Spending Review 2025: A summary

On 11 June 2025, the Chancellor announced the outcome of the 2025 Spending Review. This set planned spending totals for all government departments for the next three to four years.

Overall spending totals

Day-to-day spending (resource DEL excluding depreciation) will increase from £517.5 billion in 2025/26 to £583.9 billion in 2028/29, an average real terms increase of 1.2% a year. Over half of the increase will go to the Department of Health and Social Care, with education and defence accounting for much of the rest.

Investment spending (capital DEL) will increase from £131.3 billion in 2025/26 to £151.9 billion in 2029/30, an average real terms increase of 1.8% a year. About half of the increase will go to the Ministry of Defence.

Departmental changes

Health spending has received the largest day-to-day spending increase in cash terms over the Spending Review period, although the increase is smaller than in previous years. Education and defence have also received significant increases. The largest increases as a proportion of existing budgets were for the Department for Science, Innovation and Technology and for the Single Intelligence Account (which funds the UK security and intelligence agencies).

Most of the investment spending increases were for defence, transport, energy, and science and innovation. Few departments received significant increases as a proportion of their existing budgets.

In general, the increases in spending at this Spending Review were smaller than those in the previous two Spending Reviews. Several departments will have decreases in their budgets across the Spending Review period.

Specific announcements

Several specific announcements were made leading up to and as part of the Spending Review. Some of the largest commitments are for affordable housing, health, transport, energy security, and defence.