When Chancellor Rachel Reeves delivered her Spring Statement last month, the construction sector, arguably one of the UK’s most economically critical industries, held its breath.
On paper the announcement reads like a long-awaited breakthrough. With bold housebuilding targets, sweeping planning reforms, and a significant injection into skills and affordable housing. As we all know, promises are one thing, delivery is another.
At Cooper Parry, we’ve been looking at the Chancellor’s pledges, decoding the real implications for the construction world. Paired with our recent analysis of the property industry’s reaction to the Spring Statement, it’s clear that while momentum is building, the road ahead demands clarity, consistency, and collaboration.
RECORD-BREAKING HOUSING TARGETS: PROMISE OR PIPE DREAM?
The Office for Budget Responsibility (OBR) now forecasts 305,000 new homes per year by 2029. That’s potentially 1.3 million homes over five years. Tantalisingly close to the government’s much-trumpeted 1.5 million homes target.
On the surface, this projection signals intent. But we all know it’s ambitious. The UK hasn’t consistently built at this level since the 1970s. To hit these figures, the entire ecosystem, from developers to local authorities to materials suppliers must work together.
And with labour shortages, material costs still inflated, and patchy planning frameworks, many are asking: can we really build Britain back up at this scale?
PLANNING SYSTEM OVERHAUL: A LONG-NEEDED RESET
The government’s new planning reforms aim to fast-track approvals, empower professional officers over councillors, and prioritise underutilised land for development. It’s a pragmatic move to remove the bottlenecks that have long plagued the sector.
And the OBR’s projection of a 0.4% permanent GDP boost by 2035 shows they believe in the economic payoff. But this change is as much cultural as it is procedural. Local politics, community pushback, and inconsistent local plan adoption are still slowing progress. Until planning decisions are aligned nationally and delivered locally without resistance, friction will remain.
£2 BILLION FOR AFFORDABLE HOUSING: A WELCOME BUT PARTIAL SOLUTION
Perhaps the most celebrated announcement was the £2 billion boost to the Affordable Homes Programme, promising 18,000 new social homes. This is a powerful lifeline, especially for housing associations and local authorities struggling with stretched budgets and increasing demand.
The Royal Institution of Chartered Surveyors (RICS) called it a “significant boost”, and rightly so. But given the UK’s growing social housing waiting lists, the reality is that this funding will only scratch the surface. We’ll need continued funding cycles and, more importantly, fewer bureaucratic delays to get these homes on the ground swiftly. There’s also the practical point that many housing associations and providers of affordable housing already have their ‘fill’ of housing stock in the light of financial constraints, and that there is a fear that the demand side of the equation may not be as strong as the government may like.
TACKLING THE CONSTRUCTION SKILLS GAP
The headlines are: a £600 million training package, including:
- 35,000 skills bootcamp places
- 10,000 Foundation Apprenticeships
- A promise to train 60,000 new construction workers
Tim Balcon, CEO of the Construction Industry Training Board (CITB), is backing this move with an additional £32 million commitment. He’s doubling down on recruiting fresh talent and supporting new entrants.
This is huge. The construction sector is currently wrestling with a chronic skills shortage, exacerbated by an ageing workforce and fewer young people entering the industry. But if we don’t make construction a viable, attractive, and modern career path, this investment risks falling short. Training alone isn’t enough; we need to change perceptions.
INFRASTRUCTURE FUNDING: GROWTH GAINS OR CUTS IN DISGUISE?
The £13 billion increase in capital spending sounds impressive. But buried in the fine print is a 5% reduction to the National Highways budget, down to £4.8 billion. This mixed message has raised concerns about road maintenance, economic productivity, and regional connectivity.
The government is betting on targeted investment, not blanket infrastructure funding. But the sector needs certainty, not cuts, especially in the face of increased wear and tear from an economy that’s supposed to be growing. The Spring Statement highlighted an emergency increase in capital spending for the defence sector of £2.2bn for 2025-26, with other significant capital increases for the Health and Justice departments. The Education budget benefits from a more modest increase. It’s worth noting that the forecast expenditure increases are very much front-end loaded with higher levels of expenditure in 2024-25 and 2025-26, before levelling off from 2027 onwards.
This ties directly into the construction sector’s lifeblood, infrastructure projects which keep firms afloat between major developments. A reduced highways budget could dampen order books across the UK.
ECONOMIC PROJECTIONS: GROWTH DAMPENED, BUT HOPE REMAINS
We can’t talk construction without mentioning the macroeconomic picture. The OBR now predicts 1% GDP growth in 2025, down from 2%. Inflation is expected to hover at 3.2% in 2025, falling to 2.1% in 2026, and finally hitting the Bank of England’s 2% target in 2027.
In short, the economic climate is steady, but fragile. Investment appetite is returning, but developers remain cautious. Rising interest rates, tight lending conditions, and uncertainty around build costs are still casting long shadows over the sector and will consumer demand for housing if confidence dips.
A SHARED REALITY: LINKING PROPERTY & CONSTRUCTION
In Sam Berry’s recent property insight, “Will Britain Get Building Again?”, he echoed many of the same sentiments I have. While policy frameworks and capital injections send the right signals, execution remains the elephant in the room.
Construction firms, like property developers, need streamlined pathways, investment certainty, and skilled workers on-site, not just white papers and political pledges. These two sectors are intrinsically linked. Neither can move without the other, and both need sustained political will, not just pre-election optimism.
BOLD WORDS, BUT DELIVERY IS EVERYTHING
Let’s be honest: the Chancellor’s Spring Statement 2025 is ambitious. It sets the right tone and addresses critical pinch points in housing, skills, and infrastructure. But bold targets are only credible if they’re backed by clear delivery mechanisms.
At Cooper Parry, we’re optimistic. The policy signals are welcome. The funding is meaningful.
The industry must now hold the government to account. Because if Britain really is going to “Get Building Again”, it’ll take more than statements. It’ll take sustained delivery, deep collaboration, and a relentless focus on building capacity in the sector and getting shovels in the ground.
