Likely winners and losers
The NHS is expected to be a clear winner, with new funding to tackle waiting lists and ease pressure on frontline staff.
Junior doctors look set to secure a two-year pay deal worth up to 22%, aimed at ending months of disruptive strike action.
Defence spending is due for a big lift, rising to 2.5% of GDP by 2027, with billions earmarked for the Sizewell C nuclear plant.
Public transport in the North and Wales will likely benefit from major upgrades, and the £3 bus fare cap is set to be extended until 2027.
But pain is coming elsewhere.
The Home Office and local councils are expected to face deep cuts, with day-to-day budgets trimmed by up to 20% in some areas.
The Home Office is expected to shoulder some of the heaviest cuts, raising serious questions about its capacity to manage policing, immigration, and border security effectively.
With limited room to protect frontline services, insiders warn that overstretched forces could struggle even more with rising demand and complex caseloads.
Meanwhile, disabled people and low-income single parents will be hit by planned reforms to welfare and support payments.
Foreign aid will shrink further to free up cash for defence.
And while Ms Reeves insists the plan will prioritise stability and growth, some of her own MPs are already bracing for backlash.
The path to today’s announcement has been far from smooth.
Tensions have been rising inside Labour, as the leadership balances fiscal caution with long-standing promises to protect the welfare state.
The decision to tighten disability benefits prompted a backlash from the party’s left, with some MPs warning it betrays Labour’s core values.
Sir Keir Starmer has spent recent weeks firefighting internal dissent, especially after the spring statement surprised many with its welfare cuts.
At the heart of it all is a growing rift between those pushing for strict economic discipline and others demanding a bolder, more spend-heavy approach.
