The construction industry has welcomed the chancellor’s multi-billion-pound funding for major infrastructure projects and housing, although questions remain about how the government will deliver on its ambitions amid the current skills crisis.
Here’s a round-up of reactions from the sector.
“The announcement of £39bn for affordable housing is a positive first step in helping to deliver at pace and scale the homes the country desperately needs. A 10-year funding horizon is potentially a gamechanger as it will unlock delivery and enable us to think bigger and act more boldly.
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“Wates has long partnered with government, and we welcome the measures ministers are taking to improve the public estate, from the school rebuilding programme to dedicated funding for the removal of RAAC from classrooms and hospitals.
“These announcements are beneficial for the construction industry, and we are pleased to see the government deliver on its commitment to publish a 10-year infrastructure strategy, thereby providing valuable long-term direction and certainty."
Dr David Crosthwaite, chief economist at BCIS
“As the dust settles on the much-anticipated spending review, there’s finally some good news for construction. Confirmation of significant capital spending on fixed assets over the next decade is a relief, and the lever needed to unlock private sector investment.
“The big question is, can construction actually deliver all of this investment? In the current climate, suspicion says probably not. Unless the supply position radically changes, the sector is ill-equipped to meet extra demand.
“Therein lies the major problem for the government’s attempt to ‘get Britain building again’.”
Viki Bell, CEO of the Construction Equipment Association
“We’re hearing the right words, but the sector urgently needs to see shovels in the ground and projects getting underway. Construction firms are still laying people off.
“For our equipment manufacturers and supply chain, clarity and pace are just as vital – orders, investment and planning decisions rely on delivery, not just policy.
“We now await the detail of the government’s promised industrial strategy – a long-term, funded and joined-up plan that backs skills, accelerates delivery, and gives the industry the confidence to invest and grow.”
Tim Balcon, CEO of the Construction Industry Training Board
“We support the government’s commitment to getting Britain building again. Over £110bn announced for infrastructure projects like Sizewell C, a fresh £39bn affordable homes funding settlement, and £13bn for upgrading millions of homes with improved insulation, all translates to a buoyant construction industry. In total, there’s positive news to the tune of about £165bn for the industry.
“Of course, we need the skills on the ground to deliver these ambitions.
“Earlier this year, the government announced a £600m construction skills package, £32m of which is investment from CITB to deliver increased industry placements. Back in November, we announced a £40m commitment to support the creation of Homebuilding Skills Hubs. I genuinely believe this is a once-in-a-generation chance for us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.”
Brian Berry, chief executive of the Federation of Master Builders
“The chancellor’s commitment to social housing needs an accompanying delivery strategy that puts SME builders at its heart. Small, local firms are uniquely positioned to unlock the potential of overlooked small sites, deliver high-quality homes, and boost local economies. By working in partnership with housing associations, SMEs can also help tackle the industry’s skills gap by training and employing people in their own communities.
“It is also pleasing to see £1.2bn investment in apprenticeships and training, but we know from the CITB that the UK will need more than a quarter of a million more workers entering the industry by 2028 if the government is serious about meeting its 1.5 million new homes target.”
Katie Saunders, construction partner at Trowers & Hamlins
“It’s a good news story for major construction and infrastructure projects following the chancellor’s spending review announcements of major investment into transport, housing and energy projects.
“Delivery is going to be demanding for the sector with a skills crisis and ageing workforce, so using industrialised construction methods has to be a requirement for the public sector and we expect to see this in the detail to follow.”
