Today, the Chancellor of the Exchequer, Rachel Reeves, delivered the Spending Review – setting out the Government’s long-term spending plans. From the NHS to national security, energy to education and infrastructure to innovation, little was left ignored – and, overall, the Spending Review increases total departmental budgets by 2.3% in real terms.
Below, we’ve picked out a handful of areas where the Spending Review will matter most for Britain’s entrepreneurs. We’ll delve into what the Chancellor announced in more detail on Friday in Perennial Gale – so be sure to subscribe if you’re not already.
Commenting on the decision to invest in new nuclear energy, Eamonn Ives, Research Director at The Entrepreneurs Network, said:
“Economic growth and energy abundance go hand in hand. It’s therefore extremely welcome to see the Government resolutely commit to a nuclear power renaissance in Britain – pledging investment in innovative advanced modular reactors and fusion reactors alike.
“As we have repeatedly outlined, however, funding can only go as far as we allow it. Alongside this investment, the Government must also rationalise the regulatory landscape that nuclear developers face, so that the private sector can be the driving force behind the rollout of new nuclear assets.”
Commenting on AI-related announcements, Anastasia Bektimirova, Head of Science and Technology at The Entrepreneurs Network, said:
“It’s excellent to see £2 billion allocated to deliver the AI Opportunities Action Plan, including up to £500 million for the new UK Sovereign AI Unit – which we’ve already seen in action with yesterday’s announced investment in OpenBind, which will help position the UK as the go-to destination for AI-powered drug design by addressing one of the field’s biggest bottlenecks.
“Coupled with the additional £1 billion for the AI Research Resource announced earlier this week, more of such ambitious endeavours will help the UK gain strategic advantage in critical areas of science and technology.”
Commenting on plans to invest in transport infrastructure, Eamonn Ives said:
“Deep and interconnected labour markets are the lifeblood of dynamic economies. When workers can better match their skills with employers, or when innovators can exchange ideas more easily, productivity booms. By investing in new transport infrastructure across the North and between Oxford, Milton Keynes and Cambridge, agglomerative forces will be strengthened.
“To ensure public money is spent effectively, the Government should double down on its planning reforms that will prevent blockers from driving up costs and delaying construction.”
Commenting on the mention of the National Data Library, Anastasia Bektimirova said:
“While the Chancellor did not specify a funding figure for the National Data Library (NDL), it is encouraging to see it receive dedicated attention as a Government priority.
“But its placement within the Spending Review’s ‘Productive and Agile State’ section hints at a possible shift from previous government positioning, focusing more narrowly on internal transformation than on its broader potential as a piece of innovation infrastructure for the entire economy. This is particularly striking given that the NDL has consistently been mentioned in Parliament and government policy documents as a tool for external access to public data assets, alongside improving public service delivery.
“With the present level of political will behind reimagining public data infrastructure, we have a rare opportunity to be very ambitious, which we must seize.”
Commenting on the objective to attract more of the world’s top international talent, Eamonn Ives said:
“As part of the uplift to funding for R&D, the Government says it will support new opportunities for top talent to enter the country. Yet this is diametrically opposed to other plans set out in the Immigration White Paper, which will render Britain’s economy less attractive and more difficult for the world’s brightest minds to contribute towards.
“The Government knows that overseas talent is critical for our entrepreneurial ecosystem to succeed, but its stance is increasingly contradictory – with Britain’s status as an enabling place to build losing its lustre as a result.”