Spending Review 2025: A New Vision for Growth and Employment
The UK government’s Spending Review 2025 marks a pivotal step in driving forward inclusive economic growth and unlocking the full potential of the nation’s workforce. With a clear ambition to achieve an 80% employment rate, the review sets out a bold framework for investment in skills, employment support, and regional regeneration.
At the heart of the strategy is a £3.5 billion commitment to expand employment support by 2028-29. This funding will focus on helping individuals access the skills and opportunities they need to thrive in a rapidly changing labour market. The government’s “Pathways to Work” programme will provide personalised support for people with work-limiting health conditions or disabilities, while the Connect to Work initiative will continue its rollout across England and Wales to help those with complex employment barriers find meaningful work.
The Spending Review also extends funding for youth and inactivity “trailblazer” schemes—testing innovative ways to engage young people and those currently out of work. These programmes aim to break down silos between health, education, and employment services, offering holistic support to those furthest from the labour market.
Investment in skills is a cornerstone of the government’s economic growth plan. A £1.2 billion annual investment by 2028-29 will support over 1.3 million 16–19-year-olds in accessing high-quality training, adding 65,000 new learners each year. Additionally, a dedicated £625 million fund will train up to 60,000 construction workers between 2025 and 2029, underpinning efforts to meet housing targets and stimulate the wider economy.
Additionally to these workforce-focused initiatives, the government is intensifying efforts to drive regional growth. A new local growth fund will provide a 10-year capital settlement for mayoral city regions in the North and Midlands, with the aim of boosting productivity and strengthening regional economies. Investment is also earmarked for 350 of the UK’s most deprived communities, supporting regeneration, community cohesion, and improved public spaces.
Further support comes in the form of the Growth Mission Fund, which will channel £240 million into local job creation and economic regeneration projects between 2026-27 and 2029-30. Alongside this, devolved governments will receive a record average of £92.5 billion annually—marking the largest real-terms settlement since devolution.
Finally, with an expanded integrated settlement model for regional authorities, including London, and a strategy for post-16 education and skills expected later this year, the Spending Review 2025 sets the stage for a more inclusive, empowered, and skilled workforce capable of driving long-term national prosperity.
For more information visit
Spending Review 2025 document – GOV.UK
https://www.gov.uk/government/publications/spending-review-2025-document/spending-review-2025-html