The construction industry is abuzz with optimism following the government’s recent commitment to bolster skills in the sector. Chancellor Rachel Reeves’ Spring Budget unveiled a £625 million package aimed at training up to 60,000 new skilled workers, a move that industry leaders and engineering institutions have welcomed as a crucial step towards achieving the government’s ambitious housing and infrastructure goals. Beatrice Barleon, head of policy and public affairs at EngineeringUK, hailed the chancellor’s recognition of the importance of investing in skills. “The chancellor’s recognition of the importance of investing in skills through a new training package for up to 60,000 new construction workers is welcome and essential to delivering on the government’s growth mission, which is underpinned by plans to build 1.5 million homes and to strengthen the UK’s national security,” she said. However, Barleon also called for further action, urging the government to address financial barriers to technical and vocational entry routes into engineering and technology. She emphasized the need for direct funding of apprenticeships for 16 to 18-year-olds and support for STEM teachers and outreach programs. “Government must recognise its role in training the next generation and look to move towards a new model of directly funding apprenticeships for 16 to 18-year-olds, to help reverse the decline in uptake of apprenticeships for this age group,” Barleon said. “We look to government to reverse recent cuts to Continuous Professional Development for STEM teachers and continue to support outreach programmes reaching into schools. The investment in construction training announced today is a positive step in the right direction, but this action needs to be replicated through investment across the full STEM skills pipeline.” The £625 million package includes £100 million for 35,000 additional training places in construction-focused ‘Skills Bootcamps’, £40 million to support up to 10,000 new construction Foundation Apprenticeships, £100 million for 10 Technical Excellence Colleges, and £165 million to increase funding for training providers. Additionally, £100 million, along with £32 million from the Construction Industry Training Board, will create up to 40,000 industry placements annually. The Institution of Engineering and Technology (IET) also welcomed the pledge, highlighting the critical role of skilled engineers and technicians in driving innovation and productivity. Stephanie Baxter, head of policy at the IET, noted, “The ongoing shortage of skilled engineers and technicians in the UK is impeding engineering sectors, such as construction and manufacturing, from capitalising on innovations, holding back productivity, and risks the UK falling behind international competitors.” Baxter advocated for close collaboration between industry, academia, and government to ensure funding and support for businesses, particularly SMEs, to upskill and reskill workers. “For example, access to ‘agile’ short courses in new technologies such as digital twins and AI will ensure that the UK workforce remains adaptive to – and able to capitalise on – rapidly changing technologies and best practices,” she added. Justin Young, CEO of the Royal Institution of Chartered Surveyors (RICS), praised the investment as a decisive step towards securing the next generation of construction professionals. “This should help secure the next generation of construction sector workers and professionals as we look to tackle the challenge of an aging workforce, alongside acute labour and skills shortages,” Young said. He also suggested that combining this investment with a new GCSE for the built environment could drive fresh talent into the sector. The government’s commitment extends beyond skills training. A £2 billion injection of new grant funding aims to build up to 18,000 new social and affordable homes, with a focus on swift construction in cities like Manchester and Liverpool. Lee Sleight, CEO of sustainable construction-focused Holcim UK, highlighted the significance of this funding. “The future of sustainable growth for the construction industry is going to rely on the success of growth measures such as the recently announced funding for social housing, construction skills, and landmark projects like the Lower Thames Crossing,” he said. Sleight acknowledged that while funding can address key challenges, more needs to be done by businesses and the government to ensure sustainable construction becomes a reality across the UK. The industry is at a pivotal moment. The government’s investment in skills and infrastructure signals a commitment to addressing long-standing issues in the construction sector. However, the real test will be in the implementation and sustainability of these initiatives. As the sector grapples with an aging workforce and acute labor shortages, the focus on training and upskilling is timely and necessary. The challenge now is to ensure that these investments translate into a more skilled, sustainable, and innovative construction industry capable of meeting the nation’s housing and infrastructure needs.
Government’s £625M Boost Aims to Train 60,000 New Construction Workers
