Chancellor will reveal how the government plans to spend almost £1.4tn in 2026-27, rising to almost £1.5tr in 2028-29

Good morning. The government plans to be spending almost £1.4tr in 2026-27, rising to almost £1.5tr in 2028-29. Those annual limits are already agreed. Today, when Rachel Reeves, the chancellor, stands up at 12.30pm to present the spending review, she will explain how she has decided to divvy up that money between government departments over the next three years.

This is not a budget, and she will not be announcing changes to tax policy. But it will feel like a budget because, like a budget, it will involve decisions that affect the public services people rely upon. And it is bound to intensify speculation about whether taxes will have to go up in the next budget, in the autumn.

This government is renewing Britain. But I know too many people in too many parts of the country are yet to feel it.

This government’s task – my task – and the purpose of this Spending Review – is to change that. To ensure that renewal is felt in people’s everyday lives, their jobs, their communities.

Capital spend takes years to produce political results, while cuts in revenue spending on services like council services are felt adversely quickly.