Today chancellor Rachel Reeves stood before the House of Commons to give her update alongside the OBR’s forecast
The 2026 Spring Statement was mostly monotonous for the construction industry, with a majority of the statements focusing on what has already been done.
There were some vague promises for the future, but very little of anything concrete for both construction businesses and those that they employ.
The OBR downgraded their forecast alongside the statement
Forecast growth for the UK is now at 1.6% for 2026, a slight downgrade, but that didn’t deter the chancellor from pressing on about her plan and its results so far.
The lack of solid promises for the future has done little to put industry experts at ease, with many questions still being asked and few answers being given. Very little information was given that wasn’t mentioned in the Autumn Budget back in November.
Below are some industry reactions:
Elle Cass – head of strategic built environment growth at SLR Consulting, and chair of the Royal Town Planning Institute (RTPI)
“Housing delivery needs strategic action, and a National Programme.
“The Spring Forecast highlights the ongoing challenges facing housing delivery across the UK. While figures for London often dominate headlines, the reality is far broader: persistent undersupply across multiple regions, combined with affordability pressures, skills shortages and funding constraints, is creating a perfect storm for stalled delivery.
“The new planning framework is being relatively well received and signals a welcome shift towards more strategic thinking. However, the forecast makes clear that planning reform alone will not close the gap. To meet national housing needs – particularly for affordable homes – what is now required is a clear commitment to a modern national housebuilding programme. The last time housing delivery increased at the scale the country needed was through nationally coordinated intervention, and today’s structural challenges demand that same level of ambition.
“Affordable housing remains one of the most significant pinch points. Registered providers and private developers are operating under intense financial and regulatory pressure, making it increasingly difficult to deliver affordable homes alongside market housing. At the same time, a widening skills gap continues to limit capacity, underlining the need for sustained investment in training and in attracting new talent into the sector.
“The Spring Forecast also points to an important shift in planning policy towards strategic alignment across wider geographies, rather than leaving housing numbers to be contested authority by authority. This is a positive step. Strategic frameworks can remove long-standing local stalemates and allow local planning authorities to focus on delivery – but they must sit within a properly funded, nationally led housebuilding programme if they are to translate into real homes on the ground.
“Finally, housing supply and affordability must move forward together. Measures such as early release of Section 106 homes or the renegotiation of stalled schemes can help maintain momentum in the short term, but they are only part of the solution. Alongside increasing delivery, there also needs to be a stronger focus on access to home ownership, including enhanced mortgage liquidity and more diversified and innovative mortgage products. For many households currently locked out of the market – particularly those paying private rents that far exceed the cost of a typical mortgage – improved access to finance could play an important role in easing pressure across the wider housing system.
“The Spring Forecast is a clear reminder that incremental change will not be enough. A coordinated national housebuilding programme – bringing together planning, funding, skills, delivery and housing finance – is now essential to achieve meaningful progress and build long-term resilience into the housing system.”
Clive Holland – broadcaster at Fix Radio
“The updated OBR forecasts published alongside today’s Spring Statement show slower growth this year and unemployment rising before easing later in the forecast period. That is a cautious economic backdrop for a Government targeting 1.5 million new homes.
“But while the wider labour market softens, construction is facing the opposite problem. On building sites across the country, firms still cannot recruit the skilled tradespeople they need. That structural mismatch remains unresolved.
“There were no targeted construction workforce measures announced alongside the forecasts. Apprenticeship reforms and SME funding commitments are welcome, but they will take time to translate into real capacity. In the short term, apprenticeship starts and completions remain below the level required to close the workforce gap.
“Construction SMEs train around two thirds of apprentices, with micro businesses responsible for nearly half. If those firms continue to face rising costs, planning delays and tight margins without direct support, the skills pipeline will stay constrained.
“As our audience insight shows, many trades are already operating at capacity, with firms routinely turning work away because they cannot secure labour or subcontractors. This is not hesitation – it is saturation.
“If housing delivery is to match the ambition set out by Government, workforce expansion, SME viability and planning capacity must accelerate now. Otherwise 1.5 million homes risks remaining a target rather than becoming a delivery plan.”
John Wilkinson – COO at BAM UK & Ireland
“The construction industry was expecting much more from the Chancellor’s Spring Statement including an update on Britain’s planning system. Britain is currently at a crossroads in how it builds, and with the urgent need to start building better, clarity on the reforms to the planning system are essential.
“The Autumn Budget last year injected a sense of optimism into the construction industry, sparking many conversations around how the current planning system is fragmented and how these new improvements are welcomed. The introduction of the Planning and Infrastructure Bill in December last year was also momentous, however we are yet to see the full benefits this has to offer.
“We know infrastructure delivers significant economic returns of £3 for every £1 invested. For any government serious about growth, the case is unambiguous. Yet when it comes to delivering significantly important projects that benefit the UK, these projects can be held off for years due to red tape and disputes, even when the net effect is positive for Britain as a whole.”
“Today’s Spring Statement, delivered by the Chancellor, does very little to inject confidence for business owners. The National Insurance contribution increase unveiled last year has added even more pressure and higher costs when hiring new staff.
“These measures have certainly impacted the latest unemployment figures, which reached 5.2% in late 2025. For 25–34-year-olds, the unemployment rate is the highest since 2017. This could have a detrimental effect on young people and add further challenges to the ongoing construction skills shortage.
“The construction sector contributes £140bn to the UK economy and employs millions of people. Long-term commitment to nationally significant infrastructure and fewer planning delays is critical to giving our industry the confidence it needs to hire, invest in skills, and expand apprenticeship programmes. We are urging the Government to cut unnecessary red tape in the planning system and to introduce incentives, not additional costs, for businesses to recruit and invest in their workforce. Our sector offers excellent opportunities for young people and plays a vital role in building the UK’s future.”
“Whilst today’s Spring Statement delivered by the Chancellor has reaffirmed the importance of growth, greater clarity is needed on how the Government will support skills development to match the scale of infrastructure and energy projects planned across the UK.
“The construction industry will play a central role in delivering the UK’s net zero ambitions, but this transition will only be possible if we have the skilled workforce required to deliver it.
“Over the next decade, projections suggest the UK will need nearly one million additional construction workers by 2032 to keep pace with housing and infrastructure investment. We urge the government to introduce further measures that support skills development and workforce growth, ensuring the industry is equipped to deliver the sustainable infrastructure needed to meet the UK’s net zero targets while driving long-term economic growth.”
Brian Berry – chief executive of the Federation of Master Builders
“Today’s Spring Statement was a missed opportunity to deliver the decisive action the construction industry urgently needs. While the Chancellor focused on reiterating previous announcements, small builders were left waiting for the practical measures that would unlock growth, boost housebuilding, and drive progress on retrofitting the UK’s homes. The Chancellor’s recognition that more needs to be done to get young people into apprenticeships and employment was welcome but the industry has heard similar promises before. Without clear policy detail, commitment to funding, and a long term plan to support SMEs, warm words do not translate into real jobs or skills.
“This Spring Statement could have set out concrete steps to support small and medium-sized builders to deliver the homes the country desperately needs, accelerate energy efficient retrofitting, and introduce a robust licensing system to raise standards across the industry. Instead, it was another chance for real progress that has been allowed to pass by. If the Government is serious about economic growth, improved productivity, and meeting its housing and climate ambitions, it must move quickly from rhetoric to action and put small builders at the heart of its plans.”
Johnathan Dudley – Head of manufacturing and corporate SMEs at Crowe
“The downgrade in growth forecasts and rising unemployment is worrying. Lower growth means lower tax revenues, and without tighter spending control, something will eventually have to give. At the Make UK conference, there was strong emphasis on the economic boost that increased defence spending could deliver, but industry remains concerned about delays and a lack of visibility. With Treasury constraints still holding departments back, the question now is whether weaker growth could further delay the defence investment the sector has been promised.”
Amman Boughan, deputy chief executive officer at Pagabo Group:
“In the chancellor’s Spring Statement, stability was named the single most important pre-condition for economic growth, but this isn’t the current reality for the public and private sectors – with the OBR now forecasting slower growth and further unemployment this year. We called for stability and investment efficiency ahead of the Autumn Budget last November, but our call to action has been met with inaction, and the slow speed of decision-making continues to dampen growth potential. Very recent construction sector data shows that that planning approvals, main contract awards and project starts are all down compared with the preceding three months and the previous year.
“Instability and uncertainty are market conditions that we’ve been experiencing for a long time, but unsavory political stories and disruption have only pulled focus elsewhere and made the start to 2026 somewhat turbulent. Sir Chris Wormald being replaced as the cabinet secretary after only 14 months – the shortest serving cabinet secretary in history – perfectly highlights the lack of stability that continues to damage national confidence in the government’s policies. And that’s just one example.
“While there is great intention to invest, there is an ominous question as to whether government ambition marries up with current market capacity and ability to deliver. For example, our own research into the housing sector recently revealed overwhelming skepticism in meeting the current housing targets. However, I’ve said it before and I continue to believe that the long-term challenge is not the level of investment or market capacity; it is how effectively that investment is deployed.
“Procurement can make a significant difference. Instead of taking a short-term view on things and prioritising price, there needs to be greater focus on delivering great outcomes, underpinned by speed and quality. After all, buying cheap very rarely means delivering cheap once the heightened whole-life cost is taken into consideration – and as the old adage goes, buying cheap can also mean buying twice.
“Private enterprise backed by public ambition must become the norm, supported by the right procurement routes to ensure effective spend. The public and private sectors should prioritse effective partnerships and sharing risk, which will ensure a financial return on investment, impactful outcomes and meaningful social legacy.”
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