The Heritage Alliance (THA) has published our analysis of the June 2025 spending review, noting that ‘the government’s announcement brings a mixed but cautiously optimistic picture for our sector, and presents some new opportunities.’
THA writes:
The Good News
- Capital Investment: The government has committed £2.9 billion for cultural and heritage infrastructure over the spending review period. Details to follow.
- Place-Based Focus: The Treasury’s Green Book review now emphasises place-based projects – a shift that plays directly to heritage’s strengths in placemaking and community regeneration. Guidance on local growth plans for mayors has also been instituted, while spending for local governments is set to rise by 1.1% from 2025/26 to 2028/29.
- Creative Industries Priority: The government confirmed creative industries as one of eight priority growth sectors. The designation of creative industries as a priority growth sector could unlock additional support for heritage organisations, but with the publication since of the Industrial Strategy and Creative Industries Sector Plan we will need to push for greater recognition of heritage
The Challenges
- Efficiency Pressures: All departments must deliver 5% savings, and the ongoing Arms Length Bodies review creates uncertainty for the sector.
- Resource Constraints: While the capital investment for DCMS is welcome, day-to-day spending will fall by 1.2% annually, putting pressure on operational funding.
We’ll continue to engage with government to ensure heritage’s voice is heard with the arrival of the new Industrial Strategy and Treasury’s fresh focus on place-based projects. And we will, of course, continue to monitor developments and further updates will follow as more details emerge.
Together, we can ensure this spending review becomes a catalyst for heritage-led regeneration across the UK.
