Spending review 2025: chancellor gambles on Renewing Britain to win support
Source: [The Guardian, 12 Jun 2025]
Summary:
Chancellor Rachel Reeves has unveiled a bold, near‑£113 billion, four‑year investment‑led spending review ahead of the next general election, marking a clear shift from austerity to a “renewal” agenda.
Major beneficiaries include the NHS (+2.8 % annual day‑to‑day spending), defence (targeting 2.5 % of GDP by 2027), regional transport, housing, and nuclear power — all supported by £190 billion in operational funding and £113 billion in capital outlay. Cuts hit the Home Office, culture, foreign aid and broader departmental budgets; nearly all departments face efficiency drives of at least 5 %.
Reeves insists the plan adheres to fiscal rules, but economists warn of possible future tax hikes by autumn and susceptibility to economic shocks.
Read a full WTX News breakdown of the spending review
🔁 Reactions:
- Government: Chancellor Rachel Reeves on X: “We are investing in Britain’s renewal to make working people better off.”
- Opposition: Conservative Shadow Chancellor’s post: “Today’s spending review was nothing more than an obfuscation. Now we know – tax rises are coming.”
📰 Bias Snapshot:
- The Guardian frames Reeves’s strategy as a positive pivot from austerity, highlighting regional investment and long‑term growth (theguardian.com).
- Financial Times emphasises risks: doubts over departmental capacity, timing of benefits, and looming tax or spending challenges (FT.com).
- The Times is sharply critical, warning of bond market backlash, economic fragility, and a lack of fiscal credibility (thetimes.co.uk).
📊 Sentiment:
- Neutral–negative. Ambitious and growth‑oriented, but overshadowed by uncertainty over finance, implementation, and voter impact.