The 2025 Spending Review, announced by Chancellor Rachel Reeves, outlines the government’s strategic priorities for infrastructure and the built environment. As a trusted procurement partner to the public sector, we welcome the strong focus on long-term investment, regional development, and sustainability. However, the sector continues to face uncertainty around the practical implementation of this funding. Faye Dolan, Framework Director at Procure Partnerships Framework, offers insights on the Spending Review from a procurement perspective and highlights what public sector bodies should consider to effectively translate funding into successful project outcomes.
The announcement of the £39bn of capital for the Affordable Homes Programme, the biggest housing investment seen in 50 years, is a welcome signal. In a housing market where delivery confidence has been shaken by inflation, planning delays and viability issues, this injection of funding offers some much-needed stability. This funding, part of the Plan for Change programme which aims to deliver 1.5 million homes, gives developers, housing associations and local authorities a more certain pipeline and a platform to plan against. From our perspective, it’s not only a practical step towards easing housing pressure, but a confidence boost for those involved in public housing delivery. When aligned with the provisions of the Procurement Act and its focus on social value, we see this investment as a way to ensure housing projects leave a long-term legacy — not just in bricks and mortar, but in skills, employment and placemaking.
Equally encouraging is the government’s commitment to improving regional connectivity. The £3.5 billion confirmed for the TransPennine Route Upgrade and £2.5 billion for East West Rail are targeted investments that will better link towns and cities, supporting access to jobs, education and economic opportunity. In addition, £15.6 billion will be devolved to combined authorities to fund extensions to trams, trains and buses in Greater Manchester, the Midlands and Tyne and Wear. This level of funding gives the public sector the backing they need to move ahead with infrastructure schemes that will not only ease congestion but unlock growth, attract inward investment and support long-term regeneration in communities that need it most.
Beyond construction and infrastructure, major funding was also directed to health and defence. The NHS will see a £29 billion real-terms increase in annual funding by 2028–29, alongside a £2.3 billion real-terms boost in capital investment for technology, hospitals, and primary care. Meanwhile defence spending is set to rise to 2.6% of GDP, supporting both capability and estate upgrades.
On the sustainability front, the £14.2 billion investment in Sizewell C is a clear statement of intent. The new nuclear plant is expected to generate 3.2GW, enough to power six million homes, and according to the Government, will support 10,000 jobs and 1,500 apprenticeships during construction. It’s a positive step toward energy security and warmer homes, though delivery will require detailed planning, aligned partnerships and access to specialist skills, all of which need to be considered from day one. It’s no secret, both the public and private sectors face significant resource and skills shortages. To address these challenges, we encourage transparency and thoroughness throughout the entire procurement lifecycle, from pipeline planning to tender documentation, ensuring that no detail is overlooked and contractors can prepare resource as early as possible.
The broader takeaway from us, and echoed by many of the contractors we work with, is that while the scale of ambition is evident, the delivery challenge cannot be overstated. There is a large volume of investment being announced across complex programmes. For these projects to meet targets, start and complete, and achieve wider social value, the public sector will need strong delivery support. This means robust project planning, collaboration, and commercially sound procurement strategies. Crucially, early contractor involvement will be essential to maximise contractor appetite, cost certainty, buildability and speed of delivery.
We would encourage public sector bodies to engage with framework partners and trusted contractors as early as possible. Frameworks bring not only procurement efficiency, but access to proven and compliant delivery capability, resourcing and market insight. That’s going to be key in helping public sector clients turn policy and capital into projects that are viable, timely and reflective of local need.
The Spending Review shows ambition, and that is welcome. But it will be collaboration, robust planning and clarity that determines whether these ambitions are realised on the ground.
