What sectors has the UK Government been investing in?

What sectors has the UK government been investing in?

The public sector spends billions of pounds each year. With the Government working with third-party suppliers across many industries on projects and investments across many sectors, much of that spend falls under public procurement.

As we move into the second half of 2018, now is the perfect time to look at what the UK Government is spending and where.

From Ministry of Defence investments to SME grants, we look at some of the biggest spend areas in 2017/18.


Defence & Aerospace

The UK is the seventh highest spender on defence in the world with 2% of GDP being invested in this sector, or around £45bn as of 2017. Key Ministry of Defence spends in the past year include a £2.5bn submarine investment, a £1bn cash injection for the Royal Navy, and a £400m commitment on Brimstone missiles for RAF Typhoon jets. As for aerospace, the UK Space Agency has announced plans to establish the UK’s first ever spaceport in Sutherland, Scotland.



On its seventieth birthday, in 2018, the NHS is undergoing a transformation. The introduction of AI into the operating theatre and a flagship cyber security partnership with Microsoft has signalled a bold progression towards a digital clinical future. This is underpinned by an investment of half a billion pounds in NHS England, as announced by Health and Social Care Secretary Matt Hancock, which will help secure the transition to paperless technology.

Mr Hancock said: “Tech transformation is coming. The opportunities of new technology are vast. Let’s work together to seize them.”


healthcare tenders - s2g



With High Speed 2 expected to cost £56bn and Crossrail 2 predicted to exceed £30bn, infrastructure is set to dominate the Government’s domestic agenda for the remainder of this parliamentary term. As construction of Crossrail 2 nears completion, around 6000 jobs are already being supported by HS2, which is expected to be completed by 2033. The laying of groundwork plans such as a ‘green corridor’ and rail electrification are indications of how dynamic this project is set to be. With rail investment proving to be a recurring theme, the March 2018 announcement of the £1.7bn Transforming Cities Fund will provide key improvements to rail infrastructure in communities nationwide.



The pledge by Homes England to build over 14,000 new affordable homes through to 2022 is an exemplar of public spending within the construction sector. Working alongside eight housing associations, the public body’s plan to invest £590m is the clearest sign yet of the Government’s commitment to providing housing for all.



The Department for Education’s spending for 2018 has been dominated by the announcement in March of a £500m cash injection into refurbishing or expanding school facilities across England.


government procurement opportunities 2018 - education



Backed by UK Government grants totalling £6bn over 2017, the state-owned investment arm British Business Bank (BBB) has proved to be a crucial support partner for SMEs. And with schemes such as the Northern Powerhouse Investment Fund and the entrepreneur-led £2.5bn British Patient Capital programme, the BBB has confirmed its status as the cornerstone of the SME economy across the UK in 2018.


Government Procurement Opportunities

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