More funding for skills and planners welcomed but concern over lack of help for young architects
The architecture profession has given a mixed reaction to yesterday’s autumn Budget, welcoming measures including funding for local mayors and continued backing for
new towns but calling for more to be done to help young architects and designers.
Rachel Reeves’ second Budget, designed to double her fiscal headroom to £22bn, outlined £26bn in tax rises including a freeze on national insurance and income tax thresholds until April 2031 and introducing a ‘mansion tax’ in England for properties valued above £2m.
It also included £13bn in skills, business support and infrastructure funding for seven regional mayors, an increase in minimum wages and halting plans to converge two rates of the costly landfill tax for developers.
> Also read: Budget 2025: construction firms to pay more in minimum wages but spared costly landfill tax rise
> Also read: Budget 2025: Reeves devolves £13bn of flexible funding to seven mayors across England for skills and infrastructure
Other measures included £48m to recruit a further 350 planning officers in England, making apprenticeship training for under 25s free for small and medium enterprises and funding for regional projects including £20m for a sports quarter in Peterborough.
RIBA president Chris Williamson said the Budget was characterised by steady measures aiming to stabilise public finances but lacked the “bold action” needed to unlock growth.
He said: “Fresh funding to recruit additional planners is welcome, but this alone is far from what’s needed to speed up the system. Far more substantial investment is required to increase both capacity and access to skills, including design skills. This will ensure that new development is high-quality and meets the needs of our communities.
“Investment also means very little without the talent to deliver it. We welcome the government’s recognition of the value of apprenticeships and await detail on fully-funded SME places for eligible under-25s. But if it is serious about building the talent pipeline, support must extend to Level 7 built environment professionals, as we have called for.”
Holly Lewis, co-founding partner at We Made That, offered more praise for the chancellor’s decisions on funding, describing Reeves’ continued backing for new towns as a “huge win for connectivity and opportunity”.
She also welcomed the £13bn in funding for regional mayors, which she said would give local leaders “the power to invest where it matters most”.
Lewis added: “What we need now is for local authorities to lead with robust, inclusive engagement grounded in genuine grassroots approaches so that every voice is heard. Let’s keep pushing for even deeper devolution and bigger ambitions, so every place can thrive on its own terms.”
Collective Architecture director Mairi Laverty said support for household energy costs, set to remove around £134 from annual energy bills, was a welcome step for lower-income families.
But she said “far more” must be done to address the housing and cost of living crises. She added: “The construction industry will continue to have a critical role in tackling fuel poverty by delivering high quality, energy efficient homes, by embracing passive design principles and by meeting the housing targets set out in the new Affordable Homes Programme.”
Marion Baeli, partner at 10 Design, said the funding for regional mayors was exactly what the industry needs to tackle the urgent challenges resulting from the significant skills gap.”
Baeli also welcomed the support for energy bills, but said more could be done to address long-term energy efficiency challenges in homes and buildings including cutting VAT on retrofit schemes.
She said: “Applying 20% VAT to retrofit projects while new build remains zero-rated continues to incentivise carbon-intensive construction. If the government wishes to send a clear signal that the UK values carbon reduction and sustainable development, easing VAT on retrofit would be a crucial next step.”
Meanwhile, Dan Mitchell, planning partner and head of multidisciplinary practice Marrons’ Leeds office, welcomed Reeves’backing for a new town at Leeds South Bank, which he said was” excellent news for the city’s growth, helping to unlock new homes, support major infrastructure and mass transit projects.”
Views from other built environment sectors
Rachel Ellison, managing director for advisory and programme delivery for UK and Europe at Mott MacDonald: “The chancellor has shown continued support for infrastructure in her Budget. The certainty that this creates is essential to enable businesses to confidently invest in order to realise the ambitions set out earlier this year in the 10-Year Infrastructure Strategy.
Announcements today about the private funding approach to projects such as Lower Thames Crossing and Heathrow give even greater clarity – both for project pipelines and on how the government intends to fund its planned infrastructure investment. The funding piece is essential as delays to major programmes of work affect the ability of our industry to deliver efficiently and attract and retain people into the sector, too.”
Melanie Leech, chief executive, British Property Federation: “There wasn’t a single thing said in the chancellor’s speech that wasn’t leaked in its chaotic build up. However the lack of surprises doesn’t hide the disappointment that many in the development industry will feel after today. Whilst she spoke positively about the importance of business investment and maintained full expensing and the headline rate of Corporation Tax, there was little to cheer from an investor perspective.
“Indeed, confirmation of the large property business rates surcharge will impact critical national infrastructure like logistics businesses and priority sectors identified in the government’s own Industrial Strategy. While it was always going to be a challenge for the chancellor to both balance the books and support economic growth, it is disappointing that there was nothing introduced to alleviate acute development viability issues. Overall, no surprises, but nothing to cheer either.”
RICS chief Executive, Justin Young: “There are positive moves, such as new support for apprentices under the age of 25, which should hopefully expand the pipeline of new talent into the surveying profession. It is encouraging that the government is prioritising necessary reforms to the business rates system, and we are committed to supporting this effort through our members’ expertise.
“Whilst these changes are welcome, there are several measures which may weaken the housing market, such as raising tax on dividends, property, and savings income by 2%. Furthermore, it seems that commitments to sustainability are weakening. RICS is working with the government to mitigate these effects and help it deliver its objectives.”
Paul Rickard, chief executive, Pocket Living: “As the OBR has pointed out in its budget response, the positive planning reforms will take time to materialise and a marked increase in housebuilding is only currently expected to take place from 2027/28. It is therefore imperative that all steps are taken to remove the current barriers to delivery, including tackling the issue of viability. This is especially important for the vital-to-delivery SME housebuilding sector which has the potential to deliver tens of thousands of extra homes across the country. While good progress has been made, now is the time to really pull every lever available to ease the housing burden and stop generation rent becoming generation debt.”
Alan Sinclair, UK managing director of energy and natural resources, Turner & Townsend: “Energy security and affordability were high on the chancellor’s agenda today as Reeves’ Budget sought to tackle costs for British families and manufacturers. The North Sea Future Plan, published separately, demonstrates a commitment to driving this and delivering a fair transition towards clean energy.
“As the government has made clear throughout this year, nuclear will be an important part of the nation’s future energy mix. Though Labour’s response to the recent Nuclear Regulatory Taskforce report has been pushed back, it was promising to hear that it will be setting out plans for regulatory change for the sector in the coming months.
“However, while slashing red tape will help to speed up getting spades in the ground, government and industry must also work together to build capacity as a host of energy projects jostle for resource. There’s a risk here of a crunch moment in the next couple of years as these programmes come online – the sooner industry can prepare, the better.”
Katy Dowding, Skanska UK president and CEO: “It was great to see the chancellor lead with her commitment to infrastructure investment and delivery. We have worked closely with the Treasury because infrastructure is the backbone of Britain’s economic growth and so I welcome today’s continued commitment to invest in not only projects but skills.
“Decisions made today carry both immediate and long-term consequences. Our sector is agile to change, we plan for it, and we await the detail that follows the chancellor’s speech. However, these measures can only be judged a success if investment is truly unlocked, political commitments are upheld, and pipeline guarantees are delivered.
“Now is the moment to turn words into action and lay the foundations for Britain’s future economic growth. We understand that industry needs to step up in terms of productivity, and that will be further enhanced by having pipeline certainty. Construction is the catalyst for this vision, we are ready to build, and so are our people.”
Alex Vaughan, chief executive at Costain: “The chancellor has provided further reassurance that infrastructure remains a powerful lever for the UK’s growth mission. This is an industry that thrives on predictability and clear decision-making from government. Long-term planning and skills investment are essential ingredients for the successful delivery of complex, fit-for-purpose infrastructure across our water, energy, defence and transportation systems.
“However, without a dedicated cabinet-level Minister for Infrastructure, the industry is at risk of spinning its wheels. This role at the heart of government would oversee the 10-Year Infrastructure Strategy and Infrastructure Pipeline, align policy and funding across departments, and instil much-needed confidence in business leaders wanting to invest in the skills of tomorrow.
“Consistency and continuity from government will unlock the UK’s full infrastructure potential and help create a more prosperous, resilient and decarbonised future.”
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