The Government’s Spring Statement 2026 has been labelled a “missed opportunity” by industry leaders, who noted its reassurances on economic stability and long-term infrastructure plans, but criticised its lack of clearer delivery plans and immediate action.
Delivered by Chancellor Rachel Reeves, the statement reiterated the government’s focus on “backing the builders, not the blockers” and reforming Treasury rules to unlock investment across urban, rural, and coastal communities and support a medium-term pipeline of public projects.
No new capital programmes or business rates relief were announced.
Instead, the statement highlighted falling inflation and interest rates, along with updated Office for Budget Responsibility (OBR) forecasts, expected to ease financing costs and support housing demand.
Chief executive of AECOM – Europe and India, Richard Whitehead described the statement as “predictably restrained”, urging that the focus now be on delivering major infrastructure projects like Northern Powerhouse Rail.
While he welcomed the Green Book and the creation of the National Infrastructure and Service Transformation Authority (NISTA), he emphasised the need for adequate resources and a clear delivery plan.
Graham Dundas, chief executive officer at Willmott Dixon noted that the government’s prioritisation of education, health, and defence could create substantial opportunities, but only if value-driven partnerships and fair supply chain practices are in place.
“With £4 billion a year committed to SEND reform alone, there are substantial opportunities ahead,” he said.
SPONSORED CONTENT by CHIME
Champion Groundworks have removed 100’s of phone calls and paper timesheets with a move to digital. Read More
The OBR’s forecast of 1.1 per cent economic growth in 2026, down from 1.4 per cent in November, comes with expectations of unemployment peaking at 5.3 per cent and inflation falling to 2.3 per cent, though global instability remains a concern.
Steve Chesters, business unit director at HadleyFRAME, warned that although last year’s skills commitments were the right direction, rising unemployment and global instability – such as the ongoing Iran conflict – could hinder the sector’s growth, delay projects, and drive up costs.
He stressed the need for a clearer delivery plan and government support for domestic manufacturing to ensure project viability amid rising costs.
The UK housing stock is expected to fall to 220,000 additions in 2026-27, before rising to 305,000 by 2030-31, boosted by planning reforms.
While property transactions surged by nearly 11 per cent in 2025, reflecting the end of the stamp duty holiday and speculation ahead of the 2025 Budget, growth is expected to average 2.5 per cent annually as the housing market stabilises, with transactions reaching 1.3 million by 2030.
Brian Berry, chief executive at the Federation of Master Builders (FMB) expressed frustration over the lack of concrete steps to support SMEs and housebuilding.
“Today’s Spring Statement was a missed opportunity to deliver the decisive action the construction industry urgently needs,” he said.
“If the government is serious about economic growth, improved productivity, and meeting its housing and climate ambitions, it must move quickly from rhetoric to action and put small builders at the heart of its plans.”
Was this interesting? Try: Tier One contractors in London turn to AI as competition rises, AECOM report finds
If you have a tip or story idea that fits with our publication, please contact danielle@wavenews.co.uk
Get industry news in 5 minutes!
A daily email that makes industry news enjoyable. It’s completely free.
Notice: JavaScript is required for this content.