UK Spring Statement 2025: Key Highlights for the Construction Sector
Chancellor Rachel Reeves’ Spring Statement on 26th March 2025 introduced a range of measures aimed at strengthening the UK’s construction industry and tackling the ongoing housing shortage.
With substantial investments in affordable housing and skills development, the government aims to support industry growth and economic recovery.
£2 Billion Investment in Affordable Housing
The Chancellor has committed an additional £2 billion to the Affordable Homes Programme (AHP), which is set to deliver up to 18,000 new social and affordable homes. This funding is part of the broader government strategy to construct 1.3 million new homes over the next five years. The aim is to accelerate housing developments and ease the ongoing housing crisis.
Despite this commitment, concerns remain over whether the government will meet its original 1.5 million homes target before the next general election. The new funding is designated for projects that can begin swiftly, ensuring that progress is made towards improving housing availability.
£600 Million Investment in Construction Skills Training
To address labour shortages and boost workforce capabilities, the government has allocated £600 million to train up to 60,000 construction professionals over the next four years. The investment will focus on training engineers, electricians, bricklayers, and carpenters through:
- Technical Excellence Colleges aimed at upskilling workers
- Skills bootcamps to provide practical, job-ready training
- Foundation apprenticeships to support entry-level workers in the industry
By equipping the workforce with critical skills, the government aims to ensure that the construction sector can keep up with increasing demand for housing projects.
Implications for the Construction Industry
The combined emphasis on housing investment and skills training is expected to drive growth within the construction sector. However, successful implementation will depend on how quickly these initiatives are rolled out and whether the funding is allocated effectively.
Industry professionals should stay informed on how to access these opportunities and ensure compliance with any new regulatory requirements.
How We Can Help Your Construction Business
With changing regulations, tax implications, and government funding opportunities, managing finances in the construction sector can be complex. Our firm specialises in construction accounting, helping businesses navigate the Construction Industry Scheme (CIS), VAT compliance, payroll, and financial planning.
We provide tailored support to ensure your company maximises tax efficiency, stays compliant, and takes full advantage of available government incentives. Get in touch with our team at McKenzies Accountants today to see how we can help you build a stronger financial future for your business.