What the Autumn Statement means for the construction industry

Chancellor Philip Hammond's first (and apparently, last) Autumn Statement focused on the need to boost productivity and maintain business confidence through investment in infrastructure and innovation, but the Chancellor's hands are tired by the looming prospect of Brexit and the general economic uncertainty.

In the immediate aftermath of the Autumn Statement, industry reactions have been, to say the least, mixed. So what does the Autumn Statement mean for the construction industry?

House building

The reality of a growing population has led to a severe shortage of housing, in particular, affordable housing. Lack of supply in the face of increasing demand is a major issue for the government, and a variety of measures were announced by the Chancellor in an attempt to alleviate that issue.

A £2.3bn housing infrastructure fund will be set aside to build 100,000 new homes in areas where there is high demand, while a further £1.4bn will provide 40,000 affordable homes.

Training and apprenticeships are a real concern for many in the construction industry, while a shortage of skills and expertise continues to pose a problem. No one yet knows whether EU nationals will be able to move easily to the UK for work after Brexit. Brexit may lead to a shortage of skilled workers from abroad and higher material costs for construction companies. Housebuilding is to be given a boost, but plans will only run smoothly if there are enough skilled workers to complete the work.

There is a need for housing projects to get off the ground quickly, so the Chancellor's commitment to creating a more flexible planning system is to be welcomed. However, though the Chancellor stressed the government's support of home ownership, until more homes are built for would-be buyers, the private rental sector also needs government support in order to ease the financial burden on tenants struggling to pay high rents.

Infrastructure

In his Autumn Statement the Chancellor announced a £23 billion National Productivity Investment Fund which will be spent over the next five years on technology innovation and infrastructure, and on
improving road and rail links to support the construction of new homes.

The government has also pledged £1.1bn investment in local transport networks in England. Improved transport connectivity will open up other areas of the country, making it easier and quicker for workers to commute and move around. Spending on infrastructure in the regions is long

overdue, as is job creation and training within the construction industry, but the government's plans to give more power to local authorities and house builders is welcomed by the industry.

There are criticisms from some quarters that the government is focusing too much on the delivery of large-scale, long-term infrastructure projects, such as HS2 and Crossrail2, and not paying enough attention to small developers delivering smaller projects to help ease the pressing housing issue.

So was the Autumn Statement generally good news for the construction industry?

In a word, yes. Though more houses will be needed than has been announced, it is a step in the right direction. As is regional investment in transport and infrastructure. The ever-widening gap between north and south has to be addressed, and this Autumn Statement has gone some way to addressing it.

The funding put forward for housing and infrastructure will mean the construction industry will play a key role in the UK's future economic prosperity. The housing crisis needs a big solution, but the investment in house building will create jobs for trade workers – from joiners and general builders to decorators – and support local people and local economies, boosting productivity across the UK.

However, more needs to be done to ensure there are enough skilled workers to carry out the jobs, which brings Brexit back into focus. For most in the construction industry it's business as usual, but the uncertainty caused by Brexit as we enter 2017 cannot be underestimated or ignored.

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