Building the foundations of a cleaner, more resilient UK economy

The 2025 Spending Review was a broadly positive moment for the UK’s clean tech sector. While questions remain about delivery and scale, the review signalled serious intent to embed clean technology within the heart of the UK’s long-term economic and industrial strategy.

From energy and infrastructure to manufacturing and finance, clean tech features not as a standalone theme but as a consistent thread across multiple departments and spending lines. We welcome this review and credit the government for taking steps to integrate low-carbon priorities into mainstream policy areas.

The message is clear: clean growth is not just a climate imperative, it’s an economic opportunity, and one the UK is now more visibly preparing to seize.

Clean growth commitments at a glance

A number of significant announcements stand out:

• £14.2 billion for Sizewell C and £2.5 billion for small modular reactors, with nuclear taking a renewed place in the UK’s energy mix.
• £13.2 billion for the Warm Homes Plan, focused on insulation, solar energy and heat pumps.
• £9.4 billion for carbon capture, usage and storage (CCUS), representing one of the largest allocations to date.
• £300 million for offshore wind supply chains through Great British Energy, with a focus on domestic manufacturing.
• Up to £27.8 billion in capital via the National Wealth Fund, including support for clean energy, transport and advanced manufacturing.
• £2.5 billion for fusion, and more than £3 billion in advanced manufacturing R&D and capital funding.

These sit alongside a wider increase in public research and development spending, which is set to reach £22.6 billion per year by the end of the decade. Clean technology has also been confirmed as one of the core pillars of the government’s upcoming Modern Industrial Strategy.

What it means for clean tech

For the UK’s clean tech sector, this signals a step change in recognition. Government has acknowledged that climate technologies are not only essential for net zero, but also fundamental to future competitiveness and productivity.

But while the ambition is welcome, the real test is still to come. Funding commitments are a start—what matters now is how capital is deployed, who benefits, and whether the UK can build real markets for emerging technologies.

‍What we’re watching closely

To ensure these announcements translate into impact, further detail will be needed in several key areas:

• Support for scale-up companies in technologies like grid optimisation, climate software, advanced materials and biotech.
• Delivery mechanisms that attract private capital and reduce friction for commercial deployment.
• Clear direction on how institutions like the National Wealth Fund and British Business Bank will support early-stage innovation, not just infrastructure build-out.

A word from the sector

“The Government’s vision is right, but if we want to scale the UK’s clean tech champions, we need to get capital, contracts and customers moving faster—and that starts with real delivery clarity from government.”
– Sarah Mackintosh, Director, Cleantech for UK

Looking ahead

The Spending Review lays out a framework for clean growth, and the direction of travel is encouraging. But this is just the starting point. If the UK is serious about becoming a global leader in climate innovation, the next phase must focus on turning intent into delivery, and ambition into internationally competitive businesses.

Cleantech for UK will continue working with government, investors and innovators to help make that happen.

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