BCIS sets out its wish list for the Spring Statement 2025

With chancellor Rachel Reeves’ Spring Statement fast approaching, BCIS’ chief economist and CEO outline what they want to see the government prioritise to support construction and boost the UK economy.

Dr David Crosthwaite, BCIS Chief Economist

With construction output increasing by just 0.4% in 2024, it’s clear that the industry needs substantial support to increase this figure in the coming year.

However, since the start of 2025, business confidence has really taken a nosedive and, although there have been plenty of announcements from the government about getting Britain building again, there’s been little evidence of this. In fact, the reverse seems to be true, with a decline in new orders, planning approvals, housing completions and a recent fall recorded in sentiment surveys all suggesting this year is going to be another difficult one for construction.

The government needs to introduce some certainty, ideally bringing forward the second part of the spending review and committing to a project pipeline. Labour has been in power for over eight months and we are really yet to see anything other than rhetoric. Their mantra has been that private investment would follow public investment, so we need to see some commitment to public investment in projects to encourage private sector investors to get their cheque books out.

There are no short-term answers for infrastructure projects, which by their nature tend to be delivered over the longer-term. But clarity would help to instil confidence. Take the Lower Thames Crossing; the project still hasn’t received the final go-ahead, as the latest statement from Reeves suggests private finance will be required to deliver the project. That’s going to take time and no investor will be willing to step forward until the project has received the final approval to proceed.

A similar situation exists with the expansion at Gatwick, where new environmental requirements have been added relating to noise mitigation and passengers using public transport. This means final approval has been deferred until later in the year, assuming that the investors are in a position to satisfy the requirements. Gatwick is ‘spade ready’ and could have already started but these additional hoops are likely to add further delays. The government needs to show decisive action by signing off projects, so the industry can start to deliver; otherwise, it will just continue to stagnate.

This would also send a positive signal to businesses that the government is serious about creating an environment that will make any investment in training and apprenticeships worth their while, both of which are desperately needed to address the ongoing skills shortage and futureproof our sector.

James Fiske, BCIS CEO and Chair of the Built Environment Carbon Database steering group

I really feel this is the year we need to see decisive action from the government if the UK built environment is to make significant progress in reducing whole life carbon emissions. Research indicates this just isn’t happening fast enough. According to the UKGBC Whole Life Carbon Roadmap Progress Report⁽¹⁾, released at the end of 2023, embodied carbon emissions fell by just 4% between 2018 and 2022 – less than one-quarter of the amount that was needed (and actually increased in 2021 and 2022).

Mandating whole life carbon assessments – through incorporating Part Z into existing building regulations – is the last piece of the puzzle. We now have an ever-increasing pool of verified carbon data to draw on – from the Built Environment Carbon Database (BECD) – as well as the methodology we need to help us report, measure and benchmark.

Consistent national regulations would help a growing number of developers, who are already addressing embodied carbon, and send a signal to investors the government is eager to get behind the development of low-carbon materials.

This could only boost the net zero economy in the UK, which appears to be generating jobs and expanding our economy. A recent report from the Confederation of British Industry (CBI)⁽²⁾, commissioned by the Energy & Climate Intelligence Unit (ECIU), highlighted the sector’s impact – in 2024, there were 22,800 net zero businesses, made up of mainly SMEs, that boosted the sector’s economic growth to £83.1 billion, once supply chain activities were factored in. Let this be the year we see economic growth and sustainable practices working in tandem, once and for all.

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^{(1) UKGBC Whole Life Carbon Roadmap Progress Report – here}

^{(2) Confederation of British Industry (CBI) The future is green: The economic opportunities brought by the UK’s net zero economy report – here}