The Impact of the 2024 General Election and Autumn Budget on the Infrastructure Design Sector
The 2024 UK general election and subsequent Autumn Budget have triggered changes in the infrastructure design sector. These changes initially caused uncertainty in the market, slowing down recruitment activity while companies awaited clarity on the new government’s policies and priorities.
The Labour Party’s victory introduced ambitious infrastructure and housing initiatives, with the intention to drive economic growth through significant investments in infrastructure. Key policies include plans to build 1.5 million homes over the next five years, reinstate mandatory housing targets, and streamline the planning process to enable large-scale developments. Whilst this announcement suggests an influx of work and a growing demand for engineering professionals, these changes resulted in an uncertainty in the market as consultancies were cautious surrounding upcoming work in the interim.
Companies took time to understand how new government policies would impact them, anticipating potential cost increases. A number of consultancies had projects pushed back, with their own clients waiting on the confirmation of budgets. Additionally, existing projects were being reassessed until clearer direction. This “pause” in work subsequently led to delays in hiring decisions.
The Autumn Budget confirmed the government’s commitment to driving the built environment sector forward. The budget outlined increased infrastructure spending and these decisions have given clarity to consultancies who can now plan with more confidence. For consultancies, this means greater assurance when taking on new projects and growing teams. Specifically, consultancies specialising in transport planning and civil infrastructure design will benefit from the substantial investment in transport infrastructure outlined in the budget.
As the market picks up, employers and job seekers are in a good position to capitalise on new opportunities, and it’s an essential time for both sides to be proactive. Consultancies will need to act quickly to secure top design professionals as well-staffed teams will be in a better position to take advantage of the shifting market. With the infrastructure consultancy market being candidate short, delaying hiring decisions could mean losing out on talent to competitors. To keep up with the market growth, companies should aim to streamline their recruitment process. For example, focus on simplifying the interview process, setting clear timelines and ensuring quick decision making.
New opportunities will emerge for candidates as the demand for staff increases, due to the government’s commitment to large-scale infrastructure and housing projects. Moving into a new position now may benefit candidate’s longer-term progression, with opportunities to work on high-profile and potentially larger-scale developments.
The confirmation of the budget has given the sector the stability it had been missing. The hesitancy that characterised the infrastructure market in the months leading up to the election is now being replaced by renewed optimism. The sector is beginning to see increased activity and consultancies are moving forward with hiring plans, recognising the need to secure staff to meet project demands early next year. This is creating a pipeline of opportunities for both businesses and candidates as we head into 2025.