The Chancellor’s spending review in June announced significant investment in building projects. What does this mean for businesses storing and selling construction products and how will this impact the suppliers like Grant Handling, who support them?
Duncan Harrison shares his thoughts…
As a company which provides forklift trucks to numerous builders’ merchants, as well as their suppliers, I was pleased that promises to ‘build’ stood out like a reversing alarm in Chancellor Rachel Reeves’ Spending Review, presented to the Commons on 11th June.
Build was a word I wanted to hear, (and I did, about 15 times…) At Grant Handling we are close to the UK’s building sector, which buys (and hires) our Heli forklifts and we consider ourselves expert partners in the sector. So, when The Builders Merchant’s Federation (BMF) welcomed the £39 billion boost for affordable housing, we are with them, as their approval was loud and clear.
In a statement, the trade body confirmed that the building materials supply chain is in good shape to support this market growth (and we agree, as their supply chain is you, and us at Grant Handling.) John Newcomb, CEO of the BMF, said: “This is a major boost for house builders, housing associations and local authorities and a big increase on previous funding arrangements.”
This is good news for builders’ merchants and the construction sectors. Here’s a look at some of the key takeaways and what they mean for you and Grant Handling.
Social Housing Loans:
£2½ billion in low-interest loans will be available to social housing providers to enable them to invest further in new developments. So, merchants benefit from predictable, sustained orders rather than ad-hoc variable purchases.
Housing Remediation:
The Chancellor confirmed over £1bn of new money between 2026/2027 and 2029/2030 to speed up the repair and maintenance of social housing. This drives higher demand for the construction materials you store and sell from timber, bricks, insulation, roofing and plumbing to electrical supplies.
Homes England:
The Chancellor confirmed £4.8bn between 2026/2027 and 2029/2030 to attract additional private investment for new house-building that Homes England will manage. Additional opportunities with a boost to private housing investment means more building and more sales.
Warm Homes Plan:
The Chancellor said she will fully-fund the Warm Homes Plan with £13.2 billion between now and 2029. This money will go towards heat pumps, energy-efficiency measures and other low-carbon technologies like solar panels & batteries. The sale of more net zero products will provide new product opportunities for many, which will go hand in hand with extra storage and pallet movements.
Infrastructure Projects:
Information about capital spending projects over the next three to five years was also released, signalling huge long-term demand for construction materials. It included £24 billion for motorways and local roads in England and £10.2 billion for rail, including major projects like the TransPennine Route Upgrade, East-West Rail and Leeds Station.
What decisions do we all need to make to capitalise on these opportunities?
The industry needs to ask itself if it’s ready. Do we have the right people, are they trained? Do you have the right forklift equipment to cope? Collectively we need to start planning today, to ensure we maximise tomorrow’s opportunities. Our team at Grant Handling are on hand to offer advice, technical support (and forklifts) to make sure you are ready. We have over 45 years of industry experience and with the reliable and robust Heli brand, we are in a great position to help you. We also provide RTITB-approved training, from MHE Operator Training to CPC Driver Training, so a one-stop shop. The government has signalled its intentions, it is down to us collectively to support them to deliver on their promises, but also to make sure that the sector also benefits too.
If you would like to discuss these opportunities with me or one of my team, drop me a message.
Duncan
