Leading construction commentators have welcomed the Chancellor’s renewed commitment to infrastructure investment, notably the £900m for the Lower Thames Crossing, regional rail upgrades and the Northern Powerhouse Rail initiative, as well as a commitment to £13bn in devolved funding for regional infrastructure and skills. Whilst large-scale projects carry inherent delivery, overrun and cost-escalation risks, the industry hopes to see these funds deployed effectively and efficiently so that these investments sustain workloads in the sector.

In energy, the Budget aims to support net-zero and energy security goals, with backing for nuclear projects like Sizewell C and the UK’s first Small Modular Reactors with Rolls-Royce, alongside ongoing support for renewables and grid upgrades. The Warm Homes Plan and measures to reduce industrial electricity costs further benefit the sector. The government also confirmed its endorsement of the principles in the John Fingleton report to streamline the regulatory process for new nuclear construction.

Planning reforms and funding
Overhaul of the planning system has been a long-standing focus of this government, and this budget allocates £48m of new funding for local planning authorities to enable them to recruit 350 extra planners. This aims to tackle recruitment and retention issues by extending the Pathways to Planning Graduate Scheme and creating a new planning careers hub. The government also says it is working with judges to reform the way that planning cases are dealt with and the speed with which they are heard. It is hoped that this will help accelerate approvals for housing and commercial projects, with the OBR projecting annual net additions to UK housing stock rising, largely due to reforms to the planning system.

Effective implementation and management of planning changes will be crucial to realising the Budget’s ambitions.