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Spring Budget 2025: Implications for Franco-British Business and the Chamber’s Advocacy Agenda

The Spring Statement delivered by the Chancellor this week sets the tone for a challenging economic year ahead, marked by fiscal restraint and a strong focus on growth, investment, and national resilience.

While the announcement was light on headline-grabbing measures, it contained signals of real interest to the Franco-British business community—particularly in areas where cross-border collaboration is already strong. Several key themes emerge from the statement that will shape our priorities in the months ahead as the Chamber prepares for the UK-France Summit later this year:

1. Defence: Momentum for Franco-British Collaboration

The standout fiscal commitment is an additional £2.2 billion for defence from April 2025, increasing UK defence spending to 2.36% of GDP, with a pledge to reach 2.5% within two years. This commitment comes at a time of intensifying geopolitical uncertainty and is likely to generate significant procurement activity across the defence and security ecosystem. For Chamber members, this reinforces the importance of UK-France defence industrial cooperation. French and UK companies are already deeply embedded in each other’s supply chains—from aerospace systems to naval maintenance and cyber technologies. The Chamber has long advocated for renewal of the Lancaster House Agreement to ensure joint procurement programmes and regulatory interoperability remain central to bilateral strategy.

2. Growth and Industrial Strategy: A Franco-British Opportunity

While the spring statement reasserts the government’s focus on growth, it stopped short of outlining a detailed industrial strategy. This presents a timely opening for the Chamber and its members to shape the agenda. We believe that closer UK-France alignment—particularly in sectors such as AI, clean energy, and advanced manufacturing—can support long-term economic resilience. The upcoming Summit provides an ideal platform to frame such partnerships around shared investment and innovation priorities.

3. Housing and Infrastructure: Scope for French Expertise

The Chancellor’s £2 billion allocation to deliver 18,000 affordable homes underlines housing and infrastructure as growth enablers. This is a natural area for French firms to support delivery in the UK, particularly those specialising in modular housing, smart infrastructure, and sustainable construction.

Looking Ahead

In short, the Spring Statement underscores the importance of practical, business-led initiatives that deliver tangible outcomes. As we finalise proposals for the UK-France Summit business segment, the Chamber will continue working with members to ensure our voice remains credible, constructive, and focused on growth. If your organisation is interested in contributing to these discussions, we encourage you to get in touch.