From Science, Innovation and Technology at one and of the scale and the Foreign Commonwealth and Development Office at the other, there have been winners and losers in the Spending Review announced by the Chancellor today.
The former have seen their day-to-day spending increase by 7.4% in real terms (25-26 to 28-29) while the latter are 6.9% worse off.
Transport took a 5% hit but there are still some headlines: By 2031-32, £15.6 billion will have been provided to the elected mayors of some of England’s largest city regions, helping them invest in local transport priorities, including zero emission buses, trams and local rail.
£2.3 billion is being invested in the Local Transport Grant for local transport improvements including bus lanes, cycleways and congestion improvement measures – a fourfold increase in funding in 2029-30 compared to 2024-25.
But the main headline is the confirmation of a £13 billion budget for the Warm Homes Plan:
Christopher Hammond, Chief Executive of UK100, said: ‘Today’s confirmation that the Warm Homes Plan is safe represents a victory for the ‘beyond targets’ approach we’re calling for. The government has recognised that energy efficiency isn’t just about carbon reduction — it’s about national security, economic growth, and community wellbeing. Every properly insulated home is one step closer for energy independence and a family lifted out of fuel poverty. This is exactly the kind of joined-up thinking that our new report demonstrates is possible when we stop talking only about targets and start delivering the benefits people can see and feel.’
Tamsin Lishman, CEO of Kensa, added: ‘The commitment to adequately fund the Warm Homes Plan is a firm acknowledgement of the challenges we face in upgrading our homes, but also of the government’s determination to tackle these head on. For too long heat policy suffered from uncertainty and indecision, delaying action and dampening investor confidence. But today’s Warm Homes commitment, and last week’s confirmation that the Future Homes Standard will soon end boiler installations in new homes, demonstrates the leadership needed to kickstart a clean heat revolution.’
Will Walker, UK Policy Lead at climate solutions charity Ashden, said: ‘It is fantastic news that Labour has maintained its manifesto commitments to invest £13.2bn in the Warm Homes Plan and £8.3bn in GB Energy, including the Local Power Plan. This gives UK SMEs and supply chains the certainty they need to scale up, upgrading 5 million low-income households while empowering homes and communities to generate and benefit from their own clean, home-grown energy. This means lower bills, reduced emissions, better living standards, and real momentum behind Britain’s economic renewal.’
‘The wider package – with investment in schools, the NHS, social housing, and deprived communities – shows this government understands that renewing Britain means more than numbers on a spreadsheet. It means putting a fair, green transition to work on our high streets, in classrooms and hospitals, and in the lives of working people. This Spending Review shows the right direction of travel – but further bold action is needed to ensure no community is left behind.’
Russell Smith, Director of retrofit company Cotality, said: ‘The recognition that energy security is national security and the commitment to the manifesto promise to upgrade millions of homes and invest in skills is welcome.
‘The country needs to improve the energy efficiency of its housing stock to achieve energy security, net zero and address the cost of living – but that will only happen by both incentivising the uptake of retrofit and delivering the skilled workforce required to complete good quality works.
‘The energy efficiency sector faces a delicate balance of supply and demand. The Government’s support for the Warm Homes Plan and investment in skills will help, but needs to be backed up by clear messaging on the value of energy efficiency and additional incentives in the market such as clear minimum energy efficiency standards, low interest loans, tailored advice and a stamp duty rebate.’
Reg Platt, CEO of Emergent Energy, a solar energy installer on social housing, said: ‘The government is right to place a strong focus on cutting bills for residents, at the same time as driving progress on energy security and cutting emissions, as this is vital to retain public support.
‘With the cheapest solution in the market for sharing solar among residents of flats, and the only solution that can deliver a return on investment, Emergent can help ensure the widest number of people benefit from this new wave of action, and that the government’s money is efficiently spent.’
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