• Swindon & Wiltshire Economy
• Thursday June 12 2025

Spending Review – politicians enthusiastic, business leaders less so

The government set out its spending plans yesterday (Wednesday) with winners and losers across Whitehall departments.

But will businesses benefit?

Rachel Reeves’ announcements did include an uplift to R&D spend. £86 billion of public money will be used to leverage private sector R&D spend and drive innovation. It’s good news for business investment, and the government says every £1 of public R&D delivers £7 of long-term economic benefit.

More money for earmarked for the UK’s nuclear industry with a record level of £14.2 billion in funding for Sizewell C, £2.5 billion for the UK’s first Small Modular Reactor – which will be built by Rolls Royce – and a further £2.5 billion commitment for fusion technology. However, it seems like the cash is being diverted away from Great British Energy’s wind and solar plans.

Further digitisation of HMRC’s tax services – which promise to save businesses time and money – also warranted a mention. More detail is promised in the HMRC’s Transformation Roadmap.

Locally, a record three-quarters of a billion pounds was promised for transport funding in the West of England – making the possibility of a mass transit system for Bristol ever more likely.

The West will also benefit from increases in defence spending – with Filton name-checked by the Chancellor for its contribution to the UK’s national security – alongside priority area status for the creative industries.

The government also confirmed that Hartcliffe in south Bristol and Penhill in Swindon would be “trailblazer neighbourhoods,” receiving large amounts of investment.

Helen Godwin, the new Mayor of the West of England, said: “Today’s Spending Review confirms the exciting news that the West has secured a record £752 million to invest in better transport. That funding will make a difference that people can see and feel. As well as fixing our roads and bridges, that three-quarters of a billion pounds will mean better buses, more trains, and mass transit – with trams and much more on the table.

“The West of England already has one of the strongest growing economies in the country, but our ambition is greater still. Our creative and advanced manufacturing sectors will continue to go from strength to strength, and it was great to hear Filton highlighted by the Chancellor today in the House of Commons.

“We have started a new chapter for the West of England, but start from a place of needing to catch up with other city regions. I have no doubt that we will begin to get our fair share of national investment from government for our communities – and the trailblazer funding announced for Hartcliffe is really welcome news.”

But Matt Griffith, director of policy at Business West, was less dizzy over the announcements.

“We now have a general idea of the Government’s intent, but we await further details on exactly what this means for our region.
We welcome the boost in affordable housing, transport, and infrastructure, which is much needed in our region,” he said.

“The overall message is stark though: the UK faces rising demands for public spending on health, welfare and defence. We need an economy, and strong business base, to bring in the revenue to pay for this.

“The recent announcement of £752 million in transport investment for the West of England Mayoral Combined Authority shows that our region has been making progress in being visible to central government.

“However, the West of England, and wider South West, is still not able to access the full range of funding and powers that other regions have. We need access to these as soon as possible.

“This is not just in the interests of our region, but the wider UK economy too.”

Image: Simon Walker / HM Treasury