The 2025 Autumn Budget, delivered by Chancellor Rachel Reeves yesterday (26th November), set out a range of measures intended to support skills development, industry growth, and the green economy.
Here, industry analysts from The Institution of Engineering and Technology (IET) and EngineeringUK have summarised some of the key points most relevant to electronics and engineering sectors, including the expansion of fully funded apprenticeships for under‑25s in SMEs, investment in electric vehicle infrastructure, support for workforce reskilling.
Free apprenticeships for under-25s could help tackle skills gap
The Post-16 Education and Skills White Paper, published in October 2025, outlined the government’s plan for a skills system in England designed to widen opportunity, align provision with employer and student needs, and support innovation, research, and development.
The government has allocated more than £1.5 billion over the Spending Review period to employment and skills support. This includes £820 million for the Youth Guarantee, which offers a guaranteed six-month paid work placement for every eligible young person aged 18 to 21 who has been on Universal Credit and seeking work for 18 months. The package also allocated £725 million to the Growth and Skills Levy to support apprenticeships for young people, including a commitment to fully fund SME apprenticeships for eligible people under 25.
The government also set out reforms to simplify the apprenticeship system ahead of the introduction of short courses from April 2026.
Dr Graham Herries, Chair of the IET’s Policy Oversight Committee, said: “Our recent Skills Survey shows that large engineering organisations are more likely than SMEs to report strong apprenticeship outcomes. Among large employers, 43% said over half of their apprentices completed training (compared to 32% of SMEs), and 48% said those apprentices remained employed after training (versus 28% for SMEs).
“Whilst it’s welcome news that training for apprentices under-25 will be fully funded for SMEs, government must work with businesses and local training providers to ensure that the new Growth and Skills Levy provides young apprentices and SMEs with the support they need to complete their training.
“A stable business environment will also be critical for SMEs to have the certainty they need to be able to offer secure long-term jobs to the young people they spend time training.”
Beatrice Barleon, Head of Policy and Public Affairs at EngineeringUK, reflects on what this means for STEM education and for pathways into engineering and technology careers: “The Autumn Budget arrived at a pivotal moment for skills reform, with the recent post-16 skills white paper highlighting the declining provision of apprenticeships for young people, including in key Industrial Strategy growth sectors.
“The Chancellor’s decision to fully fund SME apprenticeships for young people under 25 – up from age 22 currently – will help to break down barriers to SME participation in apprenticeships. However, government must go further with additional wrap-around support for SMEs. We also welcome the commitment to invest an additional £725 million in the Growth and Skills Levy over the next five years, and look forward to seeing further detail ahead of April 2026.
“The government must ensure that this funding uplift is adequately targeted at young people and at filling critical skills gaps within sectors with the greatest employment demand, such as engineering and technology. Many of these are likely to be entry-level apprenticeships. Skills England are forecasting that over a third (34%) of the increased employment demand in the IS-8 sectors over the next decade will be in Levels 2 and 3 occupations.
“To deliver a resilient engineering and technology workforce in the long-term, government must ensure this investment is matched by an equal scale of ambition in the pre-18 education system. It should adopt a joined-up approach to talent development across pre- and post-18 by investing in high-quality STEM education for young people. This should be delivered both through lessons and STEM outreach activities, and ensure young people are informed and inspired through modern careers advice and guidance in schools.”
Investment in EV infrastructure key to decarbonisation
The government announced a package of measures intended to support the shift to electric vehicles and strengthen the UK’s automotive sector. The Electric Car Grant, launched in July, has already enabled over 35,000 drivers to adopt an EV through discounts of up to £3,750. The programme received an additional £1.3 billion in funding and an extension to 2029-30.
Charging infrastructure formed a central part of the package. An extra £100 million was allocated to support home and workplace charge points, adding to earlier commitments. A further £100 million will enable local authorities and public bodies to train and deploy specialist staff to accelerate the rollout of public charge points. The government plans to consult on permitted development rights for cross-pavement charging, aiming to improve access for households without driveways, alongside a £25 million scheme announced in July. A 10-year 100% business rates relief for eligible EV charge points and EV-only forecourts was introduced, and the 100% first year allowances for zero-emission cars and charging infrastructure has been extended by one year.
James Bamborough, Sustainability and Net Zero Policy Manager at the IET, said: “EVs represent one of the simplest wins for decarbonisation – but only if incentives and infrastructure keep pace. We welcome the focus on charging infrastructure and the extension of the grant scheme until 2030.
“EV adoption in the UK faces a complex reality, with infrastructure maturity varying widely across regions. There is no one-size-fits-all approach – different boroughs and cities operate under different rules and policies, creating significant barriers to uptake.
“For those unable to charge at home, costs are higher, and options are limited. Expanding reliable street charging must therefore remain a key priority.”
Lack of cyber support for SMEs raises competitiveness concerns
Jayne Black, Digital Futures Policy Manager at the IET, said: “The government has missed the opportunity to provide much needed support for SMEs alongside the Cyber Security and Resilience Bill. Businesses recognise that cyber skills are critical for success with 38% citing cyber skills as the most important and 2/3 public stating that government need to prioritise cyber security. Tax breaks would have bolstered SMEs to invest in reskilling their workforce and increase cyber defences. Large and small enterprises in supply chains face a clear and persistent threat from hackers, in the UK and globally, which presents vulnerabilities to larger companies. This severely impacts the economy in the event of a breach. Supply chains can be broken by the weakest link. What the Government now needs to look to, is ensuring that response plans in the event of an attack are prioritised just as much as prevention in the Cyber Security and Resilience Bill.”
Dr Graham Herries, Chair of the IET’s Policy Oversight Committee, added: “Maintaining international advantage in innovation and technology is not a given, in fact the UK faces fierce competition globally. Although it benefits from a good basis of intellectual capability, the ecosystem must be right – including infrastructure, keeping down rising costs for businesses and ensuring the UK is an attractive place to invest. Without strengthening the entire entrepreneurial supply chain, the UK risks falling behind. We look forward to contributing to the review into strengthening the role of entrepreneurs in the UK.”
