesterday by Chancellor Rachel Reeves, who said it would deliver security, economic growth and "an NHS fit for the future".

Included in the announcements were an extra £29bn per year for the NHS, £39bn over 10 years for social and affordable housing in England, a 2.3% funding rise for the police force and an increase in the number of children eligible for free school meals.

You can catch up on some of the key points from our political reporter Paul Seddon.

In response to the review, Conservative shadow chancellor Mel Stride accused Reeves of having a "spend now, tax later" approach and warned tax rises were on the horizon.

Stay with us as we continue to go over the review in depth.

Labour gambles on patience in an era of impatiencepublished at 19:07 British Summer Time 11 June

19:07 BST 11 June

Chris Mason
Political editor

The standard critique of political leaders is turned on its head today.

So often the grumble is one of short termism; the quick win, the lack of strategic long-term thought.

And yet tonight, the gamble the government has taken is a willingness for patience in an era of impatience.

Long term, so called capital spending, can – the argument goes – transform the public realm and in so doing transform economic potential. But it doesn’t happen quickly and day-to-day spending is limited, even cut in places.

This at a time of volatile politics and a restlessness among an electorate, many of whom feel squeezed and have done for years and years. The Chancellor Rachel Reeves acknowledged to me there was an impatience for change – the very thing Labour promised – and pointed to an expansion of entitlement to free school meals and breakfast clubs in England.

The big bet though remains on economic growth – finding it; sustaining it.

The lack of it is the shackle on so much within government and beyond; the national mood, taxes, you name it. The big test of today is the contribution this Spending Review can make to delivering growth – and when.

Thomas Mackintosh
Live reporter

We'll shortly be wrapping up our coverage of Rachel Reeves's Spending Review.

Speaking around an array of numbers, percentages and measures earlier today, the chancellor pledged that the review would ensure that national renewal would be felt in people's everyday lives (our cost of living correspondent breaks down that claim here).

As part of her review, the chancellor also unveiled the government's priorities for the next three years with notable increases for health, defence, education, and science - you can see the big winners below.

But, there will be cuts in day-to-day spending for parts of Whitehall, including the Home Office, Foreign Office, and Department for Environment and Rural Affairs.

There has been plenty of reaction too.

• The Conservatives' Mel Stride accused Reeves of adopting a "spend now, tax later" approach
• While Liberal Democrats leader Ed Davey said he wanted more investment in social care
• Reform's Richard Tice said Labour's spending is "completely out of control"
• The Greens suggested the Spending Review was a "matter of smoke and mirrors", while Plaid Cymru's Liz Saville Roberts challenged the chancellor's figures on Welsh rail funding
• And the SNP accused Reeves of mentioning Reform in her speech more times than she mentioned Scotland

In our next post, our political editor Chris Mason takes us through whether Labour's gamble for patience in an era of impatience will pay off, while BBC Verify's Ben Chu examines the winners and losers from today.

We're bringing our live coverage to a close, but we'll be back here again tomorrow morning to continue picking over the details of the Spending Review and what it means for you.

Hugh Pym
Health editor

Image source, Getty Images

The health think tanks have been picking over the detail of the Spending Review and drilling into the numbers for the Department of Health and Social Care.

It's emerged that the capital budget – that’s for buildings and equipment – will actually be flat in real terms over the Spending Review period.

In other words, for all the talk of investing in new kit and facilities the reality will be a Budget that does not keep pace with the rest of health spending.

The Health Foundation said that investment in buildings and equipment looked “constrained for the rest of the Parliament, despite Lord Darzi’s warning last October about the consequences of longstanding capital starvation in the service."

The Tories aren't the only ones warning of possible tax risespublished at 18:37 British Summer Time 11 June

18:37 BST 11 June

Alex Forsyth
Political correspondent

One of the main critiques levelled against Rachel Reeves's Spending Review by the Conservatives was Mel Stride warning that tax rises were on the horizon.

This isn’t the first time the Tories have claimed Labour will increase taxes.

But the Conservatives aren't the only ones who've indicated that, at some point, that might be the case

The Institute for Fiscal Studies (IFS), in the run-up to the Spending Review, also made the argument that things look tight and the chancellor doesn't have a huge amount of wiggle room.

Depending on what happens with the broader economy, the IFS said there might be some tax rises to come.

However, the government has been really clear - it said in its manifesto and has repeated it since - that the three main taxes (as people call them) - income tax, National Insurance and VAT - won't go up.

Chancellor Rachel Reeves repeated this just last week.

And when taxes were substantially increased at last year’s Budget – including employers’ National Insurance contributions - the government described that as a “one off”.

Beyond that - today is not about setting tax plans, it's about spending.

So we'll have to see at the Budget.

But it’s worth noting a couple of things – the funding for police is likely to factor in an increase in the element of council tax that you pay towards the police, which is called the precept.

Similarly, the funding set out for local government is likely to include an increase in council tax - which has increased by up to 5% in the past few years.

Earlier today, however, Reeves stressed that the government will not be “going above” council tax increases of 5% per year.

Colletta Smith and Abi Smitton
Cost of living correspondent, and producer

We've been hearing from people in Oldham, Greater Manchester, following the chancellor's Spending Review.

Uzma Karamat, 33, was employed as a teaching assistant but had to take time off after she was diagnosed with a benign brain tumour.

She tells us: “I had to wait two long years for surgery and I felt like I was left in the dark. I feel like the NHS could have done more to support me. I want investment to help people like me, so we can get better.”

Kiran Iqbal, 34, is a receptionist in a local A&E department and mum to two young boys.

She says: “Every day I’m seeing people who are coming to hospital because they can’t get in with their GP, the waiting times have gone up and it’s putting intense pressure on doctors and nurses.

"For my boys, I want there to be more youth clubs again. I can’t remember the last time I heard about a youth club in the area."

Najma Khalid, 49, is the Director of the Women’s CHAI project, a community scheme for women in Oldham. She’s worried investment in local services won’t do enough.

“We need projects to bring communities together," she tells us, adding "we see a huge amount of poverty in the area".

She says that while free school meals for families on Universal Credit will make a difference, there are "massive issues around the cost of childcare, access to services for young people and higher rates of crime".

"We’re trying to provide a lifeline for people but we need more.”