Following the general election win, the Labour party pledged to ‘Get Britain Building Again.’ Rachel Reeves’ first budget in October 2024, marked a pivotal moment and offered several implications for the sector from infrastructural projects to new fiscal rules.
In aims to stimulate economic growth and modernise the UK’s infrastructure, the new Labour government committed over £100bn in public sector capital investment over the next five years. This, along with the £13bn earmarked for 2025, brings up the total departmental capital spending to £131bn and presents a wealth of opportunities for projects.
Furthermore, based on Office for Budget Responsibility (OBR) projections, industry experts anticipate this investment to unlock further private sector funding, potentially contributing to an influx of capital worth an additional 30p for every £1 of public spending. This would be a promising step for the industry, driving job creation, productivity and innovation in the sector.
Callum Thompson, CEO of Business Energy Claims, said: “The Autumn budget, with a focus on modernising the UK’s infrastructure, was a welcome move. The potential growth in private construction sector funding sounds promising. However, the Spring forecast set for March 2025 will provide a clearer picture on the growth of the sector, progress made.”