Spending Review 2025: What it means for energy, clean tech and the built environment

Chancellor Rachel Reeves’ first Spending Review has set the stage for what the government hopes could be a transformative decade for the UK, with an emphasis on low-carbon energy infrastructure, energy security and housing delivery.

Here’s the Content Coms team’s quick take on what matters most for organisations working in energy, clean tech and the built environment.

What is the Spending Review?

The Spending Review is how the UK Government sets out its financial priorities for the coming years. It covers around 40% of all public spending, essentially, everything that can be planned in advance. While we’re still awaiting the full Industrial and Infrastructure Strategies later this month, yesterday’s announcement offers a clear direction of travel.

Clean energy & energy security: A new ‘golden age’ of nuclear

The government reaffirmed its ambition to make the UK a clean energy superpower, with energy secretary Ed Miliband heralding a new ‘golden age’ of nuclear power taking centre stage:

• Sizewell C: £14.2 billion for the UK’s first state-backed nuclear plant since 1988, expected to power 6 million homes and create 10,000 jobs.
• Small Modular Reactors (SMRs): £2.5 billion allocated to launch one of Europe’s first SMR programmes, with Rolls-Royce SMR as the preferred bidder.
• Fusion energy: £2.5 billion over five years for the STEP prototype fusion plant in Nottinghamshire.
• Carbon Capture, Usage and Storage (CCUS): £9.4 billion to boost the UK’s CCUS sector, including new support for the Acorn and Viking clusters.
• Floating offshore wind: Support to accelerate deployment including £80 million for port infrastructure at Port Talbot

After the Spending Review was announced, it was also confirmed that the Public Sector Decarbonisation Scheme will not receive any further funding. All currently awarded projects will remain funded. Phase 3c and Phase 4 of the PSDS are currently being delivered. For Phase 3c, projects, grant funding will continue until 31 March 2026 and for Phase 4 up until 31 March 2028.

Sustainable transport: Investment at scale

Transport continues to be a major focus, with significant funding aimed at both decarbonisation and regional connectivity (with London and the South East notably absent from the major spend commitments):

• Electric vehicles uptake (including vans and HGVs): £1.4 billion
• EV charging infrastructure: £400 million
• Walking & cycling infrastructure: £616 million
• Sustainable aviation: Continued support via the Advanced Fuels Fund
• Public transport:
  • £15.6 billion for city regions (e.g. Greater Manchester, West Midlands)
  • £2.3 billion for other regions via the Local Transport Grant
  • £750 million to improve bus services
  • £2.2 billion for Transport for London
  • £10.2 billion for rail enhancements (including Transpennine Route Upgrade and East West Rail)
  • £25.3 billion for HS2

Built Environment: A housing-led transformation

The social housing sector emerged as a winner in the Spending Review, with a huge rise in Affordable Homes Programme funding confirmed.

• Housing investment:
  • £39 billion over 10 years for social and affordable housing—this is the biggest such commitment in over 50 years
  • Homes England will manage £4.8bn in financial transactions aimed at “catalysing” private investment to boost housebuilding.
• School buildings: £2.4 billion annually to rebuild over 500 schools, plus increased funding for long-term maintenance
• Military buildings: £7 billion+ for upgrading military housing
• Other measures:
  • Planning system reforms
  • Land remediation funding
  • A permanent Mortgage Guarantee Scheme

Also worth noting:

• Warm Homes Plan: The Chancellor reaffirmed a commitment of £13.2 billion from 2025–30 to fight fuel poverty and improve energy efficiency. Funding will go to schemes that support the rollout of heat pumps, solar PV, batteries, and other low-carbon tech. More detail due by October.

Infrastructure & Innovation: Laying the digital foundations

Looking ahead, the government will publish a 10-Year Infrastructure Strategy later this month. But today’s review already promises:

• £22 billion per year for R&D, including:
  • £2 billion for artificial intelligence
  • £6 billion to help start-ups solving infrastructure and environmental challenges
• A strong emphasis on digitising public services and accelerating planning reform

We’ll be watching closely for the Industrial Strategy announcement, which is expected to offer deeper insights into how the UK will deliver clean energy, net zero, and advanced manufacturing goals. This strategy needs to provide the long-term certainty of pipeline to allow investors to build confidence and get the resources in place to deliver the exciting transformations promised yesterday.

• Content Coms is a strategic communications & marketing specialist for companies in the clean tech, energy and built environment space. To explore how we can help you turn policy announcements into commercial opportunities, get in touch.