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Spending Review 2025: Key takeaways for the sector

While local authorities have performed better in this Spending Review than expected, proposals to reform public service funding remain uncertain, say Tiffany Cloynes, Rebecca Gilbert and Megan Tam.

© Sean Aidan Calderbank / Shutterstock.com.

Wednesday's Spending Review sets out day-to-day departmental spending until 2029 and capital budgets until 2030.

Total departmental spending is set to grow at 2.3% a year above economy-wide inflation, with funding prioritised for health, defence, and schools. With regard to the allocation to local government, this is better than expected, with its core spending power set to increase by 2.6%.

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