£2 Billion is being poured into AI – but many local businesses aren’t ready for it.
Earlier this week, Chancellor of the Exchequer Rachel Reeves announced the findings of the government’s Comprehensive Spending Review (CSR).
There were some welcome announcements made within the CSR but we very much hope that aspirations for significant growth aren’t held back by any further taxes being unveiled in the Autumn 2025 Budget. Let’s take a look at some of the CSR headlines.
The CSR announced plans for a £2bn focus on Artificial Intelligence (AI) support. Anecdotal feedback from our members has told us about concerns in grappling with the challenge of embracing the undoubted opportunities offered through AI. Our Big Business Breakfast event, taking place next Friday, represents a fantastic opportunity for local businesses to enjoy expert insights to help implement new systems.
£6bn has been allocated for the production of munitions, with the government planning to grow spending on defences from 2.3% of gross domestic product (GDP), to 2.6% by 2027.
In the sector of sustainability, Ms Reeves has pledged funding for carbon capture, usage and storage clusters.
Plans for new infrastructure projects will also provide investment opportunities for local supply chains, helping to generate wealth. The government has pledged £39bn for the build of social and affordable housing over the next decade, described by Ms Reeves as, “the biggest cash injection into social housing in 50 years”.
My previous blog outlined the launch of our Planning Skills Fund, with the aim of raising £3 million to train and upskill planners in local authority planning teams and help to unlock delays in turning around planning decisions.
At a local level, the CSR announced that Stoke-on-Trent has been selected as one of 25 “trailblazer” neighbourhoods across the UK. £20m of government funding will be used to transform the Bentilee and Ubberley districts of the city. The programme is expected to deliver a boost to local construction supply chains and grow the local economy.
The extension of the £3 bus fare cap to 2027 is welcome news. This had been due to remain in place until the end of the calendar year but this cap will now extend until at least March 2027. At a time when two local authorities (Staffordshire County Council and Stoke-on-Trent City Council) are delivering their respect Bus Service Improvement Plans (BSIP) with the aim of encouraging more of us to use the bus, the cap will maintain affordable public transport for almost another two years.
Ms Reeves has pledged government commitment to training, education and skills and this came with the CSR announcement of plans to provide £1.2bn per year of future funding for apprenticeships and training. Aspirations to build the nation’s very infrastructure comes with a shopping list of new architects, bricklayers, electricians, plumbers and surveyors, who will all need training and development support.
The business community is keen to get clarity on the replacement for the Shared Prosperity Fund. From what we can gather, the new scheme may be more limited in nature and we very much hope for broad access to this scheme and the avoidance of cliff-edge uncertainty on the look and feel of the business support landscape, post March 2026.
Before the end of the year, the Chancellor of the Exchequer will announce her Autumn Budget but what are your business priorities for this Budget? We’re developing our Chamber Budget ‘asks’ and will be discussing these at our next Money Matters forum on Friday 25th July. Why not join us and share your thoughts/ideas. Click here to book your place:
