But with no further details forthcoming on the capital spend, the construction industry and building materials supply sectors have been left with little encouraging news.
Chief secretary to the Treasury Danny Alexander will give more information on investment in UK infrastructure tomorrow. The chancellor also highlighted an “unprecedented” increase in the number of free schools – 180 in 2015/16.
The UK’s largest builders group, the Federation of Master Builders (FMB), said the chancellor had given little encouragement for growth in the private housing sector, leaving many small builders “on the economic critical list”.
The FMB welcomed funding for more apprenticeships and the indication that local authority borrowing caps could be lifted – potentially allowing councils to sell or borrow against assets to build or refurbish affordable housing.
But it said the chancellor should have made a long-term investment in low-carbon refurbishment. Only £125m has been invested so far in incentives for homeowners to carry out refurbishment work under the Green Deal.
“George Osborne’s claim that the economy is leaving intensive care may ring hollow for many construction SMEs,” said Mr Berry.
“The FMB’s State of Trade Survey of members, many of which work in the domestic repair, maintenance and improvement market, showed workloads in this sector still falling in the first quarter of the year.”
