Reactions from the building material industry to Rachel Reeves's first budget have been mixed.

Reacting to the Budget statement, John Newcomb, CEO of the Builder's Merchants Federation, said: “We fully expected this to be a difficult budget for our members,  with many of the revenue raising measures flagged in advance.  

 “The majority of our merchant members are classified as SMEs, with over 70% having an annual turnover below £12.5m. While there was one piece of good news relating to fuel duty, this is far outweighed by  the increases in minimum wage and national insurance contributions.  Our members will be hugely impacted by these extra costs which will immediately come off their bottom line.

 “This is extremely disappointing at a time when we are seeking to increase recruitment and skills in the building materials sector.  Skills which will be essential if we are to fulfil the additional product demand to deliver 1.5 million new homes, which the government has pledged, but provided little detail as to how they plan to achieve this target.

 “As always, the devil is in the detail. We need to get Britain building. The sooner we start seeing details of how the government plans to achieve their housing target, the better.”

Dr David Crosthwaite, Chief Economist at Building Cost Information Service (BCIS), said: “Reeves announced £100 billion in capital spending over the next five-years with the mantra “invest, invest, invest” but I’m not convinced this is a budget for growth.

“There are conflicting announcements, and as it stands the investment outlined in the Budget is unlikely to make a material difference to the construction sector and “get Britain building again” - a stated aim of the Government.

“I was hoping for something a little more radical, but perhaps that will come in the Spending Review next spring.

“We really need the Government to invest in fixed capital programmes that will actually “get Britain building again” and drive wider economic growth. Four months in and this feels like a missed opportunity for the new Government.

“The Government did announce spending on construction projects, such as schools, social housing and transport to name a few.

“However, it still remains unclear how the Government intends to meet its self-imposed target of building 1.5 million homes over the life of the Parliament, without tackling the existing skills shortage.

“The resurrection of the HS2 link from Old Oak Common to Euston is a positive move, but we need more commitment to other infrastructure projects in the pipeline with the Lower Thames Crossing project a prime example.”

Allan Wright, MD at Civils & Lintels, said: “When Labour failed to include construction within its industrial strategy earlier this month, I was not alone in expressing my surprise and frustration that the government’s early focus and commitment had seemingly lost momentum so quickly.

“The irrefutable fact that, in the intervening weeks, Labour has failed to respond meaningfully to the sector’s challenge alongside its further exclusion from today’s Budget speech, appears completely baffling.

“Clarity on the key issues should have come today. Instead, we’re left still asking when much-needed planning reform will be delivered, and when the government will support young people on to the housing ladder.

“These areas could, and should, have all been addressed to provide the tangible detail and confidence that the construction and housebuilding sectors so desperately need in what currently remains a subdued market

“I can only hope that sector’s dissatisfaction won’t go unheard for too much longer and that the government eventually recognises the vital role that construction plays in the buoyancy of UK plc.”

Rachel Hughes, Marketing Director at wienerberger UK, said: "The Labour government’s Autumn Budget sets the stage for a shift towards sustainable construction in the UK. Focusing on decarbonisation, it outlines a roadmap addressing environmental concerns and opening new avenues for innovation and growth in construction.

“At wienerberger UK & Ireland, we view these announcements with optimism and support, aligning with our commitment to advancing sustainable construction practices.

“The announcement of additional funding for the Affordable Homes Programme underscores the UK government's dedication to addressing the profound housing crisis. This commitment, part of a broader strategy to invest over £5 billion in housing supply, is poised to deliver up to 33,000 new homes nationwide. Crucially, the initiative targets the creation of 5,000 additional affordable social homes, a vital step towards increasing accessibility to safe and affordable housing for those in need.

“The introduction of a five-year social housing rent settlement further enhances the sector by providing financial stability and promoting long-term planning. The reduction in Right to Buy discounts also aims to preserve existing council housing stock, ensuring its availability for future generations. This multi-faceted approach, which wienerberger supports, reflects a strategic move to rebuild Britain’s housing landscape, fostering community stability and economic growth. With the housing strategy set to expand further in the spring, the focus remains on delivering the largest increase in social and affordable housing seen in a generation, backed by new policy mechanisms and significant financial investments.

“This focus aligns with wienerberger’s  Social Impact Strategy, which centres on the belief that access to stable, high-quality shelter is the foundation for an equitable society. As a business we are taking meaningful action to help prevent homelessness, support those at risk of homelessness, and help those who experience homelessness in getting back on their feet.”

KellyBecker, President of Schneider Electric UK and Ireland, Belgium and Netherlands, commented: "The Government has made good progress to support UK business and manufacturing. Schneider Electric welcomes the commitments to deliver an Industrial Strategy and the Budget's commitments to maintaining funding for the Industrial Energy Transformation Fund, the Public Sector Decarbonisation Scheme, and Made Smarter. We also welcome clarity on the future tax landscape, including a cap on Corporation Tax at 25% for this Parliament and retention of full expensing as well as a commitment to explore extending it to leased assets when fiscal conditions allow. These measures will support manufacturers and wider business to continue to invest in the UK.

 "However, we would have liked to see commitments to supporting the manufacturing supply chain that will play a key role in delivering the industrial and green growth ambitions set by the Government. While we welcome the support for residential and public sector building decarbonisation, the UK also needs a clear roadmap for decarbonising the commercial and industrial sectors. 

"Finally, at a time when UK manufacturers are struggling to hire skilled workers and compete with the EU and the US, we need measures that will support business and economic growth. We question how increasing the cost of employment is aligned with the government’s mission to grow the economy and deliver prosperity."

Dave Sanders, Head of Technical Sales at Wrekin Products, commented on the £500 million investments pothole maintenance announced in the Autumn Budget, saying : "Unless there is a real push for long term pothole repair solutions instead of quick fixes, then we will not be able to solve the pothole crisis – no matter how much budget is allocated. We’re seeing a growing number of local authorities unhappy with the approach of patch repairing already subpar pothole repair works, but this is happening far too often. 

“More guidance surrounding how potholes are formed and the innovative solutions available will allow more local authorities to address the root causes properly.  

“Other underlying causes of potholes include road ironwork failures and this needs to be addressed. Potholes will form when weaknesses exist in the road surface, potentially from surfacing joints, remedial works, or the use of poor-quality materials. Fitting a piece of ironwork in a road can create a potential weakness, as well as the cuts in the road needed to remove ironwork. Replacement or repair of ironwork also poses an increased risk.? 

“Selecting robust systems with the correct, appropriate materials can reduce the potential for surface weakness. Durable ironwork that is sympathetic to its bedding materials and surrounding environment is key to preventing potholes. 

“Though there is much to be done in addressing the short comings of iron work solutions in the road network, a key factor will be the welcomed £500m commitment from national government. More discussions and collaboration between national government and local authorities will be needed to ensure that the allocation of funding accurately addresses the root causes of failures in the road network, and we look forward to these developments taking place.” 


This page will be updated as further reactions are published.