On the Comprehensive Spending Review set out by the Chancellor this afternoon CPA Economics Director Noble Francis said, "Clearly, it was a challenging Spending Review for the Chancellor, given that the government is keen on sticking to its fiscal rule, but it was positive that the government announced £39 billion for social and affordable housing over the next ten years. This provides much-needed certainty and investment in housing over the long term, as well as a structural uplift to social and affordable house building. However, given that the vast majority of housing in the UK is private, affordability remains the most significant constraint to house building in the short-term, and the lack of a policy to enable demand for first-time buyers remains a great concern. There was also certainty of funding for transport and flood defences in particular over the Spending Review period to 2029/30, and we also eagerly anticipate government’s upcoming 10-year infrastructure strategy, which will be critical to give the whole supply chain the confidence to invest in the skills, capacity and innovative methods to deliver it.
Now that government has provided the certainty of funding over the Spending Review period, to 2029/30, what will be critical is to see delivery on the ground that matches its announcements.
Whilst there was positive focus on housing, infrastructure and resilience, there was a lack of much-needed policies to help UK manufacturing on energy prices, and it will be essential that the government’s upcoming Industrial Strategy addresses this, as competitiveness is vital for the future of the UK’s foundation sectors."
