Chancellor Rachel Reeves’ 2025 Spending Review, published on June 12, lays the foundation for a bold “securonomics” strategy—prioritising long-term investment in public infrastructure, housing, skills, and green energy. The construction industry stands to benefit significantly from several key initiatives:

1. Major Boost to Housing Infrastructure

A flagship commitment is £39 billion for social and affordable housing over the next decade, aiming to deliver 1.5 million new homes. By ramping up the construction pipeline, this funding directly supports housebuilders and civil engineering firms, spurring demand for contractors, sub‑contractors, materials, and specialist skills.

2. Construction Workforce Expansion

Recognizing chronic skills shortages, the government has allocated £625 million, expected to train up to 60,000 new construction workers during this Parliament. This includes £100 million for approximately 35,000 bootcamp places, £40 million for apprenticeships, and £165 million for technical courses. The Construction Industry Training Board (CITB) is scaling support, leveraging a £32 million top‑up to foster on‑the‑job placements.
Tim Balcon of CITB described this as a “once‑in‑a‑generation opportunity” to attract and train new talent. Industry voices welcomed the focus, noting that some 35,000 vacancies remain unfilled due to persistent skills gaps.

3. Capital Investment in Infrastructure

Beyond housing, the review adds £113 billion in capital spending, including transport, energy, defence, and part of the Sizewell C nuclear project (£14.2 billion allocated).
Transport boosts include £15 billion for public and regional rail, notably Transpennine, East‑West Rail, Midlands hubs, and Welsh lines. Civil engineering contractors welcomed this uplift but stressed it’s essential to speed up project delivery, pointing out that the real-world impact depends on unlocking planning, procurement, and supply‑chain bottlenecks.

4. Planning Reform to Fuel Growth

The government emphasises planning reform to facilitate faster housebuilding. The Office for Budget Responsibility forecasts that planning changes could boost GDP by 0.2% by 2029–30 and increase housebuilding to the highest levels in 40 years—about 170,000 extra homes.
Combined with training support, this could dramatically increase construction capacity—if reforms translate into expedited approvals and build‑out times.

5. Fiscal Tensions and Risks

Despite the investment push, the Institute for Fiscal Studies warns the government is “a gnat’s whisker” from needing new tax hikes if growth falters. Net debt is projected to reach around 83% of GDP in 2025–26. Public services funding grows modestly (2–2.3% per year), implying resource pressure elsewhere. These fiscal constraints mean the construction sector must deliver projects efficiently or risk budget cuts.

Final Thoughts
The Spending Review marks an ambitious turning point for construction, with significant investment in homes, infrastructure, skills, and energy projects. Ideal conditions are emerging to address long-standing capacity constraints. But success hinges on execution: streamlined planning, swift delivery, and labour supply ramp‑up. Concerns around debt and funding pressures also require realistic phasing and efficiency. If leveraged well, this could mark a generational opportunity for UK construction to modernise, decarbonise, and become more resilient.

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