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Did the budget lay the foundations for a construction recovery, or just another layer?

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UK Construction Needs Certainty, Not Short-Term Fixes
UK Construction Needs Certainty, Not Short-Term Fixes. Picture: LBC/Alamy
Robbie Blackhurst

By Robbie Blackhurst

The government keeps claiming this Budget backs growth, but the reality on the ground tells a different story.

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Construction firms are still grappling with volatile supply chains, soaring material costs, and a planning system that moves at geological speed.

These aren’t small frustrations – they are fundamental blockers to growth.

And yet, the measures announced largely ignore them, leaving firms to navigate uncertainty with no real long-term support.

Construction is the engine room of the UK economy. Housing delivery, infrastructure projects, regional development - all of these rely on a stable and confident sector. But right now, we’re not even meeting the country’s own ambitions. The government’s target is to deliver 300,000 homes a year in England, yet the latest figures show supply falling to just 208,600 net additional dwellings in 2024–25 – barely two-thirds of what’s needed.

That shortfall alone demonstrates why “business as usual” is not an option.

The Budget also includes a £48 million investment to boost planning capacity, aimed at helping local authorities process applications faster.

While this is tied to the government’s drive for increased devolution, the real gaps remain at a national level: central government needs to work more closely with industry to plug capability shortfalls.

Without that coordination, even well-intentioned funding risks being absorbed by bureaucracy rather than turning into faster delivery on the ground.

A Budget that truly supported growth would tackle the core challenges head-on: speeding up planning processes, investing in skills, and providing contractors with the confidence to invest in people, equipment, and innovation.

Unfortunately, this Budget offers short-term fixes, dressed up as vision, without addressing the systemic barriers that hold the sector back.

A handful of targeted funding pots and devolved powers could help unlock stalled projects at the margins, but they are no substitute for structural change.

The chronic delays in planning, the uncertainty over multi-year infrastructure funding, and the ongoing viability problems in housing delivery remain untouched.

Without clear, long-term policy signals, even well-funded projects risk being delayed or downsized.

The UK government continues to treat construction like a tap - switched on when convenient and turned off when budgets tighten or priorities shift.

This stop-start approach destroys capacity, erodes skills, and discourages investment. It takes years to rebuild lost capability, and every pause has a real cost: delayed homes, stalled infrastructure, and missed opportunities for regional growth.

Meanwhile, international competitors invest strategically, building resilience and capacity while we drift in uncertainty.

If the UK wants to maintain its competitiveness, it cannot afford to treat major projects as optional extras. Construction requires certainty, long-term funding, and a planning system that enables delivery, not obstructs it. Until we address these issues, claims of “pro-growth” policies ring hollow.

The time for short-term tinkering is over, the industry, and the country, need a strategy that actually delivers.

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Robbie Blackhurst is the Founder and Director of Black Capital Group

LBC Opinion provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

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