Spending Review 2025: What does it mean for cancer?

Today’s Spending Review marks the start of a crucial time for cancer policy in the UK. It’s the financial foundation for a series of plans and strategies that will define the next several years for cancer research and care – supporting everything from the future of the research ecosystem set out in the Life Sciences Sector Plan to how the National Cancer Plan will ensure we can deliver better outcomes for cancer patients in England. 

While the picture will change as more details come to light and experts dig into the numbers, here is our initial analysis of what the Spending Review means for cancer. 

What does the Spending Review mean for health services? 

In the context of this Spending Review, the NHS has seen a comparatively large budget uplift: a 3% real terms increase in day-to-day spending budgets over the review period (which runs until 2028-29). 

It‘s welcome news that, in a challenging fiscal environment, the Government is making health a priority. However, with previous uplifts in health spending absorbed by a range of cost pressures, it remains unclear how far the extra cash for the NHS will go – especially as there are already important government commitments on cancer and the NHS that will require investment to be achieved.  

As is common with Spending Reviews, which deal with the funding pots for entire departments over multiple years, detail on where exactly the money will go is light. With the 10 Year Health Plan expected in the coming weeks and a new National Cancer Plan for England expected in the autumn, it’s now essential that more detail is provided on how this funding will be directed to improving cancer services and cancer outcomes.

Capital budgets, which fund improvements in NHS infrastructure and buying key equipment, will be maintained at current levels over the Spending Review period. The Government made positive investments in diagnostics, radiotherapy machines and expanding NHS capacity before today, but with cancer waiting times still far off their targets it will still be a significant challenge to deliver the uplift in capacity required to improve services and meet key cancer targets – not least given the huge backlog of NHS maintenance this funding also needs to address.  

It’s also worth noting that some Spending Review funding has been earmarked to enable the NHS to deliver 2% productivity growth each year, which should allow it to achieve £17bn in savings over three years. This investment will support new technology to drive NHS productivity improvements, free up staff time and enhance patient access through the NHS App. While there are evidence-based opportunities to use technology to support productivity gains, we’re also interested to see how upgrading the NHS’s core digital capabilities could help streamline the adoption of proven cancer innovations so patients can benefit more quickly. 

What does the Spending Review mean for science and research?  

The Government is increasing research & development (R&D) funding to £22.6bn per year by 2029/30. Again, given the tough economic climate, it’s positive to see this backing for science and research, and the potential it has to drive health and growth.  

However, there is a risk that aligning R&D spending more closely with government priorities will mean discovery research will lose out. Balance is needed here; the lifesaving tests and treatments of the future will not come out of nowhere, and safeguarding the UK’s discovery research base is essential for the future of cancer care. 

Clarity is also needed over the overall level of funding for the National Institute for Health and Care Research, as the flat cash settlement for Department of Health and Social Care R&D funding suggests a real terms cut over the Spending Review period. The NHS has the power to drive lifesaving research and attract investment, and a scaling down of ambition in this area would threaten our competitiveness. 

On the other side, we welcome the new £500 million Local Innovation Partnerships Fund, which will give local leaders a central role in co-creating R&D programmes alongside the national research body, UK Research and Innovation (UKRI). This initiative was announced on Sunday 8th June after being trailed in our research clusters webinar on 21st May. While details are currently limited, we think this is a positive approach that could enable effective, locally led development of research clusters to maximise the impact of investment, aligning with the approach we set out in our policy on cluster development.   

It was positive to see the Spending Review acknowledge the importance of attracting international talent to meet the Government’s missions alongside reiterating intentions recently set out in the Immigration White Paper to improve access to the Global Talent visa. We are advising the Government on this. However, costs remain the biggest barrier to the UK attracting international talent and there is no plan to reduce up-front costs. 

There were also a number of exciting announcements on data and AI. In particular, the Health Data Research Service could transform data access processes, enable life-saving research and service improvement, and accelerate the discovery of life-saving drugs. Other commitments to support the UK’s AI landscape – including by funding the AI Opportunities Action Plan, the supercomputer in Edinburgh, and AI skills development – are also an important step forward.  

Less positively, universities were almost completely absent from Spending Review announcements, leaving significant questions on the sustainability of the higher education sector unanswered. One of the few mentions was in the context of a levy on international student income. The Government should avoid policies that exacerbate a difficult financial situation for universities, which are the home for many of our scientific advances.

What does the Spending Review mean for preventing cancer? 

As part of the UK Government’s shift from treatment to prevention, the Spending Review reaffirmed commitments to invest at least an additional £80m per year for tobacco cessation programmes and enforcement to support delivery of the Tobacco and Vapes Bill currently going through parliament. 

Around 4 in 10 cancers could be preventable, and smoking is still the biggest cause of cancer and death in the UK. The additional funding is vital because, with around 6m people still smoking in the UK, more support is needed to help people quit. It’s important that this funding continues to be sufficient and sustainable so that services can plan and prepare.

Stop smoking services play a crucial role, but we’re still awaiting confirmation of funding for other important measures, such as mass campaigns that encourage people to quit smoking and swap to stop initiatives that support them to do so, as well as financial incentives for pregnant women. This important funding should be confirmed for the duration of this parliament without delay. 

What comes next?

The Spending Review has set the foundations on which upcoming plans and strategies can be funded by this Government. Compared with other departments, the NHS has done well, and there are exciting announcements in the R&D space. 

Over the next few weeks, we expect to see the Spending Review further unpacked, and we’ll be monitoring its full implications in the years to come. Ahead of the NHS 10 Year Plan, National Cancer Plan, Industrial Strategy, and Life Sciences Sector Plan, we look forward to working constructively with the Government so it delivers for people affected by cancer.