Hello to our fantastic readers! As the editor of Design & Build UK, I’m thrilled to present our latest analysis on the developments shaping the built environment sector. Design & Build UK has become a cornerstone for industry professionals seeking in-depth reporting and insights into construction, property, and infrastructure. With every article and feature, we aim to provide our readers with a comprehensive understanding of the factors driving change within the UK’s built environment, covering topics from sustainable construction and innovative building technologies to significant policy shifts.
Under my editorial leadership, Design & Build UK focuses on delivering clear, unbiased content that industry professionals can rely on to stay ahead of market trends. Our team brings together experts across construction, engineering, and architecture to examine the latest projects, policies, and advancements impacting our sector. Together, we strive to address the information needs of contractors, developers, suppliers, and investors, helping them navigate the complexities of a dynamic industry.
So, it is with great pleasure I can offer you a summary of the Autumn Budget set out by chancellor Rachael Reeves, which we feel sets out a strategic course for addressing key economic and structural priorities. The budget focuses on long-term capital investments across the infrastructure, housing, energy, and healthcare sectors, alongside tax changes and workforce initiatives to support sustained growth.
Infrastructure and Transport
Infrastructure improvements are a central component of this budget, with significant allocations directed towards transport enhancements aimed at improving connectivity and supporting regional growth.
- HS2 and Major Rail Projects: Funding is allocated to complete HS2’s extension from Old Oak Common to Euston, facilitating London and Birmingham connectivity and adding capacity to the West Coast Mainline. Other high-priority rail projects include the Transpennine Route Upgrade, which will improve connections between Manchester, Leeds, and York with planned electrification. East West Rail, linking Oxford and Cambridge, also received dedicated funding, aligning with goals to enhance regional transport.
- Local Roads Maintenance: Local road maintenance funding sees a nearly 50% increase, reaching £1.6 billion. This allocation aims to address deteriorating road conditions, reduce potholes, and improve overall safety for local road users.
These transport and infrastructure investments reflect the government’s commitment to a connected UK, with direct implications for construction and related project opportunities.
Housing and Property Development
The Autumn Budget dedicates funds to address the UK’s housing needs, focusing on affordable housing, rental support, and planning efficiency.
- Affordable Homes and Build to Rent Support: An additional £500 million for the Affordable Homes Programme is set to deliver up to 5,000 new homes, supporting affordability in high-demand areas. The government is also providing £3 billion in housing guarantees to support Build to Rent initiatives and small to medium-sized enterprises (SMEs) in property development.
- Addressing Planning Delays: To overcome delays caused by nutrient neutrality rules, the budget allocates £47 million to unlock around 28,000 stalled homes. An additional £46 million will go toward recruiting and training planning staff, improving approval efficiency for new housing developments.
- Stamp Duty and First-Time Buyer Initiatives: Increasing the stamp duty surcharge on second homes from 3% to 5% aims to reduce market competition for first-time buyers, with projections of 130,000 additional transactions expected over five years.
These measures collectively aim to address housing accessibility, supply, and speed up regulatory processes affecting property development.
NHS and Healthcare Infrastructure
The healthcare sector benefits from increased capital funding, addressing critical infrastructure needs within NHS facilities.
- Hospital and GP Upgrades: The budget includes a £3.1 billion increase in NHS capital investment, with over £1 billion targeted at reinforced autoclaved aerated concrete (RAAC) remediation and addressing structural maintenance issues across NHS facilities. Upgrades to 200 GP surgeries across England are also planned, enhancing primary healthcare accessibility and modernising essential facilities.
- New Hospitals Programme Review: The government announced that a review of the New Hospitals Programme is scheduled for release next year, further detailing plans for long-term healthcare infrastructure upgrades.
These investments in healthcare infrastructure are intended to improve patient care and enhance NHS facility resilience.
Energy and Decarbonisation
Aligned with the UK’s net-zero targets, the budget commits substantial funds to renewable energy, nuclear energy, and residential decarbonisation.
- Carbon Capture and Green Hydrogen: A £3.9 billion investment in Carbon Capture, Utilisation, and Storage (CCUS) projects supports emissions reduction in industrial areas like Merseyside and Teesside. Additionally, funding will support 11 new green hydrogen facilities to diversify the UK’s energy sources.
- Sizewell C and Warm Homes Plan: Ongoing funding for Sizewell C, at £2.7 billion, contributes to long-term energy security. The initial £3.4 million allocated to the Warm Homes Plan focuses on decarbonising residential energy, targeting over 225,000 households with anticipated energy savings of £200 per year.
These allocations aim to promote clean energy production, reduce emissions, and support sustainable infrastructure upgrades.
Tax Adjustments and Business Relief
The budget introduces several tax changes aimed at supporting public services and maintaining fiscal stability.
- National Insurance Increase and Capital Gains Tax: Employer National Insurance contributions will rise by 1.2%, generating funds for essential services. Capital gains tax rates increase from 10% to 18% for the lower band and from 20% to 24% for the higher band. Corporation tax remains at 25% for the current Parliament, providing consistency in corporate taxation.
- Business Rates Relief: Retail, hospitality, and leisure sectors will benefit from a 40% business rates relief, capped at £110,000 per business. This relief aims to support businesses still recovering from recent economic challenges.
These tax measures reflect the government’s focus on balancing fiscal responsibility with targeted support for key sectors.
Skills Development and Employment
To address the skills gap in construction and related industries, the budget introduces new workforce development initiatives.
- Skills England and Returnerships: £63 million is allocated to a returnerships program to bring over-50s back into the workforce. Additionally, Skills England is launched to develop foundational skills in high-demand sectors, supporting the pipeline of skilled professionals required for infrastructure projects.
- Construction Roles on Shortage Occupation List: Key construction roles, including bricklayers and carpenters, have been added to the Shortage Occupation List, allowing easier access to skilled labour from overseas and addressing workforce shortages critical to construction timelines.
These workforce initiatives aim to address both immediate labour shortages and long-term skill development needs across key sectors.
My Closing Comments The Autumn Budget 2024 provides a comprehensive framework for investment across infrastructure, housing, healthcare, energy, and workforce development, aligning with long-term economic resilience goals. The budget’s focus on regulatory and planning efficiency, tax adjustments, and workforce support reflects a strategic approach to addressing the UK’s built environment needs, supporting the construction, property, and public sectors in creating a connected, sustainable, and modernised UK.
