Following chancellor of the exchequer John Healey’s Autumn Budget today, infrastructure stakeholders have responded to “welcome signals”, while flagging issues from deliverability to ageing infrastructure.
Additional funding support for the National Wealth Fund and British Business Bank to the tune of an additional £20.4bn was one measure the civil engineering industry saw as a positive.
This extra funding has been earmarked to strengthen the government’s two main public finance institutions and their role in supporting reindustrialisation, regional growth and Britain’s strategic industries.
Within these financing announcements, the National Wealth Fund will receive £15.4bn, including £2bn for the new Energy Wealth Fund.
This will aim to allow it to continue investing and lending at its current rate over the coming years and use public capital to help mobilise private investment in businesses and major projects.
Institution of Civil Engineers (ICE) director general Janet Young said: “Today’s Budget contained some welcome signals for infrastructure, including additional support for the National Wealth Fund and British Business Bank, greater powers for regional leaders to invest in local priorities, and its continued commitment to the Infrastructure Pipeline.
“Together, these measures show the government recognises the role that infrastructure certainty and investment can play in driving economic growth and attracting private capital.
“The key test, however, will be whether these commitments are backed by a clear plan for delivery.
“The sector will be looking for greater detail in next year’s Spending Review, and in the refresh of the 10-Year Infrastructure Strategy.
“As climate risks continue to grow, a review of the economics of resilience, as recommended by the ICE, would help ensure investments delivers long-term value. It is also crucial that funding for maintaining and renewing the UK’s ageing infrastructure is protected.
“Tough choices are inevitable, but infrastructure investment should not be viewed solely as a cost. Well-targeted spending can strengthen resilience, improve productivity and support the economic growth the country needs.”
Beyond financing, many were keen to champion the government’s continued efforts to devolve key decisions to local and combined authorities.
AtkinsRéalis president for UK & Ireland Chris Ball said: “The significance of today’s Budget will ultimately be judged less by what is said in Parliament and more by the outcomes it creates locally.
“The decision to deepen devolution through greater fiscal powers for mayors, alongside new borrowing flexibilities to support regional investment, reflects a growing recognition that local leaders have a critical role to play in shaping economic growth.
“Combined with measures to accelerate the delivery of nationally significant infrastructure, strengthen public procurement and expand apprenticeship opportunities on major projects, today’s Budget contains several important building blocks for long-term growth.
“The confirmation of full funding for the Defence Investment Plan also reinforces the government’s commitment to a sector that will make an increasingly important contribution to national resilience and regional development.
“For regions across the UK, the focus now shifts from investment announcements to delivery. That means combining funding with effective planning, skills development and the capacity to bring projects forward at pace.
“We now look forward to the publication of the Prime Minister’s 10-year infrastructure plan, which will provide the certainty needed to help turn today’s ambitions into long-term value for people and places across the UK.”
The emphasis on devolved buy-in was also echoed by Turner & Townsend managing director UK infrastructure and defence Andy Scott. He said: “Within infrastructure, the big story will not come directly from today’s Budget, but with the shift towards local decision-making and fiscal devolution that it sets in motion.
“The opportunity for existing and emerging devolved authorities in England to harness business rates revenue can be a powerful tool through which to prioritise game-changing infrastructure schemes. Investment in areas like mass transit will have a direct impact on the communities they serve – unlocking regeneration and improving connectivity.
“In practice this is likely to be achieved through a blend of direct funding but also the opportunity to attract private capital too.
“Success will rely on making sure that these authorities have access not just to the finance they need but expertise too – drawing on best practice in major programmes to meet regions’ growth priorities.”
Others acknowledged the current Labour government’s prioritisation of infrastructure.
Mott MacDonald Group strategy director and regional managing director for UK and Europe Richard Risdon said: “Today’s Budget reinforces the central role infrastructure will play in the UK’s economic growth and resilience.
“From clean energy and housing to increased defence investment and the expanded role of the National Wealth Fund, there is a clear focus on mobilising investment in infrastructure and industries the UK will need for the future.
“What matters now is creating the conditions to turn those ambitions into investable, deliverable projects, with greater certainty for the organisations being asked to plan, finance and deliver them.
“Giving mayors greater control over funding creates a real opportunity to join those decisions up, matching investment and skills more closely to what individual places need.”
The focus placed on the transport aspect of the Green Book was also seen as a positive announcement.
Mott MacDonald managing director for transport in UK and Europe Tony O’Toole said: “Today’s Budget is good news for people who rely on our transport networks and for regions looking to unlock growth.
“Greater local control over investment can help places make the connections between transport, housing and regeneration, and create the conditions for businesses and communities to thrive.
“The Green Book reforms and devolution package should strengthen that place-based approach, recognising that the value of transport investment extends well beyond the transport network itself.
“The projects highlighted today, from the Black Country Metro extension and Bakerloo line extension to investment in Cardiff Parkway station, show how better connectivity can support wider economic and regional ambitions. The priority now must be to build on that momentum and give places the confidence to plan and deliver for the long term.”
Association for Consultancy and Engineering (ACE) chief executive Milda Manomaityte said: “ACE welcomes the chancellor’s commitment to fiscal devolution and cheaper, cleaner energy, which shows the government understands that energy is the foundation of growth in every part of the country and decisions on local infrastructure are better made locally.
“The ambition is right. The infrastructure sector needs a stable, fully funded pipeline, clarity on the private investment models government expects us to rely on, and certainty that these commitments will survive the next fiscal event.
“Devolution is the defining theme of this Budget. Moving money and power closer to communities works if mayors and local authorities have the capacity and long-term settlements to plan and design schemes properly.
“Getting design right at the start is the best way to save money later. ACE will work constructively on behalf of members with the government to ensure devolution delivers for local communities.”
The Civil Engineering Contractors Association (Ceca) director of policy & public affairs Ben Goodwin said: “For Ceca members, the test of this Budget is how quickly its commitments become procurement opportunities and work on the ground.
“We welcome the commitment to publish an updated Infrastructure Pipeline by the end of 2026. In Ceca’s Budget submission we called for a funded, sequenced programme and a pipeline that works as a practical market tool. To do that, it needs procurement dates, routes to market and reliable workforce data at project level, not just a headline total.
“Additional capital for the National Wealth Fund is welcome, and the government is right to emphasise protecting capital investment. But financing capacity cannot replace public funding when there is no commercial revenue stream. Ministers should be clear how today’s measures support the wider programme.
“We also welcome the expectation that apprentices make up at least 3% of the workforce on large government construction and infrastructure projects. Ceca members are committed to training the next generation. For this to work, government must ensure that taking on and supervising apprentices is affordable for contractors, particularly specialist firms and SMEs.
“Faster planning decisions matter too, but the planning bodies behind them need the resources to turn reform into delivery. Greater powers for local leaders can help address barriers to growth, and the additional capacity funding for mayors is a step in the right direction.
“The priority now is to bring funded schemes to market and give industry a reliable programme of future work. That is how we turn investment commitments into jobs, growth and better infrastructure for businesses and communities across the UK.”
