Spring Statement 2025: Four things project managers need to do
Since Chancellor Rachel Reeves delivered the Autumn Budget last year, a lot has changed geopolitically. Changes in the global trading environment with increased tariffs for the UK’s construction industry will likely have knock-on effects for major UK defence and infrastructure projects, such as delays, slower progress, and increased financial pressures.
With the recent announcements set to impact the UK’s infrastructure, defence, and energy sectors, Blueprint’s director for business and strategy development Bob Sunderland delves into what has changed and what project managers can do to best prepare for the impact, so projects stay on schedule and budget.
The Spring Statement 2025 at a glance: nuclear, defence, and the NHS.
UK defence project spending to increase to 2.5% of GDP
By 2027, the UK government has committed to increasing spending here to address geopolitical tension and enhance security. This escalation represents the most substantial sustained investment in UK defence projects since the end of the Cold War.
Funding for new nuclear projects
Two new nuclear projects are the Sizewell C nuclear power station and the ongoing Small Modular Reactor (SMR) competition, with Great British Nuclear (GBN) expected to have chosen a vendor by the end of Spring.
Abolition of NHS England infrastructure
Significant changes to the NHS have been brought forward, reflecting the government's efforts to streamline operations and reduce costs. It was previously announced that NHS England would be abolished to reduce bureaucracy and drive efficiency. This move is expected to save around £500 million per year.
Building on this, the Spring Statement included various spending cuts to manage public finances amidst economic challenges.
How prepared is the UK Nuclear industry for these changes?
The government has pledged up to £215 million for SMR development. Although this is expected to play a key role in future energy generation in the UK, Bob explains it will bring some concerns.
Bob Sunderland, Director
He said: “Regulatory safety standards must not be compromised, so it’s crucial to maintain a balance between this and efficient deployment. In addition, the UK faces a skills deficit in the civil nuclear sector, with no new nuclear reactors coming online since 1995. So although there is a clear commitment from the Government for SMR deployment, investment in skills across the entire nuclear lifecycle is needed.
“Similar to the construction sector’s strained supply chain, the nuclear sector’s supply chain is both incredibly pinched and relatively small, requiring very specialised components, and subject to high levels of regulation. Project managers should focus on de-risking their supply chains long-term through robust risk management frameworks, which should involve diversification.
“Finally, the models contemplated for UK deployment through Great British Nuclear’s SMR competition may result in a greater amount of waste for storage and reprocessing. Addressing waste management and ensuring environmentally sustainable practices are therefore critical concerns.”
Four ways project managers in the Defence and Nuclear Energy Industry can address these concerns.
Stay informed: Keep up-to-date with the latest news and briefings. This includes understanding the broader economic context and specific details about defence and nuclear spending.
Review current budgets: Assess your current budget allocations and spending. Identify areas where you can make adjustments or improvements based on potential changes in funding.
Scenario planning: Develop scenarios for different funding outcomes. This includes best-case, worst-case, and most likely scenarios. Having plans in place for various funding levels will help you respond quickly and effectively.
Training and development: Invest in training and development for your teams. This will help ensure your staff are prepared to adapt to changes and will continue to perform at a high level.
How a specialist consultancy can help you manage the impact
Blueprint understands that UK defence projects are under immense pressure. Having worked on a multitude of UK defence projects we have the advantage of using real-life data to benchmark each stage of a project. Working with a consultancy can offer assurance, skills, and efficiencies that help project managers make informed decisions quickly.
Operational efficiency
Process improvement: Consultancy firms have an independent perspective on identifying opportunities for improving efficiency. For example, within defence departments, this can look like streamlining procurement processes and enhancing logistics.
Digital transformation: Consultancies can better support the implementation of digital solutions, including data analytics and cybersecurity measures.
Risk identification and assessment:
Comprehensive risk assessments: Consultancies have the ability and expertise to conduct thorough assessments to identify threats and vulnerabilities. This includes evaluating geopolitical risks, cyber threats, and operational hazards.
Scenario analysis: Consultancies have the expert resources to develop and analyse various risk scenarios to understand potential impacts and prepare mitigation plans.
To find out more about how the Spring Statement 2025 will affect your organisation and how best to adapt your approach to project controls, get in touch with one of our team today.