Chancellor Rachel Reeves today presented her Spring Statement to Parliament, outlining a plan to stimulate economic growth through significant infrastructure investment and a focus on addressing the UK’s construction skills shortage.
The Chancellor’s accompanying statement document detailed a £13 billion injection into capital infrastructure over the next five years, aimed at “supporting growth.” This investment is part of a broader strategy to “go further and faster to drive growth” through “ambitious” supply-side reforms, including regulatory changes and the contentious Planning and Infrastructure Bill.
Reeves also announced a £2 billion increase in funding for social and affordable housing, alongside a comprehensive construction skills package designed to train up to 60,000 additional skilled workers.
The 50-page document highlighted the government’s commitment to long-term investment, noting that capital investment has been increased by over £100 billion throughout this Parliament, as revealed in the Autumn Statement. The Chancellor reiterated the government’s focus on a “modern industrial strategy,” regulatory overhaul, and expedited planning decisions for major economic infrastructure projects.
Looking ahead, the statement revealed that the government will publish its detailed spending plans and public sector reforms in the upcoming Spending Review, scheduled for completion on 11th June 2025. This review will outline day-to-day spending plans up to 2028-29 and capital spending for 2029-30, alongside a 10-Year Infrastructure Strategy.
Addressing the critical skills gap in the construction sector, Reeves announced a £625 million investment to boost training and tackle the “large-scale skills shortage.” This funding aims to ensure the workforce is equipped to deliver the ambitious infrastructure and housing projects outlined in the statement.
The Chancellor’s statement emphasised the government’s commitment to “building, not blocking,” echoing previous rhetoric surrounding the Planning and Infrastructure Bill. However, the balance between stimulating development and addressing environmental and local concerns remains a key point of contention.
The Spring Statement signals the government’s intent to prioritise infrastructure and skills development as key drivers of economic growth, with the upcoming Spending Review set to provide further detail on long-term financial plans.
Commenting on Chancellor Rachel Reeves’ Spring Statement Railway Industry Association (RIA) Chief Executive Darren Caplan, said: “The Railway Industry Association (RIA) recognises the economic circumstances currently faced by the UK Government and agrees with its priority to go for growth.
“RIA welcomes the Chancellor’s ongoing support for major rail projects and commitment to investing in rail infrastructure including through the use of private funding. We would encourage the Government to do more in terms of bringing forward its long-term rail strategy and proposed pipeline for rolling stock, to help the railway industry in what is a period of uncertainty for rail suppliers with Great British Railways not due to be established until 2027. Delays in decisions on major projects, enhancements, as well as train-building and refurbishments make it more difficult for businesses to plan ahead or for SMEs to survive, and it also makes it harder to attract business investment.
“Growing passenger demand for rail travel and substantial population growth in the years ahead will be sources of significant revenues for the Exchequer going forward. So, we strongly urge the Government to develop the future rail capacity needed to accommodate this growth.”
RMT General Secretary Eddie Dempsey said: “The Spring Statement fails to tackle the deep structural problems in our economy.
“Unless there is a fundamental shift in the structure of our economy that redistributes wealth toward investment in our infrastructure, housing, and services, the cycle of falling living standards and shifting wealth to the super-rich and corporations will continue for a generation.
“In Britain today, the idea that if you work hard, you can have a decent life is over.
“For four decades, wealth has been redirected from working-class communities to private corporate interests.
“Nowhere is this more evident than in Britain’s privatised railways.
“Corporate profits have soared while private companies have continuously failed to provide decent services.
“One-third of public spending is handed to outsourcing firms, including those profiting from our fragmented and privatised rail system.
“Labour’s plan to bring rail back into public ownership is a step in the right direction, but it is about having a different kind of ethos and creating a society where people have secure well paid employment, decent public services and a social safety net that catches them if they fall on hard times.”
