Feature

Will the Spending Review really “renew” manufacturing?

As I’m sure you’re all aware, the UK Government recently released its latest Spending Review. As part of the announcement, Chancellor Rachel Reeves vowed to “renew” Britain, but acknowledged that “too many people in too many parts of our country are yet to feel it”. She continued, “The purpose of this spending review is to change that.” So, will the manufacturing sector “feel” this renewal in a positive way? Let’s dig into the details.

07/07/2025 11:06:25

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Set against a background of contentious welfare cuts and immigration policies, not to mention the broader context of international conflict and tariff tensions, the Review nonetheless promised ambitious investment across
transport, energy, skills, and next-generation technology.

R&D
The £86bn boost for science and technology is particularly worth noting. The R&D package aims to “turbo-charge” the country’s fastest-growing sectors, including AI,
clean energy, life sciences, and advanced manufacturing. In addition, up to £500m will be allocated to regional authorities, who will be empowered to develop ‘innovation clusters’ and decide how to target
their own research funding.

Clean energy
The Government also confirmed a £14.2 billion investment in the Sizewell C nuclear plant, to usher in the “golden age of nuclear”. A further
£2.5bn will be allotted to small modular reactors and fusion energy. The aim is to create 10,000 jobs (including 1,500 apprenticeships) and boost energy security with “homegrown power”.

Read the full article in DPA's July 2025 issue

Written By Sophia Bell

Sophia Bell is the Group Editor of DPA, Connectivity, and PBSI. She joined the team in 2020 as Assistant Editor after achieving a First-Class Honours BA in English Literature and Film Studies from the University of East Anglia. In her current role, she leads the editorial strategy, driving digital growth and ensuring each title continues to deliver trusted, relevant insight for engineering and manufacturing professionals.