Labour’s first budget in 14 years was met with a mixed response from the construction industry, with comments from Wates, Costain and other important industry bodies.
Here’s what they had to say…

Chancellor of the exchequer Rachel Reeves made a number of commitments in the Autumn Statement including £5 billion of investment to house building next year, £40 billion in tax rises and Extending HS2 to London Euston HS2.
While many in the industry were quick to welcome Labour’s budget, it has also been met with hesitation with some not yet convinced by Labour’s promises to rebuild Britain.
Dr David Crosthwaite, chief economist at BCIS, said: “Reeves announced £100 billion in capital spending over the next five-years with the mantra “invest, invest, invest” but I’m not convinced this is a budget for growth.
“There are conflicting announcements, and as it stands the investment outlined in the Budget is unlikely to make a material difference to the construction sector and “get Britain building again” – a stated aim of the Government.
“I was hoping for something a little more radical, but perhaps that will come in the Spending Review next spring.
“We really need the Government to invest in fixed capital programmes that will actually “get Britain building again” and drive wider economic growth. Four months in and this feels like a missed opportunity for the new Government.
“The Government did announce spending on construction projects, such as schools, social housing and transport to name a few.
“However, it still remains unclear how the Government intends to meet its self-imposed target of building 1.5 million homes over the life of the Parliament, without tackling the existing skills shortage.
“The resurrection of the HS2 link from Old Oak Common to Euston is a positive move, but we need more commitment to other infrastructure projects in the pipeline with the Lower Thames Crossing project a prime example.”
Meanwhile Eoghan O’Lionaird, chief executive of Wates, welcomed the announcements made in the budget, outlining “positive steps to ensure our nation’s homes are fit for the future.”
He said: “The confirmation that £3.4 billion will be spent over the next three years through the Warm Homes Plan is welcome news.
“There is persistent demand for high quality, affordable housing, and consequently the additional £500 million for the Affordable Homes Programme will help build thousands of new homes for families and individuals who need them most.
“The proposed consultation on a five-year rent settlement for social housing is another positive step, providing clarity and stability for both developers and housing associations.
“Certainty on rents is vital for encouraging long-term investment in new social housing projects, allowing us to plan ahead with confidence and deliver at scale.
“In addition to these positive moves to address the UK’s housing crisis, we were also pleased to see the commitment to a 10-year infrastructure roadmap set out today, which we know will play a crucial role in unlocking Government projects for years to come.
“We were also encouraged by the Government’s significant £1.4bn boost in funding to rebuild schools across the country.”
Brian Berry, chief executive of the FMB, said: “The Budget was the first opportunity for the new Government to set out its long-term financial plans for the country.
“In challenging economic conditions, the chancellor of the exchequer delivered a mixed Budget with promising plans for the long-term future of the construction industry, but it is likely to present substantial challenges to firms managing their business finances.
“The Chancellor’s decision to significantly increase employers’ National Insurance contributions will create major headaches for firms looking to take on staff at a time when the building industry is in desperate need of new workers.
“However, it is good that the Chancellor has shielded small companies by increasing Employment Allowance, as is the rise in the Apprenticeship wage which will help increase the appeal of a career in construction for young people.
“Capital Gains increases may also hit builders looking to sell off their companies when they look to retire.
“The FMB has been calling for more details of the Government’s plans to improve the energy efficiency of the UK’s homes, a key pledge in Labour’s election manifesto.
“The announcement of £3.2bn to fund the Warm Homes Plan will be crucial to getting more SME building companies to enter the retrofit market.
“The announcement of additional support for SME house builders to access low-cost loans is also welcome, and alongside the announcements on housebuilding made in recent months, offers hope for the future.”
Alex Vaughan, CEO at Costain, said: “This is positive news that gives certainty and clarity for the UK’s largest and most complex infrastructure programme.
“Having the HS2 railway connected to Euston, in the heart of London, will be vital for the programme to deliver its many benefits, and will act as a catalyst for the regeneration of the Euston area.
“Shaping, creating and delivering complex, transformative infrastructure demands effective planning, clear decision-making, and collaboration between the industry, government and regulators.
“The UK needs to reset its relationship with infrastructure by committing to a ten or 20-year plan overseen by a dedicated Minister for Infrastructure.
“This will enable essential infrastructure to be delivered more productively, whilst providing consistency and continuity of demand for investors and the supply chain.”
Director of operations for the Civil Engineering Contractors Association (CECA) Marie-Claude Hemming said: “The infrastructure sector in the UK is primed to deliver on the Government’s ambitions to drive growth in the economy.
“While undoubtedly this Budget contains tough measures that are aimed at ameliorating the UK’s constrained economic position, the Chancellor’s decision to alter her fiscal rules to allow investment in infrastructure is one that CECA has called for in recent weeks.
“It is right that the Government maintains a strong commitment to controlling day-to-day spending while creating headroom to allow for investment in a long-term infrastructure programme to secure the economic and social wellbeing of UK plc.
“We are particularly pleased to see the Chancellor make a commitment to rail upgrades such as the Transpennine upgrade, putting funding in place to link HS2 to Euston, and increased funding for local roads maintenance.
“Plans to roll out carbon capture and storage schemes and new green hydrogen projects will act as a basis for allowing Great British Energy to fulfill its role in transforming Britain into a clean energy superpower.
“This renewed focus on delivering growth and streamlining planning will allow projects to move more quickly to market, allowing our members to serve businesses and communities in all parts of the country by delivering the world-class infrastructure we all rely upon.
“The success of the Government’s plans will rely upon unlocking all potential sources of infrastructure finance and working closely with industry to ensure the skills are in place to deliver the planned pipeline of schemes.”
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