Yesterday, chancellor Rachel Reeves delivered the latest Spring Statement. Our deputy chief executive, Amman Boughan, has shared his thoughts, pointing out that the government’s confidence is not reflected by current market activity and a change in priorities can deliver greater outcomes.
“In the chancellor’s Spring Statement, stability was named the single most important pre-condition for economic growth, but this isn’t the current reality for the public and private sectors – with the OBR now forecasting slower growth and further unemployment this year. We called for stability and investment efficiency ahead of the Autumn Budget last November, but our call to action has been met with inaction, and the slow speed of decision-making continues to dampen growth potential. Very recent construction sector data shows that that planning approvals, main contract awards and project starts are all down compared with the preceding three months and the previous year.
“Instability and uncertainty are market conditions that we’ve been experiencing for a long time, but unsavory political stories and disruption have only pulled focus elsewhere and made the start to 2026 somewhat turbulent. Sir Chris Wormald being replaced as the cabinet secretary after only 14 months – the shortest serving cabinet secretary in history – perfectly highlights the lack of stability that continues to damage national confidence in the government’s policies. And that’s just one example.
“While there is great intention to invest, there is an ominous question as to whether government ambition marries up with current market capacity and ability to deliver. For example, our own research into the housing sector recently revealed overwhelming skepticism in meeting the current housing targets. However, I’ve said it before and I continue to believe that the long-term challenge is not the level of investment or market capacity; it is how effectively that investment is deployed.
“Procurement can make a significant difference. Instead of taking a short-term view on things and prioritising price, there needs to be greater focus on delivering great outcomes, underpinned by speed and quality. After all, buying cheap very rarely means delivering cheap once the heightened whole-life cost is taken into consideration – and as the old adage goes, buying cheap can also mean buying twice.
“Private enterprise backed by public ambition must become the norm, supported by the right procurement routes to ensure effective spend. The public and private sectors should prioritse effective partnerships and sharing risk, which will ensure a financial return on investment, impactful outcomes and meaningful social legacy.”
Discover our frameworks
Subscribe to our mailing list, to keep up to date with Pagabo news
Related articles
Planning and infrastructure bill becomes law: Pagabo’s infrastructure reaction
