Autumn Statement 2024: Plans to “invest, invest, invest” great for infrastructure and society

Richard Risdon responds to Labour's Budget announcements

The first Budget Statement from the new Labour government today set out spending plans for the year ahead, as well as outlining the government’s intention to deliver a more regularly updated Spending Review.

Richard Risdon, managing director for UK and Europe at Mott MacDonald, has responded to the announcements: “Today’s confirmation on the changing of the fiscal rules, which could free up significant funding for major projects, shows that the government has recognised that growth is not possible without investment in infrastructure. This has the potential to create a longer-term approach to investment that is comparable with other nations in Europe. The benefits extend to more than creating a firmer pipeline of work for us as an industry – the new assets it funds will deliver a better outcome for society too.

“The plans set out by Sir Keir Starmer for a mission led government are key to achieving net zero but can only be delivered in the timescales planned through consistent investment in infrastructure. The new funding detailed today is critical for delivering those environmental improvements and creating climate resilience for the UK, while also improving public services and connectivity with better access to jobs and services.

“Hearing the government’s commitment to progress HS2 from Birmingham to Euston demonstrates their understanding of the role of connectivity in delivering economic growth and opportunities.

“Nonetheless, as I have said, the biggest challenge to realising these infrastructure investment plans is still the people. Boosting funding for the schools rebuilding programme by £1.4bn to target rebuilding 500 schools is critical to creating the right environment for our young people to thrive. However, it will take time for that young talent to come through into our sector and we urgently need government to work with us on the skills issue. I welcome the further commitment to Skills England in the Budget as we cannot build this vital infrastructure without the right people.”

Matching housing-led growth with improved connectivity

Mott MacDonald transport development director for UK and Europe Thomas Knight echoed Richard’s comments about the need to match housing-led growth with improved connectivity. “The announcement around West Yorkshire Mass Transit and other urban transport schemes, as well as the extension of the Transpennine Upgrade to York, are vital to supporting economic growth,” he said. “Access to good quality and efficient public transport will be critical to meeting the government’s housebuilding plans. But beyond that, enhancing connectivity for these communities is critical to improving social outcomes for them too.”

Improvements to the UK planning system

The need to implement the intended improvements in the UK planning system to deliver on the investment plans laid out in the Autumn Statement was highlighted by Mott MacDonald technical director for town planning Sarah Henderson.

“It’s important that the government recognise that planning reform is critical to delivery of its planned infrastructure investment with its commitment to ports, clean energy, regional and local transport projects and investment in our city regions,” she said. “The focus on removing bottlenecks in the planning system is vital and will benefit the country in the long term. However, the need for change extends beyond resourcing local planning departments and must also extend to regulators, such as the Environment Agency, to ensure they are equipped to respond to planning and permitting regimes more quickly.”

Good news for green jobs

The carbon capture usage and storage (CCUS) schemes in Merseyside and Teesside along with the 11 planned green hydrogen projects are good news for green jobs, according to Mott MacDonald business development manager for energy Clare Rhodes-James. “Now is a good time to push these projects ahead and redeploy the oil and gas skills base that already exists in these regions into these emerging sectors as well as open up opportunity for manufacturing,” she said. “What’s needed now for CCUS is ongoing confidence in the commercial models so current projects are built and for ongoing support to the emerging technologies that can make the different to cost and efficiency in the 2030s.”