Chancellor's Spring Statement signals opportunities for defence, construction, and tech sectors.
Chancellor Rachel Reeves delivered a confident Spring Statement, aiming to instil certainty at home amid growing global uncertainty, highlighting opportunities for businesses — particularly in construction, defence, and tech — to benefit from the government’s growth plans.
Setting out strategies designed to boost defence and security, reform the state, and grow the economy, she reported that while growth estimates for 2025 have been halved to 1%, the Office for Budget Responsibility (OBR) has upgraded longer-term growth forecasts from 2026. Reeves highlighted that global economic policy uncertainty has increased sharply, making stability at home more important than ever.
As promised, there were no immediate tax changes, as these are to be the focus of a single, annual review each autumn, although the Chancellor announced further plans to clamp down on tax avoidance and evasion. The Treasury aims to increase prosecutions for the most harmful cases of tax fraud by 20%, with the potential to recover an additional £1 billion in tax revenues each year by 2029-30.
The real takeaway, however, was business opportunities arising from structural interventions in the economy.
“For business, there’s real potential in the structural reforms and targeted investments set to stimulate growth, particularly in defence, construction, and technology,” said Clare Lang, Partner and Head of Corporate at mfg Solicitors LLP.
“Businesses in these sectors should monitor upcoming procurement announcements and consider how they can align their capabilities with evolving national priorities, and also seek out ways to collaborate with others to create additional opportunities.”
- Defence and national security
With ongoing geopolitical instability, the government reaffirmed its commitment to increasing defence spending, with an extra £2.2bn for 2025-26, creating opportunities for companies involved in defence supply chains, cybersecurity, and infrastructure projects. A minimum of 10% of the Ministry of Defence’s equipment budget will be allocated to emerging technologies, including drones and AI-enabled systems.
- Construction and infrastructure
Reeves confirmed the government’s push on housing and infrastructure, with changes to national planning policy expected to help build over 1.5 million homes during this Parliament. This focus points to increased demand for construction services and materials. Businesses across the construction supply chain — from project management to specialised trades — should prepare for growth opportunities as the government streamlines planning processes to unlock new developments.
Alongside, skills development for construction workers will receive £625m over four years, expected to deliver up to 60,000 additional skilled construction workers to support this growth.
- Tech and artificial intelligence
The government’s ambition to make the UK a global leader in artificial intelligence (AI) and emerging technologies was also reinforced. A £3.25bn Transformation Fund will deliver public service reforms, including AI tools to enhance efficiency in sectors such as the Ministry of Justice and foster care services. Tech companies developing AI applications or providing specialist expertise could see significant growth potential as government incentives stimulate further innovation.
“For businesses operating in these sectors, now is the time to assess how they can match up with government priorities,” added Clare. “Whether securing government contracts, forming industry partnerships, or investing in innovation, aligning with these strategic areas could unlock future growth and resilience.
“So, it’s important to be ready to pitch for these opportunities by identifying how tender-ready you are, and where updates and improvements can be made. It’s not just about having the technical know-how or the product to suit, it’s about matching up on all aspects of the tender process.
“Smaller businesses may need to invest more time getting ready to pitch, particularly for government tenders, but bigger business should also review where they stand. Is your governance good enough, do you have sustainability targets in place, does your supply chain stand scrutiny? And what is your financial standing – and that’s not just about a healthy cash flow, but your policies on paying suppliers or keeping to date on reporting.”
The full Spring Statement is available here.
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