Briefing Note: Spending Review 2025 (Defence Training and Simulation focus)

Date: 11/06/2025

This briefing note is on the recently published UK Government Spending Review (SR 2025) with particular focus on Defence Training and Simulation. It builds on the analysis of the Training and Simulation analysis of the Defence Spending Review 2025 that can be found at https://metier-solutions.blogspot.com/2025/06/briefing-note-strategic-defence-review.html

Headlines:

Table ‑1‑1 Big picture – how the June 2025 Spending Review (SR25) touches Defence Training & Simulation.

IMPACT Analysis:

Using the core factors of the #IMPACT theory[1] and data from 2024 as a baseline we can draw some strategic insights into the Defence Training and Simulation themes of SR 2025.

Figure 0‑1 IMPACT-Factors shifts driven by SR25, top level IMPACT analysis of the training and simulation aspects of SDR 2025

Table 2‑1 comments on the effect of SR2025 and shows the effect on the main IMPACT Factors.

Legend: ▲ positive shift, ▬ neutral.

What changes for Defence training planners?

1. Money is not the constraint, the pipeline is: The extra £ 22bn real growth in Defence over the SR period is real but none of it is pre-tagged for training. Programmes have a six-month window to secure slots in the Autumn 2025 Defence Investment Plan.
2. Lean, capital, heavy budgets favour synthetic solutions: With Treasury wanting visible equipment outputs, simulator hardware, containerised XR ranges and cloud-licenced software score highly because they create “steel on the ground” while still delivering training effect.
3. Innovation route is now clearer. Projects under £100 m with 12-to-18 months delivery cycles should pitch to UKDI; bigger, multi-Service “whole force” simulation architectures need to ride the main Equipment Plan.
4. Cross-government digital up skilling is an opportunity. DSIT’s Digital Road-Map fund can co finance joint academies with industry/academia, offsetting MoD’s own workforce training costs.
5. Efficiency narrative is essential. Every bid must quantify readiness uplift and cashable savings (instructor numbers, travel days, ammunition avoided). Without that, it will struggle against kinetic capability bids when the Defence Reform & Efficiency Plan hunts for offsets.

Probability Analysis

Figure 0.2 below shows a 3-point probability analysis for each of the training and simulation themes and their related milestones of SDR 2025 being achieved. Historical data was used for weighting and as supporting evidence. 

Figure 0‑1 Show an assessment of the probability of Defence delivering the identified milestones.

Table 3‑1 Shows the SDR2025 milestone themes, the enabling SR25 lever, the revised probability percentage, the level of shift and the rational for the change.

Legend: ▲ probability up; ▼ probability down.

Actions: 

Now - Sep 25: 

• Refine costed options for the Virtual Integrated Training Environment and Digital War fighter’s academy.
• Align each option with UKDI criteria and/or Equipment Plan gateways.

Oct 25:

• Submit business cases into the first Defence Investment Plan round; secure commercials with DSIT for Road-Map funding bids.

FY 26-27: build phase 

• Use UKDI fast-track contracting to let at least one “showcase” mixed-reality collective trainer project inside 12 months.

Jul 28 (Eff-Plan review point)

• Evidence ≥ 10 % throughput uplift / ≥ 5 % instructor saving from synthetic solutions to protect further waves of investment.

SR25 enables almost every training-transformation lever the SDR pulled but only if Defence moves quickly and pins its simulation agenda firmly into the forthcoming Defence Investment Plan and UKDI portfolio.

SR25 injects capital, R&D funds, and a protected innovation quota converting SDR-2025 training ambitions from aspiration to funded programme. Virtual-environment delivery confidence climbs fifteen points, and simulation clauses gain Treasury level enforcement via the 10 % novel-technology rule. Skills elements benefit from DSIT’s cross-government digital pipeline, although civil service head count cuts threaten HR policy work. Sadly, environmental progress remains flat due to absent carbon metric funding. A six-month window now exists for Training Command to lodge business cases within the forthcoming Defence Investment Plan, securing the uplift before competing kinetic projects claim the same capital.

Disclaimer:

Please note that parts of this post were assisted by an Artificial Intelligence (AI) tool. The AI has been used to generate certain content and provide information synthesis. While every effort has been made to ensure accuracy, the AI's contributions are based on its training data and algorithms and should be considered as supplementary information.

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[1] The IMPACT theory and model is a proprietary organisational performance theory and model developed by Metier Solutions