PwC comments on the Spending Review – The investment switch is on

Rachel Taylor, government & health industries leader at PwC, said:

“Health, wealth and security were the big drivers of the Chancellor’s spending choices. The investment switch is on – with funding for the NHS, affordable homes, infrastructure and innovation – but the system needs to be wired with the right skills and delivery to ensure all corners of the UK light up. Today’s commitments build the foundations for what we hope will be ambitious Industrial and Infrastructure Strategies to match in the coming weeks.  

“To fund the spending choices taken by the Chancellor, substantial savings will have to be made by several departments and wider public services. For example, whilst it was great to hear the Government is committed to the Fair Pay Agreement for Social Care, it is unclear how this will be funded and could potentially squeeze already tight local government budgets. Spending shortfalls pose a serious question over the sustainability of public services and how the needs and expectations of citizens can be met.  

“Salami slicing budgets won’t bridge this divide so public bodies will need to make smarter choices, not just cheaper ones. This means empowering leaders to say “yes” to what works, and “no” to what doesn’t. Getting there will involve choices which won’t always be popular in the short term but will deliver public services which are agile, inclusive, and relentlessly focused on impact in the long term.”  

Commenting on public sector transport investments, Amish Patel, transport leader at PwC, added: 

“The investment in the UK’s transport system is more than just an economic lever - it’s a commitment to regional prosperity and national competitiveness. A thriving transport network is foundational to unlocking growth across the UK’s cities and communities. 

“The regional spread of investment – as demonstrated by the allocations to regional combined authorities for transport enhancements – will ensure the economic benefits are felt across the country. 

“But investment alone isn’t delivery. If we treat each region as an island - tasked with building full delivery and service capacity from scratch - we risk delay, duplication and fragmentation. We’ve seen this before: programmes stall, spending slips, and the most in-demand skills are hoarded or burned out. That’s not just inefficient - it actively undermines trust in devolution. 

“The UK already knows how to deliver at scale—because we've done it, and not always perfectly. Organisations like National Highways and Network Rail have evolved into capability-led machines that now know how to marshal scarce skills - commercial, planning, digital - and deploy them flexibly across regions. That learning has been bought at a cost; it would be a false economy to ignore it and start again 10 times over in each Combined Authority. If we’re serious about delivery, we scale and evolve what works - and fast.”