The government’s 2025 Spending Review outlines a major funding boost for healthcare, defence, housing, and infrastructure to support long-term recovery and growth.
The 2025 Spending Review was published on 11 June 2025 and outlines the government's plans to support the country’s recovery by investing in security, health, and the economy. It sets budgets for government departments up to 2028–29 for everyday spending, and up to 2029–30 for long-term projects like infrastructure. Overall, departmental budgets will grow by 2.3% during this period. The review also sets funding levels for the devolved governments in Scotland, Wales, and Northern Ireland.
This includes a £29 billion investment to revitalise the NHS. The funding aims to modernise the health service, address backlogs, and future-proof care delivery. Specifically, up to £10 billion will be used towards digital transformation and technology. This will include measures to expand GP training to deliver millions more appointments, enhance mental health services in schools.
Beyond healthcare, the Spending Review also set out substantial investments in defence, infrastructure, housing and energy security. Defence will receive an £11 billion real-terms uplift, including £15 billion for a nuclear warhead programme and £6 billion for munitions manufacturing. Border security and asylum processing are also set for major upgrades.
The government will also channel billions into local transport, rail links, and regional regeneration projects, while launching the largest social and affordable housing programme in a generation with £39 billion over ten years. The devolved administrations will receive their largest real-terms settlements since devolution began in 1998 to help ensure that locally tailored priorities are funded robustly.
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