Only 20% of construction professionals in the UK think that the Chancellor’s first Budget will ultimately be good for the industry, Gleeds latest Market Report has revealed. The firm’s 4Q 2024 survey found that 80% believe Rachel Reeves’ announcements will either have negative repercussions or make no difference to the sector overall, with almost 40% of the view that the Budget will result in a decline in investment in the UK property market.

According to the report, nearly 90% expect that the government will fail to fulfil the pledges it made at the end of October within stated timeframes – including promises on major infrastructure programmes and the delivery of 1.5 million new homes within this parliament. The findings mark a shift from the previous survey, in which around 70% of those questioned expressed confidence that construction and real estate was a priority for the Labour leadership and just under half said they thought it would be demonstrably better for the sector than the Conservatives.

Commenting on the latest findings, Chair of Gleeds, Richard Steer, said, “It has been an eventful year! Potential trade tariffs from the US and instability elsewhere has had a significant impact on investor confidence, which ranked as the number one threat to the industry in our 4Q survey.”

“Labour and skills shortages also continue to be a lingering concern in our market, particularly in light of a recent study which found that 68% of adults in the UK would avoid a career in construction – associating it with words like ‘dirty’, ‘strenuous’, and ‘boring’. With an estimated 937,000 new workers required by 2034, according to the UK Trade Skills index forecast, clearly this perception is something we urgently need to address,” he went on to add.

In addition to labour worries, the latest monthly figures from the Insolvency Service show that construction remains the worst-hit sector for liquidations, administrations, and company voluntary arrangements. Still, the collapse of ISG caught many off guard, with almost 60% of those quizzed by Gleeds claiming to have been surprised by news of the builder’s demise.

The consultancy’s survey shows a similar number expect to see further tier one contractors going into administration over the coming year, but, more positively, around a third believe ISG’s failure could lead to positive changes in the industry, such as improved margins and wider adoption of project bank accounts.