Chancellor Rachel Reeves made the first Labour budget announcements for 14 years today, Wednesday, 30 October, dedicating a lot of funds to infrastructure projects that were uncertain.
Below, we collect the reaction from stakeholders across the construction, engineering and infrastructure sectors.
In a big announcement, it was confirmed that the government will fund the High Speed 2 (HS2) tunnels from west London to Euston in central London.
Rail
Reeves also provided positive outlooks for other rail schemes during the Autumn budget. She said that the Transpennine Route Upgrade would be delivered in full, electrifying the line all the way York and Manchester, via Leeds and Huddersfield.
Commitment to delivering East West Rail, the new rail line between Oxford and Cambridge, was pronounced by Reeves in her speech.
She also said that £1.3bn would be provided for urban transport schemes through City Region Sustainable Transport Settlements. This will go towards projects such as renewing the Sheffield Suprtram, building the West Yorkshire Mass transit between Leeds and Bradford and constructing the new Liverpool Baltic railway station.
The civil engineering and construction industry has come out in full force to congratulate the good news for the rail sector.
AtkinsRéalis president for UK & Ireland Richard Robinson said: “This budget has cemented the importance of infrastructure investment as the catalyst for economic growth across the UK.
“We’re encouraged by the commitment to a long-term programme of infrastructure renewal which will underpin the economic and social opportunities that will define communities for generations to come: greater connectivity from improved transport links, more affordable, high quality homes, and thriving communities and cities through a sustainable, resilient built environment fit for the future.
“We are particularly pleased to see confirmation of funding for key projects including the Transpennine Route Upgrade, tunnelling between Old Oak Common and Euston for HS2, East West Rail and Sizewell C – all of which will secure jobs and investment, giving confidence to the sector.
“We also welcome the commitment to reform the planning system to support the delivery of infrastructure which will drive – rather stifle – growth, and now hope to see a 10-year infrastructure plan and a modern industrial strategy that provide further certainty and stability.
“The government has set a clear direction of travel, and we now look forward to supporting them to get Britain building.”
A spokesperson for the High Speed Rail Group said: “Rail investment is far more than a short-term cost: it is a driver of national growth and regional connectivity. Today’s approval to complete HS2’s critical link from Old Oak Common to Euston marks a pivotal step forward. We hope that an era of fragmented, short-term decision making has been ended, in favour of a move towards a cohesive vision for the future of UK rail.
“However, we cannot stop here. To fully realise the socio-economic benefits of this project, it is critical that Phase 1 is properly connected north of Birmingham to Crewe and beyond.
“Taking a long-term, integrated approach to rail delivery going forward will enable HS2 and the broader network to fuel the UK’s economy and enhance productivity for generations to come. For the first time in some years, this Budget sees that future get one step nearer rather than further away.”
Mott MacDonald transport development director for UK and Europe Thomas Knight said: “The announcement around West Yorkshire Mass Transit and other urban transport schemes, as well as the extension of the Transpennine Upgrade to York, are vital to supporting economic growth.”
GHD EMEA market development leader Jonathan Edwards said: “Access to good quality and efficient public transport will be critical to meeting the government’s housebuilding plans. But beyond that, enhancing connectivity for these communities is critical to improving social outcomes for them too.”
After the recent uncertainties surrounding HS2, I welcome the government’s commitment to extending the line to Euston. Delivering regional growth and intercity connectivity is essential and pivotal to shaping our country’s future.
“It is crucial that the government now sticks to this plan and fully commits, with greater control over its delivery. However, the budget did not address how we can go beyond this plan to improve infrastructure across the country.
“Transport in the UK only works if the rail industry does, and it should start with more radical reform and funding for change and delivery.
“The chancellor has yet to reassure the industry that transport is at the top of the agenda. We need policy and funding from the government to enable a long-term plan for our critical national infrastructure.
“The government can’t afford to hit the brakes and must enable the private and public sectors to work at speed to deliver its transport goals.”
Aecom Europe, UK/Ireland & India cheif executive Colin Wood said: “We welcome the announcement that the government is set to invest more than £100bn in capital expenditure in areas such as schools, energy, transport, healthcare and housing over the next five years.
“This huge investment in critical infrastructure will drive growth across the economy, creating employment opportunities and building a Britain fit for the future.
“It is clear that the private sector, with our deep skills and expertise, will need to play a central role in ensuring these complex programmes are successfully delivered.
“It remains to be seen, however, how much private investment the National Wealth Fund alone will be able to attract to help finance many of these projects.
“We will need to do more work to fully understand the impact of the significant increase in tax on businesses in our sector and our supply chain, who now face a combination of tax rises and higher wages.
“The announcement to fund major projects, such as the HS2 extension to Euston station, East West Rail and the Transpennine Route Upgrade, as well as an array of other upgrades and improvements, is a welcome commitment that will provide stability, improve the lives of millions of passengers and stimulate regional economic growth across the country.
“Similarly, we welcome the commitment to increase the road maintenance budget and to invest funding in local transportation such as trams and metro lines.
“A clear pipeline is good for our industry and this commitment to funding gives us confidence to build the necessary skills and invest in innovation to help deliver these projects. We also look forward to working with the devolved regions to accelerate delivery.”
Energy
Where energy is concerned, a number of announcements were made by Reeves to support the transition to a renewables grid. She emphasised that £70bn of capitalisation through the National Wealth Fund over the course of the parliament to “invest in the industries of the future, from gigafactories to ports to green hydrogen”.
A particular investment of note is that the UK’s clean energy sector will receive £3.9bn funding in 2025-26 for Carbon Capture, Usage and Storage Track-1 projects to decarbonise industry and contracts with 11 green hydrogen producers.
A further £2.7bn will also be funnelled through funding channels into the completion of Sizewell C.
Mott MacDonald business development manager for energy Clare Rhodes-James said: “The carbon capture usage and storage schemes in Merseyside and Teesside along with the 11 planned green hydrogen projects are good news for green jobs.
“Now is a good time to push these projects ahead and redeploy the oil and gas skills base that already exists in these regions into these emerging sectors as well as open up opportunity for manufacturing.
“What’s needed now for CCUS is ongoing confidence in the commercial models so current projects are built and for ongoing support to the emerging technologies that can make the different to cost and efficiency in the 2030s.”
EngineeringUK head of policy and public affairs Beatrice Barleon said: “We welcome the chancellor’s commitment to invest in education and skills as a central pillar of the government’s growth agenda, not least through the creation of Skills England and the announcement of a £40M pot to develop new foundation and shorter apprenticeships in key sectors.
“We look forward to continuing to support the Government to develop a new Growth and Skills Levy, ensuring an apprenticeships system that provides ample routes into engineering and technology careers for young people.
“The pledges of significant funding uplifts for school budgets and further education colleges will be key to addressing the teacher recruitment crisis, which is particularly acute in STEM subjects.
“To resolve the teacher workforce crisis in the long-term, this must be accompanied by a similar commitment to teacher retention, such as by reversing short-sighted cuts to subject-specific CPD for STEM teachers.
“Moreover, the announcement of a series of new energy and infrastructure projects, such as green hydrogen plants and carbon capture and storage facilities, underscores the centrality of ensuring an engineering and technology workforce that is fit for the future to achieve the government’s mission of turning the UK into a clean energy superpower.
“Ahead of the publication of the full industrial strategy next Spring, we look forward to supporting the Government with the development of sector plans for key growth-driving industries, many of which depend heavily upon the supply of skilled engineers and technologists.”
Prospect general secretary Mike Clancy said: “This was always going to be a tough budget and spending round, but it is positive to see the government taking action on growth.
“The changes to the fiscal rules, which Prospect called for, are necessary and will allow capital investment in vital areas of the economy.
“Sizewell C nuclear power station will protect and create thousands of skilled jobs. The Final Investment Decision (FID) has already been delayed, and it is critical that the timeline outlined today for FID in spring is now delivered. Ministers must continue during this time to give the project clear and visible support to reassure the workforce and investors.
“Investment in the Ministry of Defence is also vital given the blackhole in its budget, but it will be apparent to all involved that this will also be needed in future years given the escalating threats to the UK.
“This budget set out plans for departmental spending and efficiencies, these will be challenging to achieve. The government must work with civil service trade unions like Prospect to deliver these in the most effective way, protecting vital public services.”
GE Vernova energy transition vice president Craig Jones said: “We welcome the chancellor’s push for renewable projects and carbon capture initiatives in today’s budget.
“The establishment of Great British Energy, along with today’s new commitments to offshore wind, solar, and nuclear, represents a crucial step toward the UK’s net-zero goals. It will take all of the above for us to reach the UK’s “clean power targets”.
“This budget includes important steps toward fast tracking the UK’s renewable energy transition with essential reforms to grid connections, planning, and investments in training the next generation of engineers – all of which aligns with GE Vernova’s priorities too.”
Labour Infrastructure Forum director Gerry McFall said: “On first reading, it looks like this budget has carefully laid the first bricks for Labour’s national repair job after a decade of decline under the Conservatives.
“We support the end to short-term policy making and welcome the focus on long term capital budgets which provide policy stability for business investment.
“We welcome the new wave of public investment this budget will unlock by changing the outdated, constraining fiscal rules in order to fund the infrastructure we so desperately need across the nation.
“For years our public-private investment levels have needlessly lagged at the bottom of the G7. A responsible, common sense correction was long overdue and will help put Britain back in control of its future.
“We welcome the commitment of £100bn over the next five years for GB Energy and new commitments from transport to housing.
“Investing billions through the new National Wealth fund has huge potential to crowd in private investment – if channelled correctly through projects that generate economic agglomeration that will turn our regions into powerful blocs.”
Roads
On local roads, a near-50% increase in funding will be provided in 2024-25. This will contribute towards fixing the “crisis” on local roads that NCE has heard about from stakeholders, contractors and local authorities.
Asphalt Industry Alliance (AIA) chair David Giles said: “It was encouraging to hear the Chancellor acknowledge that the condition of our local roads is a reminder of ‘our failure to invest as a nation’, however it’s disappointing that the opportunity to deliver a step change was missed.
“While, the additional £500M for highway maintenance next year is welcome, it falls short of the long-term funding horizon the sector has been calling for. And, with a one-time catch-up cost of £14.4bn in England alone, this additional allocation is a fraction of what’s needed to prevent further decline.
“Local roads, which underpin all other local services, help support growth and are a key issue for members of the public and we know from our ALARM survey that conditions are at an all-time low, and that this is the result of decades of underfunding.
“Our hope was that the chancellor would have announced a multi-year ringfenced commitment allowing local authorities to plan and proactively carry out the effective maintenance needed to drive improvement in our local roads.”
Transport & Environment UK director Anna Krajinska said: “The chancellor’s first budget was a flying start for transport and the environment.
“The transport sector is the highest-emitting sector in the UK and it looks like the Chancellor has seen that it presents a plethora of opportunities to raise revenue and invest in the UK becoming a clean energy superpower.
“While there are further opportunities left to seize, it’s certainly a step in the right direction.
“Increasing the first year Vehicle Excise Duty differential between polluting and electric cars, for which the UK currently has one of the worst differentials in Europe, is exactly the right move. The future is electric and tax policy needs to reflect that.
“Meanwhile, extending preferential rates for electric cars through the UK’s very successful Benefit-in-Kind policy is a smart decision to sustain EV demand for the years to come. A £2 billion investment in the automotive sector is a boon to a crucial manufacturing arm of the UK and will help secure the gigafactories that will be the backbone of the UK’s burgeoning battery industry, which will deliver growth and green, high quality jobs.”
Long-term plan
Many people in the industry have also come out to support Reeves and the new Labour government’s intentions to consider funding on a long-term, 10 year basis.
Costain chief executive Alex Vaughan said: “Shaping, creating and delivering complex, transformative infrastructure demands effective planning, clear decision-making, and collaboration between the industry, government and regulators.
“The UK needs to reset its relationship with infrastructure by committing to a ten or 20-year plan overseen by a dedicated Minister for Infrastructure.
“This will enable essential infrastructure to be delivered more productively, whilst providing consistency and continuity of demand for investors and the supply chain.”
Institution of Civil Engineers (ICE) interim associate director of policy David Hawkes said: “The chancellor’s approach to infrastructure investment as spending that delivers economic, social, and environmental value for the country, versus just being a cost, is welcome. It’s something the ICE has repeatedly called for.
“Other positive measures include modelling the Budget’s impact for 10 years instead of five. Long-term thinking is key to the country achieving its goals. It’s also good to see the government highlight the need for private investment and that it will support regional leaders to drive growth in their areas.
“Now the question is, will the investment announced today be enough for the UK to meet its economic, social, and environmental objectives?
“In its forthcoming 10-year infrastructure strategy, the government must present a vision for infrastructure investment, including how projects will be prioritised. Ahead of that, it must also clarify how the new National Infrastructure and Service Transformation Authority (NISTA) will improve delivery.”
Stantec UK and Ireland managing director Brian Yates said: “It was encouraging to hear the Chancellor acknowledge some of the long-term challenges facing the UK’s built environment and commit to programmes and initiatives that help move the needle towards long-term foundational resilience.
“We know we must all keep the key objectives front and centre: from delivering more well-designed homes in communities, boosting regional transport connectivity, and leveraging investment in hydrogen and carbon capture schemes while quickly bringing more renewable energy and storage schemes online to diversify our network. Achieving these goals is vital to the country’s long-term national growth agenda, and policy should continually support this.
“The UK is at a pivotal juncture, full of new opportunities for growth and investment. It was welcome to hear a specific reference to the future of the Crown Works Studio Scheme in Sunderland, a project proudly supported by Hydrock, now Stantec.
“There is a lot to be cheerful about: restated commitments to planning reform, an aspirational industrial strategy, plans for innovative data centres and gigafactories, and new industry bodies to help bolster energy security.
“The country needs to maintain its momentum. Achieving this will require the public and private sectors to work together to drive, leverage, and influence change.
“As a global facilitator positioned at the heart of these national issues, we always welcome consistency and certainty from government on the direction of travel while we support UK clients in harnessing opportunities.”
Skills gap
As well as assessing infrastructure on a long-term basis, many commentators have come out to say even with the extra funding, the UK needs to address the skills gap that is running rampant across all the different forms of infrastructure projects.
Mott MacDonald managing director for UK and Europe Richard Risdon said: “Today’s confirmation on the changing of the fiscal rules, which could free up significant funding for major projects, shows that the government has recognised that growth is not possible without investment in infrastructure.
“This has the potential to create a longer-term approach to investment that is comparable with other nations in Europe. The benefits extend to more than creating a firmer pipeline of work for us as an industry – the new assets it funds will deliver a better outcome for society too.
“The plans set out by Sir Keir Starmer for a mission led government are key to achieving net zero but can only be delivered in the timescales planned through consistent investment in infrastructure. The new funding detailed today is critical for delivering those environmental improvements and creating climate resilience for the UK, while also improving public services and connectivity with better access to jobs and services.
“Hearing the government’s commitment to progress HS2 from Birmingham to Euston demonstrates their understanding of the role of connectivity in delivering economic growth and opportunities.
“Nonetheless, as I have said, the biggest challenge to realising these infrastructure investment plans is still the people. Boosting funding for the schools rebuilding programme by £1.4bn to target rebuilding 500 schools is critical to creating the right environment for our young people to thrive. However, it will take time for that young talent to come through into our sector and we urgently need government to work with us on the skills issue. I welcome the further commitment to Skills England in the Budget as we cannot build this vital infrastructure without the right people.”
Royal Institution of Chartered Surveyors (RICS) president Tina Paillet said: “This budget, to rebuild Britain, has some positive news for our sectors. Affordable housing should get a much-needed boost to supply. Fiscal rule changes should help secure some of the infrastructure we badly need, although this does need managing carefully using standards to deliver value for money. Changes to business rates could help revitalise our high streets. We hope government investment and changes in rules to attract new international investment will help boost confidence and encourage other players to seek opportunities. The government has also extended funds to remediation of building safety defects, and jobs in planning.
“Much needed new investment will give confidence to others but the changes to fiscal rules to unlock up to £57bn of infrastructure spending must be supported by changes to how infrastructure is planned and delivered. Nailing the delivery, and continuing to address planning issues, would accelerate the delivery of Britain’s £800bn infrastructure pipeline.
“Our professionals, working to standards and experienced in project delivery, are integral to this work.”
“The chancellor spoke of rebuilding Britain, and that there should not be a ceiling on the ambition of women and girls. Our profession holds many opportunities, and we need to improve access and opportunities for ambitious talent from all backgrounds, if we are to build what this country needs, and to boost the economy. We would like to see the recently established Skills England body focus on the built environment and inspire the next generation of industry professionals, as neither the government’s housebuilding target nor infrastructure pledges will be achievable without the required skills base.”
Institution of Engineering and Technology (IET) sustainability and net zero policy manager James Bamborough said: “We’re pleased to see that one of the measures in the 2024 Autumn Budget is a review into barriers facing greater adoption of transformative technologies that could enhance innovation and productivity. It is vital that the findings of this review are supported in the Industrial Strategy to maximise the potential of technology and digitalisation for the public good, thereby delivering a more productive and resilient economy.
“However, if we are to take full advantage of emerging technologies then we need the skilled workforce to fully utilise them.
“The UK is currently facing a shortage of 173,000 STEM workers and 49% of employers say there is a skills shortage among existing employees. We hope that Skills England will recognise the vital importance of engineers and proactively close the skills gaps.
“It is also very encouraging to hear the chancellor deliver £3.4bn for the Warm Homes plan over the next three years. 80% of the houses we will be living in in 2050 are currently in use, representing 95% of the decarbonisation required in our homes.
“However, if Britain is to fix the foundations of its housing stock, decarbonise homes, lower energy bills and boost health we must see exactly how this money will be spent. This must include an understanding of technologies and geographical implications of said technologies to ensure that the best solutions are used in the correct way.
“The government’s commitment to 11 new green hydrogen plants will also support their goal of making Britain a clean energy superpower. However, transitioning to hydrogen will require a range of technical skills in addition to academic and industrial researchers though to project management and customer-facing skills. The deployment of green hydrogen must be part of a holistic approach to the energy transition and the £6.1bn support for core research funding in engineering will help nurture groundbreaking technologies and innovation in the energy sector.”
Construction Industry Training Board (CITB) chief executive Tim Balcon said: “The Government’s continued support for the construction industry through increased investment in the Affordable Homes Programme and the commitment to infrastructure delivery is welcome.
“Our research shows that under the government’s homebuilding plans, up to an additional 152,000 workers will need to be found, and this doesn’t include the quarter of a million additional construction workers we need to meet all forecasted construction demand through to 2028. The homebuilding and infrastructure delivery challenges can’t be addressed without evolving and improving the skills system as a whole – for example, improving the pipeline of workers and ensuring a shared understanding of competence between industry, Government, and CITB is defined. This is why CITB has been working collaboratively and at pace with the Government and industry to develop interventions to meet the construction workforce skills needs to deliver its homebuilding ambitions.
“A strong pipeline of apprentices and construction workers is required to build the millions of homes we need, and key to achieving the Government’s ambitions is to get the right skills policies in place. It is essential that the new Growth and Skills Levy drive up construction apprenticeship numbers that have declined under the Apprenticeship Levy. Last year CITB helped over 29,000 apprentices during their courses.
“However, apprenticeships aren’t the only route into a career in construction, and we need to ensure we’re making all the available pathways into the industry clear and accessible for people, including upskilling and identifying transferable skills from other industries. We’re ready to work with government, industry, and training providers to ensure that the coordinated reforms are put in place to drive sustained growth in the construction industry.”
Royal Academy of Engineering president John Lazar said: “The chancellor’s first budget was a difficult balancing act, and we are pleased to see a long-term commitment to research and innovation, which is proven to help business, productivity and growth.
“We know the pressures on public finances that put government spending on research and development in the spotlight, and also that R&D spending is the catalyst for economic success. We welcome the commitment to protect government investment in R&D, and the acknowledgement of the key role that the UK’s National Academies play in driving innovation in engineering, biotechnology and medical science.
“It is now up to the science, engineering and technology sector to work with the government to deliver the innovation and growth needed to unlock investment and create jobs.”
“With sustained investment in innovation and entrepreneurship, the UK is well placed to leverage its impressive engineering and technology strengths to sustain business confidence, catalyse investment and power growth, and ultimately improve our public services and productivity.”
“The economy can only grow if the infrastructure that underpins it keeps pace with its needs – we welcome the £100bn additional investment over the next five years to fund public infrastructure, and the boost this will give to UK capabilities and regional development.”
Negative reaction
Even with a lot of focus on infrastructure in the budget, a number of campaign groups have spoken out against the announcements.
Transport Action Network roads and climate campaigner Rebecca Lush said: “The budget was a mixed bag, with some good decisions, but some odd ones too.
“We are delighted the chancellor has scrapped several harmful road schemes such as the A5036 through Rimrose Valley Country Park which was vigorously opposed by Save Rimrose Valley who we have supported, and the A358 in Somerset which would have severed many communities.
“We were disappointed the A57 Link Road scheme went ahead in the Peak District, as this will only move traffic jams further along, increasing pressure for more roadbuilding in the National Park. Likewise the decisions to approve some of the A47 schemes in Norfolk will only increase traffic and carbon emissions.
“These are just expensive sticking plaster solutions, which divert scarce funds away from public transport.
“We are always pleased to see more money go towards roads maintenance as this is urgently needed and benefits all road users. However, it was disappointing to see fuel duty being frozen yet again, whilst the bus fare cap was increased 50%. This sends the wrong message for a government committed to modal shift”
Stop Sizewell C said: “For a government that criticised the opposition for playing fast and loose with the nation’s finances, the chancellor is surprisingly happy to do the same, allocating another £2.7bn of taxpayers’ money on risky, expensive Sizewell C, without making any guarantee of a Final Investment Decision being taken.
“Including £2.5bn already spent, this means £5.2bn of our money will be spent on a project that cannot even help Labour achieve its energy mission, and is looking increasingly toxic to private investors.
“Stop Sizewell C urges David Goldstone to call in Sizewell C for immediate scrutiny, as the project is currently proceeding by stealth.
“Despite almost no public disclosure about its true cost or transparency about value for money, vast sums of public money have already been spent on Sizewell C, with the potential for billions more to be poured down the drain.”
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