While the government's bi-annual budget revelations can sometimes bring controversy, Bishop Fleming — one of the south west's leading tax and audit firms — says that some of the key announcements from March 2025 could bring growth to Gloucestershire and the region.
In the televised 2025 spring statement, the government introduced some significant initiatives that will impact positively on Gloucestershire and the south west region, particularly within the construction and defence sectors.
Chancellor Rachel Reeves outlined what the government has deemed a 'comprehensive strategy' and promised to 'get Britain building' and to 'bring innovative technology to the forefront'.
Its strategy hopes to drive economic growth through targeted investments in construction, infrastructure and defence.
Zoe Martin, tax partner at Bishop Fleming, says that for businesses and residents in Gloucestershire and across the south west, these developments could bring new opportunities, innovation and economic growth.
Construction and housing
Zoe said: 'The government says it is committed to delivering 1.5 million homes within this parliament, aiming to address the housing crisis and stimulate economic growth.
'A £2 billion investment will facilitate the construction of 18,000 social and affordable homes — and to support this ambitious goal, £625 million has been allocated to train up to 60,000 additional construction workers, addressing critical skills shortages in the industry.'
This significant investment is expected to 'bolster the construction sector', creating job opportunities and helping to develop the region's infrastructure.
Planning reforms and infrastructure development
Zoe continued: 'In an effort to speed up the development of infrastructure projects, the government is looking at over 150 major infrastructure applications during this parliament.
'The forthcoming 'Planning and Infrastructure Bill' is meant to streamline the approval process for critical projects, including 'gigafactories', solar farms, roads and railways.'
Zoe says that these reforms are anticipated to permanently increase the level of real gross domestic product (GDP) by 0.2 per cent in the next four to five years, by 2029-30.
Defence spending and innovation
Zoe added: 'In view of evolving global threats, the chancellor announced an additional £2.2 billion in defence spending for 2025-26, with plans to raise the defence budget to 2.5 per cent of GDP by April 2027.
'Notably, 10 per cent of the Ministry of Defence's equipment and procurement budget will be dedicated to novel technologies, including drones and AI-enabled systems.'
The government's plan for this investment is to aim to position the UK as a 'defence industrial superpower', fostering innovation and creating jobs within the defence sector.
Zoe predicts that 'these initiatives present substantial opportunities for Gloucestershire and the south west'.
She says that the emphasis on housing development and infrastructure projects is 'likely to stimulate the local economy, provide employment' and enhance regional connectivity.
While the investment in defence technologies, particularly in areas like cyber and AI, 'aligns with the region's growing tech industry, potentially attracting further investment and fostering innovation hubs'.
For more information and advice on tax, auditing and financial services for you or your business, get in touch with Bishop Fleming on 01242 505970 or visit bishopfleming.co.uk.
