BCIS responds to Spring Statement

The Chancellor of the Exchequer has presented the Spring Statement⁽¹⁾ to Parliament, outlining the government’s updated economic plan.

Following the general election last summer, Rachel Reeves suggested she would only hold one fiscal event per year, but she has been under pressure since the beginning of the year to demonstrate that she is adhering to her self-imposed fiscal rules and maintaining credibility with the markets.

With key funding details still to be confirmed in the second phase of the government’s Spending Review in June, and announcements already made earlier in the week about additional funding for social housing and boosting the number of skilled construction workers, the statement offered scant new detail for the construction sector.

Responding to the statement, Karl Horton, Chief Data Officer at BCIS, said: ‘There wasn’t much for the construction industry to rely on over the coming months, especially with the OBR (Office for Budget Responsibility) halving its 2025 growth forecast since the Autumn Budget⁽²⁾.

‘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 1.5 million new homes was possible, though the £2 billion additional investment in social and affordable homes is welcome.

‘Elsewhere, the already-announced £625 million 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.’

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^{(1) HM Treasury – Spring Statement 2025 here}

^{(2) Office for Budget Responsibility – Economic and fiscal outlook – March 2025 here}