The Chancellor of the Exchequer Rachel Reeves, announced her Spring Statement, with positive news regarding plans to grow the construction workforce.
Figures from the Office of Budgetary Responsibility (OBR) which show the invaluable role builders will have to play in growing the UK economy, but it's all down to delivery with housing numbers still low and construction workforce numbers in short supply, according to the Federation of Master Builders (FMB).
Brian Berry, Chief Executive of the FMB commented: “Rachel Reeves has tasked builders with delivering economic growth according to today's Spring Statement. This week’s injection of funding to train 60,000 new construction workers is welcome, but the Construction Industry Training Board (CITB) estimate we will need 250,000 more construction workers by 2028 to even get close to the Government's targets.
“The numbers of workers don't go far enough and the announcement of 1.3 million new homes by the end of this Parliament, seems to be a clear indication the original target was a step too far.
“The Chancellor pointed to OBR figures showing that house building stands to add 0.2% to the UK economy by 2029-30, worth an additional £6.8 billion, with that rising 0.4% by 2035 worth £15.1 billion to the UK economy. Builders have an essential role to play in kickstarting the UK economy, and today’s figures demonstrate the immense potential of the industry.
“Now, more than ever, we need to see the Government support the nation's SME house builders, so that homes can be delivered by a healthy market, and not just a few companies at the top of the tree."
But Karl Horton, chief data officer at BCIS, said much remained to be done: "There wasn’t much in the Chancellor’s statement for the construction industry to rely on over the coming months, especially with the OBR halving its 2025 growth forecast since the Autumn Budget.
"It’s interesting that the government is now talking about getting ‘within touching distance’ of its housing target after months of the industry outlining why it was so unlikely 1.5 million new homes was possible, though the £2 billion additional investment in social and affordable homes is welcome.
"Elsewhere, the already-announced £625 million investment to train up to 60,000 skilled construction workers over the next four years is still insufficient to replenish the workforce lost since before the pandemic.
"While making the industry more attractive to new workers isn’t solely the government’s responsibility, firms have little incentive to expand their workforce and invest in training while economic uncertainty persists.
“Unfortunately, investment and funding decisions are subject to ongoing volatility, with the threat of tariffs and escalating trade tensions hanging over the UK.”
The Structural Timber Association (STA) welcomes the Chancellor’s transformative budget statement with regards to housebuilding, acknowledging it as a key moment for continuing the momentum in getting Britain building again – to ensure the Government reaches its target of 1.5 million homes in the next five years.
“This is a significant investment and sends a clear signal of the commitment to addressing the challenges of the national housing shortage,” comments Andrew Orriss, CEO at STA.
“What we need to be mindful of is the delivery of this housebuilding and the scale needed. This is where offsite manufacture and low carbon structural timber has an essential role to play in helping the Government deliver its target of 1.5 million homes in the next five years. Indeed, there is existing capacity in the established structural timber manufacturing industry which must be utilised,” comments Andrew Orriss, CEO at STA.
“The advantages of timber construction are clear, from viability in a commercial sense to the sustainability benefits that are so crucial to the industry. The key to this success hinges on a comprehensive approach to delivery through competency, skills and informed decision making on designs and planning.
“There can be no doubt that increasing the use of structural timber and offsite manufacturing is one of the most effective ways of ensuring the rapid and high-quality delivery of these vitally needed homes, while also meeting urgent decarbonisation obligations.”
Tim Balcon, CEO at the Construction Industry Training Board (CITB), responding to the Spring Statement 2025: “Despite navigating an uncertain world, the Chancellor’s Spring Statement this week has been accompanied by two significant announcements for the construction industry. Firstly, the £600 million package for construction skills to catalyse the Government’s homebuilding target. Second, the £2 billion investment into affordable homes to accelerate delivery
“As part of the construction skills package, CITB is providing £32 million to support the Government’s aim to fund over 40,000 industry placements each year. Additionally, we’ll be doubling the size of our New Entrant Support Team that helps make finding, recruiting and retaining an apprentice or new entrant easier for employers.
“The Government’s continued support for the construction industry through increased investment in construction skills is extremely welcome. As an industry, we need to collectively grasp this opportunity and be better at shouting about what a fantastic industry this is, the prospects it can offer people, and attracting people into pursuing a career in construction. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.
“The Government aims to build 1.5 million new homes and approve 150 major infrastructure projects by the end of the decade – indeed, plans for Lower Thames Crossing were approved earlier this week. The opportunities aren’t just on the horizon, they’re in the here and now.”
