The review is for to 2028–29 and for capital investment through to 2029–30, including block grants for the devolved governments. Below is an introduction to the fiscal context and a summary of the announcements relevant to the science industries.

Fiscal Context
The Spending Review was delivered against a severely constrained fiscal backdrop, driven by high public debt (approximately 96 per cent of GDP) and debt-interest costs at their highest share of the economy since the mid-1980s. As a result, the government is forecast to meet its “current budget rule” by only a narrow margin, with just £9.9 billion — equivalent to 0.3 per cent of GDP — in available “headroom”.

Coupled with commitments not to raise major tax rates, this significantly restricts the scope to expand the overall spending envelope.

Within these constraints, total departmental budgets will still rise by 2.3 per cent over the review period. However, this growth will be distributed unevenly, with real-terms increases protected for health, defence, and education.

Protecting multiple major departments in this way places considerable pressure on “unprotected” areas, which are expected to absorb a substantial share of the constraint. This is further compounded by the instruction for all departments to deliver at least 5 per cent in “savings and efficiencies”.

Government Strategy Updates

• A 10-Year Infrastructure Strategy will be published in the week of June 17, setting out long-term priorities across economic, social, and housing infrastructure. It will inform future capital allocations in areas such as transport, energy, and education estates, with potential implications for further education capital investment, regional research and development (R&D) facilities, and skills delivery infrastructure.
• A new Industrial Strategy will be published in the week of June 24, outlining a 10-year government–industry plan to “unlock investment and accelerate growth”. It will include sector-specific strategies for advanced manufacturing, clean energy, creative industries, defence, digital and tech, financial services, life sciences, and professional and business services. The strategy will also address cross-cutting challenges such as high energy costs and skills shortages, which industry leaders have identified as requiring major public investment.
  • A Life Sciences Sector Plan will be published later this month as part of the Industrial Strategy. It will outline measures to strengthen the UK’s global leadership in clinical genomics, enhance the clinical trials offer, streamline regulation, and attract investment in cutting-edge technologies.
• A new Trade Strategy will also be released in the week of June 24, setting out the UK’s global trade objectives for the next decade.

Skills Policy Announcements

• An additional £1.2 billion per year will be allocated to skills by 2028–29. This includes funding to support more than 1.3 million 16–19-year-olds to access high-quality training, enabling 65,000 additional learners each year. Further details will be set out in a forthcoming strategy for post-16 education and skills.
• A parallel £625 million programme (2025–26 to 2028–29) will train up to 60,000 skilled construction workers, strengthening the pipeline for major infrastructure and housing projects.
• The government confirmed it will “move Level 7 apprenticeship funding away from those already in work with prior learning and qualifications to support a more flexible offer at lower levels, creating more opportunities for young people at the start of their working lives.”
• The core schools budget will grow by £2 billion in real terms over the Spending Review period, delivering a cash increase of £4.7 billion per year by 2028–29 compared to 2025–26. According to the document, this will ensure average real-terms growth of 1.1 per cent, per pupil per year.
• The government stated its intention to “explore introducing a levy on higher education provider income from international students,” with revenue to be reinvested into the higher education and skills system to support domestic workforce upskilling.
• Funding has been allocated to support collaboration between businesses and the UK’s universities to develop new artificial intelligence (AI) courses, launch AI fellowships, and establish a prestigious new AI talent scholarship.
• The government is exploring an expansion of the High Potential Individual visa, aiming to double the number of qualifying institutions. In parallel, it will seek to improve access to the Global Talent visa and review the Innovator Founder visa to support entrepreneurs.

Life Sciences

• Funding of up to £600 million is confirmed for the life sciences sector, delivered in partnership with the Department for Science, Innovation and Trade (DSIT) and the Wellcome Trust, to establish the world’s first Health Data Research Service in Cambridge. The initiative aims to accelerate the discovery of lifesaving drugs.
• A further £520 million will be provided for life sciences manufacturing over the Spending Review period, supporting the UK’s research and development strengths and enhancing resilience to future health emergencies.

Nuclear

• The nuclear sector will receive significant investment, including £14.2 billion over the review period for Sizewell C. The project is expected to create 10,000 jobs, including 1,500 apprenticeships. However, a final investment decision with private partners has not yet been signed and will depend on securing private investment and achieving the expected return on capital.
• More than £2.5 billion is allocated to a Small Modular Reactor (SMR) programme, with Rolls-Royce SMR selected as the preferred bidder to partner with Great British Energy – Nuclear.
• A further £2.5 billion will be invested in nuclear fusion, including support for the STEP programme (Spherical Tokamak for Energy Production), a world-leading fusion plant in Nottinghamshire. The project aims to create thousands of jobs and deliver first power in the early 2040s.
• Long-term funding has been committed to the defence nuclear sector. This includes £4 billion over the next decade for the Plymouth naval base and more than £6 billion during the review period to strengthen the submarine industrial base at BAE Systems in Barrow and Rolls-Royce in Derby.
• The settlement provides £13.9 billion in capital for the Nuclear Decommissioning Authority (NDA) to continue its core mission of decommissioning sites, managing nuclear waste, and maintaining safety at former nuclear facilities.
• The government is also establishing a pathway for privately-led advanced nuclear technologies. Great British Energy – Nuclear will assess proposals under a new framework, to be published shortly.

Net Zero

• The government will allocate £9.4 billion to carbon capture, usage and storage (CCUS) over the Spending Review period. This funding is intended to fill the storage capacity of the East Coast Cluster and HyNet Cluster and to support the development of the Acorn and Viking clusters.
• Funding is confirmed for hydrogen production projects. Contracts have been awarded in Scotland (Cromarty and Whitelee) and Wales (West Wales Hydrogen). A further eight Scottish and three Welsh projects have been shortlisted for the second allocation round, with contracts due in Q1 2026.
• The North East Scotland Investment Zone will focus on sectors including green hydrogen. In Wales, the Celtic Freeport is intended to support the development of a “hydrogen economy” alongside other low-carbon technologies.
• More than £3 billion will be provided from 2026–27 to 2029–30 to support the advanced manufacturing supply chain for zero-emission vehicles, batteries, and ultra-low or zero-carbon emission aircraft.
• A total of £300 million will be provided over the review period to support offshore wind supply chains, boosting domestic job creation and securing UK-based manufacturing for clean energy infrastructure.

Research & Development

• Total government R&D funding is set to rise to £22.6 billion per year by 2029–30. This represents an “above-inflation increase” and includes expanded support for UK Research and Innovation (UKRI) and the UK’s association with Horizon Europe. This includes:
  
  • A new £500 million R&D Missions Accelerator Programme, aiming to attract a further £1.5 billion in private investment to address key innovation challenges.
  • Awards of at least £30 million to each of the seven Established Mayoral Strategic Authorities in England, and one equivalent region in each devolved nation, to give local leaders a central role in co-designing regional R&D programmes.
  • A scale-up of the Advanced Research and Invention Agency (ARIA), with at least £1 billion allocated over the review period to fund high-risk, high-reward research.
  • Up to £750 million for a new supercomputer at the University of Edinburgh. According to the document, this will be the UK’s largest supercomputer, supporting research in areas such as drug development and climate prediction.
  • New sectoral and technology programmes aligned with the modern Industrial Strategy, with details to follow in the strategy document.