techUK outlines its initial review of 'what was in it for tech' for the multi-year Spending Review 2025. Scroll down for a list of today’s announcements.
The Spending Review is set out through four key areas, and tech plays a vital role in each: (1) Productive and agile state, (2) Strong foundations, (3) An NHS fit for the future, opportunity for all and safer streets (4) Growth and clean energy.
Over this SR period, the government outlined committment to invest in digital and artificial intelligence (AI) across public services through digitising services and ‘transforming how government operates’.
Funding announcements placed tech at the heart of the government’s 'drive for growth'. These include:
Allocating £2 billion for artificial intelligence (AI) until 2029/30: This will deliver on the government’s commitment to harness the transformative potential of AI, as set out in the AI Opportunities Action Plan. This investment will build the UK’s sovereign AI capabilities, funding at least a 20-fold expansion of the UK’s AI Research Resource and backing UK AI companies to grow and scale through the new UK Sovereign AI Unit.
Up to £750 million for a new supercomputer at Edinburgh University: This will be the largest supercomputer in the UK, serving scientists across the country in a broad range of fields from the development of future drugs and vaccines to climate and weather prediction and fusion power research.
An above-inflation increase for R&D funding: The government is increasing R&D funding to £22.6 billion per year by 2029/30. This includes increased support for the UK’s science base, including through UKRI and association to Horizon Europe and its successor.
Skills for the future digital economy: £160 million for TechFirst to ensure people have the right skills to deliver technological change.
Government funded collaboration between business and the UK’s universities: This funding will develop new AI courses, launch new AI fellowships and establish a prestigious new AI talent scholarship to develop the AI skills of the future.
Growth Mission Fund: This is a fund to directly support local economic growth. This fund will invest £240 million of capital from 2026/27 to 2029/30 in projects that enable local job creation and the economic regeneration of local communities.
Expanded British Business Bank to support start-ups and scale-ups's access to finance: BBB’s total financial capacity will be increased to £25.6 billion to back entrepreneurs and crowd in more in private capital for innovative firms.
Backing for the high-risk, high-reward research agency: At least £1 billion over the SR period to scale up the Advanced Research and Invention Agency (ARIA).
Digitisation of HMRC: The government will invest a further £500 million in HMRC’s digital services over this SR period towards making HMRC a ‘digital first organisation’.
Investment from the £3.25 billion Transformation Fund: First announced at Spring Statement 2025, this will drive a preventative approach to public services and modernise the state, with the increased use of digital and tech at heart of this.
Delivery on digital infrastructure: The next phase of the SR provides £1.9 billion over the SR period for Building Digital UK (BDUK) to deliver the next phase in the transformation of the country’s digital infrastructure.
A tech-enabled defence sector: Defence spending will be weighted towards capital and will prioritise R&D and innovation. The defence R&D budget will be over £2 billion in 2026/27 and will rise each year.
Tech to support a future-fit NHS: The Chancellor reiterated the commitment to invest up to £10bn in NHS technology and digital transformation over the SR period, which is an almost 50% increase from 2025/26.
“Today’s Spending Review sends out a clear message that the Government has put tech and digital at the heart of its strategy for economic growth. The government has put £2bn behind the delivery of its AI Opportunities Action Plan and committed £750mn to fund new supercomputing capacity.
They have announced a £2bn real terms increase in skills funding over the spending review period and an above inflation increase to R&D funding each year through to the end of the decade as well as a further £1.9bn for digital infrastructure.
They have also expanded the role of the British Business Bank to support innovative start ups and scale-ups and committed investment in nuclear energy generation to help ensure the UK’s long term energy security. The government has also committed to continue to invest in digitising its own administration and services through a £3.25bn transformation fund.
As ever, the devil will be in the detail of delivery that emerges over the next few weeks and months. However, in short, this is a good outcome for UK tech and creates a strong foundation for the government’s industrial strategy which we expect over the next few weeks.”
Analysis
The Chancellor appeared determined to steer the narrative away from accusations of ‘more of the same’ and criticisms that her plans resemble the cuts that defined the austerity years. Reeves also sought to draw a clear dividing line between her approach and that of her predecessors.
This included stressing the ‘zero-based’ nature of this Spending Review, the first since 2007 to start from scratch and review every line of expenditure, rather than simply amend existing spending plans. Reeves claimed this had allowed her to find additional efficiencies, selling off unused government buildings and reducing the overall consultant spend of the government.
She also referenced changes to the Green Book, the framework that the Treasury uses to measure the value of investments, committing that the new framework would support “place-based business cases” to ensure that “no region has Treasury guidance wielded against them”.
For the long term?
We have previously set out five things we want to see from the government around major fiscal events, including a greater emphasis on long-term stability. This also featured in Reeves’ announcements, as she referred to upcoming ten-year strategies on infrastructure, health, and the Invest 2035 industrial strategy.
Reeves also emphasised the government’s increasing focus on sovereignty, which she linked to her own previous comments on ‘securonomics’. This included the need for the UK to become more self-reliant with energy production and announced £500 million for a new UK Sovereign AI unit.
There was an uplift to research and development (R&D) funding, reaching £15.2bn per year by 2029/30. This funding will flow to the world-leading scientists and innovators in UK businesses, universities, and R&D institutions across the UK.
Between 2026-27 and 2029-30, these budgets will include £500m for a R&D Missions Accelerator Programme, £410m for a Local Innovation Partnership Fund, New sectoral and technology programmes focussed on the Industrial Strategy.
It also includes funding for UK Research and Innovation (UKRI), and association to Horizon Europe and its successor, supporting vital investment in universities, research institutes and businesses across the UK.
There was also the reiteration of the commitment to at least £1bn to scale up the Advanced Research and Invention Agency (ARIA) as well as up to £750m for a new supercomputer at Edinburgh University.
There was the commitment to £2bn over the SR period to implement the AI Opportunities Action Plan including through:
Up to £500m for the creation of a new UK Sovereign AI Unit
£48m for the Tech Expert programme
£240m for the AI Security Institute
Defence:
Following recent announcements as part of the Strategic Defence Review, the government confirmed that defence spending will rise to 2.6% of GDP from 2027, with an ambition to reach 3% in the next Parliament. It was also reiterated that the Single Intelligence Account will rise by £600m in real terms over the SR period.
The government also committed to providing at least £100m per year by 2028/29 through the Integrated Security Fund to support current national security priorities.
The SR confirms that defence spending will be weighted towards capital spending and will prioritise R&D and innovation to make defence an ‘engine of growth’.
The Government reiterated that as well as the defence R&D budget exceeding £2bn in 2026/27 and rising each year, 10% of the Ministry of Defence’s equipment procurement budget will be protected for the pull-through of innovative technologies and novel technologies. The government had also committed to establish UK Defence Innovation, with an initial budget of £400m per year from 2025/26.
The Spending Review also announced further funding for the National Cyber Security Centre and the National Protective Security Authority. This is part of the aforementioned increase in intelligence spending by 2028/29 and also part of the Integrated Security Fund. The SR also confirms the previously committed £2m for Queen’s University Belfast’s Cyber AI Hub.
Additionally, the government said it had identified £905m of technical efficiencies by 2028/29, with further work underway to identify additional savings and efficiencies of nearly £6bn by 2029/30.
Health:
It was announced that on average, across the SR period between 2023/4 to 2028/9 the NHS in England will see a 3% real terms growth in day-to-day spending, equivalent to a £29bn real terms increase in annual resource budgets. It was also announced that the DHSC capital budget will increase by £2.3bn in real terms by 2029/30 compared to 2023/24 - representing a more than 20% increase by the end of the period. There is also set to be an increase of over £4 billion of funding available for adult social care in 2028-29, compared to 2025-26.
The funding is expected to see the NHS deliver a 2% productivity increase each year.
On Departmental administration costs, the Department for Health and Social Care looks set to see a 10% cut to its budget between 2025/26 to 2028/29. It’s worth noting though that these figures do not reflect the integration of NHS England into DHSC.
The Chancellor reiterated the commitment to invest up to £10bn in NHS technology and digital transformation by 2028/29, which is an almost 50% increase from 2025/26.
The independent commission to transform adult social care, announced in January 2025 and led by Baroness Louise Casey, was also referenced in the commitment to social care funding.
There were also further announcements around life sciences including up to £600 million of funding from 2026/27 to 2029/30 in collaboration with the Department for Science, Innovation and Technology, the launch of the Health Data Research Service and up to £520 million in life sciences manufacturing funding over the SR period.
Skills:
There was a commitment to a £2bn real terms increase into skills funding over the SR period including through ensuring 1.3m 16‑19 year‑olds have access to training opportunities, funding for 6,500 more teachers and £160 million for TechFirst.
The Spending Review announced increased funding for employment support to over £3.5bn by 2028/29 including through providing personalised employment and health support for anyone on out of work benefits with a work-limiting health condition or disability, as set out in the Pathways to Work green paper, and through continuing to roll out Connect to Work and extended funding for trailblazers as detailed in the Get Britain Working White Paper.
The SR relies on additional income from measures detailed in the Immigration White Paper, including through increases to the Immigration Skills Charge to provide further support for upskilling the domestic workforce.
The Government have also committed to funding collaboration between business and universities to develop new AI courses, launching new AI fellowships and establish new AI talent scholarships to develop the AI skills of the future. The government will also support a new AI Adoption Fund.
Telecoms and Broadband:
There was the commitment to £1.9bn over the SR period for Building Digital UK (BDUK) to deliver the next phase in the transformation of the country’s digital infrastructure.
The Government reiterated their commitment to connect more homes and businesses to ensure gigabit-capable broadband reaches 99% of UK premises by 2032, with a focus during this period on achieving greater coverage in Scotland and Wales as well as refreshed delivery plans ahead of the Spending Review in 2027 and work with industry to deliver the Shared Rural Network.
Energy and Environment:
The Spending Review detailed how there will be significant additional funding for clean energy industries outlined in the forthcoming Industrial Strategy sector plans.
Excluding Sizewell C, the Department for Energy Security and Net Zero will see an increase in their spending power by 2.7% over the SR period. In terms of the Departmental Administration Budget, over the same period there is set to be a 10% cut for DESNZ.
It was again reiterated the Government’s £14.2bn commitment for Sizewell C during the SR period, £2.5bn for the first Small Modular Reactor programme and over £2.5bn for nuclear fusion including support for building a prototype energy plant in Nottinghamshire.
It was also announced that there would be up to £80 million over the period for port investment to support floating offshore wind deployment in Port Talbot, subject to due diligence.
Other key announcements included allocating £9.4bn to Carbon Capture, Usage and Storage (CCUS) over the period and £2.6bn of capital investment to decarbonising transport.
Infrastructure, Housing and Transport:
It was announced that £39bn has been committed to a new 10-year Affordable Homes Programme in addition to £4.8bn being made available over the SR period to support housing delivery by attracting private investment. Homes England will also have access to a further £10bn in investment capacity.
The Government committed £2.5bn to progressing East West Rail, supporting housing growth and development along the Oxford–Cambridge corridor, as well as £3.5bn of investment to improve the Manchester–Leeds rail line, reducing journey times by up to 25%.
It was announced that £15,6bn will be provided by 2031/32 through Transport for City Regions settlements and £2.3bn was committed to Phase 2 of the Local Transport Grant, as well as a further £2.2bn of funding for TfL’s capital renewals programme over the SR period. The Government committed to work with TfL to explore options for delivering the proposed DLR extension to Thamesmead.
Justice, Emergency Services and Home Affairs:
It was announced there would be an increase in police spending by an average of 2.3% per year, which is expected to support frontline policing levels across England and Wales and that £2bn will be allocated towards reaching the goal of 13,000 more police officers in England and Wales.
The Government confirmed £7bn of funding over the SR period to fund 14,000 new prison places by 2030. The settlement provides up to £450m additional spending per year for the courts system for the period, supported by AI-powered probation monitoring and digital courts. As well as up to £700m to transform the probation system and deliver reforms recommended in the Independent Sentencing Review.
It was confirmed that there will be up to £280m additional departmental spending by 2028/29 for Border Security Command – an increase from £150m announced last year.
Over the coming weeks, techUK will continue to gather member sentiment and fully analyse the detail of what this Spending Review will mean for the tech sector and wider economy.
You can stay up-to-date with any subsequent techUK analysis, and our response to the upcoming industrial strategy via our Industrial Strategy Hub.
Antony Walker
Deputy CEO, techUK
Antony Walker
Deputy CEO, techUK
Antony Walker is deputy CEO of techUK, which he played a lead role in launching in November 2013.
Antony is a member of the senior leadership team and has overall responsibility for techUK’s policy work. Prior to his appointment in July 2012 Antony was chief executive of the Broadband Stakeholder Group (BSG), the UK’s independent advisory group on broadband policy. Antony was closely involved in the development of broadband policy development in the UK since the BSG was established in 2001 and authored several major reports to government. He also led the development of the UK’s world leading Open Internet Code of Practice that addresses the issue of net neutrality in the UK. Prior to setting up the BSG, Antony spent six years working in Brussels for the American Chamber of Commerce following and writing about telecoms issues and as a consultant working on EU social affairs and environmental issues. Antony is a graduate of Aberdeen University and KU Leuven and is also a Policy Fellow Alumni of the Centre for Science and Policy at Cambridge University.
Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.
He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.
Mia focuses on shaping a policy environment that fosters the expansion of the UK tech sector while maximising the transformative potential of technology across all industries.
Prior to joining techUK, Mia worked as a Senior Policy Adviser at the Confederation of British Industry (CBI) within the Policy Unit.
Mia holds an MSc in International Development from the University of Manchester and a BA(Hons) in Politics and International Relations from the University of Nottingham.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
As Head of Public Affairs, Alice supports techUK’s strategic engagement with Westminster, Whitehall and beyond. She regularly works to engage with ministers, members of the UK’s parliaments and senior civil servants on techUK’s work advocating for the role of technology in the UK’s economy as well as wider society.
Alice joined techUK in 2022. She has experience working at both a political monitoring company, leading on the tech, media and telecoms portfolio there, and also as an account manager in a Westminster-based public affairs agency. She has a degree from the University of Sheffield in Politics and Philosophy.
Oliver is a Junior Policy Manager at techUK, working across Public Affairs and Digital Regulation policy. He supports the organisation’s engagement with government and parliament, contributes to shaping techUK’s regulatory agenda, and plays a key role in coordinating political outreach, policy projects, and flagship events.
He joined techUK in November 2023 as a Team Assistant to the Policy and Public Affairs team, before stepping into his current role. He has been closely involved in efforts to ensure the tech sector’s voice is heard in the policymaking process.
Oliver holds a Master’s in Policy Research from the University of Bristol and a BSc in Policy from Swansea University. During his studies, he contributed to mental health research as a Student Research Assistant for the SMaRteN network.
Outside of work, Oliver is a keen debater and remains active in the UK debating community, having previously led the Swansea University Debating Union. He enjoys exploring complex issues from multiple perspectives and values clear, thoughtful communication in policy discussions.
Josh joined techUK as a Programme Manager for Telecoms and Net Zero in August 2024.
In this role, working jointly across the techUK Telecoms and Climate Programmes, Josh is responsible for leading on telecoms infrastructure deployment and uptake and supporting innovation opportunities, as well as looking at how the tech sector can be further utilised in the UK’s decarbonisation efforts.
Prior to joining techUK, Josh’s background was in public affairs and communications, working for organisations across a diverse portfolio of sectors including defence, telecoms and infrastructure; aiding clients through stakeholder engagement, crisis communications, media outreach as well as secretariat duties.
Outside of work, Josh has a keen interest in music, painting and sailing.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the Local and General Election and working for the Casimir Pulaski Foundation. As well as working for multiple charities on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). Tess obtained her Bachelors of Arts in Politics and International Relations from University of Nottingham.
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Antony Walker is deputy CEO of techUK, which he played a lead role in launching in November 2013.
Antony is a member of the senior leadership team and has overall responsibility for techUK’s policy work. Prior to his appointment in July 2012 Antony was chief executive of the Broadband Stakeholder Group (BSG), the UK’s independent advisory group on broadband policy. Antony was closely involved in the development of broadband policy development in the UK since the BSG was established in 2001 and authored several major reports to government. He also led the development of the UK’s world leading Open Internet Code of Practice that addresses the issue of net neutrality in the UK. Prior to setting up the BSG, Antony spent six years working in Brussels for the American Chamber of Commerce following and writing about telecoms issues and as a consultant working on EU social affairs and environmental issues. Antony is a graduate of Aberdeen University and KU Leuven and is also a Policy Fellow Alumni of the Centre for Science and Policy at Cambridge University.
As Head of Public Affairs, Alice supports techUK’s strategic engagement with Westminster, Whitehall and beyond. She regularly works to engage with ministers, members of the UK’s parliaments and senior civil servants on techUK’s work advocating for the role of technology in the UK’s economy as well as wider society.
Alice joined techUK in 2022. She has experience working at both a political monitoring company, leading on the tech, media and telecoms portfolio there, and also as an account manager in a Westminster-based public affairs agency. She has a degree from the University of Sheffield in Politics and Philosophy.
Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.
He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.
Samiah Anderson is the Head of Digital Regulation at techUK.
With over six years of Government Affairs expertise, Samiah has built a solid reputation as a tech policy specialist, engaging regularly with UK Government Ministers, senior civil servants and UK Parliamentarians.
Before joining techUK, Samiah led several public affairs functions for international tech firms and coalitions at Burson Global (formerly Hill & Knowlton), delivering CEO-level strategic counsel on political, legislative, and regulatory issues in the UK, EU, US, China, India, and Japan. She is adept at mobilising multinational companies and industry associations, focusing on cross-cutting digital regulatory issues such as competition, artificial intelligence, and more.
She holds a BA (Hons) in Politics, Philosophy, and Economics from the University of London, where she founded the New School Economics Society, the Goldsmiths University chapter of Rethinking Economics.
Audre joined techUK in July 2023 as a Policy Manager for Data. Previously, she was a Policy Advisor in the Civil Service, where she worked on the Digital Markets, Competition and Consumers Bill at the Department for Science, Innovation and Technology, and at HM Treasury on designing COVID-19 support schemes and delivering the Financial Services and Markets Bill. Before that, Audre worked at a public relations consultancy, advising public and private sector clients on their communications, public relations, and government affairs strategy.
Prior to this, Audre completed an MSc in Public Policy at the Korea Development Institute and a Bachelor's in International Relations and History from SOAS, University of London. Outside of work, she enjoys spending time outdoors, learning about new cultures through travel and food, and going on adventures.
Mia focuses on shaping a policy environment that fosters the expansion of the UK tech sector while maximising the transformative potential of technology across all industries.
Prior to joining techUK, Mia worked as a Senior Policy Adviser at the Confederation of British Industry (CBI) within the Policy Unit.
Mia holds an MSc in International Development from the University of Manchester and a BA(Hons) in Politics and International Relations from the University of Nottingham.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
Dani joined techUK in February 2025 as a Policy Manager in the Digital Regulation team.
Prior to this, Dani worked in political monitoring where she was a consultant for Digital, Culture, Media and Sport. In this role, she developed a strong understanding of parliamentary procedure, closely following all of the major developments in the tech centre and working with several key stakeholders and regulators.
She has an undergraduate degree in History from the University of Bristol and an MPhil in Modern European History from the University of Cambridge.
Outside of tech, Dani has a strong interest in addiction policy, particularly towards drugs, having written her dissertation on the topic as well as several subsequent research projects. In her spare time, she enjoys cooking and following all things motoring, whether that be F1, MotoGP or Formula E.
Oliver is a Junior Policy Manager at techUK, working across Public Affairs and Digital Regulation policy. He supports the organisation’s engagement with government and parliament, contributes to shaping techUK’s regulatory agenda, and plays a key role in coordinating political outreach, policy projects, and flagship events.
He joined techUK in November 2023 as a Team Assistant to the Policy and Public Affairs team, before stepping into his current role. He has been closely involved in efforts to ensure the tech sector’s voice is heard in the policymaking process.
Oliver holds a Master’s in Policy Research from the University of Bristol and a BSc in Policy from Swansea University. During his studies, he contributed to mental health research as a Student Research Assistant for the SMaRteN network.
Outside of work, Oliver is a keen debater and remains active in the UK debating community, having previously led the Swansea University Debating Union. He enjoys exploring complex issues from multiple perspectives and values clear, thoughtful communication in policy discussions.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the Local and General Election and working for the Casimir Pulaski Foundation. As well as working for multiple charities on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). Tess obtained her Bachelors of Arts in Politics and International Relations from University of Nottingham.
