The Scottish Government recorded a £1 billion underspend in 2024/25 but still needs to move away from short-term measures to address a stark forecast gap between its spending plans and funding.
The underspend was supported by over £2 billion of additional funding from the UK Government, meaning a plan to help balance the budget with £460 million of offshore wind leasing revenues was not needed.
Significant pressures remain in achieving financial balance in 2025/26, and many of the necessary savings identified and delivered so far are non-recurring. This continued short-term approach to managing spending is not supporting the fiscal sustainability of the Scottish public sector.
The Scottish Government’s latest Medium Term Financial Strategy projects a combined resource and capital funding gap of £4.7 billion by 2029/30. This is due to policy choices and higher workforce costs. However, the government’s plan to make savings over the next five years lacks detail on how they will be delivered.
Stephen Boyle, Auditor General for Scotland, said: “Although the Scottish Government reported a £1 billion underspend this year, it did so from a combination of additional funding from the UK Government and one-off savings.
“A forecast gap of nearly £5 billion remains between what ministers want to spend on public services and the funding available to them.
“The Scottish Government needs to prepare more detailed plans setting out how it will close that gap by the end of the decade.”
Business confidence in Scotland fell 20 points to 39% in September
Firms’ optimism in their own trading prospects fell 20 points to 45%, while optimism in the economy dipped 18 points to 34%
Overall UK business confidence dipped 12 points in September to 42%.
Business confidence in Scotland fell 20 points during September to 39%, according to the latest Business Barometer from Bank of Scotland.
Companies in Scotland reported lower confidence in their own business prospects month-on-month, down 20 points at 45%. When taken alongside their optimism in the economy, down 18 points to 34%, this gives a headline confidence reading of 39% (vs. 59% in August).
Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as investing in their team, for example through training (44%), evolving their offering, for example by launching new products or services (39%) and introducing new technology (30%).
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
National picture
Overall, UK business confidence fell 12 points in September to 42%.
Firms’ confidence in their own trading prospects fell 12 points to 51%, and their optimism in the wider economy fell 11 points to 33%.
The North East of England was the most confident UK nation or region in September, climbing 13 points to 68%, followed by London (57%).
Sector insights
Firms across manufacturing, construction, retail and services all saw confidence fall this month. The biggest change was in manufacturing with a decline of 31 points to 31%, a two-year low. Retail sentiment fell 17 points to 40%, its lowest level in four months.
Similarly, confidence in the service sector fell six points to 47%, the lowest reading since April. Construction continued to decline for the fourth consecutive month, dropping 5 points to 35%.
Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “Despite a fall in confidence, Scottish firms remain focused on growth – planning to invest in their people, evolve their products and services, and explore new technologies.
“As we head into the busy festive trading period, we’ll continue to support businesses across Scotland as they take the next steps in their strategies.”
Hann-Ju Ho, Senior Economist, Lloyds Commercial Banking, said: “While increased market volatility earlier in the month may have impacted confidence, levels of trading prospects and economic optimism remain above their long-term averages.
“Businesses may find reassurance that the Bank of England is expected to reduce interest rates further in the next six months, while long-term global bond yields have calmed which, if sustained, may have a positive impact on businesses as we move into the last few months of the year.”
Paul Kempster, Managing Director for Commercial Banking Coverage, Lloyds Business and Commercial said: “While business confidence has returned to levels seen earlier in the year, a range of metrics remain well above the long-term average.
“Businesses still have opportunities ahead, whether that be upskilling their workforce, evolving their products or exploring new markets.”
UK Government has announced over £1.25 billion of inward investment from US finance companies, creating 1,800 jobs
New US investments will create 1,800 jobs from Belfast to Edinburgh and boost benefits for millions of customers.
Total of over £1.25 billion of private US investment committed to the UK’s world-leading financial services sector including PayPal, Bank of America, Citi Bank, and S&P.
Demonstrates the enduring strength of the UK-US ‘golden corridor’ in financial services, with British banks expanding operations into the US and booming cross-border investment flows reinforcing that working with America is best for Britain.
Deal lines up £20 billion in trade between the two nations – including an expected £7 billion commitment from BlackRock to grow in the UK.
London, Edinburgh, Belfast and Manchester are set to benefit from a wave of new US investment into the financial services sector, reinforcing the strength of the UK-US economic partnership ahead of next week’s Presidential State Visit.
The Westminster government says working with America is best for Britain — and today’s announcement proves it. A total of over £1.25 billion in private sector commitments from leading US firms — including PayPal, Bank of America, Citi Bank, and S&P Global — will support job creation, drive innovation, and deliver improved services for consumers in the UK.
US giants are capitalising on Britain’s leadership in financial services – expanding operations and opening new offices across the nation, with London, Edinburgh, Belfast and Manchester set to gain from a wave of skilled job creation.
Bank of America is set to create up to 1,000 new jobs in Belfast, marking its first-ever operation in Northern Ireland — a major milestone that underscores the region’s growing role in global financial services.
Citi Group today confirms it is investing £1.1 billion across its UK operations, including a further commitment to growing its presence in Northern Ireland where the bank is already one of the top employers in Belfast now employing over 4,000 people — firmly establishing Belfast as a major technology powerhouse.
BlackRock are celebrating the opening of their new Edinburgh office this week, which will see their 800-strong footprint nearly double, as part of their multi-billion dollar investment into the UK.
In Manchester, S&P Global are investing over £4 million into their Manchester offices which will support 200 permanent jobs to boost their nearly 3,000-strong UK workforce.
Business and Trade Secretary Peter Kyle said: “Today’s announcements reinforce the UK’s position as the world’s leading investment destination. Our financial services sector is at the heart of a modern, dynamic Industrial Strategy.
“Strengthening ties with the US boosts our economy, creates jobs, and secures our role in global finance, delivering on our Plan for Change.
“These investments reflect the strength of our enduring ‘golden corridor’ with one of our closest trading partners, ahead of the US Presidential State Visit.”
This marks a significant vote of confidence in the UK’s position as a global financial hub and in the government’s plan to make Britain the best place in the world to invest — a vision underpinned by the UK’s Modern Industrial Strategy, which is driving investment into priority sectors like financial services.
These investments highlight the enduring value of the transatlantic relationship — a cornerstone of shared prosperity that supports millions of jobs and drives growth in every region.
Chancellor of the Exchequer Rachel Reeves said: “This commitment from America’s leading financial institutions demonstrates the immense potential of the UK economy, our strong relationship with the US and the confidence global investors have in our Plan for Change, which is making the UK the best place in the world to invest and do business.
“These investments will create thousands of high-skilled jobs from Belfast to Edinburgh, kickstarting the growth that is essential to putting money in working people’s pockets across every part of the United Kingdom.”
Broadridge is making major investments into their new London office, further strengthening its UK presence and deepening transatlantic ties in financial services.
As part of the UK’s expanding fintech and digital innovation sector, PayPal is announcing a £150m investment in product innovations and growth that will benefit customers throughout the UK, reinforcing Britain’s position as a key market for the brand globally.
Jane Fraser, Citi Group CEO said:“Citi’s commitment to the UK runs deep. This is home to many of our most senior leaders and nearly 14,000 colleagues across London, Belfast, Edinburgh and Jersey.
“We’re proud to be serving 85% of the FTSE 100 and to have stood beside UK companies through every market cycle, raising capital, financing growth and helping them compete on the world stage.
“The UK isn’t simply one of our largest markets; it is core to Citi’s foundation as a truly global bank.”
The UK-US investment relationship has never been stronger, with over £1.2 trillion invested in each other’s countries at the end of 2023.
These new investment announcements are accompanied by new significant commitments by financial companies to ramp up their commercial activity and capital flows between our two economies in the coming years.
Blackrock is expecting to allocate over £7 billion to the UK market next year on behalf of clients, and is investing £500 million into enterprise data centres across the country.
Rothesay is planning to double its investment in the US (by £7 billion) over the next few years, and OakNorth is committing to increased capital and lending of over £3.5 billion to support its US operations.
British banks are expanding their US footprint; Barclays alone has deployed over $2 trillion in capital across the US in 2024 and continues to play a pivotal role in strengthening UK-US investment ties. The bank has an ambition to double this amount over the next decade, expanding its footprint and supporting growth across sectors.
All in all, that will see investment and capital commitments of over £8 billion coming to the UK, and over £12 billion going the other way, creating jobs and opportunity in both countries.
Earlier this year, the Chancellor launched the Financial Services Growth and Competitiveness Strategy, which included financial services as a high growth sector, signifying the UK’s commitment improving financial regulations and driving investment and skilled jobs into the UK.
The UK and US agreed an Economic Prosperity Deal which secured major tariff reductions for key sectors and protected jobs in the automotive and aerospace sector. Discussions continue with the US on a wider UK-US Economic Deal which will look at increasing digital trade, strengthen supply chains and boost access for our world-leading services companies.
BlackRock will open their new Edinburgh offices on 18 September, which shows their ongoing commitment to the area – this new home will allow Blackrock to grow from 800 to 1,400. Once complete, two of the top five largest BlackRock offices will be in the UK.
Larry Fink, Chairman and CEO of BlackRock, said: “As the largest asset manager in the UK, BlackRock is proud to serve over 13 million British people who are saving for retirement. Today we are announcing an investment of half a billion pounds into enterprise data centres across the country, advancing digital infrastructure for British-based businesses.
“In addition, over the last year our clients around the world invested over £7bn into UK public equity and fixed income securities. We expect this trend to continue, supporting jobs, growth and innovation across a wide range of British industries.”
More than £52 billion in spending last year has funded the delivery of vital public services for the people of Scotland.
The Scottish Government’s 2024-25 Provisional Outturn, which compares actual spending with overall funding, included:
Investing more than £19.5 billion in health and social care, protecting existing critical delivery in the face of unprecedented fiscal pressure and enabling frontline services to continue to evolve to deliver the best care and treatment for our diverse population.
Supporting fair and affordable pay deals for workers who provide our essential public services.
Investing more than £5.9 billion for 2024-25 in social security, directly supporting more than 1.4 million people across Scotland. This includes £456 million allocated to the Child Payment. As of 31 March 2025, 326,225 children aged 15 and under were actively benefiting from Scottish Child Payment.
Supporting economic growth despite global uncertainty. Scotland’s economy grew 1.2% in 2024, compared to 1.1% in the UK as a whole, having strengthened from 0.5% growth in 2023.
The remaining £557 million of available funding – representing 1% of the total Scottish Government budget – has been carried over to support costs in 2025-26, with no loss of spending power to the Scottish Government.
Public Finance Minister Ivan McKee said yesterday: “The provisional outturn demonstrates once again this Government is prudently and competently managing Scotland’s finances while protecting our priorities and ensuring we can deliver effective public services.
“Managing the financial position for 2024-25 was a challenge once again. The continued impact of inflation, pressure on public sector pay, and wider geopolitical instability meant careful consideration had to be given to balancing the Scottish Budget.
“What’s more, under the UK Spending Review the Scottish Government’s day-to-day spending is set to grow by 0.8% over the next three years, considerably lower than the 1.2% average growth for UK Government departments.
“The impact of these challenges on our financial planning will be set out in the Medium-Term Financial Strategy tomorrow (i.e. Wednesday (today)) in Parliament, but the growing future year pressures mean we must act prudently and responsibly to remain fiscally sustainable.”
Strategy to be published after ‘disappointing’ UK Spending Review settlement
A Medium Term Financial Strategy will be set out next week in the aftermath of a “disappointing” UK Spending Review and welfare reforms that will reduce Scotland’s budget.
Finance Secretary Shona Robison will outline the five-year strategy and accompanying action plan to ensure public money is focused on Scottish Government priorities.
The Finance Secretary said: “This government has delivered a balanced budget every year while taking steps to improve the overall sustainability of our finances. This is despite a deeply challenging financial situation caused by rising global instability, persistent higher inflation and over a decade of UK austerity.
“Our disappointing settlement at the recent UK Spending Review has made the situation worse, short-changing the Scottish Government by £1.1 billion in our day-to-day funding compared with UK Government departments.
“This comes on top of reductions in our funding worth hundreds of millions of pounds as a result of the UK Government’s proposed welfare reforms and failure to fully fund its employer National Insurance increase.
“In this context, it is important that we take action to maximise funding targeted at frontline services such as our NHS.”
The Medium Term Financial Strategy (MTFS) will outline the approach to ensuring Scotland’s finances remain on a sustainable footing.
It will be accompanied by a Fiscal Sustainability Delivery Plan, setting out the actions being taken in support of the MTFS.
Both documents will be presented by the Finance Secretary in a statement to Parliament on Wednesday 25 June.
UK Government’s Plan for Change delivers record settlement for Scottish Government with an extra £9.1 billion over the SR period to deliver public services
Working people across Scotland will benefit from significant investment in clean energy and innovation, creating thousands of high-skilled jobs and strengthening Scotland’s position as the home of the United Kingdom’s clean energy revolution.
The UK Government has confirmed £8.3 billion in funding for GB Energy-Nuclear and GB Energy in Aberdeen. This is alongside an increased commitment to the Acorn Carbon Capture, Usage and Storage project, which will receive development funding.
The Spending Review, outlined yesterday, Wednesday 11 June, announces targeted investment in Scotland’s most promising sectors to grow the economy and put more money in working people’s pockets. It delivers an extra £9.1 billion over Phase 2 of the Spending Review, through the Barnett formula.
The government also confirmed £25 million for the Inverness and Cromarty Firth Freeport.
These investments are part of a wider package, with funding for hydrogen production projects at Cromarty and Whitelee.
Secretary of State for Scotland, Ian Murray, said: “Putting more money in the pockets of working Scots by investing in the country’s renewal is at the heart of this Spending Review and our Plan for Change.
“The Chancellor has unleashed a new era of growth for Scotland, confirming billions of pounds of investment in clean energy – including new development funding for Acorn – creating thousands of high-skilled jobs.
“Scotland’s leading role at the heart of UK defence policy has been strengthened and there is also significant investment in our trailblazing innovation, research and development sectors.
“And the Scotland Office will work with local partners to ensure hundreds of millions of pounds of new targeted support for Scottish communities and businesses goes to projects that matter to local people. This means that the UK Government is now investing almost £1.7 billion in dozens of important growth schemes across Scotland over 10 years.
“To maximise the benefit of recent trade deals with India, US and the EU we are continuing the Brand Scotland programme to promote inward investment opportunities boosting Scottish exports of our globally celebrated products.
“And we are delivering a record real-terms funding settlement for the Scottish Government with an extra £9.1 billion over the Spending Review period through the Barnett formula. That’s more money than ever before for them to invest in Scottish public services like our NHS, police, housing and schools.
“This is a historic Spending Review for Scotland that chooses investment over decline and delivers on the promise that there would be no return to austerity.”
Investment in Scotland to strengthen UK defence
Speaking in the House of Commons yesterday, the Chancellor reaffirmed the government’s commitment to increase defence spending to 2.6% of GDP by April 2027, backing our Armed Forces, creating British jobs in British industries, and prioritising the security of Britain when it is most needed.
The long-term future of the Clyde is secured through an initial £250 million investment over three years which will begin a multi-decade, multi-billion pound redevelopment of HM Naval Base Clyde through the ‘Clyde 2070’ programme.
Investing in innovation and R&D
Scotland will also become home to the UK’s largest and most powerful supercomputer, with up to £750 million committed to its development at Edinburgh University. This world-class facility will give scientists across all UK universities access to extraordinary computer power, further strengthening Scotland’s research and innovation capability.
The UK Government is backing Scottish industry with a share of increased UK-wide R&D spending set to grow from £20.4 billion in 2025-26 to over £22.6 billion per year by 2029-30. Scotland will also benefit from a £410 million UK-wide Local Innovation Partnerships Fund.
Targeted support for Scottish communities
The government is also investing £160 million over 10 years for Investment Zones in the North East of Scotland and in Glasgow City Region, and confirming £452 million over four years for City and Growth Deals across Scotland.
A £100 million joint investment for the Falkirk and Grangemouth Growth deal with the Scottish Government (£50 million from UK Government and £50 million from Scottish Government), demonstrating the UK Government’s continued commitment to the Grangemouth industrial area.
A new local growth fund, and investments in up to 350 deprived communities across the UK, will maintain the same cash level as in 2025-26 under the Shared Prosperity Fund. The Ministry of Housing, Communities and Local Government and the Scotland Office, will work with local partners and the Scottish Government, to ensure money goes to projects that matter to local people. This investment will help drive growth and improve communities across Scotland.
Supporting Scottish businesses
The National Wealth Fund (NWF) is trialling a Strategic Partnership with Glasgow City Region to provide enhanced, hands-on support to help it develop and finance long term investment opportunities. The NWF has already made its first investment in Scotland with £43.5 million in direct equity for a sustainable packaging company, which is to build its first commercial-scale manufacturing facility near Glasgow.
Through its Nations and Regions Investment programme the British Business Bank is delivering £150 million across Scotland to break down access to finance barriers and drive economic growth.
The settlement also allocates £0.75 million each year to champion our ‘Brand Scotland’ trade missions to promote Scotland’s goods and services on the world stage and to encourage further growth and investment.
A record settlement for Scottish public services
The Government has been clear that local decision-making against local priorities is central to delivering growth.
The Scottish Government will receive the largest real terms settlement since devolution began in 1998, with an average £50.9 billion per year between 2026-27 and 2028-29, enabling the Scottish Government to deliver for working people in Scotland. This includes £2.9 billion per year on average through the operation of the Barnett formula, with £2.4 billion resource between 2026-27 and 2028-29 and £510 million capital between 2026-27 and 2029-30.
This investment and record settlement is made possible by the ‘tough but necessary’ decisions taken in the October Budget.
Edinburgh North and Leith Labour MP Tracy Gilbert has welcomed the statement. She said: “The Comprehensive Spending Review is good for Scotland’s economy and public Services.
“After several meetings with the Secretary of States for Science, Innovation and Technology and Scotland I’m so pleased to see the announcement of funding for the new Supercomputer to be based at EdinburghUniversity.
“This major investment in Edinburgh positions us at the forefront of computing, and technological innovation, not just in the UK, but globally.”
Not unsurprisingly, the Holyrood SNP Government has a number of issues with the likely impact of the Spending Review on Scotland. Post to follow …
The Chancellor is today [WEDNESDAY 11 JUNE] expected to announce the biggest boost to social and affordable housing investment in a generation.
As part of the Spending Review Rachel Reeves is expected to confirm £39 billion for a new Affordable Homes Programme over 10 years. This will turbocharge the Plan for Change commitment to get Britain building and deliver the 1.5 million homes this country needs.
This investment will be significantly higher than what the previous government spent on affordable housing. The last five year 2021-26 programme was only £11.5bn, averaging £2.3bn per year.
This means the government will be spending almost double this on affordable housing investment by the end of this Parliament (£4bn in 2029/30).
This is the first time in living memory that the government has set out a programme that provides ten years of certainty. This provides the sector with the confidence to deliver for now and the future, making it easier for those on low incomes to access a safe, high-quality home.
This comes on top of a ten-year social rent settlement that will set a rent policy for social housing from 2026 that enables providers to borrow and invest in new and existing homes, while also protecting social housing tenants. This ten year settlement will see rents rise at CPI+1% from 2026, alongside a consultation to follow shortly on how to implement social rent convergence.
It also builds on ambitious reforms to the planning system that the Government has already announced, which were judged by the OBR to add £6.8bn to the economy and boost housebuilding to its highest level in 40 years by 2029/30.
A government spokesperson said: “The Government is investing in Britain’s renewal, so working people are better off.
“We’re turning the tide against the unacceptable housing crisis in this country with the biggest boost to social and affordable housing investment in a generation, delivering on our Plan for Change commitment to get Britain building.”
RACHEL REEVES: “WE ARE INVESTING IN BRITAIN’S RENEWAL”
Chancellor vows to ‘invest in Britain’s renewal’ as she lays out the Government’s Spending Review.
Reeves to announce the Government’s plans to invest in Britain’s security, health and economy to make working people better off.
Billions of pounds of new capital investment will boost British business and create British jobs to kickstart economic growth and drive up living standards in line with the Plan for Change, including the biggest ever local transport investment in England’s city regions outside of London and the South East.
The Chancellor will today publish the Government’s Spending Review to ‘invest in Britain’s renewal’ as she vows to make all parts of the country better off.
Rachel Reeves will announce plans for billions of pounds of investment in projects across the United Kingdom that will create jobs, prosperity, and put more money in people’s pockets.
The Chancellor will say detailed spending plans come after the Autumn Budget and Spring Statement fixed the foundations of our economy to deliver stability, outlining: “The choices in this Spending Review are possible only because of the stability I have introduced and the choices I took in the Autumn.”
The Chancellor will confirm the Government’s commitment to delivering for every part of Britain, by announcing reforms that will guarantee towns and cities outside London and the South East can benefit from new investment. This will include the biggest ever local transport infrastructure investment in England’s city regions, which will truly connect people to opportunities that improve their quality of life, a key objective of the Government’s Plan for Change.
Ms Reeves is also expected to spell out the Government’s plans to invest in the British people’s priorities of security, health and economy.
The Spending Review comes on the back of the Government’s announcements in recent days to invest £15.6 billion in local transport projects, £86 billion to boost science and technology, and create ten thousand jobs by building Sizewell C Nuclear Power Station – which will drive forward Britain’s status as a clean energy superpower, as outlined in the Plan for Change.
Speaking in the House of Commons, the Chancellor is expected to say:“This Government is renewing Britain. But I know too many people in too many parts of the country are yet to feel it.
“This Government’s task – my task – and the purpose of this Spending Review – is to change that. To ensure that renewal is felt in people’s everyday lives, their jobs, their communities.
“So that people can see a doctor when when they need one. Know that they are secure at work. And feel safe on their local high street.
“The priorities in this Spending Review are the priorities of working people. To invest in our country’s security, health and economy so working people all over our country are better off. That is what this Spending Review will deliver.”
She will add:“I have made my choices. In place of chaos, I choose stability. In place of decline, I choose investment. In place of retreat, I choose national renewal.
“These are my choices. These are this Government’s choices. These are the British people’s choices.”
It’s less than a week until the Spending Review announcement, and rumours abound about what departments will get in funding and how it ties in with the Government’s priorities (write Fraser of Allander Institue’s João Sousa) .
But how did we get to this system in which departments depend on settlements with the Treasury as part of a broad review of what the government spends its money on? Does it work? How has history influenced it? And what can we expect from next week?
We have today published a paper looking at all this in detail – but here’s a shorter version of the history and a preview for Chancellor Rachel Reeves’ statement.
The Treasury has long been at the centre, and that has not always been great
The system that preceded post-Second World War changes to spending planning and control was set up by William Ewart Gladstone’s Treasury, and had a strong focus on ensuring that expenditure was kept on a tight leash. Parsimony with public funds, annual control of cash and using taxation to balance the needs on public spending were the driving forces of the Treasury, and remained so until the 1950s.
By then, however, Parliament had come to largely ignore its previously central role in setting public spending envelopes. Successive governments had made control of public spending a matter of confidence, and even large changes largely went through on the nod. The Plowden Committee in 1961 proposed a more collective way of deciding on public spending, and its recommendations were largely accepted.
This became the Public Expenditure Survey (PES), which intended to devolve responsibility for planning to departments and to think about what was needed rather than what the envelope as a whole would be. The intention was to limit the Treasury’s influence, which in large part it did.
The 1970s crises bring the Treasury back into the driving seat
But although the PES was well intentioned, it had implementation and incentive problems.
On the implementation side, it was extremely complicated. It required controlling the volume of public services provision, which is as difficult as it sounds. But the lack of constraint on overall spending was its biggest downfall. Although it was meant to reflect economic conditions in the medium-term, there was no mechanism for doing so.
The system was stressed to breaking point during the mid-1970s inflation crisis. The focus on volumes meant that the Government was expected to find additional funds to inflation-proof programmes, but that became impossible with inflation running well above 20% and market participants jittery about sterling and the Government’s finances. From 1976-77 onwards, hard cash limits were introduced, much to the chagrin of many in Harold Wilson’s Cabinet. 1 Horse Guards Road was back in charge of spending.
Cash limits were extremely successful in combating unabated growth in public spending, although of course that came at the expense of being able to deliver all that the Government might have liked to do. The PES formally stayed in place until Gordon Brown’s time in Number 11, but it was for all intents and purposes no longer the tool it had been.
We’re still living with the 1970s spending control architecture
Cash limits are essentially the basis on which Gordon Brown’s Spending Review framework for departmental expenditure limits (DEL) would stand. Since their introduction and success, they have been the way Chancellor after Chancellor has found to push back against demands from departments, and they work in a remarkably simple way. The risk of future demands on spending, particularly for ongoing programmes and costs, is transferred to departments, which then have to trade them off against other pressures that might arise.
Of course, in many cases spending ministers end up in a stalemate with the Chancellor, and end up appealing to the Cabinet or Number 10. But the system is designed for stooshies of this kind – imposing a high bar on ministers to get additional spending, and therefore maintain Treasury control over most areas of spending.
Spending Reviews are big Whitehall events, but they decide less than might appear at first
Since the first spending review in 1998, these have been all-consuming affairs for departments of the UK Government. But they are only a way of divvying up an envelope that’s already been decided: the Chancellor sets it out at the previous fiscal event, and then it’s very much a zero-sum game.
On the other hand, one might ask to what extent these limits really are as hard as they seem at first, and therefore to what extent they actually constrain public spending. Even if we exclude the 2019 and 2020 Spending Reviews, for which spending took place during the pandemic and obviously required time-sensitive increases in spending, there is evidence that the Government has topped up budgets significantly during spending review periods.
Chart 1 shows the annual increases in limits set to departments in nominal (i.e. in cash) terms. This is what spending reviews should be good at: passing on the risk to departments by setting cash budgets, which mean that each area needs to then manage competing demands within a set limit.
Instead, what we see is that apart from the austerity years – in which cuts actually exceeded plans – spending growth has been consistently higher than that projected in each spending review. The gap has grown over time, with spending in the SR 2015 period more than three times that planned by George Osborne, largely as a result of Philip Hammond’s looser policy. Growth in the SR 2021 period has also been twice as fast as Rishi Sunak intended as Chancellor, even with him eventually stepping into Number 10.
Chart 1: Nominal annual increases in departmental expenditure limits in each SR period
Source: HM Treasury, OBR, FAI analysis
This consistent pattern of top-ups and policy between spending reviews is not really surprising. In some sense, it merely reflects the fact that the spending review process – for all the work it generates in Whitehall – is not actually a major macroeconomic event. That place is taken by Budgets and Summer/Autumn/Fiscal Statements (Winter has so far been avoided in the title, presumably to avoid headlines writing themselves in the case of bad news), in which the Chancellor does actually have to balance tax, spending and borrowing in line with political, economic and market conditions. All that is absent from a spending review.
What about real-terms spending?
When the PES was introduced, it was meant to be a solution to the excessive control exercised by the Treasury, which created a barrier to expansion based on population demands for additional government provision of goods and services. In particular, the planning system was changed to be on the basis of volumes rather than prices; the Government would decide what it needed to do in terms of quantities, and would then provide funding for any inflation effects.
This is largely what caused the loss of control over spending in the 1970s, resulting in the imposition of cash limits. Of course, what this actually meant was that if inflation was below forecast, departments would be able to increase spending within that envelope and provide more goods and services. But if it were higher than forecast, then departments would have to live within their limits and cut provision. Essentially, the inflation risk was outsourced to departments.
Chart 2: Real-terms planned and actual spending by departments during each SR period
Source: HM Treasury, OBR, FAI analysis
In fact, that is largely the pattern that we see since the 1998 CSR. Chart 3 shows this in more detail, breaking down the difference between planned and actual real-terms spending into an inflation effect and the provision of additional funding by the government in periods after the spending review. Note that the inflation effect is positive when inflation is lower than forecast – that is, lower inflation frees up funding for higher increases in real-terms government spending.
Chart 3: Breakdown of difference between planned and actual real-terms increases in spending during SR periods
Source: HM Treasury, OBR, FAI calculations
In the period after the 1998 and 2000 spending reviews, inflation was significantly lower than forecast, which allowed the UK Government to increase spending considerably above what it had planned originally. But even then it also engaged in significant top-ups during the SR period, meaning that the pattern of not sticking to the announced limits has been a feature of the system since its introduction.
The austerity years also show that the Osborne Treasury used lower than predicted inflation to slash spending more aggressively, essentially offsetting any loosening that could have come from that inflation surprise. It also cut aggressively the totals for 2015-16 after the SR 2013.
The Hammond loosening is very evident in this chart as well, bringing annual growth in spending to 2.3 percentage points above Osborne’s plans from 2015. And finally, the return of the inflation erosion of the purchasing of departmental budgets is clear from the SR 2021 bars. Jeremy Hunt increased totals in his budgets, but not by enough to mitigate the inflation effect: spending fell by 0.7% a year in real terms, compared to the already significantly tight 0.1% fall pencilled in by Rishi Sunak.
What can we expect next week?
As we’ve outlined above, the envelope for the 2025 Spending Review has been set since March. There may be some small movements either way, but ultimately it will be very close to what the Chancellor included in her plans at the Spring Statement and the OBR scored in its Economic and Fiscal Outlook.
We’ll focus on RDEL, which is day-to-day spending and therefore the most crucial allocation for public service delivery in the short-run. Table 1 shows just how uneven the profile is for growth in spending: slower in 2026-27 already, and down to only 1% a year from 2027-28 onwards.
Table 1: RDEL allocations from the Spring Statement 2025 and Main Estimates 2025-26
2024-25
2025-26
2026-27
2027-28
2028-29
RDEL (£bn)
487.5
514.8
535.5
551.6
567.7
Assumed RDEL excluding international aid (£bn)
476.5
502.6
529.0
544.9
560.8
Real-terms growth
2.9%
2.3%
1.0%
1.0%
Real-terms growth excluding international aid
2.8%
3.5%
0.9%
1.0%
Source: HM Treasury, OBR, FAI analysis
The totals in the Spring Statement already had the shift from international aid to defence spending, which when we put it all together actually leaves slightly more room for manoeuvre in the first year of the Spending Review on the resource side for all other departments than might seem at first.
But that is very much short-lived. And with the health service, schools and defence likely to be boosted in real terms, it leaves a very difficult settlement for the final years of the Spending Review.
Chart 4 illustrates a plausible scenario in which the English NHS sees an increase of 3.6% a year in real terms, with schools and defence also seeing around a 2% boost a year. None of these are historically large, but even this mild scenario would leave unprotected departments having to cut spending significantly, by 1% a year in real terms. This would fall disproportionately on 2027-28 and 2028-29, as there is a significant boost in the first year. It might mean 2.5% to 3.5% cuts a year in real terms in two consecutive years.
In this scenario, the Scottish Government’s block grant would mechanically move similarly to the overall envelope. This is because many of the changes to unprotected departments lead to Barnett consequentials, but so do the larger boosts to health and education, which offsets those changes.
Chart 4: Illustrative RDEL scenario for the Spending Review based on announced policy and total envelope
Source: FAI analysis
It is of course for the Chancellor and the UK Government to decide on the path of public spending – and it might well choose different paths for spending. But chart 5 is not an implausible extrapolation of the figures that are already in the OBR forecasts and which guide the Spending Review totals.
And it does not look like a particularly deliverable plan. It promises a sort of ‘mañana austerity’, with strong growth in spending for another year while continuing to promise to cut spending at pretty heroic rates in a few years’ time. In fact, it’s almost a perfect reverse image of what then-OBR Chairman Robert Chote termed George Osborne’s spending ‘rollercoaster.’ Maybe we’re just on a different section of the ride.
Chart 5: Implied annual real-term growth rates from the illustrative RDEL scenario for the Spending Review
Source: FAI analysis
But as chart 3 showed, spending reviews are far from the only time at which fiscal policy is announced. A cynic might suspect that the Chancellor knows this and is planning on finding a way of not having to deliver those planned cuts in 2027-28 and 2028-29 – perhaps by hoping for economic growth to bail her out, or raising taxes significantly at a coming budget. Either way, she’ll want to avoid trade-offs on public services that are hard to stomach.
But that seems to be for another day, may even another year. Augustinian fiscal policy is alive and well.
Final share sale ends nearly 17 years of public ownership
Millions of savers and businesses protected during the financial crisis
Taxpayers prioritised through value-for-money sales at market price since this government came to office
The Westminster Labour government has sold its remaining shares in NatWest Group (formerly Royal Bank of Scotland, RBS) — ending public ownership that began when it stepped in to protect millions of savers and businesses during the financial crisis.
That intervention prevented the UK economy and financial system from going over the edge – protecting millions of savers, businesses and jobs.
Over 2008 and 2009, the government provided £45.5 billion to stabilise RBS (now NatWest), which at the time was one of the largest banks in the world- with over 40 million customers and operations in more than 50 countries.
Chancellor of the Exchequer, Rachel Reeves, said: “Nearly two decades ago, the then Government stepped in to protect millions of savers and businesses from the consequences of the collapse of RBS.
“That was the right decision then to secure the economy and NatWest’s return to private ownership turns the page on a significant chapter in this country’s history. We protected the economy in a time of crisis nearly seventeen years ago, now we are focused on securing Britain’s future in a new era of global change.”
Economic Secretary to the Treasury, Emma Reynolds said: “Bringing NatWest fully back into private ownership marks a significant milestone for the UK banking sector following the financial crisis.
“Since coming into government, we have halted the NatWest retail share sale, which could have cost taxpayers hundreds of millions. Instead, we put taxpayers first by only selling NatWest shares at market value— securing more money to invest in vital public services.”
To date, £35 billion has been returned to the Exchequer through share sales, dividends and fees. While this is around £10.5 billion less than the original support, the alternative would have been a collapse with far greater economic costs and social consequences.
The Office for Budget Responsibility are clear on this point: the cost of doing nothing would almost certainly have been far greater than the difference between the capital injected and proceeds returned.
Allowing the bank to fail would have devastated people’s savings, mortgages and livelihoods — and shattered confidence in the UK’s financial system.
Since taking office in 2024, the government says it has prioritised securing value for taxpayers — scrapping plans for a retail sale that could have cost hundreds of millions of pounds due to the need to sell shares at a discounted price to attract retail buyers.
Instead, shares were sold only at market price and when it represented value for money — helping fund the Plan for Change to invest in the NHS, education and defence.
The government has now exited all banking sector interventions made during the financial crisis.
The UK has secured ‘the best deal India has ever agreed’, providing businesses with security and confidence to trade with the fastest-growing economy in the G20.
The Prime Minister spoke to the Prime Minister of India Narendra Modi yesterday.
The leaders began by celebrating the landmark UK-India Free Trade Agreement announced today – a deal which will add billions to the UK economy, boost wages and deliver on this government’s Plan for Change.
In a huge economic win for the UK, delivering for working people and British businesses, the Prime Minister underscored the need to go further and faster to get things done, to secure and renew our country.
Through pragmatism and purpose, the leaders noted that this historic deal is the biggest the UK has done since leaving the EU, and the most ambitious India has ever done. Prime Minister Modi also thanked the Prime Minister for his decisive leadership in getting the deal over the line.
Turning to the terrorist attack in Jammu and Kashmir last month, the Prime Minister reiterated his deep condolences at the tragic and senseless loss of life.
Finally, Prime Minister Modi extended an invitation to India, which the Prime Minister was pleased to accept and said he looked forward to visiting India at the earliest opportunity.
UK-India Free Trade Deal: A Deal For Growth
The UK has secured the best deal India has ever agreed, providing businesses with security and confidence to trade with the fastest-growing economy in the G20.
Delivering Economic Growth
The core mission of this Government is to deliver economic growth that raises living standards and puts money in people’s pockets, and that is exactly what this deal will do. We estimate that it will increase bilateral trade by £25.5 billion, add £4.8billion a year to our economy and boost wages by £2.2 billion every year in the long run.footnote 1 This is the best deal India has ever agreed to.
It delivers on our manifesto commitment to create trade relationships that unlock new opportunities for businesses across all our nations and regions.
Case study – Standard Chartered
Standard Chartered is a leading UK-based international banking group with a presence in 53 of the world’s most dynamic markets. It is the largest and oldest foreign bank in India, acting as a ‘super connector’ of cross-border trade and investment by driving commerce and prosperity through its unique diversity for more than 165 years.
Saif Malik, CEO, UK and Head of Coverage, UK, Standard Chartered, said: “The UK-India Free Trade Agreement is a significant achievement. It will create new opportunities for UK and Indian businesses, enable greater access to one of the world’s largest and most dynamic markets, and drive growth and innovation across the UK-India corridor.
“We welcome this strong commitment to partnership and prosperity.”
Case study – UPS
UPS is one of the world’s largest companies, with 2024 revenue of $91.1 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories, including connecting the United Kingdom and India.
Markus Kessler, Managing Director, UPS UK, Ireland and Nordics, said: “We welcome the announcement of this important agreement between two countries that are both vital markets in our global network.
“We look forward to continuing to help businesses of all sizes across the UK reach new customers in one of the world’s most populous and dynamic countries.”
Future-Proofing Our Economy
This deal gives UK businesses first-mover advantage with a new economic superpower. Currently the biggest country in the world by population, India is projected to move from its fifth-largest global economy to third in the next three years, thanks to the highest growth rate in the G20.
By the end of the decade, it will be home to an estimated 60 million middle-class consumers, whose numbers are projected to grow to a quarter of a billion by 2050. And by 2035, their demand for imports is on course to top £1.4 trillion.
The enormous scope of this market, where British goods and services are already sought after, represents an equally huge opportunity for UK businesses in the decades to come.
Case study – John Smedley Ltd
Established in 1784 in Lea Mills, Derbyshire, John Smedley Ltd is a UK-based manufacturer and retailer of luxury knitwear.
Bill Leach, Global Sales Director, John Smedley Ltd, said: “India is one of the fastest growing luxury markets in the world, and we are very excited about the UK- India Free Trade Agreement coming to fruition.
“John Smedley knitwear is already sold in over 50 countries around the world, and now that the FTA has been finalised, we shall very much look forward to ensuring that an ever-increasing number of discerning luxury consumers in India will enjoy greater access to The World’s Finest Knitwear.
“We are thankful to DBT for their significant efforts in bringing this FTA to successful conclusion.”
Cutting costs for UK-India trade
From day one, this deal will support businesses across the United Kingdom by making it cheaper, easier, and quicker to trade with India. The deal will slash costs on UK exports, including whiskies and gin, cosmetics, medical devices, advanced machinery and lamb.
Based on current trade alone, India’s tariff cuts amount to £400m in the first year, going up around £900m after 10 years. And that’s before factoring in the savings from speedier and easier trade from improved customs and digital commitments. This immediate relief represents a major advantage our businesses will enjoy over their international competitors, helping them to invest, expand, and support more high-quality jobs.
Case study – Smith+Nephew
Smith+Nephew designs and manufactures technology that takes the limits off living. Smith+Nephew’s products include: Advanced Wound Management; orthopaedics and a robot assisted surgery system; and joint preservation and soft tissue orthopaedics.
Deepak Nath, Chief Executive Officer, Smith+Nephew, said: “Given the size of the Indian economy and its healthcare system, India is an important location for Smith+Nephew. The Free Trade Agreement offers the potential to build trading links in the healthcare sector.
“We hope that the Free Trade Agreement will enable Smith+Nephew’s innovative medical technologies to support more healthcare professionals to return their patients to health and mobility.”
Delivering opportunities for High-Growth Sectors
This deal supports the UK’s world-leading high-growth sectors identified in the Industrial Strategy, including:
Slashing tariffs for UK’s large and varied advanced manufacturing sectors, including for automotives, electrical machinery and high-end optical products.
Giving the clean energy industry brand new and unprecedented access to India’s vast procurement market, as India makes the switch to renewable energy, alongside their growing energy demand.
Unlocking new opportunities for medical devices firms within the life sciences sector, with reduced tariffs and rules of origin that factor in the UK’s complex supply chains and ensure that businesses can reap the benefits.
Enshrining copyright protections for the creative sector, enabling our exporters to feel confident exporting to India with a commitment that works will continue to be protected for at least 60 years. India will also commit to engaging on aspects of Copyright and Related Rights. This deal addresses the interests of UK creators, rights holders, and consumers, including around Public Performance Rights and Artist Resale Rights, which acknowledge the importance of payment rights. India will also conduct an internal review of their copyright protection terms.
Guaranteeing access for the UK’s world-class financial and professional business services sectors to India’s growing market. This is on top of securing India’s foreign investment cap for the insurance sector, ensuring UK financial services companies are treated equally to domestic suppliers, and encouraging the recognition of professional qualifications.
Securing India’s best ever commitments on digital trade for our Digital and technology sectors, such as promoting digital systems and paperless trade, helping UK businesses of all sizes take the opportunities on offer in this huge and rapidly expanding market.
Case study – Premier League
The Premier League is the world’s most-watched football competition, reaching 1.6 billion viewers in 189 countries around the world. The global success of the Premier League makes it one of the UK’s most significant soft power assets, amplifying British cultural values and generating economic growth and inward investment.
Premier League Chief Executive Richard Masters said: “India continues to be incredibly important to the Premier League and its clubs. It is a vibrant country that presents exciting opportunities and significant potential.
“The Premier League’s recent announcement of an office opening in Mumbai demonstrates our commitment to build on longstanding work to engage local fans, develop grassroots and elite football and further promote the game in India.
“The continued growth of the Premier League and UK businesses in India will have a positive impact on our domestic economy and we welcome the news of this new trade deal secured by Government, which will support UK businesses operating in India.”
Case study – EY
EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fuelled by sector insights, a globally connected, multidisciplinary network and a diverse ecosystem of partners, EY teams provide services in more than 150 countries and territories.
Rohan Malik, EMEIA and UKI Government & Public Sector Managing Partner, EY, said: “This agreement is poised to accelerate an economic partnership that is already thriving, with the value of total trade between the UK and India having more than doubled from £16.6bn to £40bn over the last decade.
“British businesses stand to benefit substantially from enhanced access to one of the world’s largest export markets and a skills pool that can fuel strategically important UK sectors, including professional services and emerging industries based around data and AI.”
Case study – Concrete Canvas Ltd
Concrete Canvas Ltd is a Wales-based low-carbon concrete manufacturer.
William Crawford, Director of Concrete Canvas Ltd, said: “India is a dynamic and vibrant economy and an increasingly important market for Concrete Canvas products.
“A UK-India FTA will help to accelerate our plans for growth by reducing trade barriers and making us more competitive.
“This is welcome news for both UK and Indian businesses!”
Case study – Biopanda
Biopanda is a Belfast-based medtech manufacturer which exports in vitro test kits for clinical laboratories, veterinary practice, and food safety laboratories.
Philip McKee, Sales Manager at Biopanda, said: “Biopanda have been supplying a range of diagnostic products to the Indian market throughout the past ten years.
“We value the business we have done already throughout India and with the introduction of the UK-India FTA this should benefit in increased trade with the removal of export barriers.
“This will hopefully increase the market access, allowing our distributors throughout India to provide a larger range of our highly accurate clinical diagnostic products at a lower price to the consumer.”
Unlocking Opportunities Nationwide
Through our Plan for Change, this government will raise living standards in every part of the United Kingdom. This deal supports that goal, unlocking new opportunities in every region and nation.
This deal also opens a huge new market for iconic UK brands, securing India’s best ever tariff offer and providing access to India’s growing middle-class consumer base, which will give iconic UK brands the opportunity to expand their reach and influence.
This access includes cutting tariffs on whiskies from 150% to 75% at entry into force, following to 40% after 10 years, as well as on other agri-food products such as soft drinks dropping from 33% to 0% after seven years, and lamb dropping from 33% to 0% at entry into force.
Separately high-end cars will benefit from a drop from over 100% to 10% under a quota. We have also secured India’s best ever agreement on Rules of Origin, which enables UK businesses to take advantage of these new lower tariffs.
This deal will also support consumers as they benefit from the best of India and greater variety as our trading relationship grows, including clothing, footwear, and iconic food and drink. New commitments will also help protect consumers from spam texts from India, which could include requiring opt-out or prior consent.
Case study – Chivas Brothers Ltd
Chivas Brothers Ltd is part of the Pernod Ricard group of companies and exports over £2bn of Scotch whisky and gin every year, including brands like Chivas Regal, Ballantine’s, The Glenlivet and Beefeater.
India is amongst Chivas Brothers’ largest export markets and the biggest consumer of whisky worldwide by volume.
The UK-India trade agreement will help solidify and potentially expand on Pernod Ricard’s existing investments, which includes a €200m distillery construction in the Indian state of Maharashtra and £100m in bottling facilities in Dumbarton, Scotland.
Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said: “The announcement of a free trade agreement in principle between the UK and India is a welcome boost for Chivas Brothers during an uncertain global economic environment.
“India is the world’s biggest whisky market by volume and greater access will be a game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.
“The deal will support long term investment and jobs in our distilleries and bottling plants in Scotland, as well as help deliver growth in both Scotland and India over the next decade. Slàinte to the UK Ministers and officials who steered the deal though long negotiations.
Case study – Diageo
Diageo is a global leader in beverage alcohol with a collection of brands across spirits and beer categories sold in more than 180 countries around the world. These brands include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.
Diageo is a leading player in India’s beverage alcohol sector and is among the top 10 fast-moving consumer goods companies in India by market capitalisation.
Diageo has 50 manufacturing facilities across India, employs over 3,300 people directly in market with a further 100,000 jobs supported throughout its value chain. India is one of Diageo’s largest markets globally and accounts for almost half of its total global spirits volume.
Diageo Chief Executive Debra Crew said: “The UK-India Free Trade Agreement is a huge achievement by Prime Ministers Modi and Starmer and Ministers Goyal and Reynolds, and all of us at Diageo toast their success. It will be transformational for Scotch and Scotland, while powering jobs and investment in both India and the UK.
“The deal will also increase quality and choice for discerning consumers across India, the world’s largest and most exciting whisky market.”
Enhancing Security through our partnership
The UK and India already enjoy a deep and broad partnership built on our shared principles as two democracies, our commitment to the rules-based international order, strong ties in areas including culture, education, food, and sport, and of course through our living bridge – with some 1.9 million people with Indian heritage calling the UK their home.footnote 6
This agreement encourages collaboration between our two complementary economies. It creates a framework to promote closer ties on innovation – including on new technologies in areas like agriculture, health, advanced manufacturing, and clean energy. And our agreement on business mobility will help experts on both sides deliver their services, enabling us to capitalise on the economic transformation that technology will bring over the course of this century.
Through this deal, we are showing the world that we stand for free, fair, and open trade. In an increasingly unstable and volatile world, this provides businesses with the confidence that they need to grow and expand. And as India’s approach to global trade changes, so can this deal. We have agreed in numerous areas that, if India offer a better deal to a different country, we can come back to the table to renegotiate for the UK.
Case study – Coltraco Ultrasonics
Coltraco Ultrasonics are high-exporting advanced manufacturers of ultrasonic instrumentation and systems, exporting 90% manufactured output to 120 countries. Coltraco have twice won the Queen’s Award for Enterprise in International Trade and have exported to India for 30 years.
Since 2019, Coltraco have won the contract for nearly 200 ships of the Indian Navy and Coast Guard and support in-service use and maintenance of their ultrasonic watertight integrity instrumentation on board.
Professor Carl Stephen Patrick Hunter OBE, Chairman Coltraco Ultrasonics Limited & Director-General The Durham Institute of Research, Development & Invention, said: “Coltraco Ultrasonics is strongly supportive of the India FTA Trade Agreement and proud to have modestly contributed to and advising the British negotiating team on various chapters.
“The UK private sector can now, because of the India FTA, the Windsor Framework CPTPP, and a variety of other UK FTAs, look out to the world, balancing our exporting and investment opportunities between the USA, the EU and Asia Pacific.
“It is a tremendous success and we thank British and Indian Civil Servants for their public service in the UK-India FTA.”
Unlocking Access to India’s Untapped Procurement Market
For the first time, UK businesses will have guaranteed and unprecedented access to India’s vast procurement market, covering goods, services and construction. UK businesses will be granted brand new access to approximately 40,000 tenders with a value of at least £38 billion a year.
This will unlock significant opportunities spanning a range of sectors, including transport, healthcare and life sciences and green energy. Alongside this UK firms will, for the first time, have access to India’s procurement portal, connecting them to the information they need to make the best out of these opportunities – which will grow as India builds the infrastructure necessary for an economic superpower with the world’s largest population.
UK companies will also get exclusive treatment under the ‘Make in India’ policy, which currently provides preferential treatment for federal government procurement to businesses who manufacture or produce in India. However, this unprecedented treatment will mean that if at least 20% of a company’s product or service is from the UK, they will be treated as a ‘Class Two local supplier’– granting them the same status that is currently only ever given to Indian businesses.
Case study – Arup
Arup is an employee-owned business that provides engineering and technical and advisory services dedicated to sustainable development. It is headquartered in the UK and operates globally with around 18,000 members. It is a trusted partner of the government in India and has delivered a wide range of projects including the Bangalore international airport, the iconic Statue of Unity, and the Indian Railways Station Redevelopment programme.
Paula Walsh, Managing Director, UK, India, Middle East and Africa, said: “Arup supports the UK–India Free Trade Agreement and the powerful role this will play in boosting investment, jobs and growth.
“It is an important opportunity to deepen our collaboration with partners in India, sharing UK skills and technical expertise to deliver resilient and future-focused solutions across transport, energy, and the built environment.
“We are proud to have been part of a recent delegation to India, sharing renewable energy expertise with government representatives and look forward to continuing this critical partnership.”
Protecting Our Values
Throughout the negotiations, we have championed our values – securing India’s first ever chapters on anti-corruption, consumer protections, labour rights, the environment, gender equality, and development.
We have protected the NHS, defended the UK’s interests, ensured the points-based immigration system is not affected, upheld our high food standards, and maintained our animal welfare commitments throughout.
This deal demonstrates our commitment to both workers and businesses, staying true to our values while driving economic growth.
