While the 2025 Spending Review focused on long-term investment rather than introducing new taxes, the scale of spending suggests that future tax rises are likely.

The Chancellor pledged multi-year funding for health, defence and public infrastructure, setting departmental budgets until 2028–29.

Key announcements included:

However, funding for other vital areas like local government, policing, and the environment will either remain flat or fall.

No tax rises today does not mean no future tax rises.

Despite assurances that new spending is fully funded, rising debt interest payments, global volatility and flatlining productivity all place pressure on the Chancellor’s future fiscal decisions.

From a technical standpoint, experts believe the most likely targets include:

These changes have the potential to impact both business cash flow and personal wealth, which is why advanced planning is essential.

The absence of immediate change should not create complacency.

Now is the right time for you to:

With significant investment flowing into defence, healthcare, infrastructure and technology, now might also be an ideal time to explore public sector contract opportunities and position your business to support the UK’s long-term development.