Skanska UK CEO, Katy Dowding, has responded to chancellor Rachel Reeves’ Spring Statement, asking for clarity on the government’s long-term plans for infrastructure.
“The Spring Statement underlines the government’s ambition for growth,” said Dowding.
“Increased capital spending as well as investment in skills is good news for the construction industry.
“Building and renewing infrastructure is a catalyst for economic growth, providing good jobs and accelerating skills development.”
She added: “However, we do need the clarity of the 10-year Infrastructure Plan to enable businesses to make long-term investment and growth decisions.
“With effective planning reforms, long-term commitment and the right level of investment, we can revolutionise the way this country plans, delivers and benefits from major infrastructure projects.”
The Office for Budget Responsibility (OBR) has said the government’s reforms to the planning system could increase house building by 170,000 over five years, to 305,000.
However, the changes may only increase overall housing supply by 0.5 per cent by the end of 2030, falling short of the 1.5 million it promised, reported Sky News.
‘Govt will fail to meet its target’
Construction Products Association economics director, Noble Francis, published this response to the OBR’s findings, online: “The Office for Budget Responsibility, which produces the independent economic forecasts that go alongside the chancellor’s Spring Statement, now forecasts that house building in the UK over the five-year parliament will be 1.3 million net additional dwellings (and it requires strong growth), which would be around 1.0 million net additional dwellings for England.
“The government’s target is 1.5 million net additional dwellings in England (as housing and house building policy in Scotland, Wales and Northern Ireland is devolved), so the government will fail to meet its target by around 50 per cent.
“Just note that our forecasts last year, when the government came in, were already saying that government would do well to get to 1.1 million, given all the issues affecting major house builders, SMEs, housing associations and local authorities.”
While the OBR halved UK growth for 2025 to 1 per cent, it expects 1.9 per cent output growth next year.
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