Source · Select Committees · Business and Trade Committee
Recommendation 20
20
Accepted
Provide clarity on public expenditure for industrial strategy and Growth Mission through Spending Review.
Recommendation
We recommend that through the Spending Review the Government provides clarity about the sum of public expenditure that will be allocated to the industrial strategy and the wider Growth Mission over the remainder of this Parliament. (Recommendation, Paragraph 91) Pro-business environment
Government Response Summary
The government provides clarity on public expenditure, detailing billions in investments allocated to the Industrial Strategy and wider Growth Mission, including £4 billion for the British Business Bank, £4.3 billion for Advanced Manufacturing, and significant funding for transport, housing, nuclear energy, and R&D.
Government Response
Accepted
HM Government
Accepted
12.1. The government is investing billions to support the Industrial Strategy’s 8 growth driving sectors, including with £4bn of additional capital through the British Business Bank, and up to £4.3bn for Advanced Manufacturing. Through these investments, the government is also unlocking billions in private investment. The strategy sits alongside the Government’s Spending Review, ensuring its priorities are hardwired into departments’ budgets for the rest of this Parliament, alongside 10-year R&D commitments and infrastructure plans that support the wider Growth Mission, such as: ○ £15.6bn in total by 2031–32 for the elected Mayors of some of our largest city-regions via the Transport for City Regions (TCR) settlements, supporting them to invest in their local transport priorities. This means city-region transport spending will more than double in real terms by 2029–30 compared to 2024–25. ○ £39 billion for a new 10-year Affordable Homes Programme. This SR provides the biggest boost to investment in social and affordable housing in a generation; ○ £14.2 billion for Sizewell C over the SR period, the first state-backed nuclear power station since 1988, with further backing for nuclear with over £2.5 billion to enable one of Europe’s first Small Modular Reactor programmes, with Rolls-Royce SMR selected as preferred bidder; and, ○ £22.6 billion per year for Research and Development by 2029–30, to support innovation and the government’s modern Industrial Strategy. 12.2. Overall, the government increased the capital envelope by over £100 billion at Autumn Budget 2024 and by a further £13 billion at Spring Statement 2025. Taken together, the government is investing an additional £120 billion over the SR period, compared to the plans set out at Spring Budget 2024. The government is maintaining investment at the highest sustained level since the 1970s, which will help deliver secure, strong and sustainable growth to boost prosperity and living standards across the UK.