Spending Review 2025 Explained: Capital Investment, Growth Strategy and Fiscal Credibility

David Gauke and John Hall analyse the June 2025 Spending Review from an insider perspective — examining why defence and net zero were the clear winners, why the NHS faces a capacity crunch despite generous day-to-day funding, and why the Sizewell nuclear investment failed to qualify as an off-balance-sheet financial asset. They also assess whether the Green Book rewrite signals a shift from economic rationality to political geography in infrastructure allocation. For businesses negotiating with government over capital investment and public contracts, this episode explains the forces shaping every spending decision for the next three years.They explore: Why capital spending is rising in defence and green energy How fiscal rules shape public spending decisions Whether the government is truly benefiting from its revised fiscal framework How changes to the Treasury “Green Book” could alter investment priorities What record post-war tax levels mean for future policy choices For anyone engaging with HM Treasury or operating in a sector reliant on public funding, understanding how capital allocation decisions are made is critical. This episode explains the political, economic and institutional forces shaping the Spending Review — and what they mean for the UK’s growth strategy. If you want to understand how government investment decisions are negotiated and prioritised, this episode provides the inside perspective. About the PodcastNegotient is the expert adviser in managing negotiations between the public and private sectors; we advise clients in both sectors how to get the best results from their negotiations. This podcast explores the strategies and behind-the-scenes mechanics that shape successful negotiations, and the factors that drive the interests of both sides. Our aim is to help those involved in public sector negotiations understand the challenges they face — and how to overcome them to deliver better results for the public.