The much-anticipated UK government’s Spending Review (SR) 2025 was delivered yesterday (11 June), which sets departmental budgets until 2028-9.

Chancellor Rachel Reeves said the SR delivers on the government’s Plan for Change, including kickstarting economic growth, cutting hospital waiting lists, giving children the best start in life and securing home-grown energy.

There were a few places where the fitness and physical activity sectors might be able to engage, including the National Youth Strategy and the modernisation of the NHS from a treatment to a prevention service, including the upcoming 10 Year Plan. There is also a new £132.5 million dormant asset fund aimed at giving opportunities to young people, including greater access to sport.

For the fitness sector to make an inroad with government, value for money will have to be at the forefront. The aim to root out waste and inefficiency was a theme running throughout the report. The government wants to cut spending on back of house in all areas and deliver the savings back to the public.

The government says it is taking long-term decisions to fundamentally rewire the state: using new technology to digitise services and transform how government operates; creating a cost-conscious culture that roots out waste, drives efficiency and protects taxpayers’ money, as well as establish a leaner, higher-skilled civil service that is closer to the communities it serves.

A zero‑based review of spending has been undertaken ahead of the SR, which involved every department completing a line‑by‑line scrutiny of its accounts to identify the lowest value for money expenditure.

The SR says households in the lowest income deciles in 2028-29 will benefit most from the policy decisions made after the Autumn Budget 2024. As part of this the National Living Wage will be increased by 6.7 per cent. Increases in tax will be concentrated on the highest income households. On average, all but the richest 10 per cent of households will benefit as a percentage of income from policy decisions in 2028-29.

The Department of Culture, Media and Sport

Despite rumours of the Department for Culture, Media and Sport (DCMS) being set for abolition, it has secured £8.2 billion, including £2.9 billion in capital funding which will be used to safeguard and modernise cultural and heritage institutions, while expanding access to local sport and physical activity.

Culture Secretary, Lisa Nandy, says: “This will allow us to invest in community sports facilities, youth centres and cultural and heritage institutions – the spaces that promote wellbeing, create opportunities for young people and preserve and celebrate our national story.”

The creative industries – which include gaming and fashion contribute £124 billion a year to the UK economy – were among the SR winners. This subset of the DCMS portfolio has been named as one of eight priority growth sectors so will receive a transformational boost, as well as a Creative Industries Sector Plan setting out how the government willl support this sector to grow, compete globally and deliver high-quality jobs.

Elite sport also got a specific mention as the UK prepares to host a series of world-class sporting events, including the Women’s Rugby World Cup in 2025; the Tour de France in 2027; UEFA EURO 2028, and bid for the FIFA Women’s World Cup in 2035. “These events will not only showcase Britain on the world stage but also inspire the next generation of athletes and fans,” said Nandy.

This autumn, the DCMS will publish a National Youth Strategy setting out how the government will support young people in all aspects of their lives and a further £132.5 million in dormant assets is being unlocked aimed at giving young people greater access to music, arts, sport and safe spaces through investment in facilities and libraries. “This is funding that will open doors for young people across the country, helping them build confidence, find their voice, and thrive – no matter their background,” said Nandy.

The DCMS has committed to delivering at least 5 per cent savings and efficiencies over Phase 2 of the SR period. This includes reducing its estate footprint across eight of its public bodies and the core department, closing the National Citizen Service and streamlining youth funding in support of the new National Youth Strategy. It has also worked with the Office of Value for Money to identify £52 million of technical efficiencies by 2028-29.

The NHS

Annual NHS day-to-day spending will increase by £53 billion cash – £29 billion in real terms from 2023‑24 to 2028‑29; taking spending to £226 billion by 2028‑29, the equivalent of a 3 per cent average annual real terms growth rate over the SR period.

This investment will support the NHS to deliver the government’s Plan for Change commitment, meaning that by the end of the parliament, 92 per cent of patients will start consultant‑led treatment for non‑urgent conditions within 18 weeks of referral.

Reforms include improving productivity and reducing bureaucracy. Up to £10 billion will be invested in NHS technology and digital transformation by 2028‑29.
The forthcoming “radical” 10 Year Health Plan will lay the foundations for the future of health and healthcare in England. The report spoke of the government’s aim to create an NHS which is “fit for the future” by moving from analogue to digital; treatment to prevention and hospital to community.
There is also money set aside for training more GPs, in order to bring back the family doctor.

Schools

The core schools budget is being increased by £2 billion in real terms over the period, providing a £4.7 billion cash increase per year by 2028-29, compared to 2025-26.
Breakfast clubs are being set up in primary schools, free school meals eligibility is being expanded and branded uniform items are being capped.

Some 8,500 additional mental health staff will be employed by the end of the parliament and mental health support teams will be expanded across all schools in England by 2029-30. With the declining health of young people, this is a welcome move.

Industry comment

The National Sector Partners Group issued a joint statement: “We welcome the Chancellor’s recognition in the Spending Review that there can be no growth without health and our sector is ready to play a crucial role in the nation’s renewal – maximising its contribution to government missions on economic growth, health and opportunity for young people.

“We now await the precise details around funding for sport, recreation and physical activity, and we stand ready to work with the government to advise on where best to invest in community provision.

“The economic reality facing the Chancellor is reflected in today’s settlement. However, we believe now is the time to invest in our sector in order to reap the major health, economic and social returns of getting more people physically active, when the need and demand for our services has never been greater.

“We welcome a number of the commitments set out in today’s announcement to invest in community sports facilities and programmes. However, it is important this forms part of a compelling government vision to maximise the full potential of sport, recreation, and physical activity in this parliament that is developed with our organisations.”

The NSPG has called on the government to create tangible plans for a number of issues:

To improve the health and happiness of young people through a new national plan for children's physical activity, including PE, sport and play.

To foster the growth and renewal of sustainable and energy efficient community sports facilities by prioritising them in planning and infrastructure decisions, while supporting new streams of investment.

Drive agile skills and workforce policies to harness the potential the sector has to address economic inactivity, especially in young people.

Fully integrate the fitness sector with the NHS to support people with long-term health conditions, including musculoskeletal conditions, cancer, cardiorespiratory diseases and obesity, as well as mental health issues.

Recognise the role that sport can play in delivering a range of social outcomes across the government stated missions, engaging with underserved communities to create opportunities for people to be physically active in ways that work for them.

Huw Edwards, CEO of UK Active, the UK’s trade body for the physical activity sector, says: “The Chancellor’s message that there is no strong economy without a strong NHS reinforces our shared mission with the government.

“The physical activity sector has an essential role to play in our nation’s renewal, given its importance in the fabric of our communities, the prevention of poor physical and mental health, and maintaining a productive workforce.

“Gyms, pools and leisure centres represent the engine room for physical activity in the UK, driven by a growing public demand for their services and we await details of how the settlements announced today will help to grow our sector’s facilities and services so that everyone can benefit.”

Andy Taylor, CEO of the Active Partnerships National Organisation, welcomed the government's plans for renewing pride in communities, including through improvements to parks and leisure facilities.

Tara Dillon, CEO of CIMSPA, said: “It’s encouraging to see the government’s commitment to investing in our young people through increased funding for skills and education.

“The impact that our sector has is immeasurable; our hardworking professionals play a crucial role in the prevention of chronic conditions that can create a barrier to work. Dedicated sport, physical activity and active wellbeing professionals with specialist skills and knowledge are integral to helping more people return to work and becoming economically inactive.

“This Spending Review gives the government a real opportunity to work collaboratively with our sector to recognise the impact that it can have on our economy and local communities with suitable investment into starting careers in sport and physical activity and furthering our workforce’s professional development.”

The NSPG is formed of Active Partnerships, CIMSPA, The Sport for Development Coalition, The Sport and Recreation Alliance, UK Active and The Youth Sport Trust.