Sector

11 June 2025

Spending Review 2025: Key announcements at a glance and how it might affect pest management

POLITICS

Chancellor Rachel Reeves has announced a wide-reaching Spending Review, outlining where the government plans to invest to boost the economy, improve public services and regenerate local areas.

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Credit:  Lauren Hurley / DESNZ / Flickr 

BPCA has been closely monitoring the announcements, and although pest management wasn’t directly addressed, several changes may have implications for the sector.

Local authority funding increases

The government has committed to restoring local government finances, with an additional £3.4 billion in grant funding planned for 2028-29 compared to 2024-25. Councils will see an average real terms rise of 3.1% per year in their core spending power.

Many councils have cut or outsourced pest control services in recent years due to budget constraints. With more core funding available, local authorities may have opportunities to reinvest in environmental health services.

Housing, regeneration and investment in the NHS

The government has pledged £39 billion over ten years for a new Affordable Homes Programme. Alongside this, the new Growth Mission Fund and Local Growth Fund will support town and city centre regeneration, particularly in parts of the North and Midlands.

More funding for affordable housing and regeneration means more construction and renovation work, both of which require pest management input at various stages. Larger-scale development could lead to an uptick in commercial pest control contracts.

The headline £29 billion uplift for the NHS focuses on cutting waiting lists and investing in digital systems, but it also includes significant capital funding. That means new healthcare buildings, upgrades to existing estates and possibly the modernisation of hospital facilities across the country.

For pest controllers working in healthcare environments, this could lead to an increase in demand.

Skills training and investment

The Spending Review confirmed an additional £1.2 billion per year for the skills system by 2028–29. That includes support for 65,000 more 16 to 19-year-olds to access high-quality technical training and apprenticeships.

Investing in skills and training could open new doors for apprenticeships and qualifications, particularly with work beginning on the new BPCA Qualification Framework.

Devolved nations receive biggest settlement since devolution

Scotland, Wales and Northern Ireland are all set to benefit from record settlements. The Barnett formula will deliver an average of £2.9 billion extra to the Scottish Government, £1.6 billion to the Welsh Government and £1.2 billion to the Northern Ireland Executive over the Spending Review period.

Environmental and public health are devolved in the UK, so when the Spending Review allocates extra money to the devolved nations, it’s up to those governments how they use it.

 

BPCA will keep an eye on how this funding filters down and support members in making the most of what’s to come.

You can read the full UK government’s release here.

Source:

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