Construction sector awaits investment from government to sustain growth

The construction sector looks forward to the promised investment boost from the Labour party to ease the financial pressures the industry has previously faced, notes energy litigation experts – Energy Solicitors Limited. The Labour government has highlighted a commitment to modernise the UK’s infrastructure and stimulate economic growth with its pledge to ‘Get Britain Building Again.’ 

The Autumn 2024 budget by Rachel Reeves  marked a pivotal moment for the construction sector offering several implications for infrastructural projects to new fiscal rules. The party  committed over £100bn in public sector capital investment over the next five years. This, along with the £13bn earmarked for 2025, brings up the total departmental capital spending to £131bn, presenting a wealth of opportunities for infrastructure projects. 

Based on projections by Office for Budget Responsibility (OBR), industry players anticipate the investment to unlock further private sector funding, potentially contributing to an influx of capital worth an additional 30p for every £1 of public spending. 

Victoria Myers Senior Partner at Energy Solicitors Limited, said: “The government’s focus on modernising the UK’s infrastructure along with the projected funding in the private construction sector sounds promising.  Ahead of the Spring forecast set for March 2025  which will provide a clearer picture of the future, it is key for construction companies to maintain the growth momentum. ESL helps construction companies claim money from  unscrupulous energy firms and brokers who pile unnecessary costs onto businesses in the construction sector.”