What the 2025 Spending Review means for social businesses: Five key takeaways

The UK Government’s 2025 Spending Review sets out long-term funding priorities that will shape public services, infrastructure and economic policy over the next decade. While headline stories tend to focus on defence or tax cuts, we’ve dug into the detail to highlight what matters most for social businesses and purpose-led organisations.

Here are five takeaways that could impact your funding, operations, and opportunities to deliver local impact:

A big push on clean energy — But what’s in it for local social enterprises?

The Government has committed over £8.3 billion to clean energy through new bodies like Great British Energy and Great British Energy – Nuclear. Key investments include £80 million for offshore wind infrastructure in Port Talbot and wider support for decarbonisation projects.

However, while these plans focus on large-scale infrastructure, there’s potential for community energy projects, local partnerships, and cooperatives to play a role, particularly as the 10-Year Infrastructure Strategy (due later this month) and the new Industrial Strategy take shape. Social businesses in energy efficiency, retrofitting, and renewables should watch closely for more targeted funding streams.

£39 billion for affordable homes — With new access for social providers

In a significant move, the Spending Review confirms a £39 billion, 10-year Affordable Homes Programme—the largest investment in social and affordable housing in a generation. Crucially, social housing providers will now have equal access to government remediation funding, helping them improve standards and expand supply. It’s not clear what opportunities this might present for community land trusts and other neighbourhood-based models, but watch this space.

There’s also backing for energy efficiency in housing, including the Warm Homes Plan, which could present retrofit and green construction opportunities for social enterprises in the built environment and sustainability sectors.

Targeted local investment for 350 communities — A new era of place-based regeneration

A major shift toward long-term local growth funding will see investment in up to 350 deprived communities across the UK. This includes:

• Funding for regeneration, community cohesion and public realm improvements
• A new 10-year local growth fund for selected mayoral regions
• Protection for existing regeneration projects, including those in Freeports and Investment Zones
• Social businesses rooted in these areas may benefit from greater visibility, local procurement opportunities, and partnership funding as delivery plans emerge.

New growth mission fund and social impact investment on the horizon

The Government is launching a £240 million Growth Mission Fund (2026–2030) to support local job creation and economic regeneration. Although detail is still to come, the fund will prioritise projects that enable inclusive growth.

Additionally, a new social impact investment vehicle is in development, co-led by HM Treasury, DCMS and the Office for Investment. Set to be announced this summer, it aims to unlock private capital to tackle entrenched social challenges, potentially opening new funding avenues for social enterprises aligned with public outcomes.

Backing for culture, community partnerships and complex needs

The review confirms a £2.9 billion cultural capital programme that will modernise local cultural and heritage infrastructure, benefitting organisations delivering creative, community, and youth programmes.

It also sets aside £100 million for new Community Help Partnerships to support adults with complex needs. These partnerships will bring together services locally to intervene earlier and more effectively—a model aligned with many social businesses already working at the frontline of crisis prevention and community support.

Final thoughts 

The 2025 Spending Review signals new opportunities—and new responsibilities—for social businesses. While the review outlines substantial headline commitments, it lacks clarity in several key areas, including delivery mechanisms, access criteria, and how smaller, community-led organisations can engage. That said, there’s real potential for social enterprises to align with the government’s priorities across housing, clean energy, regeneration, and social impact.

Now is the time to assess where your organisation could partner, lead or contribute to mission-driven outcomes funded through this review. We’ll continue monitoring developments—especially the release of the Industrial Strategy and Infrastructure Strategy later this month—and provide updates as more details emerge.

If you have questions about how the Spending Review could impact your work, our team is here to help.