With the Spring Budget looming, we kind of know what to expect — don’t we?
As a small business owner, I’m always interested in how budget decisions align with the services we provide to clients and the impact those decisions have on Local Authority priorities. This year’s budget will undoubtedly fuse digitisation, placemaking, and infrastructure into a melting pot of innovation, opportunity — and increasing budget pressure.
With £2 billion in administrative “efficiencies” expected across departments, it’s critical that core services like adult social care and education are protected. But protection alone isn’t enough. These services must embrace technology and integrate more effectively across departments to ensure funding is multi-dimensional and outcomes are long-term.
Much of the Spring Statement has already been signposted by a government many still view as uncertain. And while headlines will cover the usual tweaks to retail, EV road tax (yes, really), and the cost of food and drink, a big question remains: what will this budget deliver for infrastructure?
Infrastructure and the Growth Opportunity
Infrastructure — and I use the term broadly to include engineering, digital, and housing — represents the UK’s biggest opportunity to return to fiscal growth and stimulate enterprise.
With mounting pressures on LA budgets and an ever-widening gap in available housing stock, isn’t it time we saw proper investment in retrofit and refurbishment? Long-term commitments to skills and sustainable housing are needed. A good example is Greater Manchester’s recent funding extension under DSIT’s 5G Innovation Regions Programme, supporting smart social housing by connecting air source heat pumps to local energy grids. The return on investment is at least 10:1 — and that’s before you consider other use cases like healthcare, assisted living, and housing maintenance.
The case is compelling. But will it be reflected in the budget — either as standalone interventions or as part of coordinated, long-term programmes?
The Digital Infrastructure Question
The current excitement in digital infrastructure is focused on AI Growth Zones and hyperscale data centres — key to the UK’s ambition to lead on AI. It’s a bold vision. But many Authorities still lack the basics when it comes to connectivity.
Before we talk about AI, we must ensure full fibre coverage and ubiquitous 5G access. Ofcom’s data might suggest we’re there — but real-world experience says otherwise. It’s time Ofcom updated how mobile signal strength and coverage is measured, calling out the poor connectivity that continues to hold back regions.
The recently announced Digital Inclusion Action Plan is a welcome step, but it needs proper backing. We hope to see real funding in this budget for digital skills, literacy, and roles within Local Authorities focused on tackling digital poverty. A good starting point for Authorities would be adopting a digital infrastructure master-planning approach — something we’ve developed for Greater Manchester, Berkshire, and more hyper-local areas like St Helens and Burgess Hill in Mid Sussex.
And as demand grows for power-intensive infrastructure like 150MW data centres, we urgently need joined-up thinking across regulatory bodies. We can’t afford to waste scarce resources by encouraging regional competition based on speculative funding promises.
Devolution and Confidence in Long-Term Planning
How will devolution impact Authority budget planning and long-term investment confidence?
While there are still many unanswered questions, giving regions more control over decision-making is undoubtedly the right move. We’ve already seen maturity across the Combined Authorities, particularly under the leadership of Metro Mayors. The ability to align strategies across services, resources, and policies is key — and recent work we’ve done with advanced Authorities on highways maintenance contracting has shown the power of a devolved model.
Greater local control brings the potential to improve efficiency, share staff expertise, and align best practices across regions.
A New Approach to Highways?
One area where we hope to see meaningful change is highways maintenance. The Government’s £1.6 billion commitment to pothole repairs is significant, but it must be used wisely.
By focusing on proactive, preventative maintenance and targeting the most critical areas first, Authorities can improve road conditions effectively and efficiently. Strong governance and up-to-date asset data will be essential — so we must invest in upskilling Local Authority teams to be more analytical and digitally confident.
Poor team culture between Authorities and Contractors should be a thing of the past. In high-performing Authorities, we’ve seen Contractors step up, offering digital innovations and low-carbon materials — but these need to be embraced by engineers at all levels. These are the innovations that will help us achieve net-zero and make budgets go further.
Still, many fear the pothole funding is more stick than carrot. But Local Authority engineers are a creative bunch — and they’ll make the most of whatever funding becomes available.
A Final Word
So — will the Chancellor deliver a budget that genuinely supports joined-up digital, placemaking, and highways infrastructure?
It might still be early days for this government term, but we’re beginning to see the green shoots of more integrated, outcomes-focused funding. And that’s welcome.
We look forward to making sense of the Spring Statement — and working alongside our clients to understand what it means for them and how they can position themselves as leading Authorities delivering meaningful, resident- and business-centric programmes.
Tags: Digital, Highways, Infrastructure, Planning, Spring Budget
