The UK Government’s Chancellor of the Exchequer Rachel Reeves unveiled the spending review on Wednesday 11th June, confirming the budgets for each government department over the next three years, seeing an increase in funding for social care and NHS technology.
Med-Tech Insights received comment from experts in the medtech and healthcare industry about the spending review:
MedTech public affairs sector expert and MedTech Insights columnist, Chris Whitehouse, of Whitehouse Communications
“Politics aside, the funding pledges for up to £600 million with DSIT and Wellcome Trust to launch the Health Data Research Service in Cambridge, accelerating drug discovery, £520 million for life sciences manufacturing (2025–30) to boost resilience, and a new Life Sciences Sector Plan on the way, deliver real substance to the Government commitment to the sector.
“All this is in addition to the pledges emerging constantly now from Health Secretary, Wes Streeting, of NHS investment in MedTech, demonstrating that the sector’s potential is truly being realised by government.”
Ian Burgess, Managing Director and CTO, Canary Care
“This funding boost for social care and technology is a welcome step in the right direction, but the sector is in crisis and needs urgent, tangible action. The government’s commitment to more than £4 billion in additional adult social care funding and a near 50% increase in NHS tech investment by 2028-29 must be supported by significant reform.
“These headline figures are set against the backdrop of a sector under immense pressure. Too often, social care is left behind in the digital revolution; investment must go beyond headline numbers and deliver real digital transformation where it is needed most.
“We heard much about the digital healthcare agenda when Labour came into power. It is time for them to start delivering. We need to move from pilot schemes and patchwork funding to systemic, scalable change. The government’s increased spending must directly support digital maturity in social care – not just in infrastructure, but also in skills, training, and the deployment of proven technologies such as remote monitoring and smart analytics.”
David Stockdale, Chief Executive of the British Healthcare Trades Association
“The spending review represents a mixed bag of results for the health and social care sector. The Health Department is set to be one of the big winners over the next three years, with a big boost in real terms to its budget. Pay rises, capital budget increases, and the NHS 10-Year Plan will all go a long way in helping bring down wait lists and improve patient care. A modest boost to local authority funding may help alleviate some pressures on local social care services such as community equipment but given the National Insurance rises that recently kicked in, this will be a small consolation to businesses in the sector. With the Government’s independent commission on adult social care not expected to fully report until 2028, we are still years away from meaningful certainty or reform. Without a plan or adequate funding, the Government’s aim of moving care out of hospitals and into the community will be extremely hard to achieve.”
Nick Lansman, CEO and Founder of the Health Tech Alliance
“The Health Tech Alliance welcomes today’s Spending Review as a clear indication that health remains front and centre of the Government’s agenda. The investment in the NHS including a 2.8% real-terms uplift in annual spending and a transformative £29 billion boost by 2028, provides much-needed stability and ambition for the sector.
“Our Members will welcome in particular the doubling of the NHS technology budget and a new £10 billion fund for technology and digital transformation – a watershed moment for health tech adoption. The dedicated support for life sciences and advanced technologies with £520 million allocated for the life sciences manufacturing fund, is a foundation for the UK to lead on getting innovation to patients faster, improving patient outcomes and using health tech to tackle global health challenges.
“These commitments, combined with the anticipated announcements in the 10 Year Health Plan, give us reason to be optimistic. However, funding alone won’t solve the scale of pressures facing the NHS, with patient backlogs still close to 8 million. As highlighted by NHSE Chair Penny Dash at our recent Parliament & HealthTech Reception, actual progress requires consistent collaboration between Government, the NHS, and the health tech sector.
“The future success of the NHS depends on industry and policymakers working together to ensure this investment translates into tangible improvements for patients. We look forward to being a part of this.”
John Ramsay, Founder and Managing Director of Social-Ability
“On behalf of the social care sector, I’m once again disappointed by the Government’s lack of focus and meaningful reform. Shocked? No. The first-ever fair pay agreement is a step forward—but nowhere near far enough to fix a broken care system. Despite Rachel Reeves calling social care fundamental to healthcare and multiple mentions of Carers Week during Prime Minister’s Questions, there’s still no clear plan or reform programme. The spotlight remains firmly on the NHS.
“Investment in the NHS alone won’t fix the problem. Without proper support for care homes and staff, people’s wellbeing will deteriorate, and pressure on hospitals will become unbearable. Social care cannot be an afterthought in the future NHS—it must be central.
“This crisis is growing. Dementia cases are set to rise 40% in 15 years, and our ageing population demands a properly funded, sustainable care system—now. Bed blocking remains a major barrier, with one in four hospital beds occupied by dementia patients who could be better cared for outside hospitals if social care was fit for purpose. Meanwhile, one in four adult carers and two million child carers live in poverty. Without urgent investment and reform, the strain on health and social care will only grow—putting millions more at risk.”
Ram Rajaraman, Healthcare & Life Sciences Industry Lead at Quantexa
“For the government to succeed in cutting waiting lists it should ringfence some of this £29 billion investment to deliver on its pledge to build a ‘single patient record’. While there are many factors exacerbating the backlog improving data sharing between departments and trusts would save the NHS 140,000 hours of staff time every year. Accurately linking patient data means staff can reduce the significant time they spend chasing records, repeating tasks or re-collecting patient history.
“A single patient record will also enable wider innovation that will help improve outcomes and reduce waiting lists. Once patient data is unified and includes wider determinants of health such as environment and family socioeconomic history, the NHS can implement a full 360-degree view on which to build AI solutions to track population health, identify service gaps and allocate resources more effectively.”
Tom Whicher, CEO and co-founder DrDoctor
“The £29 billion boost to NHS funding, spread over several years, is a welcome step towards improving the NHS for the long haul. Finally, a government is taking a more thoughtful approach, focusing on giving the NHS the resources it needs for real, lasting change. The recent upgrades to the NHS app show that digital tools have the potential to make a big difference by giving patients more control and streamlining the way we access care – a positive hint at what’s the come in the imminent Plan For Change.
“But, for the government to effectively change the public’s relationship with the NHS, it’s critical that some of this investment is allocated to improving interoperability within the system – a lot of tools are already in place, now it’s about ensuring that all platforms managing patient data speak to core functions – like the NHS App – for scaled, consistent access to care across the country, improving both patient outcomes and clinician efficiency.”
David Harris, CEO and Founder of Cambridge Healthcare Innovations(CHI)
“The £22.5 billion investment into innovation and research will elevate the UK’s global status in clinical trials and R&D. There are many treatment areas that haven’t seen equal levels of innovation to date. We now have a unique opportunity to change this, and bringing together the charity, public and private sectors in this initiative can be a turning point for greater levels of domestic innovation.”
Dr Anas Nader, A&E doctor, CEO of Patchwork, and former Darzi fellow
“A 2.8% day-to-day spending increase is welcome support for our NHS, and will leave colleagues who were fearing they would yet again be asked to do more with less feeling relieved. But while this capital is desperately needed, simply increasing funding without a clear strategy on where that money is going won’t be enough to help our health service overcome the enormous challenges it faces.
“To create real change, this investment must be concentrated on implementing new technologies to unlock smoother, more efficient ways of working for clinicians and managers. This means ensuring systems are genuinely interoperable, and making workers’ lives easier, not more complicated. That’s why, alongside the money earmarked for the NHS, I’m particularly interested to see more details of the government’s £86bn commitment to R&D. By investing early in the right solutions, we can unlock billions in savings down the line.”
Flann Horgan, Head of Healthcare Sector at NTT DATA UK & Ireland
“You can’t build a digital NHS on analogue infrastructure. The government knows this and understands it will only be able to drive long-term efficiency in the NHS through investments in technology to modernise healthcare. The 10-year plan for the NHS sets out a clear direction for this: move from analogue to digital, modernise infrastructure, and harness technology to deliver better care at lower cost. To get a return on the investment announced today, the government is looking to make digital the default across the NHS and not the exception.
“AI will be key to this, but it won’t be an easy feat to scale across the NHS without tackling siloed data and outdated systems. At The Royal Marsden, we’ve seen this at work: AI tools being deployed to help radiologists diagnose and monitor cancer progression with greater accuracy and speed. This can be delivered, within real-world NHS constraints – when the right technical and clinical foundations were in place.
“Without these, AI risks becoming just another layer of complexity rather than a tool that genuinely improves care. Fortunately, the NHS Federated Data Platform is laying the groundwork for more intelligent, system-wide decisions. Meanwhile, the proposed £600 million investment from Keir Starmer and the Wellcome Trust in a National Health Data Research Service shows clear momentum for clinical research infrastructure. The challenge now is turning that momentum into meaningful change, so every trust can benefit from the same tools already transforming care in places like The Royal Marsden.”
Barbara Harpham, Chair of the MTG
“The Medical Technology Group (MTG) welcomes the Chancellor’s Spending Review and the Government’s continued commitment to investing in the NHS.
To realise the full benefit of this spending, it is essential that long-term investment is directed towards not just digital and AI, but medical technologies and devices that improve outcomes, enhance efficiency, and relieve pressure on frontline services.
We hope the Government continues to support the work being done on value based procurement across the Department of Health & Social Care and NHS Supply Chain, with a clear commitment to embedding value-based assessments and commissioning for medical technology and devices.
This means investing not just in capital infrastructure, but in the ongoing adoption and spread of technologies that deliver long-term productivity gains, help patients in getting back to work and can ultimately support the government’s ambition of building a modern health service fit for the pressures of the 21st century.”
Duncan Lugton, Head of Policy and Impact at IChemE, the Institution of Chemical Engineers
“We welcome the emphasis on investment in clean energy in today’s Spending Review – this is a vital topic for individuals, companies and the planet. We eagerly await details of the Government’s plans to address the high costs of energy faced by British businesses, as these costs make it harder for companies to grow or be competitive. We hope that the forthcoming industrial strategy will see the Government set out their plans in this area.
The science and technology spending announcements in today’s review are welcome, but turning these commitments into real industrial growth and job creation depends on addressing the UK’s longstanding challenges in scaling up scientific innovation.
The UK holds deep research expertise, particularly in areas like engineering biology and clean technologies, but faces persistent barriers when it comes to moving laboratory breakthroughs into industrial-scale applications. The limitations around access to pilot-scale facilities, the skills gap in commercialisation, and the tendency for talent and technologies to scale elsewhere – such as in the US or mainland Europe – remain critical issues that government policy must target if the UK is to lead in these sectors.
Investment in infrastructure, such as regional innovation centres, combined with incentives like tax relief for startups and applied research funding, could make the UK a globally competitive location for scaling up new technologies. This will be crucial for areas such as clean hydrogen, carbon capture and storage, and sustainable manufacturing, all of which require significant engineering input to deliver at scale.
Moreover, the spending review must translate into support for developing the next generation of engineers and innovators. Training reforms, including embedding entrepreneurial and industrial skills into STEM curricula and fostering stronger ties between academia and industry, are essential. Initiatives like the ‘Ready for Industry’ programme demonstrate what’s possible, but wider adoption is needed.
Without these systemic changes – infrastructure and skills development – there is a risk that scientific advances sparked in the UK will continue to be commercialised overseas, missing an opportunity to build sustainable economic growth at home. We hope to see more on this in the forthcoming industrial strategy and associated sector plans.”
Sarah Woolnough, Chief Executive of the King’s Fund
“Despite the tough economic climate, the government has prioritised health services by continuing to increase spending on the NHS for the rest of this parliament. A 2.8% average increase in total health department spending – 3% for day-to-day NHS spending – will have been hard-fought for in the spending round negotiations, despite still being lower than the historical average the NHS has received over recent years. A key challenge now will be for NHS to decide how it can deliver most value from the money that has been allocated.
“We know there are already trade-offs happening in the NHS due to tight finances. The Chancellor said she wants the public to have ‘an NHS there when they need it’. It is hard to see how all the things she mentions – faster ambulance times, more GP appointments and adequate mental health services and more – can be met on this settlement alone. Particularly when large parts of this additional funding will be absorbed by existing rising costs, such as the higher cost of medicines, which are currently being negotiated, and covering staff pay deals. But there is a huge opportunity offered by the government’s upcoming 10 year plan for health, so we will wait to see how this money will be translated into better, more efficient services.
“The three shifts in the upcoming plan are right: preventing ill health sooner, more care into the community, analogue to digital, and it is good to see the constancy of purpose by having these strategic shifts reconfirmed in today’s commitments. However, whilst it is signalling all the right priorities, this is a spending review that raises some questions rather than providing definitive answers. The Chancellor has made some welcome steps to protect capital investment and set out budgets over longer-time periods.
“But while capital budgets are being shown to increase – they do so by nowhere near enough to rebuild or replace the tired facilities and equipment large parts of the NHS currently relies on. Nor to develop the new hospitals and community facilities needed to deliver a modernised health service.
“We welcome a firm commitment to introducing a Fair Pay Agreement for social care workers, a measure to incentivise people to work in social care which can’t come soon enough given the government has already limited overseas recruitment. But there is worryingly little detail of how much this would cost and if it would come out of the relatively small amount of additional funding announced for social care, which would leave little left for other fundamental improvements to our ailing system.
“The NHS has faced financial pressure for more than a decade, but the signals of financial distress across the NHS have grown in recent years. This matters because financial pressures absolutely have an impact on the care patients and the public receive.
“Today’s announcements show how much the government is willing to spend on the health service but the real prize will be the vision of a better and more sustainable health care service that will be set out in the forthcoming 10 year plan.”
