Spending Review 2025 – infrastructure and regional growth and devolution aspirations….
12th June 2025
Having been well trailed in the media since publication on the 11th June 2025, the Spending Review 2025 provides some focus on construction, affordable housing and infrastructure delivery as art of kick starting the UK’s growth aspirations.
We have provided a summary of the Paper on matters of infrastructure and regional growth and devolution. Our next blog looks at the distribution of the proposed funds for affordable housing.
Infrastructure
- The government is implementing a 10-Year Infrastructure Strategy to guide investment in transport, energy, digital, and social infrastructure.
- Key initiatives include:
- Transport: Continued upgrades to rail, roads, and local transit to improve connectivity and reduce congestion.
- Energy: Investment in clean energy sources like offshore wind, nuclear, and hydrogen to support the net zero transition.
- Digital: Expansion of gigabit broadband and 5G, especially in rural and underserved areas.
- Social Infrastructure: A major focus on housing, education, and healthcare facilities.
- Affordable Housing: The Spending Review delivers the biggest boost to social and affordable housing investment in a generation, allocating £39 billion for a new 10-year Affordable Homes Programme. This aims to support the construction of 1.5 million new homes, with a strong emphasis on affordability and sustainability
Regional Growth and Devolution
- The government is deepening its levelling up agenda by empowering local leaders and targeting investment to reduce regional inequalities.
- Key measures include:
- New devolution deals for regions such as the North East, East Midlands, and South West, granting more control over transport, housing, and skills.
- UK Shared Prosperity Fund: Continued support for local economic development, skills training, and regeneration.
- Investment Zones: Expansion of zones offering tax incentives and regulatory flexibility to attract innovation and business growth.
- Transport settlements: Multi-year funding for city regions to implement integrated transport strategies
- Affordable housing is also a regional priority, with devolved authorities gaining greater control over housing delivery and planning to meet local needs.
The full details of the Spending Review 2025 can be viewed on the link below:
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