Spring Statement 2025 with reactions from industry - Revision history

Editor at 07:35, 28 March 2025

2025-03-28T07:35:23Z

← Older revision		Revision as of 07:35, 28 March 2025
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	This investment must now be paired with strategic reform: better industry involvement in training design, smarter use of the Growth and Skills Levy, and firm guarantees that these reforms will deliver for electrical and other construction trades – not just in volume, but in quality. The Electrical Contractors’ Association stands ready to support the Government with this next phase of this work.”		This investment must now be paired with strategic reform: better industry involvement in training design, smarter use of the Growth and Skills Levy, and firm guarantees that these reforms will deliver for electrical and other construction trades – not just in volume, but in quality. The Electrical Contractors’ Association stands ready to support the Government with this next phase of this work.”

−	= Spring Statement shows green shoots of progress for the built environment, says CIAT =	+	== Spring Statement shows green shoots of progress for the built environment, says CIAT ==

	Responding to the statement, [https://architecturaltechnology.com/resource/spring-statement-shows-green-shoots-of-progress-for-the-built-environment-says-ciat.html Eddie Weir PCIAT, President, said on 26 Marc]h:		Responding to the statement, [https://architecturaltechnology.com/resource/spring-statement-shows-green-shoots-of-progress-for-the-built-environment-says-ciat.html Eddie Weir PCIAT, President, said on 26 Marc]h:

Editor at 07:17, 28 March 2025

2025-03-28T07:17:55Z

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	This investment must now be paired with strategic reform: better industry involvement in training design, smarter use of the Growth and Skills Levy, and firm guarantees that these reforms will deliver for electrical and other construction trades – not just in volume, but in quality. The Electrical Contractors’ Association stands ready to support the Government with this next phase of this work.”		This investment must now be paired with strategic reform: better industry involvement in training design, smarter use of the Growth and Skills Levy, and firm guarantees that these reforms will deliver for electrical and other construction trades – not just in volume, but in quality. The Electrical Contractors’ Association stands ready to support the Government with this next phase of this work.”
		+
		+	= Spring Statement shows green shoots of progress for the built environment, says CIAT =
		+
		+	Responding to the statement, [https://architecturaltechnology.com/resource/spring-statement-shows-green-shoots-of-progress-for-the-built-environment-says-ciat.html Eddie Weir PCIAT, President, said on 26 Marc]h:
		+
		+	"Today’s Spring Statement shows just how crucial modernising the built environment is to the UK economy, with the OBR forecasting that the changes to the National Planning Policy Framework (NPPF) already implemented will deliver an additional 170,000 homes by 2029, boosting GDP by 0.2% over the same period.
		+
		+	CIAT also welcomes the confirmation of £2 billion for the affordable homes programme in 2026-27 and £625 million over four years to expand and upskill the construction workforce. These green shoots of progress are welcome, but much more will be needed to deliver 1.5 million homes by 2029, and to upgrade a further five million years through the warm homes plan.
		+
		+	Chartered Architectural Technologists will be looking to the upcoming Spending Review to provide the additional investment required to tackle the housing crisis and deliver the high-quality, sustainable homes people need."

	== The British Safety Council responds to Spring Statement 2025 ==		== The British Safety Council responds to Spring Statement 2025 ==

Designing Buildings at 06:58, 28 March 2025

2025-03-28T06:58:01Z

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	== Business rates ==		== Business rates ==

−	At the ~~Budget~~ last autumn, the government set out a commitment to reforming the business rates system to support the ~~High Street~~ and boost investment. The published paper on priority areas for reform will be followed by an interim report setting out a clear direction of travel for the business rates system.	+	In the budget last autumn, the government set out a commitment to reforming the business rates system to support the high street and boost investment. The published paper on priority areas for reform will be followed by an interim report setting out a clear direction of travel for the business rates system.

	== Public spending ==		== Public spending ==

−	The OBR forecasts the economy to grow by 1.0 per cent in 2025, slower than expected in October. Growth is forecast to accelerate to 1.9 per cent in 2026. Resource departmental expenditure limits or day-to-day spending will grow at 1.2 per cent in real terms per year from 2025-26 to 2029-30. Government departments will reduce administrative budgets by 15 per cent by the end of the decade, expected to save £2.2 billion ~~per~~ year by the end of this period. The government will set out its plans for spending and key public sector reforms at the Spending Review on 11 June 2025.	+	The OBR forecasts the economy will grow by 1.0 per cent in 2025, slower than expected in October. Growth is forecast to accelerate to 1.9 per cent in 2026. Resource departmental expenditure limits or day-to-day spending will grow at 1.2 per cent in real terms per year from 2025-26 to 2029-30. Government departments will reduce administrative budgets by 15 per cent by the end of the decade, expected to save £2.2 billion a year by the end of this period. The government will set out its plans for spending and key public sector reforms at the Spending Review on 11 June 2025.

	== Public service reform ==		== Public service reform ==

−	The creation of a £3.25 billion Transformation Fund to support reform of public services, opportunities of digital technology and AI, and transform frontline delivery to release savings for taxpayers over the long term. The first allocations from the Transformation Fund will invest in vital public services and accelerate the modernisation of the state.	+	The creation of a £3.25 billion Transformation Fund to support reform of public services, opportunities for digital technology and AI, and to transform frontline delivery to release savings for taxpayers over the long term. The first allocations from the Transformation Fund will invest in vital public services and accelerate the modernisation of the state.

−	Reform of the children’s social care system by providing an additional £25 million for the fostering system, to include the recruitment of a further 400 new fostering households, to provide stability and address local government cost pressures. £8 million for new technology to support probation officers in managing offenders to focus on reducing reoffending. £42 million for DSIT-led Frontier AI Exemplars, to test and deploy AI applications to make government operations more efficient and effective and improve outcomes for citizens by reducing unnecessary bureaucracy. £150 million for government employee exit schemes. This will support a leaner and more efficient civil service, helping to reduce administration costs by 15 per cent by the end of the decade.	+	Reform of the children’s social care system by providing an additional £25 million for the fostering system, to include the recruitment of a further 400 new fostering households, to provide stability and address local government cost pressures.
		+
		+	£8 million for new technology to support probation officers in managing offenders to focus on reducing reoffending. £42 million for DSIT-led Frontier AI Exemplars, to test and deploy AI applications to make government operations more efficient and effective and improve outcomes for citizens by reducing unnecessary bureaucracy.
		+
		+	£150 million for government employee exit schemes. This will support a leaner and more efficient civil service, helping to reduce administration costs by 15 per cent by the end of the decade.

	== Welfare ==		== Welfare ==
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	== Growth ==		== Growth ==

−	The government will publish ~~its~~ modern industrial strategy alongside the spending review, setting out the government and industry’s 10-year plan to meet our shared ambitions for unlocking investment and accelerating growth across the 8 growth-driving sectors. ~~(Page 27, paragraph 2.57)~~	+	The government will publish a modern industrial strategy alongside the spending review, setting out the government and industry’s 10-year plan to meet our shared ambitions for unlocking investment and accelerating growth across the 8 growth-driving sectors.

−	~~At the Spring Statement, the~~ government is increasing capital spending by a further £13 billion over the Parliament to support growth-enhancing investments, including infrastructure, housing, and defence innovation. This is in addition to the £100 billion increase in capital spending over the Parliament announced at the Budget last autumn. ~~(Page 27, paragraph 2.58)~~	+	The government is increasing capital spending by a further £13 billion over the Parliament to support growth-enhancing investments, including infrastructure, housing, and defence innovation. This is in addition to the £100 billion increase in capital spending over the Parliament announced at the Budget last autumn.

	== COVID-19 fraud recovery retention ==		== COVID-19 fraud recovery retention ==

−	The Chancellor announced that the government has accepted the Covid Counter Fraud Commissioner’s recommendation to improve incentives for departments and local authorities to recover fraud ~~from Covid schemes. Departments, arm’s-length bodies and local authorities are to agree with HM Treasury the retention of fraud recovered~~ from Covid schemes.	+	The Chancellor announced that the government has accepted the Covid Counter Fraud Commissioner’s recommendation to improve incentives for departments and local authorities to recover fraud from Covid schemes.

	= Industry responses =		= Industry responses =

Designing Buildings at 06:51, 28 March 2025

2025-03-28T06:51:54Z

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	= The statement =		= The statement =

−	The Spring Statement was published on 26 March, 2025, in which Rachel Reeves confirmed ~~the 600~~ million investment for 60,000 more skilled construction workers ~~announced earlier~~, outlining cuts to government spending, and significant changes to the welfare system ~~without raising taxes~~ amid a dramatic slowdown in growth. Prior delivering the statement the government spending watchdog rejected its forecasts for savings from welfare cuts, prompting the Office for Budget Responsibility (OBR) to cut its economic growth forecast for the year from 2 per cent to 1 per cent. ~~Here~~ is a brief outline of some of the keys points, starting from the context of the construction industry, with reactions from the industry.	+	The Spring Statement was published on 26 March, 2025, in which Rachel Reeves confirmed £600 million investment for 60,000 more skilled construction workers, as well as outlining cuts to government spending, and significant changes to the welfare system amid a dramatic slowdown in growth. Prior delivering the statement the government spending watchdog rejected its forecasts for savings from welfare cuts, prompting the Office for Budget Responsibility (OBR) to cut its economic growth forecast for the year from 2 per cent to 1 per cent.
		+
		+	Below is a brief outline of some of the keys points, starting from the context of the construction industry, with reactions from the industry.

	= Summary of key points =		= Summary of key points =
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	== Housing ==		== Housing ==

−	An additional £2 billion investment in social and affordable housing in 2026–27, as a down payment on housing ambitions~~, to bridge a new programme~~. ~~To follow~~ will be further announcements on wider long-term investment into social and affordable housing through the Spending Review~~, to give stability and confidence to social housing providers~~. This is intended to give providers greater certainty in the short term and confidence to continue investing in development ~~to deliver up to 18,000 new homes and help unlock development on sites such as Manchester and Liverpool~~.	+	An additional £2 billion investment in social and affordable housing in 2026–27, as a down payment on housing ambitions. There will be further announcements on wider long-term investment into social and affordable housing through the Spending Review. This is intended to give providers greater certainty in the short term and confidence to continue investing in development.

−	As previously announced in the Government Building Safety Levy technical consultation response, the budget confirms that the Building Safety Levy will be introduced from 1 October, 2026. "new residential developments in England (with certain exemptions) will incur the Building Safety Levy to raise revenue to be spent on building safety. The government has published a response to its technical consultation on this policy. Exemptions include affordable housing, and developments with fewer than ten units. Previously developed land also benefits from a 50% reduced rate to help ensure these sites remain viable."	+	As previously announced in the Government Building Safety Levy technical consultation response, the budget confirms that the Building Safety Levy will be introduced from 1 October, 2026: "new residential developments in England (with certain exemptions) will incur the Building Safety Levy to raise revenue to be spent on building safety. The government has published a response to its technical consultation on this policy. Exemptions include affordable housing, and developments with fewer than ten units. Previously developed land also benefits from a 50% reduced rate to help ensure these sites remain viable."

	== Employment and skills ==		== Employment and skills ==
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	Investment in additional employment, health and skills support from 2026–27, scaling up to £1 billion a year by 2029–30, helping people start or stay in work, and not fall into long-term economic inactivity. Providing support to anyone receiving out-of-work benefits with a work-limiting health condition to build on existing support from WorkWell.		Investment in additional employment, health and skills support from 2026–27, scaling up to £1 billion a year by 2029–30, helping people start or stay in work, and not fall into long-term economic inactivity. Providing support to anyone receiving out-of-work benefits with a work-limiting health condition to build on existing support from WorkWell.

−	A commitment of £625 million in England over four years to boost skills, ~~existing training routes, ensure~~ a sustainable flow of construction workers and ~~support~~ employers to invest in training. This is expected to deliver up to 60,000 additional skilled construction workers, a crucial part of delivering plans to build 1.5 million homes ~~and infrastructure~~ in England this ~~Parliament~~.	+	A commitment of £625 million in England over four years to boost skills, ensuring a sustainable flow of construction workers and supporting employers to invest in training. This is expected to deliver up to 60,000 additional skilled construction workers, a crucial part of delivering plans to build 1.5 million homes in England in this parliament.

−	An additional £100 million to support 35,000 construction-focused skills bootcamp places as a route for new entrants, returners, and upskilling existing employees. A further £40 million for up to 10,000 additional places on new construction Foundation Apprenticeships and an additional £165 million to boost funding for providers to deliver more construction courses, as well as a new Teacher Industry Exchange scheme to attract industry experts to teach in Further Education. Technical Excellence Colleges in English regions~~, specialised~~ in construction, are to receive £100 million.	+	An additional £100 million to support 35,000 construction-focused skills bootcamp places as a route for new entrants, returners, and upskilling existing employees. A further £40 million for up to 10,000 additional places on new construction Foundation Apprenticeships and an additional £165 million to boost funding for providers to deliver more construction courses, as well as a new Teacher Industry Exchange scheme to attract industry experts to teach in Further Education. Technical Excellence Colleges in English regions specialising in construction, are to receive £100 million.

	Commitment to work closely with industry to remove barriers and unlock investment in training, with CITB doubling their New Entrants Support Team (NEST) programme to support employers, particularly SMEs, to recruit and retain apprentices. £32 million committed by CITB to the £100 million top-up of the government investment to support over 40,000 industry placements, as well as launching an £80 million capital fund to support employers in delivering bespoke training.		Commitment to work closely with industry to remove barriers and unlock investment in training, with CITB doubling their New Entrants Support Team (NEST) programme to support employers, particularly SMEs, to recruit and retain apprentices. £32 million committed by CITB to the £100 million top-up of the government investment to support over 40,000 industry placements, as well as launching an £80 million capital fund to support employers in delivering bespoke training.

Editor at 11:11, 27 March 2025

2025-03-27T11:11:56Z

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	<br />		<br />
	"Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on welfare, health, and homelessness as well as boosting the economy. Housing associations are ready to work with the government to deliver a generation of new social homes. We hope to see a significant increase in funding for affordable housing at the Spending Review, alongside a package of support to help the social housing sector rebuild capacity, so we can build the homes we desperately need."		"Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on welfare, health, and homelessness as well as boosting the economy. Housing associations are ready to work with the government to deliver a generation of new social homes. We hope to see a significant increase in funding for affordable housing at the Spending Review, alongside a package of support to help the social housing sector rebuild capacity, so we can build the homes we desperately need."
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−	~~--[[User:Lyrical_comms\|Lyrical comms]]~~

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Editor at 11:11, 27 March 2025

2025-03-27T11:11:24Z

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	"Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on welfare, health, and homelessness as well as boosting the economy. Housing associations are ready to work with the government to deliver a generation of new social homes. We hope to see a significant increase in funding for affordable housing at the Spending Review, alongside a package of support to help the social housing sector rebuild capacity, so we can build the homes we desperately need."		"Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on welfare, health, and homelessness as well as boosting the economy. Housing associations are ready to work with the government to deliver a generation of new social homes. We hope to see a significant increase in funding for affordable housing at the Spending Review, alongside a package of support to help the social housing sector rebuild capacity, so we can build the homes we desperately need."

−	--[[User:~~Editor~~\|~~editor~~]]	+	--[[User:Lyrical_comms\|Lyrical comms]]

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Editor at 11:10, 27 March 2025

2025-03-27T11:10:54Z

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	<br />		<br />
	"Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on welfare, health, and homelessness as well as boosting the economy. Housing associations are ready to work with the government to deliver a generation of new social homes. We hope to see a significant increase in funding for affordable housing at the Spending Review, alongside a package of support to help the social housing sector rebuild capacity, so we can build the homes we desperately need."		"Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on welfare, health, and homelessness as well as boosting the economy. Housing associations are ready to work with the government to deliver a generation of new social homes. We hope to see a significant increase in funding for affordable housing at the Spending Review, alongside a package of support to help the social housing sector rebuild capacity, so we can build the homes we desperately need."
		+
		+	--[[User:Editor\|editor]]

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Editor at 10:31, 27 March 2025

2025-03-27T10:31:39Z

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	This investment must now be paired with strategic reform: better industry involvement in training design, smarter use of the Growth and Skills Levy, and firm guarantees that these reforms will deliver for electrical and other construction trades – not just in volume, but in quality. The Electrical Contractors’ Association stands ready to support the Government with this next phase of this work.”		This investment must now be paired with strategic reform: better industry involvement in training design, smarter use of the Growth and Skills Levy, and firm guarantees that these reforms will deliver for electrical and other construction trades – not just in volume, but in quality. The Electrical Contractors’ Association stands ready to support the Government with this next phase of this work.”

−	= The British Safety Council~~'s response~~ =	+	== The British Safety Council responds to Spring Statement 2025 ==

	Mike Robinson, chief executive of the [https://constructionmanagement.co.uk/spring-statement-industry-reacts-with-relief/ British Safety Council said]:		Mike Robinson, chief executive of the [https://constructionmanagement.co.uk/spring-statement-industry-reacts-with-relief/ British Safety Council said]:
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	“The chancellor reiterated the government’s mission of national renewal, which both fuels and is fuelled by growth. This has seen significant reforms to England’s planning regime which will help to unlock growth, and is supported by £600m to train, retrain, and upskill the next generation of our construction workforce.”		“The chancellor reiterated the government’s mission of national renewal, which both fuels and is fuelled by growth. This has seen significant reforms to England’s planning regime which will help to unlock growth, and is supported by £600m to train, retrain, and upskill the next generation of our construction workforce.”
		+
		+	== National Housing Federation responds to Spring Statement 2025 ==
		+
		+	Kate Henderson, Chief Executive of the National Housing Federation [https://www.housing.org.uk/news-and-blogs/news/nhf-response-to-spring-statement-2025/ in response to the Spring Statement, said]:
		+
		+	"Today's Spring Statement clearly indicates that delivering new social housing is intrinsic to the government's plans for growth. The £2bn downpayment for new affordable homes is hugely welcome and vital in preventing a cliff edge in delivery, ahead of the new funding programme being announced at the Spending Review.<br />
		+	<br />
		+	"Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on welfare, health, and homelessness as well as boosting the economy. Housing associations are ready to work with the government to deliver a generation of new social homes. We hope to see a significant increase in funding for affordable housing at the Spending Review, alongside a package of support to help the social housing sector rebuild capacity, so we can build the homes we desperately need."

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Editor at 10:27, 27 March 2025

2025-03-27T10:27:54Z

← Older revision		Revision as of 10:27, 27 March 2025
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	This investment must now be paired with strategic reform: better industry involvement in training design, smarter use of the Growth and Skills Levy, and firm guarantees that these reforms will deliver for electrical and other construction trades – not just in volume, but in quality. The Electrical Contractors’ Association stands ready to support the Government with this next phase of this work.”		This investment must now be paired with strategic reform: better industry involvement in training design, smarter use of the Growth and Skills Levy, and firm guarantees that these reforms will deliver for electrical and other construction trades – not just in volume, but in quality. The Electrical Contractors’ Association stands ready to support the Government with this next phase of this work.”
		+
		+	= The British Safety Council's response =
		+
		+	Mike Robinson, chief executive of the [https://constructionmanagement.co.uk/spring-statement-industry-reacts-with-relief/ British Safety Council said]:
		+
		+	“While this wasn’t intended to be a budget in a traditional sense, we welcome the announcement that day-to-day spending across government has been protected; particularly when this comes to arm’s length bodies like the Health and Safety Executive and the Building Safety Regulator.
		+
		+	“The chancellor reiterated the government’s mission of national renewal, which both fuels and is fuelled by growth. This has seen significant reforms to England’s planning regime which will help to unlock growth, and is supported by £600m to train, retrain, and upskill the next generation of our construction workforce.”

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Editor at 06:34, 27 March 2025

2025-03-27T06:34:22Z

← Older revision		Revision as of 06:34, 27 March 2025
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	An additional £2 billion investment in social and affordable housing in 2026–27, as a down payment on housing ambitions, to bridge a new programme. To follow will be further announcements on wider long-term investment into social and affordable housing through the Spending Review, to give stability and confidence to social housing providers. This is intended to give providers greater certainty in the short term and confidence to continue investing in development to deliver up to 18,000 new homes and help unlock development on sites such as Manchester and Liverpool.		An additional £2 billion investment in social and affordable housing in 2026–27, as a down payment on housing ambitions, to bridge a new programme. To follow will be further announcements on wider long-term investment into social and affordable housing through the Spending Review, to give stability and confidence to social housing providers. This is intended to give providers greater certainty in the short term and confidence to continue investing in development to deliver up to 18,000 new homes and help unlock development on sites such as Manchester and Liverpool.

−	As previously announced the Government Building Safety Levy technical consultation response, the budget confirms that the Building Safety Levy will be introduced from 1 October, 2026. "new residential developments in England (with certain exemptions) will incur the Building Safety Levy to raise revenue to be spent on building safety. The government has published a response to its technical consultation on this policy. Exemptions include affordable housing, and developments with fewer than ten units. Previously developed land also benefits from a 50% reduced rate to help ensure these sites remain viable."	+	As previously announced in the Government Building Safety Levy technical consultation response, the budget confirms that the Building Safety Levy will be introduced from 1 October, 2026. "new residential developments in England (with certain exemptions) will incur the Building Safety Levy to raise revenue to be spent on building safety. The government has published a response to its technical consultation on this policy. Exemptions include affordable housing, and developments with fewer than ten units. Previously developed land also benefits from a 50% reduced rate to help ensure these sites remain viable."

	== Employment and skills ==		== Employment and skills ==