On Wednesday 11th June, Chancellor Rachel Reeves delivered her first multi-year Spending Review, unveiling plans to “renew Britain” through a mix of investment and fiscal discipline. But what does mean for individuals, businesses, and the wider economy?
We’ve pulled together a summary of the key announcements that may affect our clients.
Public Sector Spending & Efficiency
Major increases in NHS and school funding, including capital for hospital upgrades and school repairs.
£14bn of planned efficiency savings by 2028–29 across government departments – largely through automation and better use of digital infrastructure.
A zero-based review of departmental budgets, signalling closer scrutiny of public spending.
These announcements could have possible knock-on effects for public-sector suppliers and professional services. The government will be looking for efficiency gains – potentially creating opportunities for innovation and outsourcing.
Infrastructure & Investment
£113bn in capital investment for 2026–27, including:
Upgrades to the TransPennine and East–West rail links
£39bn for housing to help meet national demand
Funding for digital transformation, defence, and clean energy
This is positive news for the construction and manufacturing sectors, and for businesses in regional areas set to benefit from infrastructure upgrades.
Housing & Planning
Acceleration of housing delivery with additional funding for planning reform.
Focus on unlocking brownfield land and supporting SMEs in the construction sector.
Labour & Immigration
A new Border Security Command will receive £280m per year.
A commitment to end the use of hotels for asylum seekers, expected to save £1bn annually.
Departmental Cuts
While key areas like health and education are receiving boosts, other departments (such as culture, justice, and foreign affairs) face real-terms cuts.
Organisations funded by or working with these sectors should prepare for tighter budgets and slower decision-making.
The Chancellor has committed to sticking within fiscal rules – maintaining debt as a percentage of GDP and aiming to balance current spending with tax revenues. However, experts have warned of limited room for manoeuvre, particularly if growth slows. We may see future tax changes to sustain spending commitments. Businesses should ensure they are planning ahead for tax efficiency and compliance under potentially shifting rules. This Spending Review prioritises visible investment and productivity – welcome news in many areas. But behind the headline figures lies a clear message: every pound must go further.
At bennettbrooks, we’ll be keeping a close eye on any developments – including potential tax policy changes in the coming months. If you have questions about how the Spending Review might affect your financial plans, investments, or business strategy, our team is here to help.
