Summary

Media caption,

Spending Review: who are the winners and losers?

  1. Analysis

    A sigh of relief from social housing landlordspublished at 15:45 British Summer Time 11 June

    Tarah Welsh
    Housing correspondent

    We're continuing to bring you analysis of the Spending Review from the BBC's correspondents, as they explain what's been announced in their respective fields.

    You could almost hear the sigh of relief from social landlords when the £39bn of investment was confirmed for social and affordable housing.

    Many had warned that without significant funding and certainty, the government would never reach its target of building 1.5 million homes over this parliament.

    But they’ve called today’s announcement a "game-changer”.

    Guaranteeing how much social landlords will receive in rent over the next 10 years means that housing associations can plan how much they have to invest in building.

    Housing charity Shelter has called this investment a “watershed moment”.

    Charlie Trew, the charity's head of policy, says the amount is 70% more than the previous government invested - but “isn’t enough” to end homelessness for good. The charity is calling for a “clear target” for exactly how many social rent homes are planned.

  2. Analysis

    'Considerable investment, yet key issues still ignored' - mixed reaction from criminal justicepublished at 15:42 British Summer Time 11 June

    Dominic Casciani
    Home and Legal Correspondent

    There’s been a mixed reaction so far from the criminal justice sector. The Spending Review chucks some cash at some problems - but not others, that remain chronic.

    Tom Franklin, chief executive of the Magistrates’ Association, says "considerable additional investment" for probation and the Crown Prosecution Service (CPS) will help better manage offenders and speed up decisions to charge suspects.

    But, he adds: "There was no mention of tackling the dire shortage of legal advisers in magistrates’ courts, which is leading to up to one in ten sittings being cancelled, or the need to recruit up to 6,000 additional magistrates over the next few years to hear the extra cases, especially if the new intermediate courts come to fruition."

    Separately, the Criminal Bar Association - which represents barristers who appear in courts - says that the government is continuing to ignore independent reviews that have recommended more money to entice lawyers into this critical part of the justice system.

    Mary Prior KC, the CBA’s chair, says: "It will cost so little to follow the recommendations of the independent government reviews about how the criminal Bar must be funded to survive."

  3. Analysis

    School cash boost has a long way to stretchpublished at 15:35 British Summer Time 11 June

    Hazel Shearing
    Education correspondent

    Our correspondents have been hard at work, assessing how today's Spending Review affects their various fields. From education through to social care and the justice system, our next few posts will take you through their analysis of what this all means.

    Money for England’s schools - especially crumbling ones - as well as training and upskilling.

    Those are the key takeaways, nestled among rehashed pledges like expanding free school meals and introducing free breakfast clubs.

    The Department for Education says the core schools budget will rise by £2bn in real terms by 2029. Much of it will go to those previous commitments.

    Falling pupil numbers means it can make some savings, but that money still has to pay for an awful lot.

    The government is staring down the barrel of ever-growing demand for special educational needs and disabilities (SEND) support.

    The spending review doesn’t seem to address deficits racked up by councils supporting those children, but it does appear to have set aside around £700m to reform the system.

    Leaky schools on the government’s rebuilding programme – many still waiting for builders - will also be wondering if a £2.4bn annual cash injection will suffice.

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  4. What does all this mean for you and your money? Send us your questionspublished at 15:17 British Summer Time 11 June

    A Your Voice, Your BBC News graphic banner

    We've spent the last few hours poring over the details announced in the chancellor's Spending Review - and now have a relatively clear picture as to how your money will be spent over the next few years.

    In amongst all the economic jargon and big numbers, it can be difficult to know exactly how it all affects you.

    So, from 17:30 BST, we'll have a panel of experts on hand to answer any questions you might have. This includes:

    • Ben Chu – BBC Verify's policy and analysis correspondent
    • Kevin Peachey – Cost of living correspondent
    • Ben Zaranko – Associate Director at the IFS

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  5. Greens suggest Spending Review is 'matter of smoke and mirrors'published at 15:13 British Summer Time 11 June

    Headshot of Ramsay who wears a navy suit stood up talking in front of green leather benchesImage source, UK Parliament

    Back in the Commons, we've some more cross-party response to bring you, this time from the Greens.

    Across England, health services are "severely overstretched", schools are making "cuts" and vulnerable people are "facing disability benefits cuts", the party's co-leader Adrian Ramsay says to Reeves.

    He asks if today's statement was a "matter of smoke and mirrors?" And, in another questions, he asks whether Reeves will consider the Greens's call for a tax on the ultra-wealthy to raise more to support public services.

    The chancellor replies that it's difficult to see if he "supports the Spending Review and the additional money that we put into public services today, or if he's against it".

    She then reminds him of the NHS's 3% spending increase as well as the 2.3% for the police - as well as increases in per-pupil funding and school budgets. "I'm not exactly sure what his complaint is," she adds.

  6. BBC Verify

    Latest figures show 32,000 people are housed in asylum hotelspublished at 15:10 British Summer Time 11 June

    By Lucy Gilder

    During her Spending Review announcement, Chancellor Rachel Reeves reaffirmed one of the government’s asylum pledges.

    She said: "We will be ending the costly use of hotels to house asylum seekers in this Parliament".

    The Spending Review, external says the government will do this by "clearing the [asylum] backlog, boosting appeals capacity and continuing to return those with no right to be here".

    Labour has previously promised to "end, external asylum hotels, saving the taxpayer billions of pounds, external" in its general election manifesto.

    But recent figures, external show there were more asylum seekers staying in hotels in March 2025 than at the end of June 2024, a few days before the general election.

    At the end of last June, there were 29,585 people staying in hotels. By March this year, there were 32,345 - though the number had dropped compared with December.

    The government does not regularly publish figures on the number of hotels being used for this purpose but figures obtained by BBC Verify show there were 218 hotels being used for asylum seekers in December 2024, up from 212 in July 2024.

    The per person cost of housing asylum seekers has come down though, according to home office officials.

  7. Spending Review: Key takeaways and the Tory responsepublished at 15:00 British Summer Time 11 June

    Media caption,

    Spending Review: Where key money is being spent... in 99 secs

    Following that flurry of cross-party reaction, let's take a step back and remind ourselves what Chancellor Rachel Reeves actually announced in her Spending Review today.

    NHS: The day-to-day budget for the health service in England will go up by 3% over the next three years - more than was expected - reaching £226bn by 2029.

    Housing: It was confirmed that £39bn will be allocated to building social and affordable housing in England between 2026 and 2036 - that's an average of £3.9bn a year.

    Defence: The Ministry of Defence's day-to-day budget will go up 0.7% in real terms, with investment spending over the period averaging 7.3%. (We already knew that defence spending is due to rise from 2.3% to 2.5% of overall economic output by 2027.)

    Asylum hotels: The government said it will end the use of hotels to temporarily house asylum seekers before the next election - this was in Labour's manifesto.

    Education: The core schools budget in England will increase by 0.4% in real terms on average over the next three years, reaching £69.5bn by 2029. It was also confirmed that free school meals will be extended to around 500,000 more children whose parents are receiving benefits.

    Transport: £15.6bn will be allocated between 2027 and 2031 for transport projects in English city regions outside London, plus the £3 cap on single bus fares in England will be extended until March 2027.

    Energy: An additional £11.5bn will go towards the cost of building the Sizewell C nuclear power plant in Suffolk, which will also require private investment.

    And here's a flavour of what the Conservatives said in response:

    • Shadow chancellor Mel Stride said his party would've made different choices and focused on improving "efficiency in the public sector", and "getting a grip on welfare"
    • He described Reeves as "the chancellor who refuses to listen", and said it's "working people and businesses who will pay the price" at her next Budget - at which he said it's "inevitable" that new tax rises would be announced
  8. Plaid Cymru grills Reeves on Welsh rail fundingpublished at 14:40 British Summer Time 11 June

    Liz Saville RobertsImage source, UK Parliament

    With MPs continuing to grill Reeves in the Commons, it's the turn of Plaid Cymru's Liz Saville Roberts, who scrutinises the chancellor's figures on Welsh rail funding.

    "The announcement of just £44.5m a year for the next 10 years for Welsh rail is Labour's flimsy fig leaf on an excuse for the multi-billion and multi-decade scandal that is HS2," Saville Roberts says.

    "The money announced today is only significant if it matches what Wales will continue to lose from all England-only rail projects up to now and in future. Can the chancellor guarantee Wales will from now on receive the full £4bn in HS2 consequential funding or will she admit her announcement on welsh rail funding is nothing but smoke and mirrors?"

    The chancellor responds, saying investment will be made for stations listed in the recent Burns Commission - a review which looks into improving transport in Wales. "In addition, we are putting in £118m to make the coal tip sites safe," Reeves says.

  9. Reform goes after Reeves for 'out of control' spendingpublished at 14:35 British Summer Time 11 June

    Richard TiceImage source, UK Parliament

    We're now hearing Reform UK's Richard Tice respond to the Spending Review - he tells the Commons government spending is "completely out of control".

    After criticising the state of the economy, Tice says he has good news for the chancellor - that in the 10 councils Reform leads after the local elections, the party has already identified savings of "hundreds of millions of pounds".

    He says Reeves could "learn some lessons" from this - and suggests it's "why Reform is leading in the polls".

    Reeves replies, accusing Reform of "wanting to privatise our NHS", which she says is not "the priority of the British people".

  10. SNP accuses Reeves of mentioning Farage more than Scotland in Spending Reviewpublished at 14:30 British Summer Time 11 June

    Dave DooganImage source, UK Parliament

    Still in the Commons, Dave Doogan has a question for the SNP.

    He accuses the chancellor of mentioning Reform and its leader Nigel Farage in her speech more times than Scotland - calling this a "disgrace".

    Earlier, Reeves announced government support for Scotland's Acorn project - a carbon capture project in Aberdeenshire. Doogan now asks for specifics on the funding.

    In response, Reeves asks why the SNP has "let down the people of Scotland with rising hospital waiting lists" and "more drugs deaths". She then says that the government is "putting money into" Acorn, but doesn't offer an exact figure.

  11. Lib Dems hail NHS investment - and remind Reeves same is needed for social carepublished at 14:18 British Summer Time 11 June

    Daisy CooperImage source, UK Parliament

    Back in the Commons - where cross-party MPs are now getting the chance to scrutinise Reeves's Spending Review - Liberal Democrat treasury spokesperson Daisy Cooper calls for more investment in social care, alongside the increase in NHS funding.

    Cooper then calls on Reeves to secure a "much deeper trading relationship with Europe" to boost economic growth.

    In response, the chancellor says the government has introduced a fair pay agreement for social care workers - and has increased local government spending power to put more money into the sector.

    On trade, Reeves points to deals already signed with the US, India and the EU. She then accuses the Lib Dems of having opposed the agreement with the US, but now "apparently think trade deals are the way to go".

  12. NHS England boss: We'll always need more, but we've done well compared with otherspublished at 14:13 British Summer Time 11 June

    Nick Triggle
    Health correspondent

    I’m at a conference of NHS managers in Manchester and news of the 3% extra for the NHS each year has been welcomed.

    In his speech to delegates, NHS England chief executive Jim Mackey says the health service has done "really well" compared with other public services.

    He tells the event - organised by the NHS Confederation - that the health service will always want more, but those in the NHS have to accept the service has been given what the public can afford.

    On the conference floor, the managers tasked with running the health service seem to be fully accepting that message, acknowledging it’s the best they could have hoped for.

    But it is less, they point out, than the health service has traditionally got, which is closer to 4%.

    The task now is to make sure it is well spent - and for an NHS that has struggled to improve productivity in the past decade that remains a key challenge.

  13. Analysis

    More money than expected for the NHS - but is it enough?published at 14:05 British Summer Time 11 June

    Hugh Pym
    Health editor

    The 3% annual real-terms increase in health spending announced by the chancellor was a bit more than expected.

    A figure of 2.8% had been mentioned in reports and speculation before the Spending Review.

    Some will see that as generous compared with other departments.

    But the NHS needs real-term spending growth every year to cope with an increasing and ageing population, and rising bills for medicines and new treatments.

    The long term trend for annual UK health spending in recent decades has been around 3.5%.

    The big question is will it be enough, with productivity improvements, to deliver reduced waiting lists in line with Labour pledges at a time of consistently rising demand?

  14. Revealed: Departments where spending will be squeezed - and those receiving morepublished at 14:00 British Summer Time 11 June

    Faisal Islam
    Economics editor

    Right, we now have the meat of the Spending Review, external. On page 48, it shows the departments losing out, measured by day-to-day spending over the three years to 2028-29.

    Here's a quick rundown:

    • Home Office spending is down 1.7% a year over the period
    • The Foreign Office loses 6.9% a year, mainly in aid spending (to pay for defence)
    • Transport loses 5% a year over the next three years
    • Environment and Rural Affairs loses 2.7%
    • Business and Trade is squeezed by 1.8%

    Meanwhile, the departments set to receive more money are as follows:

    • For Local Government, there is an increase by 1.1%
    • But the big winner is the Science and Tech department, up an annual average of 7.4% - much of which will be investments in AI
    Graphic showing relative size of departmental day-to-day budgets. The NHS is £232 billion, education is £101.5 billion, devolved governments £81.7 billion, Defence £42 billion and other is £110.6 billion
  15. More details to come at Budget in autumn, Reeves says, ending response to Toriespublished at 13:48 British Summer Time 11 June

    Concluding her response to the opposition, Reeves accuses the Conservatives of being against the investment set out in the Spending Review.

    There has been "no apology" for the damage caused to the economy and services under the Tories, Reeves adds.

    Back to her own party, she says there will be a Budget later this year where more details will be outlined. But, she quickly adds, this government has already "drawn a line" under last year's "Tory mismanagement" of the economy.

    She again summarises some of the things she is proud of, including increasing defence spending, upgrading the NHS and "investing in Britain's renewal".

    "We are delivering on the priorities of the British people," she says.

    Media caption,

    Tories hit back at 'spend now, tax later' Spending Review

  16. BBC Verify

    How will NHS boost affect other departments? We're crunching the numberspublished at 13:46 British Summer Time 11 June

    By Ben Chu

    Rachel Reeves has confirmed that the NHS will get an extra 3% per year of real terms day-to-day spending growth over the next three years.

    Given the NHS accounts for just under 40% of day-to-day spending and the size of the overall pot of money for day-to-day spending set in last year’s Budget, that confirms that there will be relatively little left for unprotected departments such as local government, the environment and transport.

    Some of those unprotected departments might well be facing real terms cuts in day-to-day spending over the next three years.

    We're examining the official documents - which have just been published, external - to confirm the details department by department.

  17. Reeves strikes back: 'Stride by name, baby steps by nature'published at 13:44 British Summer Time 11 June

    Chancellor Rachel Reeves gets a brief chance to respond to Stride.

    "Stride by name, baby steps by nature," Reeves jokes, accusing the shadow chancellor of failing to mention former PM's Liz Truss infamous mini-Budget.

    She turns to some of the things Stride has welcomed but claimed Labour hadn't gone far enough on.

    "You can't spend the money if you don't raise it," Reeves explains.

  18. 'A masterclass in delusion' is how Stride ends his attack on Spending Reviewpublished at 13:41 British Summer Time 11 June

    Concluding his response to the Spending Review, Stride says the Conservatives would have made different choices and focused on improving "efficiency in the public sector" and "getting a grip on welfare".

    He adds that the government's plans are a "masterclass in delusion".

    Stride describes Reeves as "the chancellor who refuses to listen", adding that it is "working people and businesses who will pay the price" at her Autumn Budget.

  19. Energy and defence - Stride criticises the government's approachpublished at 13:40 British Summer Time 11 June

    A few more plans are now called out by Mel Stride.

    On energy, he says Reeves has chosen to fund Energy Secretary Ed Miliband's "vanity projects" - including GB Energy.

    Stride says he welcomes the announcement on expanding nuclear capacity - by funding a new nuclear plant in Sizewell - but says the scale of ambition is a "downgrade" on the Conservatives' previous commitments.

    And on defence, Stride says "nothing was said" about when funding will rise to 3% of GDP - a level the government has said it aims to reach in the future.

    He calls the lack of a timeline the chancellor's "black hole on defence spending".

  20. Stride criticises deputy PM Rayner's 'Corbynist catalogue of tax rises'published at 13:37 British Summer Time 11 June

    We're continuing to hear shadow chancellor Mel Stride's response to the Spending Review.

    He now says business confidence has been hit by taxes and regulation in the last year - and that "unemployment is up by more than 10% since Labour came to office".

    He says Reeves has "trashed the economy and left no contingency in the face of a highly volatile world".

    "We know the deputy prime minister has provided her with a Corbynist catalogue of potential tax rises," Stride continues.

    • The background: In May, the Telegraph published a leaked memo which appeared to show Deputy PM Angela Rayner's department calling for Reeves to raise taxes, which the chancellor did not implement. Speaking to the BBC, Rayner was categoric in her denial of being behind the leak