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PRIVACY
Economic Development

Chancellor Rachel Reeves to unveil spending plans for Britain's 'renewal'

Rachel Reeves is expected to announce big increases in spending on the NHS, defence and schools as part of a spending review set to include £113 billion of investment

Chancellor of the Exchequer Rachel Reeves speaks during the CBI National Business Dinner 2025 in London(Image: PA)

Rachel Reeves is set to commit to "invest in Britain's renewal" when she unveils her fiscal agenda for the years ahead on Wednesday.

The Chancellor is anticipated to declare substantial uplifts in funding for the NHS, defence and education sectors within a spending review that promises £113 billion of investment enabled by relaxed borrowing rules.

Additionally, Reeves will detail modifications to the Treasury's "green book" criteria, which dictate the allocation of investment funding, in an attempt to escalate financial support across regions beyond London and the South East.

Positioning this injection of capital as a direct result of the "possible only because of the stability I have introduced" following the October budget, Ms Reeves is expected to argue that her spending review will "ensure that renewal is felt in people's everyday lives, their jobs, their communities".

In her address, she is anticipated to say: "The priorities in this spending review are the priorities of working people.

"To invest in our country's security, health and economy so working people all over our country are better off."

Another key projection to watch for at the spending review involves a colossal £39 billion allocation for affordable housing over a decade, as the Government aims to fulfil its target of constructing 1.5 million homes prior to the next general election.

The Treasury said this would see annual spending on affordable housing rise to £4 billion by 2029/30, almost double the average of £2.3 billion between 2021 and 2026.