Spending Review ’25 – London Left Out? 

The Chancellor’s highly anticipated spending review is to be announced in full tomorrow, and the Lowick Team will be poring over the finer details as and when they emerge. However, the big picture is already clear – see below for a breakdown 👇 

🏥 Health and defence are expected to be big winners, with an additional £30 billion allotted for the NHS and the commitment to 2.5% GDP spent on defence maintained.  

🛤️ Much of the new infrastructure investment to be announced will be focused on the north, with the Chancellor preparing to rip up the Treasury’s Green Book- which has been criticised for its bias towards the country’s southeast. 

❌ London seems set to miss out on capital investment for infrastructure projects such as the DLR and Bakerloo line extensions. This has led Sadiq Khan to criticise the Chancellor for be unwilling to invest in London, a mere 48 hours before the review is published – despite a longer-term funding deal for TfL near to being finalised.  

🏠 It might not be all bad news for the capital however, as a potential rise is affordable housing grant could head London’s way. Angela Rayner had already secured an initial £2 billion fund but was deadlocked with the treasury over subsequent funding until Sunday evening. A deal which helps to ensure the government target of 1.5 million new homes this parliament has now been reached, which should ensure meaningful investment in London.  

Alongside a recent change in tack on the Winter Fuel Allowance, the Spending Review paints an interesting picture of Labour’s fiscal approach as we head toward the Government’s first anniversary in power.  

If you are interested to hear how the Spending Review may affect you or your business, get in touch with a member of the team.