What the construction industry needs from the new Labour government

With a new British government in power after the Labour Party’s landslide election win, much of the nation is now waiting to find out what changes are in store – and the construction industry is no exception. Reforms to the housing and planning system were a key element of Labour’s manifesto; in light of these promises, experts have spoken up about what the construction industry requires from this new government. 

New homes

In their manifesto, Labour pledged to build 1.5 million new homes by 2029. While this has been welcomed by the industry, many have questioned if this goal is realistic as it would require 1,150 homes to be built every working day. Eddie Tuttle, Director for Policy, External Affairs and Research at the Chartered Institute of Building (CIOB), stated that, to achieve this target, the government must address “the shrinking skills base and the ageing construction workforce”. He suggested that “the current apprenticeship system and its funding mechanisms need reviewing as a matter of priority to make sure training is affordable and relevant.”

The broken planning system

Labour also committed to immediately fixing the National Planning Policy Framework (NPPF) – a reform which will be crucial in order to deliver 1.5 million new homes. Promises included making sure local authorities have updated local plans, and funding additional planning officers by increasing the stamp duty surcharge for non-UK residents. The Royal Institute of British Architects (RIBA) warned that ‘while the new government is seeking to restore mandatory local housing targets, this must not be to the detriment of quality.’ They added, ‘Labour has said that the NPPF will strengthen the presumption in favour of sustainable development and that planning obligations will be strengthened to ensure that new developments provide more affordable homes. However, details on how they will achieve this remains unclear.’

Missing areas

Although many industry leaders are reassured by Labour’s desire for change, some do believe that there are areas that still need addressing. Rico Wojtulewicz, Head of Policy and Market Insight at the National Federation of Builders (NFB), reflected, “The Labour Party manifesto raised some concerns over the lack of specific details on essential policy positions, for example, the grey area around promoting biodiversity and tackling pollution.” 

Similarly, the Construction Plant-hire Association (CPA) published a series of priorities for the new government, one of which was the decarbonisation of construction plant. They urged one department to take responsibility for the decarbonisation of non-road mobile machinery, then publish a Low Carbon Fuel Strategy. They stated, ‘The need for action is even more pressing. Failure to develop a strategy and work with manufacturers and the rental industry will undermine progress and government intentions towards our industry.’

Recognition from parliament

There is a consensus that the government must make a concerted effort to forge strong relationships with leaders in the industry, so that the proposed changes become a reality. To do this, both CPA and CIOB suggested revising the role of the construction minister. CPA commented, ‘If we are to build the homes of the future, develop our infrastructure and support the construction industry, the role of construction minister must be much better defined and not part of a wider ministerial remit. This will provide clarity and greater focus to the role and help give the industry confidence that the government is taking construction seriously.’ Meanwhile, Eddie Tuttle at the CIOB said, “given the strategic importance of the construction sector, we believe it should be recognised as such at Cabinet Minister level.”

To conclude, the construction industry is generally supportive of the Labour Party’s vision for the housing and construction sector. However, more detail is needed on how these plans will be delivered. It is likely that major policy changes will not be confirmed until the Autumn Budget; when these announcements do come, it is hoped that they will provide some much-needed stability and consistency for the construction sector.