Helen Oparinde, Sector Growth Coordinator, breaks down what the latest government spending plans mean for the voluntary sector.
Government spending is split into two main categories: Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME). The spending review focuses on departmental budgets - including day-to-day spending (resource DEL) and investment in infrastructure (capital DEL).
On Wednesday 11 June 2025, the Chancellor of the Exchequer presented the 2025 Spending Review to Parliament, outlining the government’s spending plans for the next three to five years.
To understand why spending reviews matter, the Economics Observatory offers a useful explainer: What is a spending review – and why does it matter?
For the voluntary sector, the National Council for Voluntary Organisations (NCVO) has summarised the key takeaways in their article: Spending Review 2025: key changes for charities.
The review contains some positives, including the extension of free school meals, but also highlights significant challenges. Decisions made in the Spring Statement about welfare cuts are expected to increase poverty, which in turn will raise demand for services provided by charities — many of which are already operating under pressure.