The Chancellor's Autumn statement has proved to be "underwhelming for the construction industry, according to Building Cost Information Service (BCIS) chief economist Dr David Crosthwaite.

Crosthwaite said in light of the OBR’s central forecast being downgraded, the Autumn Statement "was really quite underwhelming for the construction industry, which has been crying out for some clarity, commitment and consistency in policies".

 Echoing the thoughts of ACE and EIC chief executive Stephen Marcos Jones, who said there was an urgent need for a new national infrastructure and construction pipeline, Crosthwaite highlighted how "this is still nowhere to be seen, with the government saying it will publish a National Infrastructure Strategy next year".

“Investment in infrastructure, and removing barriers to private sector investment, is hugely important to driving economic growth," Crosthwaite added. 

"With the Autumn Statement, construction firms operating in an uncertain market have simply had that uncertainty prolonged yet again. 

“We welcome full expensing of plant and machinery becoming permanent, for those firms who qualify. 

"Having the ability to plan capital investment more effectively will be a huge benefit for firms looking to invest now and in the future, and maybe even a lifeline for some." 

He added that for house builders, the promise of more streamlined planning processes and investment in new schemes may be welcomed, but cautioned "we can’t forget that the significant slowdown in the housing market has been primarily caused by high interest rates creating a lack of demand". 

"The housing sector would benefit more from tangible growth in the economy, which could in part have been boosted now by transparency around and commitment to infrastructure plans," Crosthwaite said.

“Other measures, which will be welcomed by the industry, include a slice of a £50 million investment pot for engineering apprenticeships, but this doesn’t address a much wider skills gap we have across construction. 

"The abolition of class 2 NI contributions for the self-employed, a growing demographic in our industry, is a saving of just £3.45 a week, and so a drop in the ocean considering the considerable costs construction trades have faced and continue to face. 

He added: “As BCIS recently launched the Built Environment Carbon Database, to unite the industry in making the measurement and reporting of whole life carbon assessments consistent, and as we approach COP28 next week, it’s hugely disappointing that the government hasn’t addressed the built environment and other sectors’ significant contribution to carbon emissions. 

"Ambitions to reach net zero continue to be hampered by a lack of mandate for reporting from government level.”

Meanwhile, James Corrigan, Turner & Townsend’s UK managing director for infrastructure, said the government had clearly been listening to concerns around barriers to investment in the areas of industry, decarbonisation and infrastructure.

“The Chancellor has today signalled a much-needed long term strategy and funding support for advance manufacturing – bolstering the green investment in skills and expertise needed to support the UK’s own clean energy transition, while also eyeing export opportunities abroad," Corrigan said.  

"There is a welcome focus on both physical geography – through investment zones – as well as freeing up finance from private avenues such as pension funds.

“Targeted investment in these potentially high-growth, net zero sectors is vital, as are the planning reforms to reduce uncertainty and delay that will reassure these industries that they will be able to access the infrastructure they need to succeed.

“What is currently unclear is how all this will be delivered in practice."  

He added: "The government writes about the need for greater spatial planning of infrastructure, and the sector and ministers need to collaborate closely to assess the available resource to ensure realistic sequencing of investment and development.  

"Without this we risk setting unattainable goals and hitting capacity bottlenecks in delivery.”

Graham Harle, CEO of Gleeds said this was an autumn statement by a "government that appears to have little insight into the challenges faced by those working in property and construction, having shuffled 16 housing ministers in 13 years and just cancelled HS2".

He added: "Of the measures announced, full expensing is to be welcomed but is only helpful if you have projects requiring you to buy plant and machinery. 

"It doesn’t help firms struggling to make a profit or investing in people. 

"It’s all jam tomorrow and while planning reforms sound appealing they take time to implement and may not be supported by any future government." 

Harle conceded reducing business rates is "helpful for a struggling retail sector" and the abolition of aspects of national insurance for self-employed tradespeople "looks good but is worth little more than a few hundred pounds for the average plumber or electrician". 

"Where was the VAT relief on the greening of housing stock when over 31 million people live in buildings that meet sub-standard EPC ratings?" he asked, adding £50m to support apprenticeships was "meagre". 

"We were promised 110 measures to help industry but in fact there was little there to inspire confidence & stimulate investment," Harle said.