Badenoch contests Starmer's characterisation, saying the prime minister "must be talking about a different economy".

She says last year he was taking the winter fuel payment away - and that this year unemployment has increased every month.

The Tory leader asks: "In what way are the books now balanced?"

Starmer replies saying Badenoch "obviously missed the interest rate cuts" and other announcements including the recent strategic defence review and the Sizewell C nuclear plant.

The PM says former leader Liz Truss is now advising Nigel Farage's Reform UK party and "haunting the Tories".

"The Tories have learnt nothing," Starmer says.

Henry Zeffman
Chief political correspondent

As Keir Starmer begins sparring with Kemi Badenoch in the Commons, it’s still a little while until we’ll hear from Rachel Reeves.

But we’ve just been given by Downing Street a flavour of what the prime minister told his cabinet this morning.

What this “readout” demonstrates is that Starmer and Reeves will try to present today as a turning point for their government.

According to No 10, the prime minister told the cabinet that “today marks the end of the first phase of this government, as we move to a new phase that delivers on the promise of change for working people all around the country”.

At another point, we are told that Starmer declared today to be “an important day, marking a new chapter in this government’s plan to invest in working people’s priorities”.

When we hear from the chancellor, in half an hour or so, she is likely to use plans for investment in longer-term projects as evidence that both the economy and the government are turning a corner.

Yet some voters may come to see that rhetoric as sitting a little uneasily alongside tight day-to-day spending in many areas.

Starmer responds by saying since the general election 500,000 more people are in work.

He also points to significant growth in the number of constructions jobs and investment in social housing.

"We're investing in future," the PM says.

"That's the difference Labour makes in government."

Prime Minister's Question is now under way.

Conservative leader Kemi Badenoch starts by asking Starmer about the economy, pointing out, since Labour took office, inflation has doubled, growth has halved and unemployment has surged.

Is this what he meant when he posted on social media that the economy was improving, she asks.

The prime minister has just stood up in the Commons - PMQs has begun.

Watch it live at the top of this page.

Emily Atkinson
Live Page editor

We're nearing the first of the day’s big set piece events: Prime Minister's Questions, which gets going at midday.

As always, we're in it for the long haul, bringing you live updates and analysis on all the action.

With just a few minutes to go, here are the key things about the Spending Review you need to know.

Where's it happening? The House of Commons in Westminster

How long will it go on for? The chancellor’s up first – she'll speak for around half an hour. The Tories' Mel Stride will then offer his response.

Where can you watch it? On BBC iPlayer and/ or on this page - just tap watch live above.

Image source, PA Media

Keir Starmer has left No 10 Downing Street ahead of the Spending Review - and, before then, Prime Minister's Questions.

We'll be bringing you the latest developments from the House of Commons right here on this page and you can watch live above, stay with us.

A defining moment for Rachel Reevespublished at 11:53 British Summer Time 11 June

11:53 BST 11 June

Chris Mason
Political editor

The words Spending Review may not instantly quicken the heart rate of many, but what we hear from the Chancellor Rachel Reeves will have an impact on what your life is like in the UK in the coming years.

It could be one of the defining moments between now and the next general election, as the government divvies up spending for the health service, defence, schools, the police, prisons, courts and much else.

After plenty of words about the government's priorities, we will get a sense of the numbers. And yes, a sense of the winners and losers.

We can expect ministers to claim that much of what it has done in its first year in office has been about "fixing the foundations".

That is code for the tricky stuff: think those big and in many places unpopular tax rises, such as the increase in employers' national insurance contributions.

There is also a keen awareness that rarely has a new government suffered such a big whack to its popularity so fast. Yes a whopping majority, but just 34% of the vote last summer, and they have gone a long way backwards since.

Little wonder we can expect the chancellor to claim "this government is renewing Britain" but also acknowledge "I know too many people in too many parts of the country are yet to feel it".

Baked into what we can expect to hear is an emphasis from Reeves of the importance of stability.

Ros Atkins
Analysis editor

This Spending Review, and the reaction that will follow, cuts to some fundamental questions.

What do we expect from the state? What is the state offering to provide? And how does it plan to cover the cost?

In the last few months, with BBC Panorama, I’ve been looking at pressures on the UK’s public finances.

Our ageing population will bring huge costs. It’s estimated that within 30 years, the state will require an additional £140bn a year.

There’s the UK’s national debt. It’s risen sharply in recent years with debt interest payments now almost £105bn a year.

And then there’s the benefits bill. For example, before the pandemic, health-related benefits for working age people was £37.3bn. In five years, it’s increased by 47%.

There are other pressures on public finances too. Not least the period of low growth that stretches back to the global financial crisis of 2008.

It’s worth us bearing all of this in mind as we assess the decisions the government announces today.

• Watch our Panorama on BBC iPlayer

Kevin Peachey
Cost of living correspondent

Image source, Getty Images

All the talk of departmental budgets and fiscal rules may feel somewhat distant from the cost of groceries and the rest of the family finances.

And, as we've said repeatedly this morning, today's not a Budget in which taxes are changed or a host of new policies announced.

But, don't be mistaken, this Spending Review will affect you and your finances. From bus fares to school meals, there are specifics which are being outlined by the chancellor.

And, even more importantly, it could be critical to the jobs and wages of workers in different sectors – maybe positive, maybe not.

Ben Boulos
BBC Breakfast Money & Work Presenter

How can you both win and lose at the same time? Just ask people in Barrow-in-Furness, Cumbria.

The BBC Breakfast team and I are in the town this morning to hear about the impact of the chancellor's decisions on people’s daily lives.

We will hear about the wins:

• A boost for defence spending, means more money for BAE Systems, which makes nuclear submarines, and already employs around 10,000 people here
• Some of the 800 new apprentices and graduate trainees being recruited this year will tell us how that decision has helped them get jobs

But we will also hear about the losses:

• We will talk to those working to tackle drug and alcohol addiction in the town
• And we'll look at the impact that already squeezed council budgets and cuts to welfare spending are having

It's a stretch to say that everyone here will be watching events unfold In Westminster, 300 miles away. But everyone will, ultimately, feel the effects.

Tommy Lumby
BBC business data journalist

This chart shows what is often called the "peace dividend", a trend that will have no doubt been on ministers' minds as they crunched the numbers for today’s announcements.

After World War Two, defence spending gradually fell relative to the size of the UK economy as the perceived threat to national security diminished.

At the same time, spending on healthcare and things like benefits steadily rose.

But the government could be set to reverse this trend, already having committed to spending 2.5% of GDP on defence by 2027, while Defence Secretary John Healey recently said there was "no doubt" the figure would rise to 3% by 2034 at the latest.

With tight borrowing rules and Chancellor Rachel Reeves' promise not to raise the three main personal taxes – VAT, income tax and national insurance – this is likely to put pressure on other areas of government spending.

Image source, PA Media

Over at Downing Street, we've just spotted Rachel Reeves leaving No 11, the official residence of the chancellor.

Holding a red folder, Reeves smiled for photographers as she made her way to a car. She'll now make her way to Parliament.

As we've been reporting, Reeves is due to deliver the Spending Review in the House of Commons at 12:30 BST.

Ollie Vass and his girlfriend Grace Sangster are both 19 and, between them, earn £71,000.

They tell us, via Your Voice, Your BBC News, that they've just completed on buying a two-bedroom house near Slough and are financially responsible - they've been saving money since they were 13 through mowing lawns and working in restaurants.

But today they'd like to see more support for young people starting out, especially first-time buyers, and more apprenticeships.

In a little over an hour, when the Spending Review is announced, we'll find out whether government departments will get the funding they need to extend this support.

We've some more comments to bring you now from BBC readers, who shared with us what they want to see in the Spending Review.

As a GP and practice partner earning £96,000 a year, Dr Kirsty Rogerson says she is aware she is well-off.

Through her job she sees plenty of people in her surgery in Sheffield who aren't so fortunate and face what she thinks are impossible choices.

If she could choose one thing for the government to take action on it would be to subsidise fresh fruit and vegetables and make processed food more expensive.

"What [the government] shouldn't be doing is just tackling it at the other end with weight loss drugs," she says. "That's going to bankrupt the NHS."

Image source, BBC News

Tommy Lumby
Business data reporter

In March, official forecasters estimated that Rachel Reeves only had about £10bn of "fiscal headroom".

That's the amount by which she could increase spending or cut taxes without breaking her main self-imposed fiscal rule - that day-to-day spending should be covered by tax revenues and not borrowing in 2029-30.

Although £10bn might sound like a lot of money, the chart below shows how little wiggle room she has given herself by historical standards.

Indeed, Reeves made cuts to welfare and some departmental spending in March to stop this thin margin from being squeezed out completely.

Since these forecasts were made, events such as Trump's trade wars have led to downgrades to global growth forecasts, which could in turn mean lower tax revenues.

This could have put even more pressure on the spending decisions that will be revealed today.

Some may feel short changed - but this is an opportunity for No 10 to end the economic doom looppublished at 10:55 British Summer Time 11 June

10:55 BST 11 June

Faisal Islam
Economics editor

The Spending Review will reveal the government's public sector priorities, when push comes to shove, against a backdrop of slow growth and tight budgets.

Those priorities will clearly be seen in the charts and the tables of the document as health, defence and the UK's long-term economic growth.

There will be some losers in terms of departments that are not protected, despite years of limited spending. Some regions could feel short changed by a focus on transport investment in northern England.

The grand claim of this Spending Review will be of "rewiring the state" as the plans look to "renew Britain".

The chancellor's focus has been squarely on divvying up the £113bn increase in major projects long term capital spending. This half decade will be the highest sustained public sector investment rate since 1981. There will be multi-billion investments in AI, regional transport and defence industries.

But the test of all this will be whether it addresses long-term weaknesses in investment and help change the currently sluggish trajectory of British growth.

The concern is that the review might not reconcile fundamentally higher expectations of public services, especially since the pandemic, with tight funding, limits on borrowing, and promises not to increase tax further.

The abacus and spreadsheet of spending priorities will matter.

But this is also a much-needed golden opportunity for Downing Street, with the imminent release of new long term strategies for industry, infrastructure, trade and the NHS, to show the country and the world that the economy can be forced away from a doom loop of low investment, low growth and increasing taxes.

We're continuing to bring you thoughts from some BBC readers, who shared with us what they want to see in the Spending Review.

Resheka Senior, 39, and her husband Marcus, 49, take home more than £50,000 a year between them and are still struggling.

Resheka is on maternity leave but says when she goes back to work they won't be much better off because of childcare costs.

She wants to see more funding in the Spending Review for free childcare, on top of the 30 hours a week currently provided. "I don't want to stay at home. I've been working since I was 15 years old," she says.

"It's not as if I'm saying I want benefits. We're putting back into the economy. We just need some help."

Leah Daniel, 23, and her partner run out of money every month and sometimes have to skip meals to make sure their daughter is fed.

Leah, who got in touch with us through Your Voice, Your BBC News, says the couple are entitled to £800 a month in Universal Credit and the council pays £900 a month rent for the flat in Birmingham they share with their two-year old daughter.

But currently around £100 a month is being deducted from their Universal Credit to pay for advances they took while homeless for a short time.

Any cuts to welfare budgets would be "absolutely heartless", she tells us, adding:

"It's one thing to make sure the country's growing and we aren't wasting money, and people aren't taking advantage of the system. It's another thing if you aren't giving more support to help people out of poverty and help them look for work."

The BBC's asked a handful of readers what they want to see in the Spending Review - in our next few posts, we'll bring you their thoughts.

Lewis Eager, 26, works three shifts a week in on-demand delivery service for a supermarket in Southend-on-Sea. He earns £850 a month and lives with his parents who he pays £120 a month.

He would like the Spending Review to include a plan to help young people like him find well-paid, full-time jobs.

"Getting knocked down all the time is horrible," Lewis tells the BBC.

He adds that he sees a "looming crisis" among young people unable to get on the jobs ladder, and would like to see more money go into adult education.