The Mineral Products Association (MPA) welcomes aspects of the Government’s Spring Statement which presents opportunities for growth in construction and related industries. However, concerns remain over the downgraded growth forecast for 2025 and the potential implications for the sector.
The Office for Budget Responsibility’s revised growth forecast of 1.0% for 2025 reflects challenging global economic conditions. As suppliers of essential materials for construction and infrastructure, the mineral products sector is sensitive to changes in economic growth and investment levels. While the Government’s reaffirmation of its ambitions for infrastructure and housing is welcome, effective delivery remains uncertain without a solid foundation of broader economic growth to support business confidence and investment. The revised forecast follows the Chancellor’s call on regulators to focus on growth in January; MPA wrote to the Chancellor afterwards to welcome her approach and encourage her to go further.
Reforms to the National Planning Policy Framework, which the OBR estimates will increase annual housebuilding by around 30% by 2029‑30, are also encouraging, and it is notable how much planning reform is forecast to contribute to growth from 2026 onwards. However, the MPA cautions that achieving these targets will require careful planning and policies that ensure a reliable supply of essential construction mineral products, such as aggregates.
The Government’s commitment to an additional £13 billion in capital infrastructure investment, including defence, over the next five years is promising, but as much of this spending is backloaded from 2027/28, it will not provide immediate support to the industry amid the current construction slowdown. The MPA looks forward to greater clarity in the 10 Year Infrastructure Strategy expected later this spring.
The increase in defence spending of £2.2 billion for 2025-26, including projects such as the Portsmouth naval base regeneration and improved housing for military personnel, is a substantial investment and a reminder of the strategic role the aggregates and wider mineral products industry plays in delivering projects critical to national security.
Aurelie Delannoy, MPA Director of Economic Affairs, said: "The construction and mineral products industries are critical to delivering the Government’s growth ambition and strengthening our national security. However, subdued growth prospects over the next five years – with growth not surpassing the 2% in any year - poses real challenges, particularly for an industry that needs to plan long, and where investment involves high upfront costs. The sector needs clearer commitments on infrastructure investment and a planning system that effectively supports construction and housing delivery sooner rather than later.”
Underpinning the Government’s ambition must be an effective procurement system that actively supports UK producers and manufacturers. MPA Executive Chair Chris Leese stated: "It is vital that the Government understands the importance of a public procurement policy that prioritises domestically produced materials such as cement and concrete. A strong, resilient supply chain underpinned by UK-manufactured products is essential to stimulate economic growth, protect working people’s jobs, and meet national infrastructure needs."
The MPA urges the Government to engage closely with industry stakeholders to ensure that planned reforms and investments deliver meaningful economic benefits while supporting our national security and the UK’s transition to a net-zero economy.
ENDS.
About the Mineral Products Association:
The Mineral Products Association (MPA) is the trade association for the aggregates, asphalt, cement, concrete, dimension stone, lime, mortar and industrial sand industries. MPA is the sectoral voice for mineral products, covering 100% of UK cement and lime production, 90% of GB aggregates production, 95% of asphalt and over 60% of ready-mixed concrete and precast concrete production. In 2021, the industry supplied £22 billion worth of materials and services to the Economy. It is also the largest supplier to the construction industry, which had annual output valued at £178 billion. Industry production represents the largest flow of materials in the UK economy and is also one of the largest manufacturing sectors.
For media enquiries, contact Robert McIlveen at: Robert.McIlveen@mineralproducts.org