BHTA’s reaction to 2025 Spending Review

Last Updated on 11/06/2025 by Samantha Lewis

Today’s spending review represents a mixed bag of results for the health and social care sector.

• £29bn real terms increase (£53bn cash uplift) in annual NHS day-to-day spending from 2023-24 to 2028-29. This will take spending to £226bn by 2028-29, equivalent to a 3% average annual real terms growth rate over the SR period. 
• £2.3bn real terms increase (£4bn cash uplift) in DHSC’s annual capital budgets from 2023-24 to 2029-30 to invest in the NHS, including in new technology, hospitals and primary care. 
• Investing £30bn over the next five years in day-to-day maintenance and repair of the NHS estate with over £5bn allocated specifically to address the most critical building repairs. 
• £10bn for NHS technology and transformation by 2028-29, to support the shift from analogue to digital.

The Health Department is set to be one of the big winners over the next three years, with a big boost in real terms to its budget. Pay rises, capital budget increases, and the NHS 10-Year Plan will all go a long way in helping bring down wait lists and improve patient care.

A modest boost to local authority funding may help alleviate some pressures on local social care services such as community equipment but given the National Insurance rises that recently kicked in, this will be a small consolation to businesses in the sector.

BHTA CEO, David Stockdale, says: “This is a good step in the right direction, but we’re awaiting the NHS 10-year plan update, and forthcoming industrial strategy, to see how it all aligns. Our industry urgently needs more funding to support the long-term vision for patient care.”   

With the Government’s independent commission on adult social care not expected to report until 2028, we are still years away from meaningful certainty or reform. Without a plan or adequate funding, the Government’s aim of moving care out of hospitals and into the community will be extremely hard to achieve.