Construction looks for certainty ahead of Spring Statement 2026

Construction looks for certainty ahead of Spring Statement

With the Chancellor due to deliver the 2026 Spring Statement tomorrow, BCIS is urging government to prioritise clarity and confidence for the construction sector.

Dr David Crosthwaite, chief economist at BCIS, said lessons from last year’s Autumn Budget highlight the damaging impact fiscal uncertainty can have on project viability and investment decisions.

He said: “The big lesson from last year’s Autumn Budget was the paralysing effect that uncertainty can have on client and funder decision-making. In a 24-hour news environment, fiscal speculation mounted and sapped confidence in project viability.

“The effects were evident in construction output data and sentiment surveys. Both new work and R&M output slumped in 4Q2025, with new housebuilding across the private and public sectors declining on both a quarterly and annual basis.”

Dr Crosthwaite said this year’s Spring Statement had so far struck a more measured tone.

“The 2026 Spring Statement is already off to a better start. The Chancellor has said she intends to reserve major announcements, like tax increases, for the Autumn Budget with the Statement serving as an economic update. Hopefully, this will have eased pre-event hypothesising and reduce negative shockwaves for construction.”

However, he cautioned that the government must use the moment to provide tangible signals to industry.

“The government is not off the hook. The Spring Statement period offers an opportunity to give construction businesses and project stakeholders clear, credible signals. An update on the Infrastructure Pipeline would be a good place to start. The next iteration was due in January, yet no further details have been provided.

“The next update needs to improve funding visibility. The government’s private finance strategy is also overdue and could give construction businesses greater clarity on when projects are likely to come to market, and the level of investment required in skills, technology and capacity to meet demand.

“A refreshed housing strategy would be welcome too. Housebuilding output has been sluggish amid affordability challenges and demand constraints. Targeted support for first-time buyers appears to be the most immediate lever available.”

With tax policy unlikely to shift significantly in the Spring Statement, Dr Crosthwaite said restoring confidence through greater pipeline transparency and demand stimulus should be the priority.

“Given it is highly unlikely the government will reverse its tax policies in the Statement to reduce business costs, the focus must shift to restoring pipeline visibility and stimulating real demand. Get those right and investment should follow. Without them, confidence may falter and construction output and wider growth will likely remain subdued.”

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