Published by Global Banking & Finance Review®
Posted on June 11, 2025
3 min readLast updated: January 23, 2026
Add as preferred source on GoogleUK Finance Minister Rachel Reeves unveils plans for over 2 trillion pounds in public spending, focusing on health, defence, and schools.
LONDON (Reuters) - British finance minister Rachel Reeves set out her plans to divide up more than 2 trillion pounds ($2.7 trillion) of public spending on Wednesday in a speech she hopes will foster a sense of national renewal.
Below are the key quotes:
AIM OF THE SPENDING REVIEW:
"We are renewing Britain. But I know that too many people in too many parts of our country are yet to feel it. This government's task, my task as Chancellor and the purpose of this spending review is to change that."
DEPARTMENTAL BUDGETS:
"Today I am allocating the envelope I set out in the Spring. In this spending review, total departmental budgets will grow by 2.3% a year in real terms."
"This first rule (on stability) allows me as I set out in the Budget to allocate 190 billion pounds more to the day to day running of our public services over the course of the spending review compared to the previous government's plans."
ON CHALLENGES AHEAD:
"As I said in the Spring Statement, the world is changing before our eyes. And since the Spring, the challenges we face have only grown more acute. The signs of our age of insecurity are everywhere. So we are acting on the promise in our Plan for Change: Building renewal on foundations of national security, border security and economic security."
BORDERS AND ASYLUM
"At the Budget last year I announced 150 million pounds to establish the new Border Security Command. And today, to support the integrity of our borders I can announce that funding of up to 280 million pounds more per year by the end of the spending review for our new Border Security Command."
"We will be ending the costly use of hotels to house asylum seekers, in this Parliament. Funding that I have provided today including from the Transformation Fund will cut the asylum backlog; hear more appeal cases; and return people who have no right to be here, saving the taxpayer 1 billion pounds per year."
TRAINING AND SKILLS
"To champion those small businesses seeking access to finance as they look to grow, I am increasing the financial firepower of the British Business Bank, a two-thirds increase in its investments, increasing its overall financial capacity to 25.6 billion pounds."
HOUSING
"I am proud to announce the biggest cash injection into social and affordable housing in 50 years. A new Affordable Homes Programme – in which I am investing 39 billion pounds over the next decade.
"Direct government funding that will support housebuilding, especially for social rent."
SCHOOLS AND HEALTH
"I am providing a cash uplift of over 4.5 billion pounds a year of additional funding for the core schools budget by the end of the spending review."
"I am increasing the NHS technology budget by almost 50%. We are investing 10 billion pounds to bring our analogue health system into the digital age, including through the NHS app, so patients can manage their prescriptions, get their test results, and book appointments all in one place."
(Reporting by Kate Holton and Sarah Young)
The aim of the spending review is to renew Britain and ensure that all parts of the country feel the benefits of government spending.
Total departmental budgets will grow by 2.3% a year in real terms, with an additional 190 billion pounds allocated for public services.
The government is investing 39 billion pounds over the next decade into social and affordable housing, marking the largest cash injection in 50 years.
A cash uplift of over 4.5 billion pounds a year is being provided for the core schools budget by the end of the spending review.
The government plans to end the costly use of hotels for housing asylum seekers and is allocating funding to cut the asylum backlog.
Explore more articles in the Finance category
