11 June, 2025

 Overall, what happened? 

Rachel Reeves’ Spending Review was all about facing up to a “new age of insecurity” and  “renewing” Britain through investment in defence, transport, energy security and the NHS, as well as getting the UK manufacturing again. I.e. bringing things back in-house. There was also a focus on social housing, education, and other measures to tackle the cost of living.

 Rachel Reeves’ key soundbites 

• “Signs of the age of insecurity are everywhere.” We’re in a “new era for defence and security”.

• “Economic security relies on us being able to buy, make and sell more in Britain”, and I’m all for “things built to last, made here in Britain”.

• “If we want a strong economy where working people can fulfill their potential then we must have a strong NHS”.

 Farming & Land 

• It was a relative win for Defra and a sigh of relief for many in farming: Over the Spending Review period, Defra will receive £16bn of capital funding, equivalent to an annual average real terms growth rate of 2.5%, while total departmental budget will be down 0.7% – a far better outcome than had been feared.

• An average of £2.7bn/year will be available for  farming and nature recovery from 2026 to 2029, alongside significant capital investment in flood defences (up 5%) and digital modernisation.

• However, this includes a £100m cut to farming and countryside programmes. These programmes include SFI, Countryside Stewardship, Landscape Recovery and capital grants.

• No reversal on inheritance tax on family farms.

• Major farming organisations, including the NFU and CLA, have claimed a cautious victory, after having collaborated to lobby the government with conservation charities including the RSPB and National Trust in this letter to Defra and the Chancellor. Read reaction from the NFU and CLA.

• You can also read Defra’s Spending Review settlement doc.

 Food 

• We knew this already, but free school meals are to be extended to every child whose family receives Universal Credit – around 500,000 children. The Chancellor said this would lift 100,000 children out of poverty. Access to a free lunch at school can save a household around £500 per child each year. Read more reaction from the Food Foundation. 

 Health 

• “If we want a strong economy where working people can fulfil their potential then we must have a strong NHS,” said the Chancellor.

• The government will increase NHS real-term day-to-day spending budget by an average of 3% per year, over the next three years, reaching £226bn by 2029.

 Cost of living 

Although not direct measures, there were a number of other announcements which might help people on lower incomes to afford healthier/nutritious food, including;

• £29bn for affordable homes/ social housing over the next decade

• Extending the winter fuel allowance (although this is going to a lot of middle-income pensioners, and there is criticism this could have been better spent on lifting working-age households out of poverty).

• Expanded the Warms Homes Plan for the most deprived homes,  saving people up to £600/year on energy bills, according to the Chancellor.

 Final thoughts 

The focus on defence spending and investment in home-grown energy and manufacturing signalled that the government is keen to bolster national security and the UK’s independence.

A plan for food security and boosting UK-grown food, such as fruit and vegetables, would have been the obvious next step to those of us in the sector. Not only would this have ticked the box for defence and security, but also for home-grown production, national self reliance, national health, and economic growth.

The Chancellor almost got there, when she said that a strong economy relied on a strong NHS and people fulfilling their potential. But she didn’t go as far as identifying the main culprit of soaring NHS costs – poor diet – and therefore a key solution.

I’ll leave you with the “priorities of the British people” that the Chancellor identified and which seem to be driving her decisions – as it’s worth considering when constructing narratives about why food matters. In her words;

• Security:  A strong Britain in a changing world

• Economy: Growth powered by opportunity

• NHS:  Fit for the future

Further analysis by the Resolution Foundation

The Resolution Foundation analysed the Spending Review, and found that;

• 50% of all public-service spending is now allocated to health and social care. That’s by the end of this decade. Also…

• 90% of the extra spending on public services is on health & social care.

• This has lead the Resolution Foundation to say…“The British state is slowly turning into a National Health State”.

Read the full analysis by the Resolution Foundation. 

Again, all something to chew further on when we know that Prof Tim Jackson estimates that unhealthy diets are costing the UK £268bn a year.  I.e. a huge proportion of the health and social care bill. Imagine what a game changer it would be if everyone was able to eat healthily.

Monday webinars related to this topic

• Inspiring a food system transformation – what can we learn from WW2? Someone send to Rachel, please? Lessons in making food part of national security. Sign up.
• What does the 2025 Spending Review mean for nature and the environment? Our friends at Green Alliance, are running a webinar to dig more into the Spending Review. Sign up.