Introduction
The publication of the 2025 Spending Review (SR25) last week marked a key moment for the Government in setting its priorities for the remainder of this parliament.
It was a political and fiscal balancing act, no doubt, but overall, it presented a vision for “productive growth” through major investment in infrastructure, housing, technology, and regional development.
The Government is keen to turn intent into implementation and bring the private sector with it. In the days since SR25 we have seen a flurry of announcements including the National Housing Bank and the 10 Year Infrastructure Plan published.
This article recaps some of the headlines and reflects on the possibility that there may never be a better time for the development industry to commit time and resources before the shadow of the next election begins to appear.
What does SR25 mean for Planning and Regeneration?
From a planning and regeneration perspective, SR25 contained several important features:
- A £27.8 billion capital injection via the National Wealth Fund to boost sectors like clean energy, AI, transport, and advanced manufacturing.
- A reformed Green Book approach for appraising public sector projects — one that better reflects place-based benefits and reduces bias toward high-value areas.
- A new Local Growth Fund with a 10-year capital settlement starting in 2026.
- Expanded Mayoral Strategic Authorities (MSAs), which will anchor collaborative regional development.
SR25 also continues the Government’s agenda to devolve power and funding to regional authorities. The introduction of the Integrated Settlement for MSAs in the North and Midlands — essentially a pooled investment pot — underscores this commitment.
What are some of the standout commitments on housing?
SR25 outlined large-scale investments in housing, including:
- £39 billion for affordable housing over the next decade — the largest commitment in a generation.
- Catalysing additional private investment to further boost house building by confirming £4.8 billion in financial transactions from 2026-27 to 2029-30
In the immediate wake of the SR25, the Government has announced the National Housing Bank (NHB). A subsidiary of Homes England, the NHB is intended to be a catalyst for private investment by providing cheaper financing to developers to deliver large-scale mixed use and complex projects and support social housing.
These announcements are welcome, and once the Government moves into the detail, we would like to see a proportion of the capital funding being allocated to the development of housing for older people, to help unlock much-needed supply. This would align with the recommendation of the Older People’s Housing Taskforce that 10% of delivery through the Affordable Homes Programme should be for age-friendly and inclusive housing.
Matthew Gregg
Director – DLP Planning
MPlan (Hons) MRTPI
07827 706111
Matthew.Gregg@dlpconsultants.co.uk
dlpconsultants.co.uk
linkedin.com/dlp-planningltd
What are the big announcements on Infrastructure and Energy?
The SR25 outlined large-scale investments in energy, housing, and transport, including:
- £39 billion for affordable housing over the next decade.
- £13.2 billion under the Warm Homes Plan to tackle fuel poverty and support net-zero goals.
- £3.5 billion for the TransPennine Route and £2.5 billion for the East West Rail which aims to supports housing developments in the Oxford to Cambridge Growth Corridor
- £2.6 billion capital in decarbonised transport from 2026-27 to 2029-30, and £400 million to support charging infrastructure development.
Building on the momentum of these announcements, the Government has this week published its 10-Year Infrastructure Strategy. The key commitments to delivering public infrastructure include:
- Creating demand for private capital, including exploring the use of Public Private Partnerships
- “at least” £725bn of public infrastructure over the next decade for projects relating to maintaining the justice estate, expansion of prisons, flood defences, schools and hospitals.
- A “step change” in investment across regulated sectors: energy, digital and water.
- Reforming the Government’s ‘mega projects’ portfolio
What does this mean for us all?
SR25 marks an important moment of alignment between government policy and public funding. The commitment to capital investment and long-term planning reform that we’ve seen so far offers an opportunity to accelerate delivery — particularly in housing, infrastructure, and energy.
We hope this momentum is genuine and will not be dogged by political and fiscal constraints. The potential for policy direction to shift in the opposite direction is never far away, and we have a growing sense that now is the time to progress. Projects that move early — while the frameworks, funding, and political will are aligned — will be best placed to benefit.
