Industry has given its verdict on Rachel Reeves’ Spring Statement.

The chancellor gave an update on the government’s progress on growth and public finances with construction and infrastructure in the spotlight.  House building, planning reform and investment in skills for the sector were all mentioned

And while those across the infrastructure sector were broadly positive about today's (26 March) announcement, conclusion of the Spending Review on June 11 it set to bring more clarity for the sector. 

Kate Jennings, chief executive officer of the Association for Consultancy and Engineering (ACE) and the Environmental Industries Commission (EIC), said: "The chancellor’s Spring Statement reaffirmed the government's commitment to investment and its determination to remove barriers to infrastructure delivery.

"We welcome the continued focus on both housing and infrastructure, including the third runway at Heathrow. Commitment to capital spending for defence, as well as new infrastructure and homes, is also positive. We look forward to hearing further details in the Spending Review.

"The establishment of NISTA – the National Infrastructure and Service Transformation Authority – will be critical to ensuring the pace of decision making and delivery.

"We are pleased to see government recognises the critical importance of creating a skilled workforce to meet its ambition to get Britain building. The establishment of the Construction Skills Mission Board and the commitment of £600m to train new workers, including engineers, are a positive first step.

"There is an opportunity to connect these plans to the green transition, ensuring workers are equipped to support not just the government’s ambition to build – but also its aim to create a nature-positive, climate-resilient, circular economy."

Neil Sansbury, UK managing director of Ramboll, said the chancellor was in an "unenviable position" with events at home and abroad creating a marked shift in the economic conditions.

"The recognition of the important role that capital projects and the green economy have to play in spurring growth through additional funding of £2bn per annum is welcome," he added. "It has also been encouraging to see the government take proactive steps, not least through the Planning and Infrastructure Bill, which had its Second Reading this week.

“However, the bill should not be seen as a panacea. The increasingly common presentation of sustainability and growth as competing aims is particularly concerning. Contrary to assertions that these are mutually exclusive, growth must be sustainable or it will be ephemeral.

“We need a joined-up, strategic approach centred on improving productivity. This must include steps to tackle the skills gap, reshore manufacturing and end the housing crisis. It is also vital to recognise that these problems are interlinked and cannot be addressed piecemeal.

“There is still real potential in the UK and the impressive forward strides that have been made should not be overlooked.

“But we must also remember that the UK is only one part of a larger global value chain. If we are to realise our potential, it is vital that both industry and government work to ensure that the UK remains an attractive place to do business.

“That means being able to train and attract skilled workers, maintaining commitments to spending, and supporting ‘win win’ situations with targeted legislation creating conditions to support long-term planning and investment.”

Richard Whitehead, chief executive of AECOM’s Europe and India region, said while the statement hadn't been expected to introduce significant new measures, a commitment to increasing capital spend was "welcome news".

"Prioritising infrastructure has always been key to driving economic growth, and the government should be commended for its recent efforts to accelerate delivery. New legislation and planning reforms should help get spades in the ground more swiftly but must also maintain nature and environmental protections.

“The confirmation of £2.2bn for defence spending is a welcome step in ensuring the UK retains a modern and fully equipped defence force. We now eagerly await further details in the much-anticipated Strategic Defence Review.

“Likewise, we welcome the £600m investment in construction skills announced ahead of the Spring Statement to help address the significant workforce gap. While this funding is expected to cover the training of 60,000 new skilled workers, it is only a fraction of the additional workforce needed. A major inhibitor of future infrastructure delivery is Britain’s ability to build it, necessitating further initiatives, including a comprehensive skills strategy.

“With new departmental spending cuts, a key challenge lies in improving the longevity and efficiency of the UK’s ageing infrastructure, ensuring it remains fit for the future. The private sector stands ready, with its deep bench of skills and digital expertise, to help address these complex challenges.”

Simon Rawlinson, head of strategic research at global consultancy Arcadis, said: “Rachel Reeves kept her focus on the big picture in her Spring Statement, highlighting increases in defence spending and capital investment without getting into the detail. 

“Confirmation of projects in favour will have to wait for the Comprehensive Spending Review as will the search for rebadged and reheated project announcements.

“The OBR's upgrades to growth figures from FY 26/27 onwards are welcome as is the assessment of the impact of government measures on long term growth.  It's worthwhile remembering that these come on top of big interventions in investment incentives and childcare by the previous government – growth is difficult and expensive to promote, but it may be worth it in the end.

“The construction industry will take comfort that the chancellor focused on our sector in the speech rather than on health or education.  Our sector benefits from the borrow to invest fiscal rule. 

“Housebuilders may also start to breathe a sigh of relief as housing targets are adjusted in line with reality - 1.3 million homes by the end of the parliament will still be in 'touching distance' of ambition, but the important thing is that changes to the planning system will make a permanent impact on growth.”

Tim Balcon, CEO at the Construction Industry Training Board (CITB), said "significant announcements" for the construction industry had been made this week - the £600m package for construction skills and a £2bn investment into affordable homes.

“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," he added. "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.

“The government aims to build 1.5 million new homes and approve 150 major infrastructure projects by the end of the decade – indeed, plans for Lower Thames Crossing were approved earlier this week. The opportunities aren’t just on the horizon, they’re in the here and now.”

Civils contractors welcomed the announcement of a further £13bn of capital spend over the course of this parliament.

Director of operations for the Civil Engineering Contractors Association (CECA), Marie-Claude Hemming, 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.”

Alex Vaughan, Costain CEO, said: “Following the chancellor’s Spring Statement, all eyes will now be on June’s Spending Review and the desperately needed 10-Year Infrastructure Strategy.

“The successful delivery of complex, transformative infrastructure requires long-term planning and clear decision-making, and a 10-Year Infrastructure Strategy, overseen by a dedicated cabinet minister, is vital to provide a more structured and consistent approach. We look forward to seeing more details in the months ahead.”

Beatrice Barleon, head of policy and public affairs at EngineeringUK, said: “The chancellor’s recognition of the importance of investing in skills through a new training package for up to 60,000 new construction workers is welcome and essential to delivering on the government’s growth mission, which is underpinned by plans to build 1.5 million homes and to strengthen the UK’s national security.

“EngineeringUK is calling on the government to go further in the Spending Review and Autumn Budget later this year and look to address the financial barriers to technical and vocational entry routes into engineering and technology for all young people.

 “Government must recognise its role in training the next generation and look to move towards a new model of directly funding apprenticeships for 16- to 18-year-olds to help reverse the decline in uptake of apprenticeships for this age group.

“Government must also look to invest in programmes and activities we know work in getting young people interested in careers in engineering and technology and support the teachers that will help deliver them. We look to government to reverse recent cuts to Continuous Professional Development for STEM teachers and continue to support outreach programmes reaching into schools.

“The investment in construction training announced today is a positive step in the right direction, but this action needs to be replicated through investment across the full STEM skills pipeline.”

Brian McArdle, managing director of 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.”

Chris Ball, UK & Ireland president at AtkinsRéalis, said the statement confirmed the "fiscal realities" and "tough choices" facing the UK, but it reinforced the need to forge ahead with plans that would unlock economic growth across the country.

“It’s encouraging to see the chancellor repeat her commitment to increase capital spending on infrastructure. The UK urgently needs to upgrade its ageing infrastructure and deliver systems, networks and built environments fit for the future.

“This place-based growth will benefit communities and boost opportunities across the country, and it can be achieved by mobilising public and private investment alongside reforms to the planning system.

“The additional £2bn funding for affordable homes will help to deliver on the government’s housing targets, but it could also drive immediate growth by increasing the share of funds for scalable SME housing providers who can grow capacity and invest in innovative manufacturing methods to speed up delivery of high quality, low carbon, affordable homes across the country.

“Recent announcements on vital infrastructure projects such as Lower Thames Crossing and airport expansion at Heathrow and Gatwick all send a positive message to industry: as we await the publication of a long term project pipeline within the 10 Year Infrastructure Strategy, we also stand ready to contribute to the models, plans and discussions needed to realise the potential for growth and deliver value for money.”

Richard Risdon, executive board director and regional managing director for UK and Europe at Mott MacDonald, said: “News around construction skills funding and approval of the Lower Thames Crossing ahead of the Spring Statement gives the industry confidence that the government understands the role we play in driving growth on behalf of the UK.

“It was good to hear the government’s commitment to expansion plans at Heathrow and also that the Planning and Infrastructure Bill will permanently increase the size of the UK economy.

“I was pleased to see the industry, including our chair of the executive board James Harris, supporting the government's proposed reforms for the Planning and Infrastructure Bill with an open letter sent to MPs this week.

“All 13 signatories representing the UK’s leading Tier 1 contractors and consultants, are in agreement the bill is a once-in-a-generation opportunity to unlock growth, accelerate critical projects, and strengthen the UK’s competitiveness.”