Geri Silverstone
Chief Executive and Founder, Silverstone Communications
The 2025 Spending Review (SR25) has set out the narrative for the Government’s spending priorities.
For businesses, local authorities, and residents in the South of England, the question remains: Has the region lost out compared to the rest of the country?
Where did the money go?
The Government’s spending plans include:
- £15.6 billion for city region transport, primarily targeting metro mayors in England’s largest city regions.
- £39 billion for a new 10-year Affordable Homes Programme, the biggest boost to social and affordable housing in a generation.
- Targeted investments in local growth funds and deprived communities, with a clear emphasis on the North and Midlands.
Did the South lose out?
Communities such as Blackpool, Leeds, Bradford, Merseyside, and Lincoln all got their fair share of mentions in the Chancellor’s speech. What all these communities have in common is that they have strong Mayoral Combined Authorities.
Recent data shows that national research funding is now flowing more rapidly outside of the Greater South East, with the rest of the country overtaking the South in UK Research and Innovation (UKRI) spending for the first time. This shift reflects a broader policy drive to ‘level up’ regions perceived as needier or lagging economically.
The South has been hampered by a view that they “don’t do Mayors”, and that MCA wouldn’t work for the region. Given the success of the Northern metro-mayors, and the significant investment they are now receiving, is it time for a rethink?
Transport and infrastructure
The lion’s share of new transport funding was directed at Mayoral Combined Authorities in the North and Midlands, with Greater Manchester, West Yorkshire, and other northern city regions receiving billions for tram networks, mass transit, and bus reforms.
While London secured a £4.1 billion settlement for Transport for London, the wider South saw less headline investment in new transport infrastructure compared to these “turbo-charged” mayoral authorities.
Social housing: A win for the South?
Social housing was a clear winner, with £39 billion committed over the next decade.
This investment will benefit all regions by supporting new builds and the regeneration of existing stock.
The economic impact of such investment is substantial: Research shows that building 90,000 social homes could generate over £50 billion for the UK economy, supporting jobs, reducing homelessness, and improving health outcomes.
For the South, where housing affordability remains a critical challenge, this could ease pressures on local economies and provide much-needed stability for workers and families.
Has the South been complacent?
There is a perceptible shift in government policy towards addressing regional imbalances, with new local growth funds and targeted investments in the North and Midlands.
The South, long seen as the UK’s economic powerhouse, is now receiving a smaller proportion of new infrastructure and research funding relative to other regions.
This reflects both the government’s desire to rebalance the economy and the political reality of supporting areas with higher perceived need.
The emergence of powerful mayoral authorities in the North and Midlands – conceived under Conservative governments and now being expanded by Labour – has given these regions a strong, a voice in Whitehall.
In contrast, the South (outside of London) lacks a similarly co-ordinated approach. This fragmentation may have contributed to the region’s relative under representation in recent funding rounds.
United we stand, divided we fall
Given the context of devolution and the rise of regional advocacy, there is a compelling case for businesses, local authorities, MPs in the South to collaborate more closely.
A unified regional campaign could help articulate the South’s needs – whether for infrastructure, skills, or innovation funding – and ensure the region does not fall behind as new Combined Mayoral Authorities come to the fore.
Time for the South to step up
While the South of England benefits from national investments in social housing and continues to enjoy a strong economic base, the direction of travel is clear: Government funding and devolution are increasingly favouring regions with co-ordinated leadership and clear strategies for growth.
To avoid complacency and ensure continued prosperity, the South needs to be more confident in championing the area as a place to do business, a place to live and a place to visit.
The South cannot afford to be parochial. If you can have the Northern Powerhouse, then why can’t the South have the same.
All must pull together – across business, civic, and political spheres – to make the case in this era of regional devolution.
We will be watching closely as the new funding and devolution landscape unfolds, ready to help southern businesses and local authorities navigate the challenges and opportunities ahead.
Featured image via Anna Jastrzebska / Shutterstock.
