'Spending review can be a game-changer - so don't let us down'

Westminster’s spending review holds great potential to “drive Britain’s economic recovery” and catalyse “game-changing” social housing revolution beyond the South East, business leaders say.

Bosses say the Government’s financial blueprint can “rewrite the rules” on investment across the UK and “deliver inclusive growth”.

But they have warned against “a repeat of the disappointments” from previous large development projects, adding “visions for positive change must be transformed into reality”.

And London Chamber of Commerce and Industry officials say the plans risk failing to address the capital’s “critical” transport, policing and affordable housing needs, which could undermine “the UK's ability to remain globally competitive”.

Chancellor Rachel Reeves’ multi-year review includes a £39 billion commitment to boost affordable housing across England between 2026 and 2036, a hike to the NHS’ day-to-day budget and an extension of the free school meals scheme to around 500,000 more children.

The plan also pledges to spend billions on transport schemes outside London by 2031 – including a Tyne and Wear Metro extension, a Transpennine rail route upgrade and backing for the reopening of Doncaster Sheffield Airport – boost British Business Bank’s financial capacity to £25.6 billion and support for Suffolk’s Sizewell C nuclear power plant.

Welcoming the Government’s housing plans, which are set to be delivered through the Affordable Homes Programme, Tracy Harrison, Northern Housing Consortium chief executive, said it represents a “significant milestone” in the journey towards meaningful change.

She said: “We’re pleased the Government recognises that one-size-fits-all solutions don’t work for the North. 

“We hope the new programme will offer continued flexibility to replace existing homes that don’t meet the needs of communities.

“However, that alone will not address the North’s regeneration crisis with more than 126,000 social housing homes reaching the end of their life.

“To make sure everyone has access to a good quality home, a dedicated funding stream to support housing-led neighbourhood regeneration is urgently needed.”

Lee Bloomfield, chief executive of Bradford-based Manningham Housing Association, added: “Housing associations have faced an impossible task in trying to provide enough decent homes with insufficient Treasury support. 

“The Chancellor’s decision to increase spending to £3.9 billion a year and extend the scheme to ten years delivers resources to build many more properties and offers greater financial stability.”

However, Karim Fatehi, London Chamber of Commerce and Industry chief executive, said the spending review – which also includes backing for Heathrow Airport’s expansion and a four-year Transport for London settlement – risks harming the progress of the capital and, by association, the UK’s global financial presence.

He said: “We strongly support the Government's commitment to spending to improve infrastructure and economic growth across the nation.

“But we are deeply concerned this review falls short in ensuring London's continued status as a global economic powerhouse.

“London’s prosperity is integral to the nation's economic outlook, and without the necessary financial backing there is a risk of undermining the UK's ability to remain globally competitive.”

Elsewhere, leaders hailed the potential of the Chancellor’s support for British Business Bank – the Government-backed economic development venture – saying it represents the “strongest signal of genuine commitment to Britain’s wealth creators we've seen in quite some time”. 

Andreas Adamides, chief executive of high-growth business founder network Helm, said: “This major expansion comes at a critical moment when scaling businesses need access to growth capital more than ever.

"If delivered effectively, this could be the catalyst that unlocks the potential of thousands of medium-sized businesses ready to drive Britain’s economic recovery.”

Alex Fenton, partner at FBX Capital, added: “The spending review is finally a sign that Rachel Reeves is committed to supporting small and medium-sized businesses. 

“Extending the Growth Guarantee Scheme, while increasing the £2 million cap, shows the Government is starting to understand that growing businesses need adequate funding and time to deliver returns.”

Responding to the spending review’s public transit plans, Martin Tugwell, chief executive at lobby organisation Transport for the North, said: “We are very pleased with the extra investment.

“And we look forward to seeing how Northern Powerhouse Rail will be progressed. 

“The economy of the North is constrained by its creaking Victorian rail infrastructure; investment in new capacity is long overdue.”

Zoë Billingham, director of think tank IPPR North, said: “Doubling down on transport investment and extending bus fare caps are very welcome moves; Pan-Northern rail will be the next frontier of investment in regional growth.

“And game-changing housing investment will anchor this growth.”

Ian Atkinson, partner at national law firm Womble Bond Dickinson, said: “The construction industry stands to benefit significantly from the spending review.

“We expect this surge in investment to drive demand over the next few years for construction services, materials and skilled labour, creating significant opportunities for the construction industry.

“However, the industry must take this opportunity to improve practices, innovate to deliver sustainable and high-quality projects, and build up a resilient and skilled workforce.”

Amanda Beresford, chair of the West & North Yorkshire Chamber of Commerce, added: “New infrastructure projects will provide investment opportunities for supply chains, generate wealth and create additional economic capacity. 

“Too many times in the past, big infrastructure projects have been beset by inefficiencies, delays and cost over-runs, so it is vital there is no repeat of such disappointments.” 

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