Bruce Cartwright CA

Bruce Cartwright CA, CEO of ICAS, said: “While we commend the aspirations of the UK government’s spending review, particularly around increased funding for education, the NHS and for social housing and other capital projects, we yet again find ourselves reflecting that Reeves’ statement leaves us with more questions than answers as to where the money will come from to pay for this.

“Businesses need certainty, as do public sector organisations. Uncertainty and barriers to effective budgeting can have negative consequences for the labour market, inward investment and business growth. Will the UK have to wait a further third of a year to find out? The Autumn Budget awaits.

“The Chancellor’s emphasis on infrastructure, science, and technology investment reflects important national priorities, but intentions alone are not enough. Without clear focus on productivity and long-term value, there is a real risk of under-delivering on these commitments.”

Mr Cartwright continued: “While investment spending is welcomed, effective financial oversight is critical. Capital projects, including Sizewell C, must be rigorously managed to prevent the delays and overspending that have plagued similar programmes like HS2.

“Additional funding for sectors such as health and defence, while reflecting Labour’s spending pledges, cannot be allowed to bypass scrutiny or excuse inefficiencies. Smart public spending must be matched by smart public management.

“A longer-term strategic approach to managing finance, planning and priorities is needed. To keep revenue and capital spending under control, we need robust financial management and scrutiny. Neglecting strong financial practice increases the risk of poor value for money.

“We also expect the need for a coherent approach to preventative spending. Local innovations that deliver better outcomes and reduce long-term demand must be identified, measured, and scaled, not left siloed or ignored.

“As healthcare is a significant consumer of resources and facing an upward trajectory of demand from an ageing population, reform is needed to ensure the service is fit for the future. Shifting health focus from a short-term ill-health, acute response mode to a longer-term preventative model is essential to manage future demand levels. Preventative healthcare needs to grow to a sufficient scale to have a meaningful impact on the population and change behaviours.”