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The East of England Left Out Again in Spending Review—but Opportunity Still Knocks

  • Writer: Eastern Powerhouse
    Eastern Powerhouse
  • Jun 13
  • 3 min read

The Chancellor’s latest Spending Review promised bold action: record infrastructure spending, renewed focus on research, and billions for skills and apprenticeships. But for the East of England—a region central to Britain’s economy and science ambitions—the results are a frustrating blend of promise and omission.


While the East stands to benefit from major projects like East West Rail and a national push on R&D, once again it has been left off the list for targeted investment deals. No new trailblazer programmes. No integrated devolution settlement. And little recognition of the pressures facing our fast-growing communities.


So, what’s really in it for the East? And what comes next?


The Deals We Didn’t Get


Let’s start with the bad news. The East received none of the £20 million “Trailblazer Neighbourhood” funds announced for regeneration. Nor was it awarded any of the new integrated growth deals handed to places like Greater Manchester, South Yorkshire, and the North East.


A new £240 million Local Growth Fund—targeted at the North and Midlands—was created. But the East missed out again, reinforcing a persistent pattern in government funding. Our region is often seen as “too affluent” for levelling up, yet we face deep inequalities in rural areas, coastal towns, and among younger populations struggling with housing costs.


The Bright Spots: Science, Skills, and Rail


That said, there’s plenty in the review to build on—if we act fast.


East West Rail is the headline winner. The government has reaffirmed funding for the Oxford–Cambridge line, including new stations at Tempsford and Cambourne. That’s a major step toward unlocking housing, jobs, and innovation along the corridor—and connecting global research centres like Cambridge with the rest of the UK.


In research and innovation, the budget includes £22 billion per year in R&D. With world-class institutions from Norwich Research Park to Cambridge University, the East is perfectly placed to benefit—if we can secure more regional funding bids and innovation zones.


Skills is another area to watch. The £1.2 billion apprenticeship fund and rollout of the Lifelong Learning Entitlement could be transformative—especially in towns like Ipswich, Peterborough, and King’s Lynn where green jobs and construction skills are in demand.


Local Challenges, National Expectations


But challenges remain. The Spending Review pushes new responsibilities onto local councils—especially in planning, housing, and transport—without guaranteeing the resources to meet them. Planning authorities are expected to process major housing schemes faster, even in places already facing staff shortages. Councils must draw up green transport plans while absorbing cuts elsewhere. And infrastructure bids will now require even stronger business cases to access government support.


Put simply: the East is being asked to deliver more, with no promise of fairer funding.


A Region Built on Innovation—Still Waiting for Recognition


The East of England isn’t asking for handouts. We are home to Europe’s leading life sciences cluster, a powerhouse in agri-tech, clean energy, and digital innovation. Our ports connect the UK to global trade. Our farms feed the country. And our universities attract billions in investment and world-class talent.


But we need infrastructure to match. We need affordable homes for researchers and young workers. We need fast rail, integrated buses, and digital connectivity across rural communities. And we need a joined-up growth strategy that sees the East as a key driver of national success—not a region to be managed from the sidelines.


Five Things Government Should Do Next


  1. Deliver a Devolution Deal for the East: Give local leaders the powers and funding they need—on housing, skills, and transport—to shape growth that works for our communities.

  2. Fast-Track Investment Zones Around Innovation Hubs: From Cambridge Biomedical Campus to Norwich Research Park, we have shovel-ready zones. Let’s back them with tax incentives, infrastructure, and planning reform.

  3. Match Skills to Growth: Fund regional training programmes that reflect real needs: from biotech technicians to retrofitting specialists and civil engineers.

  4. Fix the Rural Transport Gap: Use the new local transport budget to prioritise rural and coastal connections, not just urban congestion relief.

  5. Coordinate Growth Along East West Rail: This isn’t just a railway—it’s a national spine for housing, science, and sustainable development. We need a regional growth framework to match.


Final Word: No More Missed Chances


The Spending Review was a missed opportunity to formally recognise the East of England as a national growth engine. But that doesn’t mean the opportunity is gone. With smart leadership, cross-sector collaboration, and a bold ask to Whitehall, this region can still shape the UK’s future—through science, skills, and sustainable development. It’s time to turn overlooked into overachieving.


Interested in how your business, council, or institution can benefit from the Spending Review? Contact us for briefings, advice, or strategy support.

 
 
 

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