The burgeoning anticipation that the chancellor was going to pull a rabbit out of the hat for the construction sector in his spending review was bound to end in some people feeling disappointed whe the reality hit of what can be done in a limited one-year review. The lack of bandwidth for further dramatic measures was laid bare by the shocking economic statistics Rishi Sunak shared relating to the impact of covid-19 on the economy. They put in context the difficult choices that need to be made in stewarding the economy back to health in the years ahead in a way that avoids a return to austerity but shows fiscal responsibility and does not burden our future any more than we need to be.

Sunak confirmed that a total cost of £280bn has been spent or allocated to respond to the pandemic (equivalent to 14 Crossrails or three HS2s to put it in perspective). This hair-raising number, combined with the unprecedented forecast levels of public borrowing has limited the government’s options to launch any significant ramp up in Keynesian stimulation to the economy through construction and infrastructure and other capital spending beyond the £100bn which has already been committed for next year.

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