The Labour Government’s first Budget confirmed ambitious capital spending plans of £100 billion, significantly boosting demand for construction services. While infrastructure and housing are poised for the most substantial uplifts, other sectors are also expected to benefit. The Government’s focus is clearly on investment, demonstrating strong intent, but the real challenge lies in effective delivery.

Planning delays, regulatory capacity issues, skills shortages and a constricted contractor market are significant challenges the Government must navigate to achieve its targets. Effective planning reform will be crucial for streamlining processes and alleviating bottlenecks, but their implementation will take time. In the interim, an uptick in construction activity may further strain the planning system, exacerbating existing backlogs. Additionally, delays in the Building Safety Act’s Gateway 2 process, attributed to limited regulatory capacity, add to the mounting pressures facing the sector.