The Chancellor builds the case for “Securonomics”

In a rowdy chamber, the Chancellor strove to deliver a positive and upbeat review. What followed over the next 50 minutes was a blizzard of numbers and committing to long-term investment targets, for both key labour policies and UK regions.

 

While the NHS was once again the major beneficiary, other departments and sectors also benefited, including:

 

Energy - As part of the Chancellor of the Exchequer's plan for stability and investment (“Securonomics”), the government is committed to spending £30 billion on nuclear power, which will include £14.2 billion for a new nuclear reactor at Sizewell C (a proposed nuclear power station in Suffolk), investment in nuclear fusion and £2.5 billion in small modular reactors (SMRs) to modernize the UK’s energy mix. This comes as an effort to reduce the reliance on oil and gas overseas and a move towards a cleaner Britain.  Rachel Reeves reasserted the government's clean energy commitment, but did not specify the Labour government's investment strategy towards this.

 

Housing - There were multiple announcements of interest to the Housebuilding sector this afternoon. Chief amongst these was the headline grabbing commitment to spending £39 billion on social housing (focused on social rent) over the next 10 years.

 

This represents a sizeable commitment and change to previous policy and may be a rare case of labour ideology shining through in what has been up until now a deeply pragmatic government.

 

Hot on the heals of this announcement was a further £10 billion of inward investment funding, a share of which would be delivered by Homes England.

 

Not announced in the chamber, but subsequently coming to light has been, a 1.1% increase in the budget of the Department of Communities and Local Government. This long-squeezed government department is responsible for, amongst other things, delivery of planning policy and will no doubt be a modest boost to the plans of Angela Rayner.

 

Transport Infrastructure - An important part of the speech, following social housing investments, came the exciting prospect of £15 billion in funding for transport infrastructure in England, which will be shared through local transport grants and managed by local authorities. This focuses on public transport such as trains, trams and buses, aiming to increase mobility in local areas and across the country. Other major investment promises such as £3.5 billion for TransPennine rail upgrades, £2.5 billion for East-West rail (East Anglia to Oxfordshire) and £445 million for Welsh rail upgrades, were also proposed.

 

Whilst the government has decided that upgrading the UK’s creaking infrastructure and connectivity is key to generating growth in the UK economy, many of these plans have been announced previously.  Nonetheless such a reconfirmation will be further welcomed by professionals across the construction sector.

 

Regeneration - One of Rachel Reeves final points was the regeneration of towns and cities. The Chancellor noted that people across the country have “sensed that something had been lost” through the failing communities becoming prevalent throughout Britain. The government promises £240 million in a “Growth Mission Fund” which supports town centres and high streets, with one of the first beneficiaries being Kirkcaldy, which will receive funding to revitalise the town centre and seafront. Additionally, the Chancellor promises spending for the renewal of 350 deprived areas who will receive funding for new community spaces such as parks, libraries and swimming pools.

 

Further details of the spending review are still emerging, but it is encouraging to see commitments impacting the UK construction and housebuilding industry feature so promptly in this financial event.

 

Whilst we await further details, please do not hesitate to contact DHA's Amy Negus or Patrick Good if you have any questions.