Speaking at the dispatch box in the House of Commons this afternoon, the Chancellor of the Exchequer Rachel Reeves delivered the Government's 2025 Spending Review.

The Spending Review confirms how much Government departments will have to spend over the following three to four years. Today's Spending Review breaks down by department what can be spent over the coming years in two categories: day-to-day spending, which includes salaries, resources and other running costs for government departments - and investment (also known as capital spending), which relates to infrastructure and building things like hospitals, roads and more.

This briefing covers the key announcements from the Spending Review (announced today, 11 June, and in recent days).

Infrastructure

• More than £15.6bn has been pledged for a range of regional transport investments outside of London including metro extensions
• £14bn has been committed to build the Sizewell C nuclear power station (supporting more than 10,000 jobs)
• Over £2.5bn has been announced for a new Small Modular Reactors (SMRs) programme working with Rolls Royce - with the Government having an ambition for a full fleet of SMRs and a pathway for private sector investment into advanced nuclear solutions.
• Over £2.5bn to be invested into nuclear fusion
• A further £3.5bn investment for the TransPennine Route Upgrade
• Northern Powerhouse Rail ambitions are to be set out in the coming weeks
• £2.5bn for continued delivery of East West Rail
• Funding for the Midlands Rail Hub, strengthening connections across West Midlands and into Wales
• £445m for railways in Wales over 10 years
• £240 million to enhance Leeds station
• £25.3 billion is provided under the settlement to progress the delivery of HS2 from Birmingham Curzon Street to London Euston
• Approximately £2.4 billion per year will be invested in the School Rebuilding Programme over the next four years
• £11 billion real-terms increase in defence spending over the spending review period

Place

• HM Treasury has published the findings of its review into the Green Book. The Government will introduce ’place-based business cases’, "bringing together the projects needed to achieve the objectives of a particular place." A simplified, shortened and updated Green Book will published at the start of 2026.
• A new local growth fund will be established, completing the transition from the UK Shared Prosperity Fund - the fund will be targeted, with 10-year capital settlements for specific mayoral city regions in the North and Midlands with the highest productivity catch-up and agglomeration potential, while a new recyclable mayoral growth fund for mayors in the North and Midlands will also be made available. The Local Growth Fund will also invest in up to 350 deprived communities across the UK to fund interventions including community cohesion, regeneration and improving the public realm. 25 trailblazer areas including Barrow, Glasgow, Stockport and more have been announced here. For 2026-27 to 2028-29, funding for Scotland, Wales and Northern Ireland across these schemes will be at the same overall level in cash terms as under the UK Shared Prosperity Fund in 2025-26.
• A new Affordable Homes Programme has been announced with £39bn over the next decade to support house building
• £10bn for financial investments has been announced, including through Homes England, to increase housebuilding
• A new ‘Growth Mission Fund’ will be established to directly support local economic growth, with £240 million of capital to invest in projects between 2026-27 to 2029-30 that enable local job creation and the economic regeneration of local communities (criteria and details to be set out later this summer)
• The government will shortly set out plans for New Towns.

People

• Around 9 million pensioners will now receive the winter fuel payment following changes to the thresholds
• The £3 bus fare cap will be extended until at least March 2027
• £1.2bn a year by the end of the spending review will support over a million young people into training and apprenticeships
• Free school meals to be extended to half a million more children
• £370m announced for school-based nurseries
• £10bn for NHS digital services, including upgrading the NHS app
• The number of branded school uniform items allowed will be capped, saving families up to £50 a year per child
• Funding will be extended for eight youth guarantee trailblazers and nine inactivity trailblazers, as set out in the Get Britain Working white paper
• £7bn will go to fund 14,000 new prison places, while up to £700m a year will go to help reform the probation service
• The use of asylum hotels will be ended during this Parliament, with new transformation funding of £200m committed
• £280m more per year to be spent on the Border Security Command

Business

• The British Business Bank's total financial capacity will be increased by two-thirds (compared by 2025-26) to £25.6bn to increase support around Access to Finance for businesses and to continue programmes including Start-Up Loans and the Nations and Regions Investments Fund.
• The Government will publish its modern Industrial Strategy later in June
• Universities and business to be supported with R&D funding rising to £22bn per year by the end of spending review period
• £2bn has been announced to back the Government's AI Action Plan
• At least £1 billion will go to significantly scale up the Advanced Research and Invention Agency (ARIA)
• £410 million has been announced for a Local Innovation Partnership Fund to support local leaders to drive innovation excellence across the UK

Environment

• £9.4 billion committed to Carbon Capture, Usage and Storage (CCUS)
• £1.4 billion to support the continued uptake of electric vehicles, including vans and heavy goods vehicles (HGVs)
• £400 million for the further rollout of charging infrastructure

Destination

• The settlement will deliver on plans for the Grand Départ for the Tour de France and Tour de France Femmes in 2027
• DCMS’s National Youth Strategy will be published in due course.

The full HM Treasury document from the Spending Review can be found here.