June 2025 Comprehensive Spending Review – what’s changed since the autumn, and what it means for Environmental Health

In 2024’s Autumn Budget, the Chartered Institute of Environmental Health (CIEH) flagged several areas where investment, clarity and reform were urgently needed to support the environmental health profession. With today’s publication of the Comprehensive Spending Review 2025, we now have more detail on the government’s long-term fiscal plans through to 2029–30—and it’s a mixed picture.

This review sets departmental resource and capital spending for the next four to five years. While headline figures look promising in some areas, the devil—as ever—is in the detail. For environmental health, the implications are both encouraging and concerning.

From words to numbers: what’s actually changed?

Back in autumn, we were told to expect “tough decisions” and “efficiency targets.” What we now see in the Spending Review is the scale of that challenge:

• Defra’s resource budget (which funds operational enforcement and EH-adjacent services) is set to decline by an average of 2.7% in real terms each year. This is despite capital investments and innovation funding in areas like digital infrastructure and flood defence.
• Local government funding sees a headline increase—a 3.1% average annual real terms growth—but with no ringfenced allocation for environmental health, the impact on our sector remains uncertain.
• The 5% efficiency savings and 16% cut to departmental administration budgets will be applied across the board. These reductions could potentially affect frontline EH services, already under pressure from workforce shortages.

Where there is progress

• The £4.2 billion flood defence programme and £2.7 billion annually for nature recovery show growing recognition of environmental resilience as a strategic priority.
• The emphasis on digital transformation, including AI and new public health surveillance tools.
• The new Local Growth Fund will invest in up to 350 of the UK’s most deprived communities, supporting initiatives that strengthen community cohesion, drive regeneration, and enhance public spaces. This presents a valuable opportunity to improve local environments and public health outcomes where they are needed most.
• A new Affordable Homes Programme (£39bn) and sustained focus on homelessness prevention are welcome but need to be coupled with a commitment to tackling poor housing conditions and thereby reducing ill health and saving lives.
• DEFRA’s funding for Environmental Land Management schemes will rise from £800 million in 2023–24 to £2 billion by 2028–29. This investment will support nature-friendly farming and directly contribute to meeting Environment Act targets—improving water and air quality, restoring natural habitats, and helping biodiversity to recover.

Key concerns and what we’re watching

While the Spending Review includes some welcome investment in areas like local growth, the prevention of ill-health and digital transformation. Environmental health continues to face significant funding gaps. There is no targeted investment in local authority EH capacity, no new action on air quality enforcement, and no uplift for food and health protection regulation, despite ongoing public health and post-Brexit pressures.

CIEH President Mark Elliott, said:

“We recognise the Government’s focus on encouraging growth, and we agree that investment in infrastructure and housing is urgently needed. However, the involvement of environmental health professionals will be essential to ensure that development is not only ambitious but also safe, sustainable, and beneficial to community health and wellbeing.

“We welcome the investment in new affordable homes, but this must be matched by a clear commitment to tackling poor housing conditions. The Renters' Rights Bill is a positive step forward, but we are concerned about the significant enforcement burden it places on local authorities. To succeed, these new responsibilities must come with proportionate, sustained, and predictable funding.

“CIEH will continue to monitor how Defra allocates its reduced resource budget, whether environmental health services are prioritised, and how the Transformation Fund is used to support prevention and local delivery.

“We’ll keep working with members, partners, and policymakers to ensure environmental health receives the recognition and resources it deserves. The next few years will be shaped by how today’s spending plans are turned into tomorrow’s services.”

We’ll continue to analyse the effects of the spending review, and will update this blog should we find additional clarification.