How the UK Spending Review Works: What the Spring Statement Reveals About HM Treasury Strategy

What does the Spring Statement tell us about how HM Treasury will approach the UK Spending Review?

In this episode of Negotiating Government, David Gauke (former HM Treasury and Cabinet Minister) and John Hall (former HM Treasury Health Spending Team Leader and Department of Health Strategy Director) explain how the UK Spending Review process really works — and what it means for organisations negotiating with government.

Drawing on their experience inside Whitehall, they explore:

• How HM Treasury sets spending envelopes
• The role of fiscal rules in shaping public sector negotiations
• The tension between capital investment and day-to-day spending
• Why innovation and efficiency matter in public services
• How international economic pressures, including US policy shifts, influence UK fiscal strategy

This episode provides practical insight into how government spending decisions are made — and what businesses, sectors and public bodies should understand when engaging with HM Treasury during a Spending Review.

If you want to understand how to negotiate with government during periods of fiscal constraint, this is the place to start.