The Government’s latest Budget (26th November) has drawn a muted response from across the housebuilding and wider construction sector, with a mix of commentators praising some moves such as on landfill tax and others calling it a missed opportunity to support building and achieve growth.
While measures on energy levies, infrastructure funding and apprenticeships were welcomed by some, industry leaders warned that the statement fell short of the decisive action needed to boost housing delivery, fix planning capacity, and provide stable conditions for long term investment. Voices from across the sector said the Chancellor, Rachel Reeves, having acknowledged the industry’s delivery challenges, did not back the Government’s ambition with concrete support.
Chair of The Housing Forum, Stephen Teagle, said:
“It is good to see the Government recognise the need to reduce the cost of electricity relative to gas. The reductions announced to the levies on electricity bills should help reduce fuel poverty, as well as encouraging households to move to heat pumps and other low-carbon heating sources.”
Richard Beresford, chief executive of the National Federation of Builders (NFB), said: “Construction feared the worst from the budget, particularly on landfill tax. While we were heard on this proposal, lower rate landfill tax, or ‘muckaway’, will still more than double in price. Furthermore, businesses who employ directly, take on apprentices, or who choose to decarbonise their vehicle fleets, will be throwing their arms up in frustration.
“There was nothing on stamp duty land tax rebates for the most efficient homes, no cancelling of the Building Safety Levy and not a murmur on Help to Buy, all of which means industry will remain in the mud.”
Rachel Hughes, director of marketing at wienerberger UK and Ireland commented:
“If the country truly wants to accelerate housing delivery and unlock growth, it will take more than ambition. It will take a planning system with capacity, a supply chain with confidence, and a clear, stable commitment to building. Good intentions alone won’t deliver the scale of building Britain needs – and has been promised.”
Silver, CEO of Dorchester Living, said: “My hope is that housing remains a genuine priority for the Government following today’s Budget, not just in words, but in action. Housing and infrastructure are fundamental to the strength and stability of our economy. We need clear, consistent incentives that genuinely support delivery across the sector.”
Omar Al-Hasso, CEO of SimplyPhi, commented:
“While new build delivery is undoubtedly an important part of the picture, this approach fails to address the diversity of housing required to meet existing needs, especially the critical demand for temporary accommodation.
“The Chancellor has missed an opportunity to use the Budget to reform Local Housing Allowance (LHA) rates, indexing them to inflation or preferably re-basing them relative to live market rent. This would not only open up more affordable private rented housing stock but would reduce risk for local authorities raising institutional investment from the private sector, to bring forward more immediate housing supply.”
Dr David Crosthwaite, chief economist at BCIS, said:
“There’s little in this Budget for the construction sector.” However, he commended the £900m additional investment for the Lower Thames Crossing scheme, free training for under-25 apprentices for SMEs, and “steadfastness” on Spending Review investments in infrastructure and housing. He concluded “that the Chancellor’s celebration of the government’s planning overhaul to ‘get Britain building’ seemed misplaced.”
Katy Davis, National Head of Planning at Carter Jonas said:
“Yesterday’s Budget was a significant opportunity for the Government to use fiscal measures to support housebuilding. With planning reforms largely in place, delivery will increasingly depend on collaboration with the private sector. However, yesterday’s measures may leave many in the sector questioning whether they go far enough.”