Government Spending Review announced

The Chancellor has announced their Spending Review 2025.

Every few years the government sets out its financial plans for the years ahead in a Spending Review.

It’s important to understand that this is only one element of budget setting. Detailed local authority budgets come out later in the year as part of the Local Government Finance Settlement, with the provisional settlement expected in December.

Within the announcement it included:

  • £39 billion in funding for social and affordable homes over the next 10 years, the highest for half a century
  • A household support fund agreed for 3 years, giving us the ability to plan
  • The expansion of free school meals to 500,000 children whose parents are receiving Universal Credit
  • School uniform costs capped
  • Bus fares to remain capped at £3 until March 2027
  • £2.3 billion increase in local transport grants
  • Expanded warm homes plan to help with energy saving measures in homes
  • Expanded mental health support teams for schools
  • Additional funding for adults and children’s social care
  • 3% increase per year for the NHS, an additional £29 billion each year to address health inequalities
  • 3% increase in police budget, enough for 13,000 more police officers, PCSOs and special constables

We also received confirmation of our ability to increase council tax by 4.99% each year of the spending review period, which includes a 2% adult social precept.

A lot of specific details for Brighton & Hove and their impact are still to be determined. The council will need to work through what this means in terms of our budgets and spending.

Council Leader Bella Sankey said: “We wholeheartedly welcome this spending review, including the historic and significant expansion in investment in social housing, as well as additional funding for adults and children’s social care. The review of the SEND system is also vitally important.

“Having a longer-term plan for the household support fund will enable us to better help families with cost of living pressures, as will important changes to school meals and caps for uniform costs and bus fares.

“While a lot has been announced, there a lot still to be determined for Brighton & Hove. There are some significant funding streams that are not yet clear, and given the significant financial pressures we face, we will continue to work with government to ensure that Brighton & Hove gets its fair share of resources.”

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