On Wednesday 26 March, the Chancellor of the Exchequer Rachel Reeves presented her Spring Statement. With the government’s commitment to one major fiscal event per year (the Autumn Budget), today’s statement served to underline Labour’s pursuit of economic growth as its number one mission. Outlining the effect of increased global uncertainty on public finances and the economy, the Chancellor focused on stability and security – both national and economic.
Global uncertainty and defence dominated this Spring statement, with confirmation that spending will increase to 2.5% of GDP, alongside an additional £2.2billion for the Ministry of Defence in the next financial year. A reaffirmation of increased capital expenditure to crowd in private sector investment and fix infrastructure signals the government’s intent to boost economic activity and productivity, increase efficiency and improve public service delivery.
We are pleased to hear the Chancellor highlight the UK’s position as a hub for global innovation, underpinned by our world-leading universities. An ambition to become a ‘defence-industrial superpower’ also signals opportunities for new jobs and skills. Indeed, the Chancellor highlighted the demand for highly skilled engineers and scientists that the announced added investment in defence and military spending will entail, alongside further investment in cutting-edge technology. Our universities have a critical role to play in this talent pipeline, with many institutions across the UK already working closely with the defence sector and assisting in preparing graduates with practical skills gained directly from industry professionals, emphasising the ability of universities to support essential sectors with high-level talent. Several London Higher members are involved in the London Regional Defence & Security Cluster (LRDSC), which looks at collaboration between key players across industries for defence and security, with a focus on regional prosperity.
Outright reference to education extended to a reminder of the announced £600 million investment in technical excellence colleges to create new opportunities for young people. Reeves’ mention of one in eight young people not in education, employment or training (NEET), reinforces Labour’s focus on reducing economic inactivity. This is also a core tenet of the Mayor of London’s Inclusive Talent Strategy, with a London Youth Guarantee pledged as a one-year action to reduce the proportion of NEET.
London Higher’s members remain committed to supporting the government’s growth mission and working closely with the Greater London Authority to deliver for London and Londoners, and we are pleased to see join-up in regional and national policy direction for inclusive growth. We look further ahead to the outcome of the spending review process in June, the Education Select Committee’s deep dive session into higher education funding on 8 April, and the developing Industrial Strategy.
