What did the Government’s spending review mean to you, your business and your finances?
While the headlines in early June 2025 about fiscal targets and departmental budgets might seem far removed from your weekly shop or year-end accounts, the reality is that the government’s June Spending Review will have wide-reaching implications — for households, business owners, and investors alike.
Let’s be clear, this wasn’t a Budget, it was a Spending Review, so there were no sweeping tax changes (yet). But the allocations and policy directions set out will shape where public money is spent — and where it’s saved — over the next few years.
Here are several ways in which the Chancellor’s June Spending Review may directly or indirectly affect your finances and planning.
Public Sector job outlook: Realignment, not redundancy
If you’re employed in the public sector, particularly in areas like transport, environment, or overseas aid, you may see budgetary pressure impact recruitment or pay progression. Funding is being concentrated in key growth areas like defence, the NHS, and science/tech innovation, while departments such as Business and Trade face reductions of nearly 2% per year.
Meanwhile, long-term infrastructure projects will bring job creation — especially in energy and construction — but benefits here may take many years to materialise.
At RPGCC, we’re already helping clients in the public and private sectors assess future workforce strategies. If you’re planning business investment or recruitment in affected sectors, now is the time to review your financial model.
Expanded free school meals — a relief for working families
From September 2026, free school meals in England will be extended to all children from families receiving universal credit — a big shift from the current £7,400 income threshold.
This is a welcome support measure for many working families and may reduce the overall cost of living pressures.
Local renewal, but higher council tax likely
Over 350 UK communities will receive funding for local “renewal” — including libraries, youth centres, and public amenities. However, local authorities are also being quietly enabled to increase council tax to fund services such as adult social care and waste collection.
Whether you’re a property owner, landlord, or business ratepayer, you can expect costs tied to local authority services to creep up.
Travel & Infrastructure: short-term costs, long-term gains
Public transport continues to receive investment — with the £3 cap on most bus fares in England extended to March 2027. In addition, new rail links and metro upgrades are coming to Greater Manchester, the Midlands, and the North East.
While this boosts regional mobility and access to jobs, the business implication is clear: plan logistics and workforce access with transport changes in mind.
Winter fuel help for more pensioners
From this winter, the winter fuel payment (previously limited to those on pension credit) will be available to all UK pensioners with a taxable income under £35,000.
If you or your relatives are affected, this could mean a £200–£300 annual support boost. At RPGCC, we work with many retirees and estate planners — and this may shift tax planning priorities around income drawdown and savings.
Energy bill adjustments from new nuclear investment
A whopping £17.8bn has now been committed to Sizewell C — a nuclear project that will eventually feed into UK energy independence. However, this funding is partly financed by household energy bills, with an estimated extra £1/month being added.
In the longer term, this project is expected to reduce volatility in energy pricing — a point of interest for homeowners, developers, and ESG-focused investors alike.
Affordable housing boost — with caveats
A planned £39bn investment in affordable and social housing will roll out over the next decade. This will help meet the government’s target of building 1.5 million homes by 2030, and provides new opportunities for developers and construction partners.
However, some of this funding comes from revised fiscal rules and borrowing, meaning further tax changes could emerge in future Budgets to balance the books.
What does this mean for RPGCC clients?
We know that understanding the financial impact of government decisions — and preparing for what’s next — is central to the success of all our clients.
Whether you’re a large corporate business, an OMB or business owner, landlord, investor, or private client, our team at RPGCC is here to help you interpret these changes and act with clarity and certainty.
From succession planning and exit strategies, to advising on listed business compliance and cross-border tax matters, we offer a full-spectrum advisory service that’s built for forward-thinking individuals and enterprises.
If you have any questions following the Chancellor’s June spending review, of if you are keen to explore how this review impacts your financial strategy, contact our team today at hello@rpgcc.co.uk or speak to us via live chat during business hours.
