BUDGET | Industry reacts
There was a mixed response to Rachel Reeves’s speech, with her warm words for the built environment welcomed but criticism for the lack of ammunition she has given to housebuilders. Caddick, Avison Young, Ridge & Partners, Close Brothers and more, share their thoughts.
This article will be updated as more reactions are received.
Mark Dewhurst, partner at Ridge & Partners
“For those of us in construction, [the Budget] means we’re operating under sustained fiscal pressure, with compliance costs rising and a sharper focus on value for money in every investment decision – public or private.
“The government’s commitment to infrastructure and housing – backed by planning reforms and targeted support for affordable homes – creates real opportunities for regeneration, especially in our urban centres.
“However, the OBR points out that the expected boost to housebuilding from national planning reforms hasn’t materialised yet. Amendments to the Planning and Infrastructure Bill and a shortage of viable sites in some areas are real risks to delivery.
“The success of both the Budget and Manchester’s £1bn Good Growth Fund will depend on how well we tackle these barriers, nationally and locally.
Joe Reeves, deputy chief executive of Midland Heart
“Now the announcement has landed, it largely confirms what we already expected. It is a budget designed to maintain public expenditure, invest in infrastructure, and protect people’s affordability on the lowest incomes.
“Indeed, the chancellor mentioned in her first sentence that she wants to get Britain building, moreover stating spades in the ground, cranes in the sky.
“The recently announced 10-year rent settlement and affordable homes programme, prior to the Budget, confirms [the government’s] desire to increase affordable homes and invest in skills and local economic activity.
“It is also welcome that the chancellor will continue to devolve funding to the regions, particularly the confirmation of funding for the Midlands Rail Hub to improve connectivity.
“However, this comes at a cost – a broadening of the tax base with higher taxes permeating across almost every part of the economy. A burden falling on many parts of society.”
Helen Collins, head of UK living and affordable housing at Avison Young
“The funding and ambition for affordable housing, as signified in the June Spending Review announcement of £39bn to support a decade of supply, is very welcome, as are plans for the National Bank, bringing the promise of low-cost debt and equity to support supply.
“The ambition is to build 300,000 affordable homes over the programme’s lifetime, with 180,000 for social rent.
“High grant rates and access to lower-cost debt will go some way to creating the financial capacity amongst social landlords and partners to build more homes. However, clarity is still needed on supporting policies such as rent convergence and on standards applying to existing homes, as these have spending implications which will weigh down capacity for new supply.”
Paul Dodsworth, group managing director of Caddick Construction Group
“The chancellor rightly said today that private sector investment is the lifeblood of growth, but inflation and its impact on interest rates has held back a lot of industrial development across the North.
“The Bank of England base rate is heading in the right direction, but even a small incremental drop would be a strong catalyst for confidence.
“Our industry desperately needs more trained bricklayers, carpenters, ground-workers and other trades. The £13bn of flexible funding for devolved regions to invest in skills needs to be used to give young people a proper route into the industry.”
Georgina Lynch, managing director at PJ Livesey
“Empowering mayoral authorities with greater autonomy and additional funding will help to accelerate housing delivery and provide a major boost to regional economies. The commitment to speed up planning decisions—supported by £48m to recruit more planners—is welcome, if overdue.
“After years of discussion around planning reform, it now just needs to happen.
“Proposals to review VAT rules to encourage land use for social housing are also encouraging, but reform should go further by including heritage buildings, which are the catalyst for unlocking many brownfield sites.
“The big thing missing in this Budget is meaningful support for first-time buyers. New government incentives would stimulate demand, drive new housing supply and, in turn, lead to more genuinely affordable homes.”
Andy Steel, managing director of QTS Group
“The chancellor’s commitment to progressing key rail schemes, including the DLR extension and Northern Powerhouse Rail, is a welcome signal that the government recognises the critical role rail infrastructure plays in driving long-term economic productivity.
“We now need collective action – early contractor involvement, clarity of pipeline, and genuine public-private sector collaboration.”
Jennifer Townsend, partner, commercial research at Knight Frank
“Funding for sustainable medicines manufacturing, AI-enabled drug discovery and engineering biology, alongside support for radionuclide medicine and additional capital for specialist life science funds, zeroes in on the niches where the UK can lead.
“Regional measures, from mayoral investment settlements and a new science centre in Darlington to semiconductor support in Welsh growth zones and investment in NHS patient technology, begin to spread those benefits across the country.
“The real test now is delivery and sustaining momentum, as significant challenges persist and global competition to attract innovative companies intensifies. If ministers can match ambition with execution and keep clearing roadblocks to growth, the UK has a genuine chance to turn brilliant science into broad-based prosperity.”
Phil Hooper, chief executive of Close Brothers Property Finance
“It’s extremely disappointing that the government has missed an opportunity to support the housebuilding industry through a new equity loan scheme.
“The government is holding up the Mortgage Guarantee Scheme as its flagship policy to support first-time buyers, but the numbers tell a different story. Since launching four years ago, the scheme has accounted for just 1% of all new mortgages.
“The downturn in the new homes sales market is the single biggest issue for SME housebuilders, and it’s preventing them from being able to scale up their output.
“We’ve seen volume housebuilders take matters into their own hands by launching their own versions of equity loan schemes. Unfortunately, this isn’t an option for SMEs who don’t have that kind of financial firepower.
“Without targeted intervention, we risk losing the very businesses that are building the high-quality homes that the country desperately needs.”
Tim Heatley, co-founder of Capital&Centric
“This is a budget that puts real money behind regeneration. For too long Britain’s towns, cities, and regions have had to come begging to Whitehall every time they wanted to get something done.
“Devolving more power and funding to mayoral city regions feels like a proper attempt to put decisions in the hands of local leaders.
“What matters now is ensuring the money is spent in the places where it’ll have the most impact.
“It could be transformative for projects like the Littlewoods Project in Liverpool – turning a derelict 1930s landmark into a major TV and film campus – exactly the kind of high-impact scheme these growth funds should support.”
James Beynon, director at Quod
“We strongly welcome the chancellor’s commitment to investing in the recruitment of planners across the country.
“Building planning capacity and skills is essential to deliver the well-connected communities Britain needs.
“For Leeds and West Yorkshire, measures such as the Leeds City Fund create a real opportunity to accelerate transformative projects like Leeds South Bank.
“These investments, alongside the additional funding allocated to Mayor Tracy Brabin for skills, investment, and infrastructure, will be key to unlocking the growth potential of this flagship regeneration area, ensuring development is sustainable, accessible, and inclusive.”
James Dickens, managing director of Wavensmere Homes
“The economic cost of Reeves’ £26bn tax increases will lead to retailers and hospitality operators going out of business, be felt by the pockets of all those looking to move onto or up the property ladder, and by the housebuilders vying to deliver energy-efficient new homes.
“Unless something is done, the decimation of our high streets is very real. There are hospitality and retail businesses hanging on to see Christmas through, but without a lifeline from the government, there will be far more casualties as we see in the new year.
“Wavensmere is dealing with multiple quality operators across a number of city centre schemes where they are the bedrock of the placemaking we are trying to create. These venues are unable to move forward without some positive intervention and clarity of where their operational costs are going to end up.
“I am bitterly disappointed by the chancellor’s approach to where the heavy tax burden lies to fund the expanding welfare bill.”
