Spending Review – 11 June 2025

HIGHLIGHTS

  • No tax announcements, which will have to await the Autumn Budget.
  • Capital spending to increase by £113 billion through to 2029/30.
  • Overall day-to-day spending to rise by 1.2% a year in real terms over next three years.
  • The NHS is a major winner, with a real day-to-day spending rise of 3%.
  • Overall investment spending on defence up by 7.3% a year in real terms.
  • By April 2027, defence spending (including intelligence) will stand at 2.6% of GDP.
  • Long term investment funding commitments across transport infrastructure, social housing and prison places.
  • The Home Office and Foreign, Commonwealth and Development Office are the major losers.

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