Spending Review 2025

What Rachel Reeves’ Announcement Means for Hawkins Ryan Solicitors, Our Economy, and Our Community

On 11 June 2025, Chancellor Rachel Reeves delivered the first Spending Review under the current Labour government, setting out the government’s spending priorities for the coming years. As Hawkins Ryan Solicitors, based in King’s Lynn and serving a predominantly rural community in Norfolk, we want to reflect on what this means for our firm, the local economy, and most importantly, our clients.

A Focus on Growth, Infrastructure, and Public Services

The Spending Review commits to growing departmental budgets by an average of 2.3% above inflation annually, with significant investments in health, housing, clean energy, and transport infrastructure. Notably, there is a £14.2 billion investment in the Sizewell C nuclear power plant in Suffolk, signalling a strong focus on energy security and low-carbon power. Additionally, funding for affordable housing will nearly double, with £39 billion pledged over the next decade. The NHS will receive a £30 billion boost, supporting health services that are critical to our clients and community.

For our rural area, these investments are a double-edged sword. On one hand, improved infrastructure and affordable housing could help address some long-standing challenges such as housing shortages, transport connectivity, and access to services. The commitment to local low-carbon transport projects and rail upgrades may enhance mobility for our clients and staff, reducing rural isolation. On the other hand, some departments relevant to rural affairs, such as the Department for Environment, Food and Rural Affairs (Defra), face budget cuts overall despite increased support for nature-friendly farming. This creates uncertainty about how rural-specific issues will be tackled.

A Cautious Relief Amid Budget Cuts

As members of the Country Land and Business Association (CLA), which represents farmers and rural landowners, we closely follow their responses to policy changes affecting our community. The CLA has welcomed the Spending Review’s commitment of £2.7 billion annually from 2026 to 2029 for farming and nature recovery schemes in England. This funding includes a significant increase in support for Environmental Land Management (ELM) schemes, vital for sustainable farming practices in our region.

However, the CLA also warns that despite this investment, the overall agriculture budget has been cut compared to previous years, raising concerns about the future of other important schemes and the rapid winding down of subsidy payments like the Basic Payment Scheme. Their response reflects cautious relief but highlights the uncertainty and challenges rural communities like ours in King’s Lynn face as these funding changes take effect.

Implications for Our Law Firm

The Spending Review’s modest rise in justice spending, with capital spending increasing from £2 billion to £2.3 billion annually before tapering off, means some relief but no dramatic expansion for the justice system. For us, this suggests that while courts and legal aid may see some investment, pressures and delays in the justice system, already a concern in rural areas, are unlikely to ease significantly. We must continue to manage client expectations carefully and work efficiently within these constraints.

The government’s focus on economic growth, including reforms to unlock investment and new trade deals, is encouraging for local businesses and entrepreneurs in King’s Lynn. As legal advisors, we anticipate increased demand for services related to business development, property transactions, and regulatory compliance, especially as infrastructure projects and housing developments progress.

What This Means for Our Clients

Many of our clients in rural Norfolk face unique challenges: limited access to affordable housing, transport difficulties, and fewer local services. The Spending Review’s emphasis on affordable homes and transport improvements offers hope for gradual improvements in these areas. However, the reality of budget cuts in some rural-focused departments means progress may be uneven.

Moreover, the investment in clean energy and net-zero initiatives could open new opportunities for local landowners and businesses involved in renewable energy projects, but also introduces complexities around planning and environmental regulations that we will need to help navigate.

Conclusion

Rachel Reeves’ Spending Review sets a cautious but hopeful tone for the coming years. For Hawkins Ryan Solicitors, it means adapting to a justice system with modest additional resources while supporting clients through evolving economic and regulatory landscapes. For King’s Lynn and its rural surroundings, the promised investments in housing, health, and infrastructure are welcome, though challenges remain.

As always, we remain committed to supporting our clients through these changes with integrity, empathy, and excellence, helping them understand the impact of national policies on their lives and businesses.

Andrew Stevenson

Partner