Spring Statement highlights need for continued investment in major programmes
The UK Government has delivered its Spring Statement to the House of Commons.
Patricia Moore, Managing Director UK, said that maintaining investment in major programmes was critical for construction in the coming months:
"The Chancellor's message today was about creating a stronger economy to withstand the rising cost of living. As the war in Ukraine hits supply chains for food, materials and fuel, the outlook remains uncertain and few predict a swift end to the crisis.
In construction, the inflationary pressures are already very real but there could be bigger shocks to come. There is a risk that private sector investment, not least in the regions, will come under scrutiny as rising costs squeeze margins and test the viability of projects.
“Government departmental spending - from healthcare and housing, to roads and rail - has been a key driver for the post-Covid recovery. Without any new funding this is set to take a real-world hit as budgets are impacted by rising costs. Pulling back from planned investments will be tempting in the months ahead, but the Government needs to stay the course.
Investment in people, capital and ideas was a major theme from the Chancellor. Maintaining commitment to major programmes is essential to realising these goals in our industry and any erosion to the existing pipeline would further exacerbate the supply chain crisis.
"These programmes also deliver the dynamism and innovation that is being called for today. They enable construction to be an effective engine for growth - ensuring we meet our commitments to reach net zero, and to address the UK’s regional inequalities that have persisted for too long.
"The Chancellor signalled that further policy is to come, the most pressing of which will be on our energy strategy. The UK needs a balanced approach to the energy security and resilience considerations, alongside climate and net zero in our green transition.
"2021's strategy for a green industrial revolution needs to urgently go further and faster, evolving from a ten point plan to a joined up, cross-industry programme that will see new infrastructure and investment delivered at pace across the UK.”