UK Spending Review pledges GBP £86 billion for digital growth & NHS

The UK government's latest Spending Review has drawn significant attention across technology, healthcare, and policing sectors, with a series of multi-billion pound commitments aimed at driving digital innovation and regional growth. While the headline figures have been applauded, experts stress the importance of strategic deployment and the need for foundational reforms to turn fiscal intent into transformative outcomes.

Within the technology sector, the promise of an GBP £86 billion funding package marks one of the largest single infusions into science and innovation in recent memory. Mark Boost, CEO of British cloud provider Civo, notes that, while this positions the sector as a presumed 'winner', the picture is more nuanced than it first appears. "Local Innovation Partnership funds show promise. They could prove useful in ensuring local leaders share the national government's enthusiasm for British tech, and make real progress in nurturing regional tech expertise across the country," he said.

However, Boost warned that an exclusive focus on local innovation should not be allowed to overshadow national priorities. "Smaller, local clusters of innovation should go hand in hand with a national digital strategy that prioritises security, sovereignty, and fair competition among British firms," he remarked. He urges robust investment in resilient AI infrastructure to prevent dependence on international giants, urging the government to look beyond 2030 with long-term education and training strategies.

Natalie Knight-Wickens, partner at Spencer West, believes the review represents a breakthrough for founders and entrepreneurs, particularly in healthtech, climate, and deep tech. "Funding for faster drug treatments and longer-lasting batteries across regions is bold. But success hinges on accessible intellectual property protections, adaptive regulatory pathways, and clear public-private co-investment terms," she stated. Knight-Wickens highlighted the need for legal clarity to ensure that innovative start-ups can protect their inventions and fairly engage with public funding schemes.

The government's strategic intent to foster tech clusters outside London received further endorsement from Steve Salvin, CEO of Milton Keynes-based AI firm Aiimi. He welcomed the GBP £2 billion AI Action Plan and praised the comprehensive approach targeting infrastructure and digital skills. "Big spending commitments for skills, apprenticeships, and rail connections – including the much-needed East-West rail line – will help regional towns and cities to boost talent, connectivity and skills," Salvin said, describing these as necessary to "create thriving AI and tech hubs across the nation."

The public sector also stands to benefit, particularly the NHS, which is set to receive a near-50% increase in its technology budget. Rachel Reeves described the measure as essential for bringing Britain's health service into the digital era, focusing on overcoming the persistent reliance on outdated, analogue infrastructure. Flann Horgan, Head of Healthcare Sector at NTT DATA UK & Ireland, commented, "You can't build a digital NHS on analogue infrastructure. The government knows this and understands it will only be able to drive long-term efficiency in the NHS through investments in technology to modernise healthcare."

Horgan highlighted the national ambition to make digital the norm across all NHS trusts, not just exceptions, but cautioned that scaling AI solutions will be challenging unless underlying issues such as siloed data and legacy systems are tackled. Citing success stories at The Royal Marsden, Horgan said, "AI tools being deployed to help radiologists diagnose and monitor cancer progression with greater accuracy and speed can be delivered, within real-world NHS constraints – when the right technical and clinical foundations were in place." He noted positive steps with the NHS Federated Data Platform and a proposed GBP £600 million investment in a National Health Data Research Service.

In policing, the Chancellor's announcement of a 2.3% increase in police spending power – amounting to GBP £2 billion over three years – includes funding for 13,000 more neighbourhood officers. Rob Sinclair, CEO of investigative tech firm Altia, acknowledged that the boost demonstrates an understanding of the pressures on police forces. "Technology has a key role to play in driving efficiencies and saving valuable police time, allowing officers to focus on frontline work and community engagement. We would like to see even more done in this area," Sinclair said, underscoring the sector's readiness to support innovative policing solutions.

As the dust settles on the Spending Review, attention turns to implementation. Industry voices across technology, healthcare, and public services are united in calling for well-designed, future-proof strategies that turn these fiscal commitments into tangible national advances, laying the groundwork for a more innovative, efficient, and competitive Britain.