Overview

• Chancellor Rachel Reeves will publish a spending review on June 11 outlining day-to-day departmental budgets and a 2 percent annual rise in capital expenditure over the next three years.
• Treasury figures show the government’s fiscal headroom has narrowed to £9.9 billion and could vanish if growth falls short or borrowing costs climb further.
• Cabinet ministers including Angela Rayner and Yvette Cooper are locked in tough negotiations over funding for local councils, social housing, policing and border control.
• Key infrastructure commitments such as transport projects worth £113 billion and Ed Miliband’s £13.2 billion home insulation programme are slated for protection while unprotected departments face real-terms cuts.
• Economists warn the tight finances may force tax rises or deeper cuts later this year and climate campaigners have signalled legal action if the review undercuts the UK’s net zero obligations.