Government confirms £625 million of construction spending in Spring Statement

The plan to spend £625 million on training 60,000 construction workers has gone ahead in the Spring Statement.

Investment will be spent on 10 technical excellence colleges, as well as funding for new entrants, returners, and upskilling within industry.

Jane Goddard, managing director of building performance services & deputy CEO charity the Building Research Establishment, said: “BRE welcomes the government’s recognition that building more housing must be underpinned by investments in growing a skilled workforce.

“Plans to train 60,000 more construction workers by 2029 represents an integral step to addressing current skill shortages which have exacerbated the housing crisis.  The training will also support sector productivity and ultimately boost economic growth.”

“As part of the new Construction Skills Mission Board, it will be vital for industry and government to ensure the creation of Technical Excellence Colleges and Skills Bootcamps to help to identify future skills and roles that will be pivotal to ensuring a sustainable, future-proofed housing supply.”

“BRE looks forward to contributing to the success of these programmes and delivering on its purpose to develop science-led solutions that address the most pressing challenges in the built environment”.

“The Spring Budget confirmed a £625 million construction skills package, expected to train up to 60,000 skilled workers during this Parliament and support the Government’s ambition to build 1.5 million homes in the same time frame. This welcome investment suggests that the Government recognises that to meet its manifesto pledge and ‘Get Britain Building Again’, it needs more skilled labourers. However, the Government missed an opportunity with the Spring Budget to introduce measures that will mean people can access these new homes”

There were no new tax rises, as Chancellor Rachel Reeves instead looked to boost the government’s coffers by cutting welfare by £3.4 billion in 2029/30 and by slashing Whitehall spending by £2 billion, meaning tens of thousands of civil service jobs could be lost.

The Chancellor is looking looked to create a £9.9 billion surplus in day-to-day spending in five years, a self-imposed target, but this has become harder to achieve following a shakier global environment worsened by Donald Trump’s erratic leadership of the USA.

Reeves said: “The job of a responsible government is not simply to watch this change.

“This moment demands an active government. A government not stepping back, but stepping up. A government on the side of working people, helping Britain reach its full potential.”

The Office for Budget Responsibility (OBR) has downgraded its growth predictions in 2025 from 2% to 1%.