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 鈥楤rain Drain鈥�, 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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