What is it and what Rachel Reeves could announce?

Chancellor Rachel Reeves faces difficult choices in the next expenditure examination, which establishes the budgets of all ministries in the coming years.

The examination will confirm how much money taxpayers will be spent for the NHS and other public services used by millions, as well as the amount that the government plans to invest in projects such as new public transport plans.

Expenditure examination will be submitted by Reeves on Wednesday June 11.

In October, she established department budgets for 2025-2026 and will now confirm spending allowances for the following three to four years.

Reeves has already presented what is called “expenditure approach” – how much total Public spending will increase during the period.

Wednesday, this will be broken down by the department.

The journal covers two categories of expenditure:

• day by day Expenses that include things like wages, supplies and other administrative costs. This is known as “resources” spending
• investment which includes the financing of infrastructure as well as the construction of things such as new schools, hospitals and roads. This called “capital” expenses

Wednesday expenditure review will offer daily expenses for three years and investment spending for four years.

Government loan – which is the difference between the quantity of expenses and the quantity of taxes – increased to 20.2 billion sterling pounds in April.

It was 1 billion pounds more than the same month in 2024, and more than some economists expected.

Although tax revenue increased in April, in particular due to the increase in the amount of national insurance contributions (NIC) paid by employers, expenses have also done.

This was largely due to the increase in pensions and other advantages and other increases in remuneration as well as higher borrowing costs.

Meanwhile, the financial stamp which allows Reeves to respect the two self-imposed budgetary rules of the government is very thin.

The rules are that:

• Daily public spending should be paid with tax revenue, not to borrow, and
• The amount of public debt is expected to lower national income by the end of the current parliament in 2029-30

The government should currently have a budget surplus of 9.9 billion pounds sterling at that time – which is the third smallest recorded.

This surplus is often called “margin” and theoretically acts as a buffer against an economic shock or an increase in expenses.

But because the planned surplus is so small, it is very vulnerable, between the fall budget and the spring declaration in March, a part was destroyed by higher debt payments and slow economic growth.

Consequently, Reeves announced a package of savings of 14 billion pounds sterling in March, including 4.8 billion pounds sterling of social cups.

The latest official data suggest that the British economy could strengthen. It increased by 0.7% between January and March, which was better than expected.

However, it is not clear if this growth will continue, especially since the American prices of US President Donald Trump have reached the United Kingdom and the larger global economy.

The government has already declared that the increase in total expenses on daily operating costs and investments will be relatively modest for the years covered by the expenditure examination.

This could mean that “net compromises are inevitable”, according to the reflection group on the Institute for Tax Studies (IFS).

For example, the government said that the abroad aid budget will be reduced to finance a sharp increase in defense expenses.

Defense expenses will drop from 2.3% of gross domestic product (GDP) to 2.5% by 2027. This represents approximately 5 billion additional sterling pounds per year. Ministers want To increase defense expenses to 3% by 2034.

Reeves should unveil a package of 15.6 billion pounds sterling in Fund extensions on trams, trains and buses In the Grand Manchester, the Midland and Tyne-And-Wear, after criticizing that too many infrastructure expenses were targeting London and the Southeast.

For the moment, there are no details on the amount of money allocated to the Ministry of Health and Social Coins (DHSC), which supervises The NHS.

But due to its size – almost 40% of the total ministerial expenses this year will go to DHSC – its budget can have a considerable impact on those of other departments.

Reeves confirmed that the government would revise its controversial decision to limit winter fuel payments to those who receive services tested on means.

But while the government will share information on which will receive payment as part of the expenditure exam, not all details will be published before the budget later in the year.

The government also wants to increase investments.

Pirates has tinkered with the way the debt is measured To release more than 100 billion pounds sterling to finance construction, research and development as well as other major projects.

It has been reported that it could announce a new nuclear power plant in Suffolk.

Sizewell C, a project jointly owned by the British government and the energy giant of the French State EDF, wishes to start the construction of a power plant which will be funded by taxpayers and private investors.

The government can also establish detailed plans to build small modular reactors (SMR) – Mini nuclear power plants – in England and Wales.