Budget Allocation in 2025: Determining the Financial Allocations for Each Government Department by Rachel Reeves
Get the Scoop on Chancellor Rachel Reeves' Upcoming Spending Review
On June 11, Chancellor Rachel Reeves is set to reveal how much cash each government department will receive in the coming years during the spending review. Last October, she set out departmental budgets for 2025-26, and now she'll confirm the departmental allocations for the remaining years of the parliament, which ends in 2029.
Curious about what this review might entail? Our politics team has got you covered. Here's what may be unveiled:
Health and Social Care
The funding allocated to the Department of Health and Social Care could be one of the most highly anticipated announcements. Given its size, it's expected to receive nearly 40% of the total day-to-day expenditure on all departments. The amount of funding granted to other departments is largely contingent on the health and defense sectors.
Policy Shifts on Two-Child Benefit Cap
There's been pressure from Labour MPs for Sir Keir Starmer and his ministers to soften their stance on the Conservative-introduced policy that restricts families from claiming more than child benefits for their first two children. Just a week before the spending review, the Prime Minister refused to rule out abandoning this policy, so it could be addressed during the review.
Energy Security and Net Zero
Reports suggest that Chancellor Reeves may give the go-ahead for a new nuclear power station in Suffolk: Sizewell C. If approved, this would mark the end of a 15-year journey for the project, teamed with French energy giant EDF, to secure investment for the plant. Additionally, details of plans to build small modular reactors (mini nuclear power stations) in England and Wales may be disclosed.
Other Points to Watch
- Reduced foreign aid spending from 0.5% to 0.3% of gross national income in 2027
- Increasing defense spending from its current 2.3% of GDP to 2.5% by 2027 and to 3% in the next parliament
- £15bn for tram, train, and bus infrastructure outside London and a £113bn investment in capital projects over the rest of the parliament
- Expansion of free school meals to all children in households on universal credit.
For more details, stay tuned to our channel!
The upcoming Spending Review by Chancellor Rachel Reeves may reveal financing decisions that could impact various sectors, including health and social care, as it is expected to receive nearly 40% of the total day-to-day expenditure. In terms of politics, potential policy shifts on the Two-Child Benefit Cap could be discussed, as Labour MPs have pressured for a softer stance on this Conservative-introduced policy. Furthermore, the review could involve decisions about energy security and net zero, such as the approval of a new nuclear power station in Suffolk and disclosure of plans for small modular reactors. Other anticipated points include reduced foreign aid spending, increased defense spending, investment in infrastructure, and the expansion of free school meals. Keep updated for more general news on these developments.
