Invest in people and infrastructure to build on growth – RHA urges ministers

The Office for National Statistics (ONS) said UK gross domestic product (GDP) is estimated to have grown by 0.1% between October and December, following no growth in the previous three months.

Growth in services and construction have helped drive the increase; and investment to facilitate the latter will be key to deliver on the Government’s housebuilding targets to deliver 1.5 million homes over this Parliament.

This will require a more efficient road network to facilitate their construction the supporting infrastructure those areas will need.

It's why we urged the Government in our Spending Review response to prioritise investment in road infrastructure through the upcoming Road Investment Strategy 3. Local roads need investment too with potholes currently costing the economy £14 billion each year. 

Having people with the right skills in the right places is vital to drive growth too. We set out our vision to help meet future demand last week through our Lorry Drivers: the vital link report.

We’ll need another 200,000 lorry drivers in the next five years which will require industry and government to work together in the short and long term on myriad programmes and solutions; we were certainly buoyed this week by the Government’s announcement to change apprenticeship rules in England which will support more people to get behind the wheel and into other critical roles in our sector. But there is much more still to do.

Amid the optimism we mustn’t lose sight that these are still precarious times for our industry and the wider economy. The estimated growth in 2024 Q4 through services and construction partially offset by a fall in production.

This tallies with exports being down at a time when our industry is still beset by mass insolvencies. Increases to Employers’ National Insurance contributions in April are still to come and we have to anticipate that prices will rise and jobs will go. What we don’t know is to what extent.

We’re realistic that the Government has an incredibly tough job to do to balance the books and boost the economy. We will continue to support ministers and officials to chart a path which builds on recent growth and delivers long-term prosperity for the UK.

Advertisement