PA Consulting comments on the Spring Statement
Tags
Our experts reflect on the UK Spring Statement and the impact it may have in a number of key areas.
Christian Norris, CEO, says:
The Chancellor is walking a tight rope and has not shied away from difficult choices but making tough calls is only part of the equation. The government’s mission is clear: growth. The UK’s long-term success depends on improving productivity and expanding the economy.
The real challenge is ensuring these decisions go on to drive economic activity. It is essential that where money is spent it has a multiplier effect, boosting innovation, creating jobs and contributing to regional growth. In a difficult economic environment, we need to emphasise that the UK remains an attractive destination for business. A stable political system, a secure cost base, and a sustainable supply chain all reinforce this position, along with the Chancellor’s ambitions to ease planning regulations and drive investment.
The key now is ensuring that today’s policies do more than just balance the books and drive real economic momentum. This means making every penny count and turning spending into a catalyst for productivity, jobs, and long-term prosperity.
Katie Crookbain, public services expert, says:
Investment in AI and innovative technologies can no longer be seen as the playground of the tech nerd. The Chancellor’s announcements confirm a new £3.25 billion Transformation Fund, which must be used to bring these into the mainstream and maximise efficiencies in public services.
Departments will need to stay nimble, putting the right guardrails in place to learn from failures fast, given research shows that 70-90% of all innovation attempts fail to realise their full potential. The Government will need to prioritise funding for initiatives that demonstrate real value and lead to cash savings.
Unprotected departments with high running costs will feel the heat. The finer details will remain unknown until the Spending Review’s second phase in June, but we know priority areas, such as defence and healthcare, are protected. Other departments will have to think very carefully about both what they do and how they do it.
Greater financial transparency will put departments under the microscope. The Treasury will want to see swift progress and evidence that any ‘spend to save’ initiatives are bearing fruit quickly.
Caroline Wayman, Global Head of Financial Services, says:
It’s right for the Chancellor to take stock of regulatory roadblocks. To make sure this creates sustainable growth, we need to tackle the actual problems – not perceived ones. This means engaging with industry and customers to find where the real regulatory barriers lie, making sure that change is real and meaningful, and learning the right lessons from the past.
A bubble of unsustainable growth will collapse under its own weight. Customer centricity is at the heart of good business and sustainable growth. Long-term growth in financial services hinges on customers feeling confident to participate in financial markets. To buy things, people need to believe they’ll be protected, so regulatory changes need to be very focused on outcomes, alongside opportunities to innovate.
The Chancellor has recognised the need for decisive action. Good leadership involves stepping up and taking action in uncertain times – simply waiting for stability isn’t an option. That is something we must all recognise across sectors.
Peter Lovell, Global Head of Defence and Security, says:
The Chancellor rightly recognises that national security isn’t solely the domain of the Ministry of Defence. It requires a societal effort, especially across our industrial base, and I was pleased to see the announcement of a cross-department Defence Growth Board to make it happen.
The pledge to bring forward £2.2bn of investment on defence spending and ring-fence innovation investment is crucial, as is the focus on places like Barrow and Portsmouth. Not to be overlooked are emergent hubs like Preston that will not only enhance our broader security, but also position defence as a driver of UK economic growth. This investment sends the right signals to our allies and adversaries that the UK is ready to help lead on European and global security.
The Ministry of Defence and industry need to work hand in glove to maximise the UK’s defence potential – and if we’re honest with ourselves, often industry needs to take the initiative and make the move first.
Derreck van Gelderen, Head of AI Strategy, says:
Today’s statement confirms what many have long argued – that AI is no longer a futuristic experiment, but a critical lever for transforming how the state operates. Committing 10% of the defence equipment budget to novel technologies is a strong message, but its success will depend on how quickly we bridge the gap between capability and adoption. AI-enabled drones and smart logistics could drastically improve operational readiness and reduce cost burdens, but they also demand a new mindset around data, procurement and interoperability.
The Chancellor stopped short of clarifying long-term investment in UK-specific AI capabilities – especially around data infrastructure and talent pipelines. This could involve investing in national infrastructure, talent, and governance or appointing a Minister of State for AI, benchmarking against other countries as the UK shapes its own long-term approach.
We now need details on how AI policies will be executed and who will be accountable. While the Chancellor outlines bold measures – including a £3.25 billion Transformation Fund – we now need clear implementation mechanisms, departmental leads, and measurable KPIs to ensure outcomes align with intentions. Transparency will be critical, particularly with large-scale reform, and naming responsible agencies or officials would promote follow-through and public trust.
Explore more
