The Federation of Master Builders (FMB) welcomed the £48 million investment to boost local planning capacity, describing it as a step towards unlocking stalled housing projects.

Chief executive Brian Berry cautioned, however, that the sum is “small money to fix a very big problem,” stressing that SMEs must be central to meeting housing targets.

The Budget also confirmed £39 billion for the Social and Affordable Homes Programme and £500m for planning departments, alongside VAT relief for fire safety, cladding remediation, and energy performance upgrades. The Considerate Constructors Scheme (CCS) praised the acceleration of approvals but warned that speed must not compromise quality or sustainability.

Free apprenticeship training for under-25s in SMEs was widely welcomed. The FMB said the measure would simplify hiring processes and save small builders thousands, while the National Federation of Roofing Contractors (NFRC) estimated savings of £550 per apprentice.

The Budget also allocated £1.1bn for apprenticeships and technical training, and £13bn of flexible funding for regional mayors to invest in skills. CCS highlighted the need for inclusive growth, urging stronger measures to attract women and underrepresented groups into construction.

Despite these positives, NFRC warned that rising apprentice wages, coupled with higher employment taxes, could still deter firms from taking on new staff. The Construction Plant-hire Association (CPA) echoed concerns, noting that family-run firms face “a cliff edge” due to tax changes and rising costs, undermining Labour’s target of 1.5 million new homes.

The Budget committed £8.3bn for major infrastructure projects and £1.2bn for brownfield development, which CCS described as vital for safe, sustainable growth.

The Royal Institution of Chartered Surveyors (RICS) welcomed continued investment in infrastructure and skills, noting that free training for apprentices could expand the surveying pipeline.

CBRE highlighted Treasury support for private finance in delivering the NHS 10-year plan, calling it a boost for socially responsible healthcare investment. However, it warned that fiscal measures could impact long-term bond yields, putting pressure on fragile real estate valuations.

CCS pointed to £4bn for clean energy, £900 million for retrofit and heat pump rollout, and VAT cuts on energy-efficiency upgrades as positive signals. Yet both FMB and RICS criticised the scrapping of the Energy Company Obligation (ECO) scheme, warning that the Budget missed a crucial opportunity to catalyse a retrofit market and tackle the UK’s ageing housing stock.

“Upgrading homes will be vital to keep people warm in winter and cool in summer,” Berry said, adding that many builders may feel “underwhelmed” by the lack of retrofit support.

Wage rises announced in the Budget drew criticism. From April, the National Living Wage will rise by 4.1% to £12.71 per hour, with increases across younger age brackets and apprentices. NFRC warned this would intensify cost pressures, with 76% of members already citing employment costs as a major challenge.

CPA argued that the refusal to reverse changes to Business Property Relief and Employer National Insurance hikes would “choke construction employment,” noting that construction accounts for 15% of UK insolvencies.

RICS also flagged risks from new tax measures, including a 2% National Insurance levy on landlord income, which could reduce rental supply and increase costs for tenants.