Making sense of the Autumn Budget 2025: Healthcare Sector
After weeks of speculation, the Chancellor delivered Labour’s second Autumn Budget in Parliament. Facing a £30 billion shortfall in public finances and constrained by the fiscal rules, the Chancellor set out tax, spending and borrowing plans for the year ahead.
The Government has reaffirmed its commitment to protecting NHS budgets, positioning public service reform as the central mechanism to deliver better outcomes and value. In doing so, the Budget document sought to assure that progress is already underway, highlighting the delivery of 5.2 million extra NHS appointments in England and a reported reduction of over 230,000 in waiting lists.
The most significant announcement for the health sector was the pledge to establish 250 new Neighbourhood Health Centres, with £300 million additional capital investment to help the shift from analogue to digital, heavily championed by the Secretary of State for Health and Social Care.
However, stakeholders, organisations and specialists may be wary of the lack of detail around investment to back the implementation of the 10 Year Health Plan and upcoming strategies such as the National Cancer Plan and the NHS Workforce Plan.
Against the backdrop of the Budget, now is a critical moment for organisations to cut through the noise and to ensure that their core policy asks and priorities are firmly positioned at the top of the Government’s agenda.
Key Announcements
- The Government made reassurances that continued progress to reduce waiting lists for elective care, with the announcement of 250 new Neighbourhood Health Centres in Birmingham, Barrow-in-Furness, Truro and Southall (of which 120 will be operational by 2030) – this £300 million in additional capital investment is committed to improving patient services within the NHS.
- Commitments were made to reform public services to ensure taxpayers’ money delivers better outcomes and values, such as reform in the 10-Year Health Plan to transform the NHS.
- The Chief Secretary to the Treasury will lead the review of value for money across government spending, including models of care with the NHS and communities, as part of the 10-Year Health Plan.
- The role of AI in the health sector will be adopted to support experts in scientific advice, clinical trial assessments, and licensing to improve efficiency and consistency, while keeping all decisions in human hands.
- Confirmation that £30 million of government funding will be used to create a new facility in Darlington to accelerate the development of novel RNA therapies from labs to market, including to help tackle cancer, heart conditions and infectious diseases.
If you would like to learn more about what the spending review means for you, please get in touch with us at:hello@tendoconsulting.co.uk
