A promising step forward – with caveats
Kelly Becker, President of UK & Ireland, Belgium & Netherlands at Schneider Electric, described the funding announcements as “a major boost for regional growth, transport and much needed STEM education and skills.”
However, she warned that “the devil is in the detail,” stressing the need for clarity on how these funds will be allocated.
Becker also emphasised the urgency of tackling energy efficiency. “With high energy costs stalling growth, industry needs support now,” she warned.
“This will be critical to strengthening the UK’s industrial backbone and boosting competitiveness.”
She also pointed to the broader geopolitical context, stating, “This country is in something of a global arms race with other nations to 'own' key tracts of the AI economy.” While praising the AI Opportunities Action Plan and Nvidia’s recent investment, she stressed the need for scalable infrastructure and capital access to support AI-driven growth.
Skills, skills, skills
Dr Hilary Leevers, Chief Executive of EngineeringUK, showed optimism in the £113 billion investment in capital projects, calling it a catalyst for “tens of thousands more jobs in engineering and technology.” She applauded the increased funding for apprenticeships and training, but urged that these efforts should be “focused into areas of workforce need”.
Leevers called attention to persistent diversity issues: “The need to improve the progression of women into engineering and technology continues to be overlooked, with women making up just 16.9 percent of that workforce.”
She also expressed concern over recent cuts to vital STEM-related programmes, including the Strategic Priorities Grant and CPD funding for science teachers. “Whilst the real-term increase in the Department for Education’s (DfE) expenditure up to 2029 is welcome, it is imperative that DfE and Skills England work with employers to address critical skills gaps and expand entry routes into priority sectors for young people.”
A delicate balancing act
Make UK’s Chief Executive Stephen Phipson acknowledged the challenging fiscal context in which the Spending Review was delivered. He welcomed targeted boosts in defence, science, and regional transport, but added: “Industry needs a funded and joined up long-term vision as a matter of urgency for stability and investment.” He reiterated the importance of tackling high industrial energy costs and the national skills shortage.
Backing innovation with infrastructure
Dr Graham Hoare OBE, CEO of the Manufacturing Technology Centre (MTC), described the review as a “welcome recognition that energy security is national security”. He praised the commitment to expanding nuclear power and building a next-generation nuclear workforce.
“The announcement of over £3bn in R&D and capital funding for advanced manufacturing over the next four years is particularly significant,” Hoare said.
“This has the potential to unlock further investment across the UK and strengthen the foundations of the country’s industrial base.”
The MTC sees itself as central to this mission and Hoare confirmed its intention to “work with government and industry to turn this ambition into action.”
From lab to market
From a chemical engineering perspective, Duncan Lugton of the Institution of Chemical Engineers (IChemE) echoed these sentiments, but flagged key limitations. “The UK holds deep research expertise…but faces persistent barriers when it comes to moving laboratory breakthroughs into industrial-scale applications.”
He stressed the importance of pilot-scale facilities, stronger academia-industry ties and commercialisation skills development as prerequisites for translating innovation into growth. “Without these systemic changes, scientific advances sparked in the UK will continue to be commercialised overseas,” he said.
The automotive angle
Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), acknowledged the pressure on public finances and recognised efforts to support electric vehicles. However, he warned, that more must be done to incentivise private consumer demand.
“Without market-making interventions, that world-leading pace of transition may need to be reviewed,” Hawes stated.
In summary
Across the board, manufacturing leaders see potential in the Spending Review’s headline commitments, but stress that ambition must be matched by execution. While the announcements include bold financial commitments to infrastructure, energy, AI, and skills development, many industry experts caution that the true test lies in delivery, coordination, and strategic clarity.
Whether the Government’s forthcoming Industrial Strategy can tie these strands together into a coherent, long-term vision remains the next major test.