UK government released its 2025 Spending Review, which includes a substantial financial and strategic investment into digital innovation, cyber security, and intelligence reform across public services. The Spending Review outlined a £1.2 billion investment to strengthen digital infrastructure alongside technical resilience and national security capabilities in response to an ever-increasing global threat landscape.
AI and Digital Foundations for Public Services
A major highlight of the review is the commitment to AI integration and digital transformation across government operations. The government plans to overhaul service delivery, drive productivity, and secure public-facing systems by building a strong foundation in digital infrastructure and AI adoption. This includes initiatives across the NHS and other public bodies, aimed at improving efficiency, decision-making, and citizen engagement.
Cybersecurity and Intelligence See Major Funding Boost
The Single Intelligence Account MI5, SIS (MI6), and GCHQ—will see a £0.6 billion increase by FY 2028–29 as part of a major security investment. This funding will facilitate ongoing digital transformation, investment in core infrastructure, and expand the research and development (R&D) program.
The National Cyber Security Centre (NCSC) as well as the National Protective Security Authority, will continue to receive funding to ensure we continue to protect against the growing digital threat and to support the government’s priority growth and security objectives.
Energy Security Tied to National Security
The government also emphasized energy security as a core pillar of the national agenda. The review highlights the urgency of ending underinvestment in critical projects such as Sizewell C, Small Modular Reactors (SMRs), and Carbon Capture, Usage, and Storage (CCUS). These projects are designed to reduce dependence on volatile global fossil fuel markets and bolster the UK’s clean energy independence.
New Cyber Legislation on the Horizon
The Spending Review follows the policy statement published in April 2025, which describes policy proposals on the Cyber Security and Resilience Bill aimed at improving security standards across digital infrastructure. The individual Bill will be introduced to Parliament later this year and is likely to give formality to many of the priorities outlined in the review.
Conclusion
The UK Spending Review 2025 illustrates a very important step-change in the government’s approach to security, innovation, and resilience. Through substantial funding for advancements in artificial intelligence, improvements to cybersecurity, and the modernization of intelligence, the United Kingdom is preparing its infrastructure, economy, and institutions for the complexities of an inter-dependent world.
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