Much was already known, having been announced ahead of yesterday’s Spring Statement, but the chancellor’s focus on planning reform, capital investment, housebuilding, and construction skills training was broadly welcomed by the industry.
Investment in skills was one of the measures flagged up ahead of the Spring Statement, with the chancellor reiterating the £625m funding package intended to underwrite a key component of the governments mantra to get Britain building’.
Tim Balcon, chief executive at the Construction Industry Training Board (CITB), said: “As part of the construction skills package, CITB is providing £32m to support the government’s aim to fund over 40,000 industry placements each year. Additionally, we’ll be doubling the size of our New Entrant Support Team that helps make finding, recruiting and retaining an apprentice or new entrant easier for employers.
“The government’s continued support for the construction industry through increased investment in construction skills is extremely welcome. As an industry, we need to collectively grasp this opportunity and be better at shouting about what a fantastic industry this is, the prospects it can offer people, and attracting people into pursuing a career in construction. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.”
Justin Young, chief executive of RICS, said: “The £600m of additional funding for construction sector skills is a decisive investment in the UK’s built environment. This should help secure the next generation of construction sector workers and professionals as we look to tackle the challenge of an ageing workforce alongside acute labour and skills shortages. If this can be combined with a new GCSE for the Built Environment in England, we can drive fresh talent to take up the new opportunities afforded by this investment.”
Andy Rayner, director of learning and development at Travis Perkins, said: “It’s encouraging to see the government recognising the importance of skilled trades in delivering the UK’s housing ambitions. The construction industry has been facing significant challenges due to ongoing skills shortages, which have impacted the speed and scale at which projects can be delivered.
“An investment of this scale into construction training and recruitment is not just a step in the right direction, but also a long-term commitment to the future of the industry.
“Equipping the next generation with the right tools, training, and opportunities will help address critical gaps in the workforce, strengthen the supply chain, and support the industry in meeting ambitious build targets with greater confidence and resilience.”
Roger Morton, director of business change at NHBC, said: “It is vital this investment recognises the diverse talent the industry will need to thrive. From school leavers to career changers and those returning to work. House building is not a one-size-fits-all sector. It is a dynamic industry that depends on a strong, skilled and inclusive workforce.
The government’s investment is a pivotal moment. With government, industry and training providers aligned, we have a unique opportunity to deliver a more productive and sustainable sector that genuinely offers opportunity for all.”
However, Lee Parkison, chief executive of Efficiency North, the holding group for EN:Able Futures, added a note of caution, suggesting that funding is not a magic bullet in itself.
“We find ourselves at yet another crossroads in construction, where, even with the highly-encouraging announcements, we must remain grounded,” he said. “This long-awaited backing for a new skills mission is a step forward but we can’t overlook the fact that the industry does require an additional 50,000 workers each year just to meet existing demand.
“There certainly seems to be some mobilisation across the sector, but the key now is ensuring there’s a comprehensive and collaborative effort to fully embrace and capitalise on this investment.
“With apprenticeships being one of the biggest drivers of social value generation within construction, there’s a real opportunity for clients to serve the workforce of tomorrow and drive the creation of real, project-initiated, and future-proofed apprenticeships.”
Conor Leyden, chief executive of the LK Group, a geo-environmental consultancy and contractor, said: “The construction industry welcomes the announcement that £600m has been pledged to train 60,000 new workers. However, it’s disappointing to see that Reeves has not offered incentives for businesses that are working tirelessly to tackle the ongoing skills shortage.
“It’s no secret the talent vacuum is worsening, while outputs are dropping and this statement a missed opportunity from the government to support those who will be training these new workers. It’s the businesses who provide apprenticeships and traineeships, who will ultimately drive more young people into the sector.
“SMEs are already dealing with the ramifications of national insurance hikes and increased interest rates and, for many, offering on-the-job training is getting harder. Without access to skilled workers, the industry will not be able to deliver the government’s ambitious housebuilding targets.”
Beyond training
Brian McArdle, managing director at Gleeds UK, said: “The chancellor’s first budget raised taxes by £41.5bn and, while we did not expect this second to reverse them, what she did need to do was restore confidence to those operating in the built environment who currently feel dispirited, unsure and under-confident.
“The news of £600m worth of investment to train up to 60,000 additional skilled construction workers as well as a Local Skills Improvement Plan (LSIP), which will benefit from £20m is to be welcomed, but there was nothing in today’s statement to buttress investor confidence.
“It’s certainly not jam today, it is jam tomorrow and any jam available seems to be being spread over an ever-widening piece of toast. This was not a statement that will empower investors. It was a fingers-crossed approach from a chancellor being driven by the markets, rather than the other way round.”
Karl Horton, chief data officer at the Building Cost Information Service (BCIS): “There wasn’t much in the chancellor’s statement for the construction industry to rely on over the coming months, especially with the OBR halving its 2025 growth forecast since the Autumn Budget.
“It’s interesting that the government is now talking about getting ‘within touching distance’ of its housing target after months of the industry outlining why it was so unlikely 1.5m new homes was possible, though the £2bn additional investment in social and affordable homes is welcome.
“Elsewhere, the already-announced £625m investment to train up to 60,000 skilled construction workers over the next four years is still insufficient to replenish the workforce lost since before the pandemic.
“While making the industry more attractive to new workers isn’t solely the government’s responsibility, firms have little incentive to expand their workforce and invest in training while economic uncertainty persists.
“Unfortunately, investment and funding decisions are subject to ongoing volatility, with the threat of tariffs and escalating trade tensions hanging over the UK.”
Civils contractors welcomed the announcement of a further £13bn of capital spend over the course of this Parliament, but said the benefits of this investment will only be felt once industry can get spades in the ground on projects.
Marie-Claude Hemming, director of operations for the Civil Engineering Contractors Association (CECA), said “We welcome the UK government’s decision to go further in kickstarting economic growth through capital spending and the ambitious programme of upskilling the construction industry announced earlier this week.
“However, the benefits of infrastructure – and the rewarding and high-paid jobs infrastructure delivery creates – will only be fully realised once industry can get spades in the ground on projects.
“We call on the government to work with industry to identify pinch-points in project delivery that are slowing the progress of schemes to market, to ensure that businesses and communities can see the real-world impact the provision of world-class infrastructure can have without delay.
“We strongly support the government’s focus on infrastructure as a driver for growth and look forward to working with CECA members and all other stakeholders to ensure that the UK economy is stronger, more resilient, and not only creates good jobs in our sector, but makes a real difference to the lived experience of people across all parts of England, Scotland and Wales.”
Stephanie Cox, director, a multidisciplinary environmental consultancy,at E3P, said: “The chancellor has suggested that the planning reforms will add £6.8bn to the economy, and put the government ‘within touching distance’ of the ambitious housebuilding target of 1.5m homes. Once again, the budget cites grey-belt land as a solution to the house crisis, but its complexities have been overlooked.
“Building on this land is costly and difficult. It was already a risk for developers to consider remediating this land. After today’s spending cuts, developers – particularly those focused on owner-occupied schemes – will be even more cautious than before. However, with a clear direction from the government on the challenges and opportunities involved with grey-belt land, developers could have greater confidence in delivering the housing the UK needs.”
Allan Wilen, Glenigan’s economic director, said: “The Spring Statement is hardly a game-changer for construction, but no news is good news. Developers have been waiting on the sidelines, and if confidence returns, we could see a surge in project starts. Glenigan data shows that £129bn worth of projects have secured planning approval over the past year, and many of these schemes could now break ground.”
On the Spring Statement’s inclusion of mention of new technologies such as AI, Cem Savas, chief executive of Plentific, said: “It’s encouraging to hear about the government’s £3.25bn Transformation Fund and its ambition to pioneer AI tools to modernise the State.
“We support the government’s drive to address legacy IT systems and its commitment to invest in technology, including cybersecurity, cloud computing and artificial intelligence. As outlined in the AI Opportunities Action Plan and the blueprint for digital government in January, technology is well placed to enable growth across the public sector, with the ethical adoption of AI.”
Courtesy of HM Treasury. Picture by Kirsty O’Connor/Treasury
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