“A strong signal on infrastructure, now we must spend smart, not just big” – ACE gives verdict on Spending Review

ACE Group has today welcomed the bold capital commitments outlined in the 2025 Spending Review.

But is says the government must now take its ambition further by investing in essential maintenance work, or the UK risks building new assets while letting existing ones crumble.

Kate Jennings, Chief Executive of ACE Group, said: “This Spending Review sends a signal that infrastructure is mission critical to economic growth - and rightly so. The capital investment outlined today has the potential to transform communities and drive long-term economic resilience.

“However, capital spend alone isn’t enough. Our ambition is for both new projects and the essential upkeep of the assets we already rely on, including health and educational infrastructure.

“The £2.4bn per year investment in the School Rebuilding Programme to fix school buildings is hugely welcome and a good step to recognising this need, with many buildings in the school estate already in poor condition.

“However, Victorian-era rail infrastructure, much of which is over a century old, continues to require maintenance to avoid delays and inefficiencies. Similarly, patient care and vital treatments need NHS investment in modern hospital equipment and diagnostic centres.

“Maintaining and extending the asset life of this critical infrastructure will build and maintain essential skills, enable us to reach net zero and meet the Chancellor’s ambitions for sustained economic growth.”

Whilst emphasising the need for new infrastructure and greater maintenance of current and existing infrastructure, ACE Group - which comprises the Association for Consultancy and Engineering (ACE) and the Environmental Industries Commission (EIC) - strongly supports the announcements made by the Chancellor on:

• Substantial new capital allocations across transport, energy, water and digital infrastructure.
• Enhanced pipeline visibility and strategic long-term clarity, giving the sector a more stable, predictable environment to plan, invest and deliver.
• The government’s continued emphasis on regional growth and the increase in new metro and rail projects for the North and the Midlands.
• Transformational package of £39bn to the affordable homes programme for 10 years form 2026-2036 

Kate Jennings also said: “We’re committed to working hand-in-glove with government to ensure every pound spent delivers the maximum impact.

“That means ensuring the Green Book recognises that investment unlocks potential, embedding the principles of the Construction Playbook, including tools like the Value Toolkit, and accelerating procurement reform to reward long-term value - not just lowest cost.

“The focus must be on delivery that’s smarter, more productive, and truly fit for the future. Our members are ready to partner with government to do just that - making smarter, more productive investment the new normal across the public sector.”