Browsing: UK spending review

Leading economist Paul Johnson warns Rachel Reeves may need to raise taxes following disappointing economic indicators, contrary to her claims of a “fully funded” spending review.

The FT says the NHS, defence and education are the winners from the review but the Home Office, Foreign Office and Culture Department face a “squeeze”.

Read how the left-wing media has reacted to the chancellor’s Spending Review.

Read how the right-wing media has reacted to the chancellor’s Spending Review.

Thursday’s newspaper front pages are dominated by reactions to the spending review. It won’t come as much of a surprise how the papers have reacted – with the left-leaning press cheering on the injection of cash, bringing an end to the Conservative austerity and framing the review as a “renewal of Britain.” The right-leaning press tells their readers to “brace for tax pain” calling Rachel Reeves’s review “fantasy spending.” 

Good morning! ☕ Let’s grab a coffee and dive into the headlines for Thursday, 12 June 2025. The sun is making a welcome appearance over the capital, with temperatures reaching a pleasant 25°C. However, a touch of afternoon rain might have dampened your day, so keep an umbrella handy just in case.

Unsurprisingly, the chancellor’s spending review dominates the UK news this morning, with some publications seeing the plans as a huge investment that will boost the UK economy, and others arguing it will lead to huge tax hikes in the autumn.
The UK economy shrank by 0.3% in April, the chancellor has said, just a day after her spending review. The decline was sharper than expected.

Elsewhere, there is coverage of violence in Northern Ireland, as “protesters” set fire to a leisure centre – the violence began after an alleged sexual assault by two foreigners.

The UK Economy shrank by 0.3% in April, exceeding economists’ expectations of a 0.1% contraction, largely due to President Trump’s tariff policies.

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. 

Rachel Reeves announced a funding increase for key sectors: the Ministry of Defence will see a rise in spending from 2.3% to 2.6% of GDP by 2027, while the NHS receives an additional £29bn per year.

The Spending Review leads Wednesday’s newspaper front pages with the left-leaning press celebrating the investment into the country – including billions of pounds being put into social housing and the NHS. Almost £90 billion is set to go to science and tech and the U-turn on winter fuel is continuing to be praised. There’s a more cautious and sceptical tone from the right-leaning press who see the chancellor’s U-turn on winter fuel as evidence she is unable to do her job – and in regards to the spending review, they are concerned about how the country will pay for the investments, suggesting tax rises are set for the Autumn budget.