The UK building materials and construction equipment industries have been reacting to Chancellor Rachel Reeves’ 2025 Spending Review delivered today in the House of Commons.
The Chancellor revealed that the Labour Government is committing to significant funding increases for the NHS, schools, social and affordable housing, defence, nuclear energy projects, and transport in England’s city regions as part of plans focused on “Britain’s renewal”.
Aurelie Delannoy, Economic Affairs Director at the Mineral Products Association (MPA), said: “The Chancellor’s recognition that ‘Where things are made, and who makes them, matters,’ is especially welcome and must be applied to essential materials in our sector, especially cement.”
Viki Bell, CEO of the Construction Equipment Association (CEA), said: “There’s a lot of ambition in today’s Spending Review – and it’s positive to see construction, housing, infrastructure and apprenticeships getting attention again. Sizewell could bring early activity through groundworks and infrastructure, and the transport and housing investment – if delivered – has the potential to boost confidence across the sector. But most of this has been announced before, and while we welcome the direction, we’re still not seeing it translate into real activity on the ground. We’re hearing the right words, but the sector urgently needs to see shovels in the ground and projects getting underway. Construction firms are still laying people off.
“For our equipment manufacturers and supply chain, clarity and pace are just as vital – orders, investment and planning decisions rely on delivery, not just policy. We now await the detail of the government’s promised industrial strategy – a long-term, funded and joined-up plan that backs skills, accelerates delivery, and gives the industry the confidence to invest and grow.”
The Asphalt Industry Alliance has commented on local roads funding in the Spending Review.
David Giles, Chair of AIA, said: “We understand that there are tough funding decisions to be made, but it seems as though the Chancellor has missed the opportunity to make a long-term commitment to maintaining our local roads in today’s Spending Review. If this is the case, it will only result in further deterioration of this vital asset and an even bigger bill to put it right in the future.
“Local authorities have told us they need their highway budgets to more than double for the next five to 10 years if they are going to be able to address the backlog of repairs, which is now almost £17 billion* in England and Wales.
“So, while the Government’s commitment to additional funding for the 2025/26 financial year – the short-term cash injection with greater accountability announced in December – was welcome, it is unlikely to improve structural conditions or reduce road user complaints.
“It looks like overall DfT roads funding to 2030 has been cut to £24 billion (for both National Highways and local authorities), but further clarity on who will receive what share, how and when, is not evident. Nor is the level to which MHCLG resource funding allocations for highway maintenance may be impacted.
“That’s why we were hoping that the Government would commit to more certainty within this multi-year Spending Review funding horizon to give local highway engineers the visibility to allow them to invest in significantly improving the long-term condition of England’s road network and not just manage the decline of the network.
“Ultimately, investing in local roads provides an effective return on investment for taxpayers, provided that investment is sustained. It feels as if another opportunity has slipped by to help drive growth and make a lasting change to the condition of the roads on which we all rely.”
