Key Points

• The Budget will raise taxes by £40bn
• £300m being invested in FE
• DfE Secures £6.7bn Capital Boost
• Skills England to tackle economic inactivity
• £1bn investment in Special Educational Needs and Disabilities (SEND)

Rachel Reeves has delivered a historic first female Chancellor’s Budget with several significant announcements for the further education and skills sector. Here’s what you need to know:

Further Education Funding

The sector receives a £300m funding boost, though this appears modest compared to the schools’ settlement of £2.3bn. The disparity continues to highlight ongoing concerns about FE funding priorities.

Skills England Update

A major announcement is the establishment of Skills England, positioned as a key institution to tackle economic inactivity and ensure a highly-trained workforce for economic growth. This marks a significant structural change in skills policy delivery.

Educational Capital Investment

• Part of a broader £6.7bn educational capital investment
• Focus on tackling “crumbling school and college buildings”
• Aims to deliver modern, state-of-the-art facilities for 21st-century education
• 100 project plans to begin delivery across England next year

Employment and Skills Measures

• National Living Wage increase to £12.21 (6.7% rise)
• Significant minimum wage boost for 18-20 year olds to £10.00
• Focus on apprentice pay with rate rising to £7.55

“Get Britain Working” White Paper

The upcoming white paper will outline plans to:

• Address economic inactivity
• Reform skills training
• Support workforce development
• Integrate with the new Skills England framework

STEM Research and Development

• £20.4bn allocated for R&D in 2025-26
• Emphasis on fostering a “dynamic investment economy”
• Potential opportunities for technical education providers

Business Support

• Employment Allowance doubled to £10,500
• Removal of £100,000 cap
• Support for businesses employing up to four National Living Wage workers

The budget presents a mixed picture for the FE sector – while there are positive developments in institutional structure with Skills England and capital investment, questions remain about the adequacy of core funding compared to other education sectors.

Sector Reaction

Education Committee Chair Helen Hayes MP said:

“The uplift in funding to support children with special educational needs and disabilities is welcome, given the crisis impacting on children, families and local authorities across the country. But more work will be needed to address this deep-seated issue. My cross-party colleagues stand ready to investigate how the Department for Education can make the most of this new support.”

David Hughes, Chief Executive, Association of Colleges, said:

“It was good to hear the Chancellor talk about the vital role further education has in the government’s ambitions and aims. It was even better that in a very tight budget she has announced £300m for further education, £40m from the growth and skills levy, and £950m for skills capital funding. These are a good start to turning round 14 years of severe cuts and under-investment in colleges and they show that the Treasury recognises the need to invest more in FE colleges in order to deliver on the government’s missions. It gives me hope that there will be a better, longer term investment plan set out in the spring 2025 spending review to ensure that colleges can thrive and make an even bigger impact in coming years. 

“We have already started detailed conversations with the Department of Education to understand the implications for colleges and will communicate more when we know more. An urgent question is whether the national insurance increase, which we believe will cost colleges around £50m, will be funded in addition to the £300m.

“We made three headline asks in our pre-budget submission: funding to support pay and 16-18 growth, which might both at least partially be supported, and VAT reimbursement which has not been addressed. Multiple independent research reports published in the past few weeks have painted clearly the grim reality of the college sector’s finances that will take some time to turn around. The Institute of Fiscal Studies found that since 2010/11, both income and expenditure have fallen by almost a third, largely been driven by cuts to public funding, which accounts for 83% of college income. The Education Policy Institute found that despite the public discourse on higher education providers operating in deficit, a greater proportion of FE providers have been running deficits.   

“Financial health is not the only consequence of 14 years of under-investment. Our young people receive only about 16 hours of teaching per week, compared to over 25 hours in most OECD competitor countries, opportunities for adults to learn outside of work and higher education have plummeted from over five million per year to around one million and the pay gap between school and FE teachers now stands at around £10,000.  

“We do not expect this picture to change overnight, but we do want the government to set out an investment plan for the next three to five years. Two simple steps for that plan would be the reimbursement of the £210 million a year colleges spend on VAT and a government guarantee for college membership of local government pension schemes.” 

Ben Rowland, CEO at AELP has issued the following statement:

“There are no major surprises in the budget and it’s clear that the Chancellor is focusing on investment over the next five years. While there are glimmers of hope on skills, we would love to have seen much more on the investment required in human capital.

Investment in skills is needed so we have the people able to fix the potholes, staff our NHS and social care roles, rebuild RAAC infested schools and everything else a modern economy requires. The £40m for foundation apprenticeships and £950m for skills capital – as well as a recognition that skills is a central part of the government’s growth mission – offers hope.

However perhaps the biggest area of concern is the impact changes in employers’ National Insurance Contributions will have on smaller employers. We are currently modelling this so we can work out how different sized providers will be impacted – and will be in contact with our members about this as soon as possible, as well as on the detail of the plans announced today such as the investment in foundation apprenticeship and skills capital.”

Commenting on today’s Autumn Budget 2024, the Recruitment and Employment Confederation (REC) Chief Executive Neil Carberry said:

“The Chancellor had a difficult job today, navigating a challenging fiscal picture while maintaining support for the only thing that will improve her view – economic growth. Growth is delivered by businesses, and the mix of tax rises and other costs imposed on firms by the government will make getting there harder. Many business leaders will be feeling concerned about the direction of travel this evening.

“Reassuring businesses must now be about ensuring the additional contribution they are making will flow back to them in the form of better fundamentals in our economy: ease of doing business, shorter waiting lists, easier planning, new infrastructure and better access to low-cost investment capital. The Industrial Strategy matters to this – but it must deliver. If business is being asked to do its bit – government must also step up.

“We were pleased to see the labour market feature in the Chancellor’s comments. Additional funding to support labour market inclusion and address inactivity is welcome – but government programmes are always more effective when they work hand-in-hand with the private sector. Private sector employment businesses place over a million people into work every day – and are ready to help. If people are the engine of the UK’s growth, we need to invest in the workforce and the strategy that allows people to work the way they need to work.

“As an example, the government’s determination to run towards tough decisions should have included reforming NHS people management. We must do away with the existing dysfunction in how temporary staff – vital to service delivery – are procured. The current system works against itself by incentivising last-minute and short-term solutions. The REC stands ready to work with the Department of Health and Social Care on this. The need for agency staffing in the NHS isn’t going away, but there is a lot we can do to make it more sustainable for staff, trusts and agencies. This is not a political issue but a common-sense necessity to get the NHS delivering to the standard everyone wants, at a price that offers value for money.”

Neil Carberry added:

“The Chancellor is right to tackle issues around umbrella company compliance – but has chosen the wrong tool. Employment businesses are already some of the more heavily regulated businesses in the country, and responsibility for supply chain compliance will stretch them. Yet umbrella companies themselves are not regulated. This is long overdue and would deliver a much more level playing field”.

Julia Harnden, Funding Specialist at the Association of School and College Leaders, said:

“Education has felt like an afterthought in recent spending reviews, and therefore it is heartening that it has featured more prominently in today’s Budget. Schools and colleges have suffered from years of underinvestment and the additional funding for the core schools budget and further education will only go a small way to addressing the damage that has been done. We are particularly concerned about the parlous state of post-16 funding and the £300million that has been announced does not match the government’s ambition for a major focus on skills.

“Today’s announcement must represent the first step towards putting education on a more sustainable footing. It is also imperative that the increased cost of employer National Insurance contributions are covered in full for schools and colleges and we are seeking clarification on this point.

“The system for supporting children with special educational needs is at crisis point, and we welcome the additional funding through the core schools budget to support this provision. The government now needs to work on putting in place a long-term plan to address local authority deficits and ensure funding always gets to the frontline so that all children and young people with SEND get timely and appropriate support.

“The additional capital funding is hugely important, although this uplift does not cover the shortfall that already exists and the investment in the School Rebuilding Programme only puts us back on track to meet the previous government’s unambitious target of rebuilding 50 schools a year. Similarly, while the policy of free breakfast clubs in primary schools is a very welcome one, this latest investment represents only a fraction of Labour’s manifesto commitment. We also remain concerned about the introduction of VAT on independent schools in the middle of an academic year, andrecommend that the government undertakes a comprehensive impact assessment of this policy.

“Although there are many things in today’s Budget to be positive about, there is an awful lot more to do and much of what we have heard represents relatively small spending commitments which do not match the level of investment that the education system requires. Today’s Budget must just be a starting point for a programme of investment in education and the other public services that have been so badly neglected in the recent past.”

Commenting, Qasim Hussain, NUS Vice President Further Education, said:

“We are really pleased that the government has listened to students and apprentices andpledged an additional £300 million for Further Education. We hope this money will make a tangible difference in schools and colleges.

“We also welcome the changes to the minimum wage: both the narrowed gap between the national minimum wage and the minimum wages young people receive, as well as the 18% increase in the apprentice minimum wage. This is an incredible win for apprentices, and is due to the tireless campaigning of the National Society of Apprentices. It will benefit students and apprentices across the country, particularly those who support their families alongside getting an education.

“However, we also want to recognise that, despite this being a huge increase, the £7.55 apprentice minimum wage is still just two thirds of the National Minimum Wage.

“Apprentices have to pay full price for rent, bills, and other essentials, so why is their pay only two thirds of that of everyone else?

“Apprentices are workers: they build your homes, care for your children, and cut your hair. No one should be paid under minimum wage, but especially not people who work so hard in such essential professions.

“We are immensely proud of the campaigning our apprentices have done to win this uplift, and I hope this is just the start of the support they will see from our new government. Going forward, we would like to see Labour take further steps to abolishing age-related minimum wages in the Employment Rights Bill, and extend this to apprentices, so that no one is paid less for doing the same work.”

University and College Union (UCU) general secretary Jo Grady, said:

‘Today’s Budget is thin gruel for those working in universities. Employer national insurance rises will hit the sector hard when higher education is already on its knees. Universities are crying out for increased public funding to secure their future as Britain’s last world-leading sector, yet the Chancellor failed to deliver. There will be no decade of national renewal if the government’s approach to universities continues to be one of de facto disinvestment. This is not a matter of special pleading: a properly funded higher education sector is a foundation stone of economic growth.

‘Increases to the apprentice and national minimum wage are welcome; this will not only improve the lives of the lowest paid, but raise the bar for all workers and help grow the economy. Further education lecturers now also urgently need a pay rise. The £300m in additional funding must be used to match the 5.5% pay rise that schoolteachers received and help close the £9k pay gap. If pay doesn’t rise, colleges will continue to haemorrhage staff and there will be no one left to train the workforce of tomorrow.’

Emma Roberts, Director of External Affairs, WorldSkills UK said: 

“The Chancellor has set out a comprehensive set of plans to grow the UK economy with skills rightly recognised as a critical element in boosting productivity and improving living standards.

Alongside our partners in education and industry our aim is to deliver, at scale, directly into places of learning and work, the world-class technical skills demonstrated by Team UK at the ‘skills Olympics’, to support those sectors the Chancellor is investing in as part of the government’s industrial strategy.

Employers and investors need the innovative, competitive and productive skills WorldSkills UK’s programmes can deliver.”

Stephen Evans, Chief Executive of Learning and Work Institute (L&W), said:

“The Budget lays bare the challenges ahead and shows the importance of focusing on getting more people into work and boosting skills to improve growth. The OBR has revised down its employment rate forecast with economic inactivity due to ill health persisting. The upcoming Get Britain Working White Paper needs to set out a credible path to getting 2.4 million more people into work to hit the Government’s ambition to reach an 80% employment rate. To improve the dismal growth forecasts, we also need to reverse the £1 billion cut in skills budgets since 2010 and employers’ 26% cut in training since 2005.”

Sally Alexander, CEO and Principal of Milton Keynes College Group said,

“It’s very rare for Chancellors to even mention Further Education in the Budget, so her announcement of an extra £300 million for the sector is obviously very welcome indeed, as is the recognition of the importance to the economy of what we do.  We don’t know yet how the increased funding for the SEN budget will be spread across education, but this is also an important contribution to ensuring Fairer Futures for All, the mantra of our college group.  From a local perspective, the continued commitment to the East-West rail linking Milton Keynes and Oxford as early as next year, and then further to Cambridge in the future, will be transformative for the local economy.”

Rob Nitsch, CEO of the Federation of Awarding Bodies (FAB) Said:

“As the Qualifications and Assessment Industry Body, we will always be looking for more on skills in fiscal announcements.  The link between skills and growth is well established and our members are with the Rebuilding Britian agenda.  Qualifications and training in FE and Skills will be seminal to the successful delivery of a Modern Industrial Strategy and realising the ambition of the Get Britian Working initiative highlighted in the Budget.”

TUC General Secretary Paul Nowak said:

“The Chancellor was dealt a terrible hand by the last Conservative government – a toxic legacy of economic chaos, falling living standards and broken public services.

“But with today’s budget the Chancellor has acted decisively to deliver an economy that works for working people.

“The government’s investment plans are a vital first step towards repairing and rebuilding Britain – securing the stronger growth, higher wages and decent public services that the country desperately needs.

“Tax rises will ensure much-needed funds for our NHS, schools and the rest of our crumbling public services, with those who have the broadest shoulders paying a fairer share. The Chancellor was right to prioritise hospitals and classrooms over private jets.

“There is still a lot more work to do to clean up 14 years of Tory mess and economic decline – including better supporting and strengthening our social security system. But this budget sets us on an urgently needed path towards national renewal.”

Rosalind Gill, Head of Policy and Engagement of NCUB, said:

“In their first Budget, the Government delivered for UK innovation and research and development (R&D). We warmly welcome the Government’s acknowledgement that research and innovation is a vital and critical driver of growth, and its headline announcement of further investment into R&D is a positive step forward. We applaud the Government for recognising that UK R&D is crucial for future competitiveness, growth, clean energy goals, healthcare advancements, and national security.”

“However, it is clear that the UK needs to truly shift the dial on private investment, including private investment into R&D. This requires a competitive and supportive environment. The cumulative impact of tax rises will have an impact on investment and could make it harder for businesses to start, scale and grow here.”

Gill concluded:

“Businesses tell us that the strength of the UK’s university system is a significant reason why they choose to invest here. In many parts of the UK, universities are major employers and economic engines.  This Budget may well have significant unintended consequences for the sustainability of the UK’s world-leading university system. The prospect of increased employer National Insurance contributions will significantly raise staffing costs. Just the change in rate to 15% will cost universities well in excess of £150 million a year, and the changing threshold is likely to have an even greater impact. Only through more sustainable funding can universities focus on their public mission rather than financial survival. We implore the Government to recognise this, before it’s too late.”

Dr Patrick Roach, General Secretary of NASUWT – The Teachers’ Union, said:

“We welcome the Government’s commitments to education and public services set out in the Budget today, which marks a step change in approach by the new Government.

“The Chancellor has had to make some tough choices in the context of the acute pressure on public finances, but it is clear that the Government has chosen to invest in our children’s future and our education system as a priority.

“This investment in schools, FE and SEND will begin to rebuild and restore our education system after the last 14 years of cuts which have had debilitating consequences for our children and the education workforce.

“The Chancellor has chosen to invest in the long term future of the country by prioritising investment in children’s education.”      

Beatrice Barleon, Head of Policy and Public Affairs, EngineeringUK, responds to the Autumn Budget:

“We welcome the Chancellor’s commitment to invest in education and skills as a central pillar of the Government’s growth agenda, not least through the creation of Skills England and the announcement of a £40 million pot to develop new foundation and shorter apprenticeships in key sectors. We look forward to continuing to support the Government to develop a new Growth and Skills Levy, ensuring an apprenticeships system that provides ample routes into engineering and technology careers for young people. The pledges of significant funding uplifts for school budgets and further education colleges will be key to addressing the teacher recruitment crisis, which is particularly acute in STEM subjects. To resolve the teacher workforce crisis in the long-term, this must be accompanied by a similar commitment to teacher retention, such as by reversing short-sighted cuts to subject-specific CPD for STEM teachers.  Moreover, the announcement of a series of new energy and infrastructure projects, such as green hydrogen plants and carbon capture and storage facilities, underscores the centrality of ensuring an engineering and technology workforce that is fit for the future to achieve the Government’s mission of turning the UK into a clean energy superpower. Ahead of the publication of the full industrial strategy next Spring, we look forward to supporting the Government with the development of sector plans for key growth-driving industries, many of which depend heavily upon the supply of skilled engineers and technologists.” 

Carl Cullinane, Director of Research and Policy at the Sutton Trust, said:

“We welcome today’s real terms increase in the education budget, including confirmation of increased funding for core school budgets, significant capital funding for schools, as well as SEND provision and the breakfast clubs rollout. This should be the first step towards a reprioritisation of education, children and families in government spending. It’s also positive to see increases to the national minimum wage and apprenticeship minimum wage, as well as boosting the minimum wage for young people.

“However, this Budget represents a missed chance to genuinely break down barriers to opportunity by tackling educational inequality and genuinely improving opportunities for those from the poorest homes. This means rebalancing funding back towards schools in the most disadvantaged areas, setting out a clear plan to tackle the attainment gap in schools between the most and least disadvantaged pupils, extending quality early years education to the poorest families, and bringing back maintenance grants for students struggling with their finances.”

Responding to today’s apprenticeships measures, Carl Cullinane, added:

“Today’s funding for further education and foundation apprenticeships is welcome, but represents a drop in the ocean in terms of drastically increasing the number of apprenticeships available, particularly those targeted at young people. The government needs to kickstart supply, by re-introducing employer incentives for creating new apprenticeship opportunities for young people, and ringfencing at least 50% of big companies’ levy funds for apprentices under 25.

“If today’s Budget was about setting the scene for the rest of this parliament, it was a missed opportunity to create significantly more opportunities for young people. The new Skills England must take up this baton in the coming years.”

Responding to today’s employment announcements, Carl Cullinane, added:

“We welcome today’s measures to increase the national minimum wage and apprenticeship minimum wage, as well as moves towards creating a single adult national minimum wage rate by boosting young people’s earnings. However, we are still left waiting for clarity on how the apprenticeship levy will be reformed, as it represents a potential tool to increase opportunities for young people. The government must follow through on its promise to ban unpaid internships, as well as enacting the Socio-Economic Duty Clause of the Equality Act.”

Responding to today’s lack of higher education measures, Carl Cullinane, added:

“The lack of clarity on future higher education funding is concerning. Many students are struggling with the rising cost of living, with over a quarter skipping meals to save on food costs. Student maintenance levels haven’t increased with inflation for several years, increasing maintenance support and re-introducing the maintenance grant for students who need it is long-overdue.

“The government has clearly identified the need to increase the national minimum wage due to cost of living pressures, so why does student maintenance remain inadequate?”

Paul Whiteman, general secretary of school leaders’ union, NAHT said:

“Today’s Budget was the first big opportunity for the new government to show it is serious about prioritising children’s education and beginning to reverse 14 years of chronic underfunding.

“Schools will welcome the extra money for special educational needs and school buildings, which is so desperately needed, and the rise in core funding to support the recruitment of more teachers. This cash must reach schools quickly and be followed by further investment and reform in future years.

“School leaders will also be relieved to see investment to get the school rebuilding programme back on track and more money for the government’s free breakfast clubs.

“The extensive neglect of schools under Conservative governments meant it was always going to be difficult to give school leaders all the financial support they needed in this Budget alone.

“It is a start based on good intentions, but it must be backed up by further ambition and investment in the multi-year spending review due next spring.”

Paul Johnson, Director of the Institute for Fiscal Studies said: 

“In broad brush strokes, that was the Budget we had been led to expect: big tax rises, more cash for public services, more borrowing and more investment. Look beyond the headline numbers, and there are two big judgements – one could say gambles – that the Chancellor seems to be making.

“Let’s look at the headline numbers first. She’s taxing more. Tax is now on a path to 38.2% of GDP, its highest level ever in the UK, as the Chancellor seeks to shore up public services. But the Chancellor wanted to go further on spending, and so she’s also topping up public service budgets through borrowing in the next couple of years. We’re now set to borrow £28 billion more in 2025-26 than previously planned, and to spend £19 billion more on public investment: around a third of the extra borrowing is going towards higher day-to-day spending. By the end of the parliament, she’s promising to borrow only to invest. Meeting that ‘stability rule’ in 2029–30 relies on the assumption that day-to-day public service spending will grow much more slowly from 2026 onwards.

“The first gamble is that a big cash injection for public services over the next two years will be enough to turn performance around, and that many of the temporary spending pressures won’t persist. If she’s wrong about that, and spending pressures don’t dissipate after two years, then to avoid cutting unprotected areas she may well need to come back with another round of tax rises in a couple of years’ time – unless she gets lucky on growth.

“Which brings us to the second gamble: that this extra borrowing will be worthwhile. Under pre-election plans we were set to borrow an average of £59 billion per year over the next four years. We now expect to borrow an average of £85 billion. The hope is that the benefits – from more funding for public services in the next couple of years, and from more public investment throughout the parliament – will more than offset the costs. These costs include higher debt servicing costs but also, according to the OBR, higher inflation and higher interest rates than we’d otherwise have seen. A lot hinges on how well the government spends the money. The additional investment is extremely front-loaded, which doesn’t fill me with confidence on how efficiently it will be spent – if indeed it is spent in that timescale. 

“Was this a Budget for growth? The OBR pointed to a short-term sugar rush, as a result of the debt-financed spending splurge, but that turns into a modestly negative impact by the end of the parliament. In the longer term, extra investment, planning reform and greater stability should all help to boost growth, and the OBR said as much. They think the Budget will eventually boost output in a sustainable way, but only from 2032.

“The biggest revenue-raiser was a very big increase in employer National Insurance contributions, both through an increase in the rate and a sharp reduction in the earnings threshold at which employers start paying. Given the need to increase taxes substantially it was always obvious that income tax, NICs or VAT would have to increase, and indeed that is what has happened. The OBR suggests that three quarters of the impact of employer NICs will be felt by employees, even if the changes don’t show up on payslips. Indeed, these tax rises partly explain why the OBR has downgraded its projections for real household income growth over the next few years. Somebody will pay for the higher taxes – largely working people. The employer NICs rise will further increase the incentive for employers to switch to contracting with the self-employed.

“There were some welcome tax measures, including scaling back some inheritance tax reliefs. But there was little in the way of serious tax reform, and some deeply disappointing decisions. I have said again and again that stamp duty land tax is among the most economically damaging of all our taxes, and yet we have it increasing again. The increase may just be on second properties, but it is renters who will pay part of the cost as the supply of such properties falls. Almost unbelievably this government has followed the practice of its predecessor in freezing rates of fuel duties and not allowing the “temporary” 5p cut to expire, while raising other taxes dramatically and claiming to be focused on tackling climate change.

“Taking a closer look at the government’s new spending plans, it’s remarkable the degree to which they’re front-loaded. Day-to-day public service funding is set to be 4.8% higher in 2024–25 than in 2023–24 (in part due to the large overspend identified in the summer) and is then set to grow by a further 3.1% in 2025–26. After that, spending is set to grow by just 1.3% per year – a rate of growth that would almost certainly involve uncomfortably tight settlements for many public services. Of the total real-terms increase planned over the next six years, around 60% is in place by the end of year two. Perhaps it will be possible to spend big now, address various backlogs and temporary pressures, and then slow the spending taps to a dribble later. But a government splashing the cash in the short term and promising to be more austere in future? Stop me if you think you’ve heard this one before.  

“It does bear repeating that the fiscal inheritance is truly dire. The spending plans inherited from the last government were never likely to survive contact with a Spending Review. Tax rises were always a near-inevitability. The new government’s embrace of fiscal reality is commendable – and would have been even more so had it occurred during the election campaign, and not only after the fact.

“Finally, there were notable reforms to the fiscal framework. Day-to-day spending is to be met from within revenues, with the rule gradually moving from a five-year to a three-year rolling target. This is sensible – though the Chancellor hasn’t left herself much room for manoeuvre, with only £10 billion of so-called ‘headroom’. The £28 billion of extra government investment by 2028–29 will come from borrowing, within a new debt rule defined in terms of Public Sector Net Financial Liabilities (PSNFL). The Chancellor declined to take the opportunity to remedy the huge design flaws of the previous rule, choosing instead to just substitute in a different measure of debt. This switch hasn’t given her as much additional fiscal space as she might have expected, owing to volatility in the PSNFL forecast that might itself raise some questions about its suitability as a fiscal target. Minutiae of the rule aside, more borrowing means more debt, more spending on debt interest, and the OBR expecting interest rates to fall less quickly than they would otherwise have done. There’s no free lunch here. The challenge will be to make sure the money is spent well enough to make those costs worth bearing.”

Zoë Billingham, Director of IPPR North said:

“Today the Chancellor has made some wise calls and shown a new positive course for our country. The important increases to public investment paired with changes to make the tax system fairer are much needed to benefit people in every corner of the country. Whilst there will be additional projects that require investment to support regional growth, the development of the Leeds tram is a welcome example of such commitments.

“A boost to local government finances over the coming years is reassuring, but councils will need longer term commitments in the future, including multi-year settlements. At the next Spending Review, the government will have the opportunity to confirm it has turned away from needless austerity and instead embraced a new positive economic paradigm to turn our country around”

Ann Francke, Chief Executive of the Chartered Management Institute (CMI) said:

“The Chartered Management Institute (CMI) stands ready to support the Government’s growth agenda through our commitment to upskilling leaders and managers across the economy.

“In a tight fiscal environment, boosting management isn’t about large spending increases; it’s about focused, decisive action that builds momentum. Capable, confident managers and leaders will enhance investments in infrastructure and will be critical to leveraging private investment.

“To improve these skills rapidly – be they in the NHS, education, local government or across the private sector – Government needs to listen to employers and ensure they have the funding routes they need to upskill their managers.

“Closing the UK’s management skills gap with other leading economies is essential. Without skilled managers and leaders, the UK will struggle to grow productivity, deliver better working conditions, public service improvements, or a successful green transition. 

“Management is a crucial skill that cuts across all industries, sectors and missions, and is essential for their delivery. With a new Skills and Growth Levy, a commitment to standards-based, accredited training is key to empowering UK workers at every level and career stage, whether through flexible, modular courses or degree apprenticeships. 

“Data shows that support for higher-level apprenticeships, especially in management, can resolve critical skill shortages, boost productivity, and enhance social mobility across the UK’s regions and nations.”

Jon Andrews, Head of Analysis and Director for School System and Performance at the Education Policy Institute said, 

“Given the spending constraints imposed by government and competing priorities, the limited offering is not unexpected, but there are systemic issues that the government still needs to address. In particular, despite the additional investment, the special educational needs system remains in a perilous state which risks services for some of our most vulnerable children being cut.”

Chris Claydon, Chief Executive of JTL said:

“JTL welcomes much of what has been announced today, including support for skills challenges in key sectors which the Government acknowledges is holding back growth across the country. It is imperative that Independent Training Providers can also access the funding pledged to work towards a more level playing field.

“Apprenticeships in the electrical and plumbing trades directly support the growth the Chancellor has pointed to today, such as infrastructure development and delivering new homes. The skills pipeline created by apprenticeships is a lifeline to industry and training providers are straining to meet demand. While there is no doubt the sector will rise to the challenge of future demands, we need a systems-thinking approach from the heart of government to get there.”

Ed Bradley, CEO and founder of Virtualstock said:

“Keir Starmer’s “harsh light of fiscal reality” has shone through for retail businesses. With high inflation and increasing tax burdens, retail is a tough (but still brilliant) business to be in. It contributes over £100 billion annually to the country’s GDP. That’s why it’s pleasing to hear that the industry has, at last, been granted the business rate relief it desperately needs. That said, there’s another way the government can support retail businesses – through tech investment.

Rachel Reeves’ apparent lack of tech investment could negatively affect the retail industry. Technology is critical for optimising supply chains, reducing inventory holding costs, and improving productivity. With concerns around the ‘death of the high street’, embracing digital transformation is crucial for survival and boosting the UK economy. Not to mention that amongst consumers, there is a growing demand for agile, eCommerce-driven solutions. It’s tech and not just tax that the government must think about.”

Tony O’Sullivan, CEO of RETN said:

“It’s certainly a step in the right direction for telecoms that the UK government has pledged over £500 million for digital infrastructure over the coming years. We are at a pivotal moment in network connectivity globally, and to be fully transparent, this industry is not equipped to meet current demands.

It’s vital that the sector itself takes an international view in order to fully unlock true resilience and bring about long-term success. Funding fosters innovation in this sector and, crucially, connecting and developing historically overlooked regions. However, it’s by no means the only ingredient.

With geopolitical events, natural disasters, cable cuts, design flaws, cybersecurity attacks and a shortage of new cables, we’re not too far away from entire countries hitting digital bottlenecks in the event that only one or two major cables connecting them fail.

In a rapidly evolving world where technological advancements are reshaping the global landscape, the need for resilient and secure network infrastructure has never been more urgent. This means prioritising diversifying network strategies to ensure performance is maintained during disruptions.

With this commitment from the government, the UK telecoms space now has the opportunity to lead the charge in combatting these threats if it heeds these lessons. Collaboration across stakeholders — policymakers, telecom providers, and technology leaders — will be essential to turning financial commitment into a transformative force connecting Britain to the whole world.”

Dr. Andrea Cullen, CEO and Co-founder at CAPSLOCK Said:

“The policies in this year’s Autumn Budget fell short of truly solving the deeply ingrained challenges facing the UK’s cyber security resilience. Policies such as Skills England, which was briefly mentioned in the speech as part of the seven pillars of growth, will do little to solve the severe talent shortage and lack of diversity seen in the sector. The key to addressing this issue lies in creating a grassroots movement that starts well before further and higher education and, instead, at the earliest stages of education – primary school.  

“The Budget failed to move beyond its traditional, top-down allocation of resources and superficial initiatives. Instead, it needed to focus on long-term planning and investment that addresses the root causes of the skills gap. This includes reshaping how STEM subjects are taught, ensuring they incorporate modern cyber security challenges and innovations. Training must be re-evaluated to align with industry needs, and more must be done to provide relatable role models from diverse backgrounds to inspire young people, particularly underrepresented groups, into the field. There was also a lack of support for apprenticeship programmes and initiatives that can provide hands-on experience, creating accessible pathways into the sector for young talent.  

“By integrating cyber security awareness and technical skills into core subjects, young people will be confident in identifying digital threats and will be inspired to consider careers in this rapidly growing field. This long-term investment from the government will help build a workforce that is ready to defend against the evolving threat landscape, ensuring the UK remains secure and resilient.”  

Speaking on behalf of the National Society of Apprentices, Annabel May said:

“Young adult workers are still getting a raw deal on pay. Their bills aren’t any cheaper, but they have to make ends meet with less.

“At NSoA we wholeheartedly agreed with the now chancellor when she said this in 2022 and believed her when she promised that all adults would be entitled to the same minimum wage.

“When it suits government, we’re workers. 16- and 17-year-old apprentices remain ineligible for child benefit. Most apprentices are adults, not living with mum and dad earning pocket money but adults trying to deal with the raw deal they’ve been given once again.

“Apprenticeships should be an accessible way to gain a qualification without incurring debt, but the poorest people cannot afford to undertake them because the pay is just too low for those who do not have financial support from their families. I know fellow apprentices that go hungry because they cannot afford food.

“Despite it not quite being what we had campaigned for the Low Pay Commission proposal to tie apprentice pay to 80% of the living wage seemed a fair compromise to us. We are surprised and disappointed that the government has sidestepped this recommendation.”

Gregor Mowat, Co-CEO and Co-Founder of credit-building company, Loqbox, said:

“Rachel Reeves has promised a £6.7 billion capital investment in the Department for Education for next year, describing it as a 19% real-terms increase over this year. This includes over £1.4 billion allocated to rebuild 500 schools in critical need of repair. While the budget prioritises tackling deteriorating school infrastructure, it overlooks the escalating number of young people not in education, employment, or training (NEET) – an area in dire need of attention. Official figures from the Office for National Statistics (ONS) reveal that youth unemployment has hit its highest level in over three years, with 597,000 young people aged 16 to 24 unemployed between May and July 2024 – an increase of 51,000 from the previous year. In addition, 872,000 young people in the UK are now classed as NEET, marking a significant rise of nearly a quarter of a million (228,000) compared to three years ago when NEET rates were at their lowest. While investment in new school infrastructure is a positive step, the absence of financial support and practical education is deeply concerning. Without it, we risk leaving a generation behind. Our education system falls short of equipping young people with essential financial skills for adulthood, from managing bills to understanding credit and saving for the future. Too many school and university leavers enter adulthood unprepared for the financial realities they’ll face. Financial literacy can be a powerful tool for young people, especially those facing employment barriers. Just as the government makes strategic choices to support the country’s long-term growth, young people need the knowledge to make informed financial decisions that build resilience and stability. In today’s economic climate, creating job opportunities alone is not enough. Without confidence and financial know-how, young people face an uphill battle in managing their finances and risk being left behind.”

Rachel Solomon Williams, Executive Director at the Aldersgate Group, said:

“This Budget’s plans to accelerate green growth and provide long-term stability are very welcome, and echo recurring calls from businesses across the country. Changes in the fiscal rules, and multi-year funding settlements for growth sectors and critical infrastructure, offer a clear signal that the government is serious about investing in the foundations of a thriving green economy. 

Rachel added:

“We welcome the new investment for the Warm Homes Plan, which offers the much-needed certainty required to drive investment in this area. Today’s announcement of a three-year settlement for heat decarbonisation and building energy efficiency, with over £1 billion committed for 2025, and £3.4 billion guaranteed for supply chains in the coming three years, will be a crucial signal to businesses across the country; we hope to see the final plan extended over a longer period. To support the delivery of this change and others announced in the Budget, while maximising job creation and growth opportunities, further details on plans for Skills England will be vital.” 

Laura Crane is Professor of Autism Studies at the University of Birmingham. Laura holds a Chair in Autism Studies within the School of Education, where she is Director of the Autism Centre for Education and Research (ACER).

Professor Laura Crane commented:

“I welcome today’s budget, where the Chancellor promised to increase funding for children and young people with Special Educational Needs and Disabilities (SEND). It was particularly encouraging to hear Rachel Reeves reiterate the government’s commitment to reforming SEND provision, through improving outcomes and ensuring that the system is financially sustainable. While an uplift in funding is certainly welcome, this alone will not be a panacea for a very broken SEND system.”

Tom Dodson, Chief Operations Officer at Better Green Living, commented: 

“With Government’s promise to commit £1.4 billion into rebuilding schools, the need to look further at the sector as a whole is required to modernise and future proof some of our most significant buildings. Retrofitting presents an opportunity to protect and renovate schools and higher education buildings, bringing them up to be more energy efficient and less carbon intensive than building new. Without the support from the UK Government, this unfortunately isn’t feasible.

“Investing in well-designed institutions, which are crucial for the next generation’s development, will enrich students’ overall experience in the spaces where they spend so much of their time.”

Claire Brook, Employment Law Partner at Aaron & Partners, said:

“Many small businesses will see the hike in national insurance contributions announced by the Chancellor today as a considerable burden – at a time when they are already managing a complex cost landscape.

“Beyond the direct increase in payroll expenses, an increase of 1.2 percentage points and a reduction in the threshold at which employers start paying from £9,100 to £5,000 will bring additional administrative requirements, as companies adjust budgeting, payroll processes, and financial forecasting to accommodate the changes.

“For smaller businesses especially, these adjustments may stretch resources as they work hard to balance new costs with ongoing investment in staff and operations. Employers looking to support their teams and sustain growth will need to factor these increases into business planning, potentially impacting hiring decisions and wage and employee benefits structures in some sectors.”

Professor Rachid Hourizi MBE, Director of the Institute of Coding said: 

“Establishing Skills England within their first 100 days set Labour on the right track to tackle the country’s skills gap and was a clear indication they recognise much needs to be done to get the economy back on track. The Chancellor went a step further today, using her first budget to lay out how the government is making the reforms needed to kick start long term growth.’

“As more businesses require employees to have digital skills, and the growing role of AI in our day to day lives, it is important that these skills are a key focus for government policy.  The UK is home to leading universities, businesses and charities working to tackle the digital skills gap and with support from the government through robust policies, including Skills England, they can continue to ensure learners across the country have access to skills training, allowing Britain to have a thriving modern workforce ready to help supercharge growth.”