Overview

• The June 11 spending review will set departmental day-to-day budgets for the next three years and capital investment plans for four years.
• Deputy Prime Minister Angela Rayner’s housing and local government department remains without a settled budget over funding for councils and affordable homes.
• The Institute for Fiscal Studies warns that protected defence and NHS commitments, including a rise to 2.5% of GDP, will force real-terms cuts elsewhere.
• Changes to fiscal rules allow Chancellor Reeves to borrow up to £100 billion for infrastructure projects targeting rail, road and green energy in the North and Midlands.
• The Local Government Association cautions councils face an £8 billion funding gap by 2028/29 and calls for a significant, sustained boost to avert service failures.