News
Wednesday 17th September 2025
Reasons to be optimistic about the construction industry
The construction industry is currently benefitting from a new phase of government investment that promises to drive growth in the coming years. Here’s why we’re optimistic about the future of construction.
£113bn in capital spending
Chancellor Rachel Reeves has pledged £113bn in funding for transport, housing, energy and skills over the rest of this Parliament. Also, in the Spending Review 2025, £10bn was announced for “financial investments”, with a share allocated to Homes for England to encourage private investments. Hopefully, this will pave the way for some growth in the construction sector.
The government has also launched a new digital tool, the Infrastructure Pipeline, which provides real-time updates on 780 planned private and public sector projects. This should give investors and businesses the clarity they need to plan with confidence for the long term.
Slow and steady improvement
Overall, investment in construction has increased steadily over the past decade. Between 2014 and the start of 2020, investment more than doubled before slowing during the pandemic. From 2021 onwards, momentum returned, with only a brief dip in 2023 as high interest rates and soaring construction costs temporarily slowed progress.
Big projects bring promise
Several large-scale projects are now helping to attract investors and create opportunities. In the Spending Review 2025, £14.2bn was committed to funding the construction of the Sizewell C nuclear plant in Suffolk. This marks a significant step towards reducing the UK’s reliance on fossil fuels, with the plant expected to generate enough energy to power six million homes.
Also, the government set a target to deliver 43–50 GW of offshore wind by 2030. At the end of last year, the UK’s capacity was at 14.7 GW. While there’s still a long way to go, progress is accelerating – at the start of 2025, six offshore projects were under construction and the number of planning applications for new sites was on the rise.
Meanwhile, work is progressing on transport infrastructure. In March, plans were approved for the construction of the Lower Thames Crossing, a £10bn project designed to ease congestion. The government has already pledged £590m and is seeking further private investment to complete the scheme.
Skills shortage remains a challenge
While the outlook for construction is positive, the skills shortage could put this growth at risk. We therefore hope that the government’s plan to train the next generation of workers will be successful, so the industry can deliver the ambitious pipeline of projects on the horizon.