Spending Review receives cautious welcome

26 June, 2025

The review, unveiled against a backdrop of tight public finances and economic uncertainty, has been described by Make UK Chief Executive Stephen Phipson as a “delicate balancing act.” That sentiment captures the mood across industry—one of measured approval for targeted investments, tempered by an awareness of the deeper structural issues still awaiting resolution.

There is justified welcome for increased spending on defence, science, and technology, alongside local transport investment beyond the South East. These are areas where manufacturing has a strong regional footprint, and the potential impact on local growth and productivity is significant.

Yet, the absence of a fully articulated industrial strategy leaves a conspicuous gap. Manufacturers have long called for a coordinated, properly funded roadmap to secure the sector’s future—especially as it grapples with persistently high energy costs and a chronic skills shortage. As Phipson rightly points out, “These are not marginal issues.” Addressing them isn’t just desirable—it’s essential.

Compounding these domestic concerns are growing international uncertainties. With recent geopolitical events reshaping global supply chains, trade dynamics, and defence priorities, there is every chance that this Spending Review will require significant re-evaluation in the coming months. The assumptions behind today’s allocations may not hold in tomorrow’s reality.

The Spending Review may offer positive signals, but it’s what comes next that will matter most. Turning ambition into actionable policy will be the real test of the Government’s commitment to UK industry. Without it, manufacturers risk being left navigating the same structural headwinds—with fewer tools to compete.

The question now is whether this review marks the start of a genuine industrial renaissance— or yet another missed opportunity

Aaron Blutstein, Editor