Industry has welcomed the government’s commitment to infrastructure in the 2025 Spending Review.

Major investment, including billions for energy, housing and transport, have placed the sector at the heart of the government’s growth ambitions.

But the sector says it is now vital that Rachel Reeves’ ambitious plans are delivered to ensure growth is achieved.

And ACE Group – comprising the Association for Consultancy and Engineering (ACE) and the Environmental Industries Commission (EIC) – said capital gains must not come at the cost of infrastructure care.

Kate Jennings, chief executive of ACE Group, said: “This Spending Review sends a signal that infrastructure is mission critical to economic growth - and rightly so. The capital investment outlined today has the potential to transform communities and drive long-term economic resilience.

“However, capital spend alone isn’t enough. Our ambition is for both new projects and the essential upkeep of the assets we already rely on, including health and educational infrastructure.

“The £2.4bn per year investment in the School Rebuilding Programme to fix school buildings is hugely welcome and a good step to recognising this need, with many buildings in the school estate already in poor condition.

“However, Victorian-era rail infrastructure, much of which is over a century old, continues to require maintenance to avoid delays and inefficiencies. Similarly, patient care and vital treatments need NHS investment in modern hospital equipment and diagnostic centres.

“Maintaining and extending the asset life of this critical infrastructure will build and maintain essential skills, enable us to reach net zero and meet the chancellor’s ambitions for sustained economic growth.”

Whilst emphasising the need for new infrastructure and greater maintenance of current and existing infrastructure, ACE Group supported the Spending Review’s substantial new capital allocations across transport, energy, water and digital infrastructure as well as an enhanced pipeline visibility and strategic long-term clarity to give the sector a more stable, predictable environment to plan, invest and deliver.

The government’s continued emphasis on regional growth and the increase in new metro and rail projects for the North and the Midlands was also welcome along with the transformational package of £39bn to the affordable homes programme for 10 years form 2026-2036

Jennings added: “We’re committed to working hand-in-glove with government to ensure every pound spent delivers the maximum impact.

“That means ensuring the Green Book recognises that investment unlocks potential, embedding the principles of the Construction Playbook, including tools like the Value Toolkit, and accelerating procurement reform to reward long-term value - not just lowest cost.

“The focus must be on delivery that’s smarter, more productive, and truly fit for the future. Our members are ready to partner with government to do just that - making smarter, more productive investment the new normal across the public sector.”

Neil Sansbury, managing director for the UK and Ireland at global engineering and sustainability consultancy Ramboll, welcomed the Spending Review announcements but said ambitions must now translate into action if it is to be achieved.

“Today’s Spending Review is a positive step toward securing the UK’s infrastructure and energy future. We support the government’s multi-billion-pound investment in the energy, transport and housing sectors.

“It is encouraging to see investments in new renewable energy technologies like small modular reactors, cold fusion and the backing for two new carbon capture and storage projects. These projects will be key to achieving net zero and making the UK a world leader in sustainable and resilient infrastructure.

 “We welcome the record £1.2bn investment for training skills, this will be key to upskilling the next generation of workers to deliver these ambitious projects and will be key to filling the shortfall of workers in construction.

 “Ambition must now translate into delivery. To ensure projects are delivered at pace and scale, this investment must be followed up by expanding our supply chain capability and adopting innovative methods of construction.

“High energy costs need to be addressed, and the government must follow through on its pledge to urgently reform the planning system to accelerate nationally significant projects without compromising sustainability.

“With smarter, joined-up planning and modern delivery models, we can build faster, greener, and more resilient infrastructure. The UK has a real opportunity to lead globally in sustainable and climate resilient infrastructure.”

Richard Whitehead, chief executive (Europe and India) at AECOM, said: “Having focused on removing planning hurdles and emboldening devolved authorities in its first 12 months in power, this long-term funding cements the government’s pledge to accelerate the delivery of essential infrastructure and, in turn, unlock growth opportunities across the UK.

“The additional capital expenditure on infrastructure – including nationally significant schemes such as East West Rail – is welcome, along with the £15.6bn for city region local transport projects.

“This should promote more balanced regional development and ensure strategic investments benefit all parts of the country, driving growth and innovation – particularly when combined with changes to the Treasury’s Green Book.

“The £14.2bn earmarked for Sizewell C, alongside confirmation of the SMR programme, are important steps forward for the UK’s nuclear energy expansion. This, combined with the commitment to CCUS, will be a crucial enabler for the country's transition to clean energy and long-term energy security.

“This review provides greater long-term visibility on spending priorities than we have had for years. If realised, these commitments will deliver transformative change for the UK.

“We now await the 10-year infrastructure strategy next week to drive investment and provide further clarity. Crucially, we need details on the next generation of public-private partnerships to fund much-needed projects in sectors such as energy and defence, as part of a stable infrastructure pipeline.

“Delivering on the strategy is vital for the UK’s long-term economic growth and highlights the essential role of infrastructure in driving the eight priority sectors of the industrial strategy.”

Andy Lord, London’s Transport Commissioner, said: “We are grateful that the government has agreed a much-needed multi-year capital funding agreement similar to those in place with Network Rail and National Highways.

“This settlement will ensure that London’s transport network can continue to support new homes, jobs and economic growth in the capital. And it will boost jobs, skills, growth and opportunities across the UK. It will allow us to deliver a programme of sustainable investment, aligning our suppliers around a longer-term programme.

“And it will mean that we can complete the introduction of new trains on the Piccadilly line and DLR and new signalling on 40% of the Tube, can procure a new tram fleet, progress discussions on new Bakerloo line trains and can get to work on renewing some of London’s critical roads, tunnels and flyovers.

"Our supply chain supports growth and opportunities right across the UK, with around two thirds of our suppliers based outside London, and nearly a third of our overall spend and resulting economic benefit felt outside of our city. We are pleased that, together with our suppliers, we can move on from the short-term and stop-start nature of funding over recent years and get on with the vital work of making our city and our country work for everyone.”

Rachel Ellison, advisory and programme development managing director for UK and Europe at Mott MacDonald, said: “Plans to spend £113bn on infrastructure provides certainty to the construction industry and ultimately enables us to realise the positive social outcomes that for the communities we serve.

“This commitment, along with the 10-Year Infrastructure Strategy that we expect to see published later this month, delivers a strong pipeline of work that will allow us to invest in innovations and the careers of the people who will deliver this work.

“As an industry, we now have the opportunity to work together to effectively deliver these programmes, projects and interventions as part of an integrated strategy giving the public confidence in our ability to deliver the expected outcomes.”

Jonathan Willcock, managing director of transportation at Costain, said: “The chancellor’s confirmation of additional, long-term investment into the UK’s public transport infrastructure has the potential to transform communities including in the North of England, Midlands and Wales.

“Improving transportation infrastructure is not just about connecting people and places, it’s about creating a sustainable future that drives economic prosperity, productivity, and economic growth, building much-needed resilience into the network and improving people’s lives.

“Recognising the continued importance of the nation’s capital, confirmation of a long-term funding agreement for Transport for London will be welcome news to the industry and wider supply chain. The settlement provides much needed clarity that will help it plan, invest, innovate and develop the skills that will be needed to deliver critical infrastructure improvements and modernise London’s transport network.

 “We know from working on complex transportation projects that robust planning and early contractor involvement will be vital in ensuring these crucial projects are delivered on time, on budget and with minimal day-to-day disruption.”

Mark Powell, managing director for EDAROTH -  Atkins Realis’ social and affordable homes arm – said £39bn to fund the Affordable Housing Programme offers a “once-in-a-generation opportunity to make a significant dent in the social housing challenge”.

He added: “This is a welcome reinforcement of the government’s commitment to social and affordable housing that could unlock innovation and rapidly increase the build rate of new homes.

“These plans follow recent proposals to simplify and speed up delivery for SME developers, including the use of innovations such as the small site aggregator tool, and we are optimistic that there will now be real momentum behind this commitment.

“The 10-year rent settlement guarantee provides real confidence for potential investors by offering long-term, government-backed opportunities. This will unlock the funding necessary to deliver the social and affordable homes that are needed to develop thriving communities across the country.

“Alongside this, the £10bn of financial investments will help to enable the private sector to deliver the new homes needed if we are to reach the 1.5m target within this parliament.

“We now look forward to further guidance from MHCLG on the specifics of how the AHP funding will be distributed.”

Tim Balcon, CEO, Construction Industry Training Board (CITB), said: “We support the government’s commitment to getting Britain building again. Over £110bn announced for infrastructure projects like Sizewell C, a fresh £39bn affordable homes funding settlement, and £13bn for upgrading millions of homes with improved insultation all translates to a buoyant construction industry. In total, there’s positive news to the tune of about £165bn for the industry.

“Of course, we need the skills on the ground to deliver these ambitions. To improve understanding of retrofit work, we’re supporting the development of a Repair, Maintenance and Improvement (RMI) Sector Skills Plan, which aims to identify the specific skills needs and requirements across various occupations within the RMI sector. We’re investing £3.8m in the plan to develop tailored strategies, projects and interventions that address the unique needs of the sector.

“Similarly, at the beginning of this year, we launched the Sizewell C Skills Charter in partnership with Sizewell C, ECITB, Suffolk County Council, and East Suffolk Council. This was a commitment from all parties to working with training providers to support local recruitment and skills development that will have a lasting positive impact on employment and productivity in the area.

“Earlier this year, the government announced a £600m construction skills package, £32m of which is investment from CITB to deliver increased industry placements. Back in November, we announced a £40m commitment to support the creation of Homebuilding Skills Hubs. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.”