'Bold step' | Spending Review 2025: What it means for HR, skills & the future of work

The UK Government’s Spending Review 2025 (SR25), unveiled on 11 June, sets out a sweeping fiscal plan designed to invest in Britain’s long-term renewal. 

With departmental budgets rising by 2.3% over the period and major funding pledges for skills, artificial intelligence and infrastructure, the review signals a pivot towards future-facing priorities. 

For HR leaders and employers, the implications are substantial, though not without criticism.

Skills, AI and education get a boost

SR25 outlines departmental day-to-day budgets until 2028–29 and capital investment allocations to 2029–30. Among the most eye-catching announcements for employers was the £1.2 billion earmarked for skills training and apprenticeships, and a separate £2 billion commitment towards artificial intelligence investment. Education spending will rise by £4.5 billion per year, while Dormant Assets funding will deliver over £130 million for cultural enrichment including music, sport, and libraries.