UK Spending Review 2025: What Does This Mean for the Timber Industry?

In its recent 2025 Spending Review, the UK government outlined a £39 billion investment in social and affordable housing over a 10-year period, with an emphasis on more modern methods of construction (MMCs). These MMCs are understood to include structural timber, which is expected to play a central role in delivering faster, greener housing.

The Spending Review aligns with the Timber in Construction Roadmap released earlier this year, which set out targets to scale-up the use of UK-grown timber in residential and public infrastructure projects. Both initiatives aim to reduce carbon emissions, enhance construction efficiency and support economic growth.

The strong alignment between the Spending Review and the Roadmap, along with the broader link between housing and climate policy, bodes well for the growth of the timber industry.

With this policy support and the projected pivot towards modern methods of construction, UK-suppliers will need to prepare to meet demand. This could create new opportunities for domestic forestry and sawmilling sectors and reduce the need for imported materials.

While the outlook is positive, the construction industry must invest in its workforce, upskilling its workers in timber construction methods, as well as scaling up sustainable forestry practices in the UK to meet long-term demand.