
COMMENT: Response to Chancellor's Spending Review announcement
The NHSA's response to the Government's June 2025 Spending Review announcement
11th June 2025
Chancellor of the Exchequer Rachel Reeves MP has today (Wednesday, June 11, 2025) delivered the Government’s Spending Review, at which she has announced a record £29 billion funding boost to rebuild the National Health Service. New investment will enable the NHS to deliver on the Government’s Plan for Change to cut waiting lists, improve patient care and modernise services.
Hannah Davies, Chief Executive of the Northern Health Science Alliance, has commented in response to this:
“The Northern Health Science Alliance (NHSA) welcomes today’s Spending Review, particularly the focus on regional research and innovation. For too long, the North has been held back by chronic underinvestment in R&D, despite being home to world-leading universities, NHS trusts, and life sciences assets. The promise to direct at least £30 million to each Mayoral Combined Authority shows a shift towards more place-based policymaking and locally led innovation.
“The government’s ambition of raising R&D investment to £22 billion, alongside £2 billion for an AI Action Plan and £1.2 billion for skills development, shows an alignment across innovation, productivity, and skills. Updating the Treasury’s Green Book to support place-based business cases is a major step forward in enabling fairer investment decisions that reflect regional priorities.
“The Spending Review signals a recognition of the foundations that underpin good health and economic growth. Investment in children and families, such as £370 million for school-based nurseries, £550 million to prevent unnecessary care placements, and targeted regeneration in deprived towns, shows a commitment to tackling structural inequalities. The £4.5 billion increase in school funding and the £39 billion housing pledge show that the government understand that improving health outcomes in the long term is about tackling the wider determinants of health.
“Today’s announcements have the power to strengthen the north by driving long-term R&D, and putting Northern communities at the heart of decision-making, this could be a step toward a healthier, fairer region and a more balanced UK.”
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