Budget Allocation in 2025: Determining the Financial Allocations for Each Government Department by Rachel Reeves
The Spending Review 2025, happening on June 11, is gonna spill the beans on the cash flow each government department will grab over the next few years.
Back in Octo-ber, our gal, Chancellor Rachel Reeves, already set budgets for 2025-26. Now, she's gonna finalize the dough each dept gets before the parliament ends in 2029.
Our politics crew is here to give the lowdown on what we might see in the Spending Review.
So, what's on the menu?
Health and Social Care (Nearly 40% of the total, mind you)
Funding for the Department of Health and Social Care is the juicy gossip, as it's set to siphon nearly 40% of the total day-to-day budget across all departments. The amount goes a long way in deciding how much other departments get.
Keir and Co. Softening on the Two-Child Benefit Cap
After heavy pressure from his own MPs, Keir Starmer and his Cabinet have softened their stance on the Conservative-introduced policy that limits child benefits to families with only two kids. Since Keir didn’t rule it out a week before the spending review, get ready for a possible announcement on this front.
Energy Security and Net Zero
Gossips have it that Reeves might give the green light to a new nuclear power station in Suffolk (Sizewell C). It'd spell the end of a 15-year-long journey for this project jointly developed with French energy giant, EDF.
She might also serve up plans to crack open small modular reactors (mini nuclear power stations) in England and Wales.
Foreign Aid
The government announced that foreign aid spending will drop from 0.5% to 0.3% of gross national income in 2027—the lowest level since 1999. What else is on the radar? Stay tuned, mate.
Defense Spending
Keir Starmer's agreed to boost defense spending from its current 2.3% to 2.5% by 2027 and 3% by 2029. But, NATO chief Mark Rutte wants all allies to commit to 3.5% by 2035. What'll Boris go for after his tough stance on defense?
Transport
Chancellor Reeves declared £15bn for trams, trains, and bus infrastructure outside London. It's part of a £113bn investment in capital projects till the end of the parliament.
Winter Fuel Payments
Just weeks before the spending review, Keir Starmer had a U-turn and said more pensioners will receive winter fuel payment. But we'll have to wait till the autumn budget to know who qualifies and how.
Free School Meals
Last week, the government announced that free school meals will extend to all children in households on Universal Credit, affecting more than 500,000 kids from Sept 2026, with £1bn set aside for it.
Stay tuned for more updates. Follow us to never miss a beat!
In the upcoming Spending Review 2025, Chancellor Rachel Reeves is expected to allocate significant financing for the Defense sector, as she has agreed to boost defense spending from the current 2.3% to 2.5% by 2027 and 3% by 2029.
Moreover, in the realm of General-news, the fate of foreign aid spending is uncertain, as the government announced that it will drop from 0.5% to 0.3% of gross national income in 2027—the lowest level since 1999, but further developments are yet to be disclosed.
