The government’s 2025 Spending Review sets the fiscal direction for Whitehall up to 2028–29, prioritising frontline services, defence, and clean energy, while demanding efficiency from other corners of government.
More money for the NHS, defence, energy, and digital reform, but a renewed emphasis on efficiency, productivity, and “zero-based budgeting” across much of Whitehall.
Departments not explicitly tied to public service delivery or national security are expected to do more with less. The Office for Value for Money will continue to track progress on savings, totalling £14bn annually by 2028–29.
Here's how the numbers stack up.
In line with the government’s ambition to become a “clean energy superpower,” DESNZ is the big winner. Investments include backing nuclear projects (like Sizewell C), carbon capture, and offshore wind supply chains.
Reflecting a more active industrial strategy and renewed focus on international trade agreements, DBT sees a meaningful boost after years of modest settlements.
Following the Strategic Defence Review, funding rises to support warfighting readiness, munitions factories, and autonomous systems—anchoring the ambition to reach 2.6% of GDP on defence by 2027.
Despite earlier concerns over squeezed regeneration budgets, MHCLG secures a notable rise, buoyed by local government settlement increases and housing investments like the new £39bn Affordable Homes Programme.
MoJ receives additional funding for courts reform, 14,000 new prison places, and probation system transformation—responding to critical capacity pressures in the justice system.
With NHS day-to-day spending set to reach £226bn by 2028–29, the settlement supports both a backlog-clearing push and digital transformation efforts across the service.
DSIT leads government’s digital overhaul, with funding to scale AI use in services and build digital infrastructure—backed by a £1.9bn total investment.
DWP’s modest uplift will support expanded childcare offers and employment support—offsetting flatlining elsewhere.
A small but significant increase supports digitisation and staffing to close the tax gap—expected to raise £7.5bn more in revenue annually by 2029–30.
Uplift supports per-pupil funding, free school meals expansion, and school rebuilding—part of the “opportunity for all” mission.
The biggest loser in this review, with delays to major infrastructure projects and increased expectations for operational efficiencies.
ODA spending has been reduced to 0.3% of GNI, and despite global instability, FCDO funding is falling in real terms.
While border security commands and asylum reform are prioritised, the department overall faces pressure to cut costs while delivering politically sensitive outcomes.
Spending centralisation and administrative reform have led to real-terms declines as part of the government’s push for back-office savings.
DEFRA sees a small reduction amid competing priorities, despite its central role in environmental regulation and rural resilience.
Even the Treasury is not immune to restraint—administrative costs are being driven down across core departments.
Modest cuts to DCMS suggest arts and sports will need to rely more on external and philanthropic funding going forward.