As with all Fiscal Events, the impact will depend upon two key elements: substance and sentiment.

Much has been written already about the political and economic backdrop to this week’s Spring Statement. The Government has been at pains to straddle the divide between those who say they have not gone far enough and those for whom these measures, especially on welfare, are several steps too far.

The Chancellor is mindful too that her Autumn Budget landed poorly and more has been done this time around to “roll the pitch” as to the global events rocking economies and the necessity for tough action and hard decisions.

Domestically, the headlines the morning after would not be as she would have hoped for. Across the spectrum of the print media’s political leanings, criticism was evident.

We also woke up on Thursday morning to news from the White House that a 25% global tariff on cars was to be imposed next week, which, unless the UK can work an exemption, could put the small fiscal headroom she created at risk. Eyes and ears are already turning to the actual budget in the spring with the fear that more cuts or tax rises are on the cards if the forecasts fall foul of global or domestic turmoil. 

However, it is clear that the UK Government has decided to embark on a strategy of playing a longer game – short term pain for, they hope, long term gain. 

And so to the housing sector. Here is the substance;

  • Affordable Housing Investment: £2 billion will be invested in the construction of 18,000 affordable and social homes, described as a ‘downpayment’ on the next iteration of the Affordable Homes Programme.
  • Capital Infrastructure: The Government will support growth by investing £13 billion more in capital infrastructure over the next five years.
  • Strategic Road Network: The Government has committed £4.8 billion to the Strategic Road Network in 2025/26, including £1.3 billion for road renewals and £1.6 billion for local road maintenance.
  • Construction Training Investment: £625 million will be invested over four years to enhance construction training in England, including £100 million for 35,000 construction bootcamp places, £40 million for 10,000 new Foundation Apprenticeship places, and £165 million to expand construction course offerings. A new Teacher Industry Exchange scheme will also be introduced to attract industry experts to teach in Further Education.
  • Technical Excellence Colleges: £100 million will be allocated to establish 10 new Technical Excellence Colleges in construction. Additionally, the CITB will double its New Entrants Support Team and invest £32 million to support 40,000 industry placements annually.
  • Employer-Led Training: An £80 million capital fund will be launched to help employers deliver tailored training. The Government is also committed to removing barriers and unlocking investment in training to support long-term economic growth.
  • Military Family Homes: Efforts will be made to secure better homes for thousands of military families in various regions, including Plymouth and Aldershot.
    In addition to the fiscal and planning reforms, the Government’s approach to housing and infrastructure is expected to yield significant benefits:
  • 1.3 million new homes being built over the next five years. Notably, this figure is lower than the Government’s election commitment of 1.5 million new homes over the course of this Parliament.
  • 305,000 homes per year by the end of the forecast period – which would be the highest level of housebuilding in 40 years.

Reeves said the announced planning reforms to reintroduce mandatory housing targets and bringing green belt land into building scope have been confirmed by the OBR to “permanently increase the level of real GDP by 0.2%”, an additional £15.1bn As she said: “That is the biggest positive growth impact that the OBR have ever reflected in their forecast for a policy with no fiscal cost.”

So the questions for our industry are these: Does this bring a boost to the sector, will it bring a period of predictability and stability and what will buyer sentiment be?

Your thoughts would be welcome.

Ramsay Jones