Spending Review: Reeves pledges 'sustainable footing' for local government

11/06/2025 | HEATHER JAMESON

Spending Review: Reeves pledges 'sustainable footing' for local government

Health, defence and schools were the big winners in the spending review, but the government claimed it would put local government back on ‘a sustainable footing’.

Health, defence and schools were the big winners in the spending review, but the government claimed it would put local government back on ‘a sustainable footing'.

Treasury documents revealed there will be an additional £3.4bn of grand funding to the sector in 2028-29 compared to 2024-25, a real terms increase in core spending of 3.1% across the spending review period.

While plans to update the local government funding mechanisms are yet to materialise, the Spending Review reiterate Government commitments to multi-year settlements, to simplify the funding, target cash to places ‘that need it most' and allocate money ‘in a way that empowers local leaders to deliver against local priorities'.

But deputy prime minister Angela Rayner secured extra funding for housing as the Government's ambition to build a further 1.5 million homes looked increasingly unlikely.

Chancellor Rachel Reeves described the move as ‘the biggest cash injection into social and affordable housing in the past decade.'

Alongside cash for the NHS, Reeves vowed to improve pay for social care workers.

She pledged to ‘end the costly use of asylum hotels', with £200m funding to transform the asylum system and clear the backlog, reducing costs by £1bn a year by 2038-29, ending the previous government's policy of ‘shunting the cost of failure on local communities'.

There was funding for 350 of the country's most deprived communities, including money for parks libraries and to clean up graffiti in a fund similar to the Conservative's levelling up funding.

And the Chancellor pledged to boost jobs and economic growth, using defence and green energy investments to improve areas across the country. She claimed the UK would become a ‘defence industrial superpower'.

There were also plans for £1.2bn a year to boost skills and jobs for young people.

An expected review of Special Educational Needs and Disabilities failed to materialise in the Chancellor's speech, but Spending Review documents revealed it will be in the schools bill expected in the Autumn.

A 10-year infrastructure strategy and industrial strategy will also follow later, but the expected review of the Treasury Green Book has been published in an effort to ‘make sure no region has treasury guidance wielded against them', the Chancellor said.

There was a raft of spending on transport, including plans to take forward Northern Powerhouse Rail, expand east-west rail, linking up the Oxford Cambridge arc, and improving the Midlands rail hub.

Citing the Cabinet Office's moves towards public service reform, Reeves vowed to ‘relentlessly' cut waste ‘with every single penny reinvested in public services.'

This article first appeared in The MJ.

Highways InProfile

latest magazine issue
Highways jobs

Senior Technician-Road Closures

£35,422 - £38,730
The Network Planning division is seeking to appoint someone who is enthusiastic and a team player Derbyshire
Recruiter: Derbyshire County Council

Technician - Road Closures (2 Posts)

£29,719 - £31,691
The Network Planning division is seeking to appoint someone who is enthusiastic, an excellent team player Derbyshire
Recruiter: Derbyshire County Council

Structures Inspector

£Competitive
We are excited to offer a fantastic opportunity for two Permanent Structure Inspectors to join our dynamic SBIM team Bristol
Recruiter: Amey

Highways Maintenance Operative

£Competitive
We have fantastic opportunities for a permanent Highways Maintenance Operatives Kettering, Northamptonshire
Recruiter: Amey

Site Manager

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Site Manager Bristol
Recruiter: Amey

Principal Commercial Manager

£Competitive
The SBIM contract involves delivering inspection and maintenance programmes for National Highways Bristol
Recruiter: Amey

Senior Commercial Manager

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Senior Commercial Manager Nottingham, Nottinghamshire
Recruiter: Amey

Highways Maintenance Operative

£Competitive
We have fantastic opportunities for a permanent Highways Maintenance Operatives. Northampton, Northamptonshire
Recruiter: Amey

Managing QS

£Competitive
In this role, you will support the Senior Commercial team in the end to end commercial process for the Area 12 contract. Yorkshire and the Humber
Recruiter: Amey

Highways Inspection Officer

£32,962 - £36,791 per annum
We have an exciting opportunity for a Highways Inspection Officer to join us! Windsor, Berkshire
Recruiter: The Royal Borough of Windsor & Maidenhead

Highways Technical Assistant

£29,064 - £31,537
Are you looking for a varied role in a dynamic and innovative team environment that can make a real difference to North Yorkshire’s highways? Leeming Bar, Northallerton
Recruiter: North Yorkshire Council

Street Lighting Electrical Inspector

£34,434 - £38,220 per annum
Do you hold an ONC in electrical engineering or City & Guilds Electrician? Northallerton, North Yorkshire
Recruiter: North Yorkshire Council

Senior bridge Engineer - WMF2212e

£47,181 - £48,226
You will be the key responsible engineer for this area and will also provide technical advice and guidance to our team Cumbria / Various
Recruiter: Westmorland and Furness Council

Civil Enforcement Officer - WMF2221e

£28,598 - £29,540
Are you seeking an active and challenging role, part of a friendly and welcoming team? Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Bridge Engineer - WMF2219e

£42,839 - £44,075
We are currently seeking to recruit an experienced and enthusiastic Bridge Engineer Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Senior Public Transport Officer

£42,839 - £46,142
We are looking for an experienced public transport professional to become our Senior Public Transport Officer. Northamptonshire
Recruiter: North Northamptonshire Council

Principal Transport Planner (Strategy) (Fixed-Term)

£48,226-£51,356
We are looking for an experienced professional to join as a Principal Transport Planner (Strategy) Northampton, Northamptonshire
Recruiter: North Northamptonshire Council

Mobile Street Scene Operative

£24,796 to £25,989 per annum
The Waste and Street Scene department requires enthusiastic and committed mobile street cleansing operative. Northallerton, North Yorkshire
Recruiter: North Yorkshire Council

Senior Technician - Highways Design (2 Posts)

Grade 10 £35,422 - 38,730 per annum
An exciting opportunity has arisen within the Professional Services Section Derbyshire
Recruiter: Derbyshire County Council

Project Engineer External Contracts

Grade 11 £39,865 - 43,270 per annum
You will lead a team of Clerks of Works Derbyshire
Recruiter: Derbyshire County Council
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW