Unsurprising Spring Statement but Middle East volatility makes energy independence non-negotiable

The Chancellor’s Spring Statement landed at a moment of acute uncertainty. Global instability, rising inflationary pressures and renewed volatility in energy markets are once again exposing the UK to external shocks. Ongoing volatility in global energy markets could place further upward pressure on energy prices, a reminder that the cost-of-living crisis is not yet behind us but evolving.

The UK’s ability to withstand future economic shocks will be determined by how decisively we invest in and accelerate the infrastructure that secures our energy supply, strengthens our supply chains and anchors long-term economic stability. Against this backdrop, the UK’s resilience depends on delivering infrastructure that underpins economic security and doing so at pace.

Energy prices remain one of the most powerful drivers of the cost-of-living crisis

Businesses and households across the UK are still feeling the impact of the cost-of-living crisis and the Spring Statement leaves some areas where the industry would welcome further clarity. To bring energy costs down in the long term, it is critical that we move forward with delivering the homegrown energy infrastructure the country needs, to meet future demand and protect us from volatile market events.

The Government’s commitment, to ease planning restrictions through its Planning and Infrastructure Bill is encouraging. Now those promises must be translated into action. If we are to deliver lower energy bills, red tape cannot be allowed to stall vital projects for years.

From offshore wind to grid upgrades, the UK has both the capability and the private sector appetite to build, what it cannot afford is delay. Lengthy planning processes and fragmented local processes continue to slow nationally significant projects, often for years, even where the broader public benefit is clear.

Construction optimism and planning reform

The industry entered this year expecting clarity and momentum. While the Planning and Infrastructure Bill signalled progress when introduced, the sector is still waiting to see its practical impact.

The construction industry was expecting much more from the Spring Statement including an update on the planning system. Britain is currently at a crossroads in how it builds, and with the urgent need to start building better, clarity on the reforms to the planning system are essential.

The Autumn Budget last year injected a sense of optimism into the construction industry, sparking many conversations around how the current planning system is fragmented and how these new improvements are welcomed. The introduction of the Planning and Infrastructure Bill in December last year was also momentous, however we are yet to see the full benefits this has to offer.

We know infrastructure delivers significant economic returns of £3 for every £1 invested. For any government serious about growth, the case is unambiguous. Yet when it comes to delivering significantly important projects that benefit the UK, these projects can be held off for years due to red tape and disputes, even when the net effect is positive for Britain as a whole.

Without meaningful reform and clearer national priorities, the UK risks missing its growth ambitions.

Closing the skills gap to deliver net zero

Whilst the Spring Statement reaffirmed the importance of growth, greater clarity is needed on how the Government will support skills development to match the scale of infrastructure and energy projects planned across the UK.

The construction industry will play a central role in delivering the UK’s net zero ambitions, but this transition will only be possible if we have the skilled workforce required to deliver it.

Over the next decade, projections suggest the UK will need nearly one million additional construction workers by 2032 to keep pace with housing and infrastructure investment. Yet the National Insurance contribution increase unveiled last year has added even more pressure and higher costs when hiring new staff.

We urge the government to introduce further measures that support skills development and workforce growth, ensuring the industry is equipped to deliver the sustainable infrastructure needed to meet the UK’s net zero targets while driving long-term economic growth.

The construction industry stands ready to deliver. What it needs is certainty, streamlined planning, consistent policy direction and a regulatory environment that rewards delivery rather than delay.