Leading Indicators | Defence, Discovery and the Future: key trends ahead of the UK Spending Review

UK Spending Review: expected health and defence priority as budget tightens

The UK government is expected to boost NHS spending by +2.8%, along with a focus on defence funding, in this weeks spending review. Though it tightens local budgets, targeted capital like the £113bn infrastructure fund can still drive regional growth and open up real estate opportunities in health, defence and education.

Rising CRE lending and £32.6bn loan expiries in 2025 creates space for alternative finance

UK commercial real estate lending rose +11% in 2024, according to Bayes Business School; with activity particularly strong in the final quarter following two Bank of England base rate cuts. There was a rise in alternative lenders stepping in as traditional banks remain cautious, broadening funding access.

UK looking to capitalise on potential US ‘Brain Drain’, boosting life sciences

The Crick Institute plans to attract top researchers fleeing the US, amid political pressure on science. With stronger R&D funding and strategic recruitment, the UK could boost its life sciences sector, supporting commercial lab space demand and anchoring innovation-led economic growth