Industry experts respond to The Spring Statement 2025
Posted by: electime 27th March 2025
Yesterday (Wednesday, March 26) Chancellor of the Exchequer Rachel Reeves delivered The Spring Statement 2025, bringing a mix of measures impacting the electrical and construction sectors. While the government’s focus on sustainability and green technology continues, it has raised concerns among business leaders about the lack of clear direction and meaningful relief in the face of rising operational costs.
The industry, however, saw positive announcements, with substantial funding allocated for skills development and training. This includes a £100 million investment to help new entrants, returners, and those looking to upskill. The government’s focus on building homes and boosting construction provides opportunities for growth, but the sector is grappling with a significant skills gap, with many vacancies remaining unfilled due to a lack of qualified workers.
The Statement will likely provide a boost for industries such as electrical contracting, where demand for skills in energy efficiency, smart metering, and sustainable construction is on the rise. However, for the electrical industry to fully benefit, the government will need to deliver clear, long-term strategies that support innovation, training, and the adoption of sustainable technologies.
Beatrice Barleon, Head of Policy and Public Affairs, EngineeringUK, responded:
“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.
EngineeringUK is calling on the Government to go further in the Spending Review and Autumn Budget later this year and look to address the financial barriers to technical and vocational entry routes into engineering and technology for all young people.
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.
Government must also look to invest in programmes and activities we know work in getting young people interested in careers in engineering & technology, and support the teachers that will help deliver them. 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.”
Griff Thomas, MD for GTEC, part of the United Living Group, says:
“I am delighted to hear the government’s commitment to construction and skills in today’s spring statement and the Plan for Change announcement made on the 23rd. As The Chancellor said, ‘Getting Britain Building’ is crucial to our economic growth and provides countless opportunities for skilled trades people.
“With the backing of the United Living Group, GTEC is well placed to support the government’s ambitions with our nationwide approved training centre network and developing construction-based courses that in the future will cover the breadth of the skill-base needed to help deliver Labour’s proposed building boost, including £1.5m homes.
“There is a long road ahead, however, and the latest Office for National Statistics figures show that there are over 35,000 job vacancies, with employers reporting that over half of vacancies can’t be filled due to a lack of required skills – the highest rate of any sector. I hope that the ‘funding & reforms’, including £100 million to ensure new entrants, returners, or those looking to upskill within the industry, are well thought out, creating real incentive for both trainees and employers.”
Mark Krull, MD for Logic4training & LCL Awards, says:
“The government’s commitment to supporting the construction sector, as outlined in the Plan for Change and today’s spring statement contains positive signs for the vocational training sector.
“As Rachel Reeves highlighted, boosting building in the UK is good for the economy and population, creating affordable, sustainable homes that create countless jobs and opportunities for education and innovation. I was particularly pleased to see apprenticeships mentioned in the Plan for Change, with an additional £40 million funding launching this August, including a £2,000 incentive for employers taking on foundation apprentices.
“Employer buy-in is key – from Logic4training’s experience launching its own gas and smart metering apprenticeships, there is high demand from students, what we need is more businesses willing to invest in this effective route into the sector.”
“There is much to gain from boosting construction skills in the UK, and for young people in particular, it offers a range of secure, future proof career pathways that are unlikely to be taken away by AI.”
Paul Holland, Managing Director for UK/ANZ Fleet at Corpay, including UK brands, Allstar and Keyfuels, responds:
“Chancellor Rachel Reeves has delivered her Spring Statement and at the time of writing our concerns that there would be little in the way of meaningful relief has now come true. From navigating rising fuel prices, energy market volatility and changes in international trade policies, there is a lot for businesses to contend with when it comes to operational matters. While we called for action in recognising these material pressures, our focus must revert to imminent updates set to come into force and where businesses must be prepared.”
“From April, zero emission cars first registered on or after 1 April 2017 will be liable to pay the lowest first year rate of Vehicle Excise Duty (VED). The Expensive Car Supplement exemption for EVs is also ending this year, meaning an additional VED charge on vehicles with a list price exceeding £40,000. On the face of it, this does bring a sense of fairness to mobility. However, this is one example of how policy is giving the wrong message at a time where encouragement is critical to first, get organisations to invest in the transition to greener mobility and second, to drive and maintain these vehicles in the long term.”
“We need clear direction and an update in the government’s sustainability strategy, principally for Zero Emission Vehicles (ZEVs) – particularly as the government is unmoved on its commitment to ending the sale of combustion engine cars by 2030 and ensuring all new cars and vans are 100 per cent
zero-emission by 2035. Without clarity, we as an industry, must continue to provide solutions that drive cost and time savings for businesses that are navigating a shifting world.”
