Rachel Reeves’ new spending review represents a pivotal moment for the Labour government, aiming to launch a narrative of 'renewal' after a challenging first year. With £600 billion allocated over four years, the review balances significant capital investment with modest growth in day-to-day departmental spending. Major announcements include £14.2 billion for nuclear power at Sizewell C, £15 billion for public transport in the North and Midlands, and a new rail link between Liverpool and Manchester. An additional £113 billion in capital spending will target the government's three pillars: health, security, and the economy. However, this largesse will be offset by tighter controls on daily budgets, with unprotected departments - particularly the Home Office and local councils - facing real-term cuts. Discontent is rising over pressure to reverse disability cuts, lift the two-child benefits cap, and increase winter fuel support. While Reeves insists the rises are funded by tough tax decisions, growing public dissatisfaction may force further fiscal changes by autumn. The Government hopes visible investment projects will reassure voters and build lasting trust. Breaking news: the UK economy shrank by 0.3% in April, a worse result than expected, which Reeves has described as ‘disappointing’. See