Spending Review 2025 a downpayment on hardwiring growth mission into government - CBI

Commenting on the Spending Review published today and presented by the Chancellor to the House of Commons, Rain Newton-Smith, Chief Executive, CBI, said:

“Today’s Spending Review signals a downpayment on hardwiring the growth mission into government priorities. Against a challenging backdrop, the choice to prioritise investment in clean energy, R&D, as well as delivering a much-needed boost to housing, transport, and infrastructure is the smart play that will raise the long-term ceiling of the economy. The litmus test now will be following through on delivery in partnership with industry at pace. That must be underpinned by a comprehensive strategy for driving investment in adult skills and addressing high energy costs, which were missing from today’s announcement.” 

On capital investments in R&D, transport, and infrastructure Rain Newton-Smith said: 

“An uplift in public funding for R&D sends a strong signal that the UK is a place to invest and innovate. Government funding will crowd in private investment that can kickstart growth, and boost innovation and productivity. Smart R&D investment is foundational to achieving many of our growth goals including clean power, seizing the AI prize, and underpinning new growth markets. 

“Investors need certainty and setting out a long-term plan of government projects provides the clarity and confidence businesses need to greenlight their own spending.  

“The importance of housing and modern, local transport networks cannot be underestimated. Workers need affordable homes close to work and efficient buses and trams; old and creaking transport infrastructure just present further barriers to work. Local leaders know what is best for their communities, and multi-year settlements empower them to address local priorities and unlock economic growth.  

“At a national level the clear backing for Sizewell C helps to secure home-grown energy, putting the UK on the right track towards a clean power future.”  

Looking ahead to expected government strategies to come, Rain Newton-Smith added:

“Today sets the budgets for the next three years, but it is the Industrial Strategy that sets the agenda for the next decade. It presents the opportunity to establish a reinvigorated partnership model for effective collaboration between government and business. 

“The fact is that the innovation, investment, and jobs necessary for significant growth will come from business, not Whitehall, and the government must pull all the levers it can to unlock investment. 

“Businesses are labouring under the cumulative burden of rises in NICs and Minimum Wages. With the Autumn Budget now coming sharply into focus, the Chancellor should prioritise squashing tax rumours and speculation that risks stymieing confidence and subduing investment decisions.” 

On the specific settlement of £1.6bn for HMRC to modernise its data infrastructure and make it a digital first organisation, Newton-Smith said:

“Our members have long highlighted the unnecessary challenges engaging with the tax system that arise from HMRC’s resourcing and system shortcomings. We want to see this significant settlement for HMRC used to resource, simplify, and digitise their operations to deliver a much more efficient tax system and create headroom for private sector tech adoption.” 

*This release was amended after issuing on 11 June to remove a reference to CCU. 

Read our full analysis of the Spending Review, including wins for business, here.