Anyone looking for increased government investment in the autumn Budget was always likely to be disappointed. Last summer’s comprehensive spending review had already done the heavy lifting, raising capital investment in real terms by over 3% per annum by the end of the parliament. 

So fast is the planned increase in capital spending that the Office for Budget Responsibility (OBR) expects departments to underspend by nearly £10bn in 2026/27. Construction might have had enough investment announcements, but it still needs to be confident that allocated funds will be spent as planned.

This is starting to happen. Latest data from the ONS has shown that government investment is on a rising curve, even as consultants and contractors flag that programmes are delayed. Output for the non-residential new-build segment was up by over 20% year on year in Q3 this year while both housebuilding and commercial building shrank. Currently, it is the private sector that needs support.