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The Chancellor yesterday

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set out the government
spending allocations for the coming years.

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The big winners in funding terms
were as expected:

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Health, Defense and Energy.

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There was a welcome shift in narrative to, highlighting the need

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to drive growth
and investment into the UK.

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Significant funding for nuclear energy, transport

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and R&D are welcome and should help to encourage private investment

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by demonstrating government commitment to these sorts of projects.

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But there also needs to be a real focus on

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how to improve the delivery of things like
large infrastructure projects in the UK.

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More money alone is not enough.

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On this and other areas,
The real test is in

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the detailed plans that will be coming in the following weeks.

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For example, the upcoming ten year

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infrastructure strategy
will need to help deliver such changes.

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There are still questions around
how the industrial strategy will be funded

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and priority growth sectors supported.

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Previous industrial strategies
have fallen flat due to a lack of funding

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and a lack of focus.

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The spending review
also baked in significant savings

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and efficiencies
across almost all parts of government.

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This is a welcome intention,
but history tells us

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these sorts of changes are very hard to deliver.

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It all reinforces concerns
that, given the limited fiscal headroom,

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the Chancellor will need to look again

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at raising taxes in the autumn,
adding some uncertainty to business.

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Time will tell whether this can truly mark a turning point in the UK's

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economic narrative.

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But with much of the funding announced in the next couple of years

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and being frontloaded,

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using this money effectively will be more important than ever.