Leading Indicators | Defence, Discovery and the Future: key trends ahead of the UK Spending Review
UK Spending Review: expected health and defence priority as budget tightens.
10 June 2025
UK Spending Review: expected health and defence priority as budget tightens
The UK government is expected to boost NHS spending by +2.8%, along with a focus on defence funding, in this weeks spending review. Though it tightens local budgets, targeted capital like the £113bn infrastructure fund can still drive regional growth and open up real estate opportunities in health, defence and education.
Rising CRE lending and £32.6bn loan expiries in 2025 creates space for alternative finance
UK commercial real estate lending rose +11% in 2024, according to Bayes Business School; with activity particularly strong in the final quarter following two Bank of England base rate cuts. There was a rise in alternative lenders stepping in as traditional banks remain cautious, broadening funding access.
UK looking to capitalise on potential US āBrain Drainā, boosting life sciences
The Crick Institute plans to attract top researchers fleeing the US, amid political pressure on science. With stronger R&D funding and strategic recruitment, the UK could boost its life sciences sector, supporting commercial lab space demand and anchoring innovation-led economic growth
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