The 2025 Autumn Budget offers both promise and pressure for infrastructure and construction. With GDP growth at 1.5% and taxes climbing to 38% of GDP, the sector faces tighter margins. But there are real opportunities: 100 new Neighbourhood Health Centres by 2030, planning reforms gaining Royal Assent, and backing for a third runway extension. The challenge is turning ambition into delivery.

Infrastructure investment and planning reforms  from Andy Stamp and James Smith

It’s always good to hear the Chancellor reconfirm her commitment to infrastructure. Now it’s on the industry, government and investors to speed up delivery, harnessing AI and collaborating to improve certainty of outcomes.

The Office for Budget Responsibility’s Economic and fiscal outlook says the Planning & Infrastructure Bill and changes to the NSIP regime could increase real GDP in the long run, but notes there is not yet enough evidence to increase the existing baseline forecast.

Yesterday’s announcement that the government backs the plan for an extended third runway is welcome – it would be a step forward for the economy.

Equally important will be infrastructure development outside the South East. Ensuring growth across the whole country should be the first priority for enhancing infrastructure, and the Chancellor recognised this with a renewed emphasis on support for regional transport upgrades.

The good news is that the NPPF consultation is expected as an early Christmas present to all planners, and the Planning and Infrastructure Bill was debated and cleared by the House of Lords on Monday and is set to gain Royal Assent.

The importance of a consistent long term plan plus the planning reforms makes private investment and growth stimulation more likely.

Construction and property: Facing a tougher financial budget from Mark Dewhurst

The 2025 Autumn Budget sets the stage for a challenging but crucial period for the construction and property sector.

The headline is clear: UK GDP growth is expected to average 1.5% in the coming years, but inflation will stick around longer than we’d like, and public sector borrowing is set to drop from 4.5% of GDP in 2025-26 to 1.9% by 2030-31. Despite this, both tax and public spending will stay at record highs, with National Accounts taxes climbing to 38% of GDP by the end of the decade.

For those of us in construction, this means we’re operating under sustained fiscal pressure, with compliance costs rising and a sharper focus on value for money in every investment decision—public or private.

Of course, there are two sides to the story. On one hand, the government’s commitment to infrastructure and housing—backed by planning reforms and targeted support for affordable homes—creates real opportunities for regeneration, especially in our urban centres.

But let’s be realistic. The Office for Budget Responsibility points out that the expected boost to housebuilding from national planning reforms hasn’t materialised yet. Amendments to the Planning and Infrastructure Bill and a shortage of viable sites in some areas are real risks to delivery. The success of the Autumn Budget will depend on how well we tackle these barriers.

The Autumn Budget gives us a framework for stability and targeted investment, but it also signals a period of adjustment for the construction and property market.

Developers and investors will need to navigate tighter margins, changing regulations, and shifting demand. Success will come down to the ability to adapt, seize regeneration opportunities, and deliver high-quality, sustainable projects across our city regions, not just in city centres.

Healthcare infrastructure: A new model for neighbourhood health centres from Paul Deverill

The announcement of 100 new Neighbourhood Health Centres to be opened by 2030, as part of wider delivery of 250 new health ‘one stop shops’, is fantastic news, and will make a big difference to making care more convenient and accessible to those who need it most.

The announcement that private investment can be used is especially welcome. So too is the promise of a “dynamic new approach” between the public and private sector alongside public investment for a mixture of newbuild and refurbished/repurposed facilities. There are clear echoes of the NHS LIFT initiative from 2004 – which delivered over 350 health centres and also had a focus on urban and deprived areas.

While the full details of the new model are still outstanding, an important detail is that these projects will be budgeted for as if they are on balance sheet. This will allow a much more transparent assessment of the value for money of the PPP delivery route, and also allow risk to be transferred to the party best placed to manage it.

Whilst the potential of new PPP schemes will no doubt grab a lot of the headlines, the clear statement of an increase in investment in infrastructure to help change the way care is delivered is really good news.

What is needed now is confirmation of the level of funding/CDEL (Capital Departmental Expenditure Limit) that will be provided to support these developments. What seems likely is that the focus may be on refurbishment or reconfiguration of existing facilities, to allow for quick wins and achieve the pace of delivery needed for long-term success.

Place based business cases, which may be introduced as part of updates to the Green Book expected early next year are long overdue. They will help us to more easily assess how interlinked initiatives relating to healthcare, housing and transport can deliver greater value for particular places. Early adopters of this approach – in Liverpool, Plymouth, Port Talbot and Birmingham – are identified in the budget but can be more widely used to support investment in the areas of the UK that need it most.

For more information contact: Paul Deverill , Andy Stamps, Mark Dewhurst and James Smith