Spending Review 2025: Digital transformation takes centre stage

Publish date: 18/06/2025
Author: Dale Peters
Streams: PublicSectorViews

The Spending Review 2025 (SR25) was published in June 2025 setting departmental budgets for day‑to‑day spending until 2028‑29 and for capital investment until 2029‑30. Total departmental spending now reaches £717bn in 2028-29 (up from £648bn in 2025-26). As always, there are winners (e.g. health and defence) and losers (transport and official development assistance), but the devil is in the detail. 

In this report we look at the key announcements and the implications for tech suppliers. This includes building the digital foundations; funding for innovation and the digital centre of government; the impact on health, defence, local government, education and police; the digital skills challenge; and how suppliers should position themselves for success.


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