Yesterday the new industrial strategy was announced with construction not mentioned at all. Today, industry experts share their opinion on the apparent lack of support
The new industrial strategy was launched yesterday with a focus on eight areas:
- Advanced manufacturing
- Clean energy industries
- Creative industries
- Defence
- Digital and technologies
- Financial services
- Life sciences
- Professional and business services
Notably, despite the 1.5m new homes target and the “get Britain building again” slogan, construction does not feature on this list.
“We cannot afford to overlook the very industry that builds the foundation of Britain’s future.”
Sean Keyes, CEO of Sutcliffe consultancy commented:”The announcement of multi-billion-pound infrastructure investments today marks a significant turning point for the UK’s civil and housing sectors. The scale of these projects, from energy and green industries to logistics and transportation, will not only unlock economic growth but also create the foundation for a more resilient future.
“As announced in the industrial strategy, the government’s focus on eight key growth sectors will undoubtedly provide stability and confidence to give investors a ten-year plan to choose Britain, showcasing how the UK can compete to win on a global stage. However, it is concerning that construction, a fundamental pillar of our economy and an essential driver of infrastructure development is missing from this list.
“Construction is the backbone that supports and enables growth across all sectors, from housing to the infrastructure these key industries rely upon. Without recognising the central role of construction, there is a real danger that the government’s strategy will fail to deliver on its full potential. The omission undermines not only the sector’s contribution to GDP but also its capacity to generate jobs, innovation, and the future-proofed infrastructure required for a thriving economy. We cannot afford to overlook the very industry that builds the foundation of Britain’s future”.
“How can you rebuild Britain without builders?”
Brian Berry, chief executive of the Federation of Master Builders: “It is deeply concerning that the Chancellor and Business Secretary have published an Industrial Strategy for the new Government, but have not felt it necessary to include reference to the construction sector as an industry for growth, during a period where the UK is experiencing both a housing and skills crisis that are holding back an economic resurgence and threaten long-term market confidence. Given the focus on rebuilding Britain, it appears those that will be doing the physical work have been forgotten.
“While the Government is focussing on inviting big innovative investment, it should not forget the fundamentals of what drives growth. The consultation is an opportunity to ensure that construction doesn’t end up as a side show sub-sector in the plan. Construction needs to be front and centre in the Government’s drive for economic growth.
“The Government has made several promising announcements in recent weeks with proposals for significant planning reforms, an ambitious house building target of 1.5m new homes, and the establishment of Skills England all welcome. However, there remain questions about the viability of these plans without serious investment to tackle the root causes. The new Industrial Strategy raises concerns around how integral to the overall UK economy Ministers see our industry, which should sit alongside services and manufacturing as a key pillar of economic growth.”
With no mention of construction, some in the industry now look to the autumn budget
Allan Wright, MD at Civils & Lintels, said:
“Construction is absolutely at the heart of the UK’s economy so it was encouraging following Labour’s election win in July that so much focus was placed on the housebuilding, civils and infrastructure sectors.
“However, I said then that it was imperative that they act quickly on those election pledges, and whilst housebuilding, infrastructure projects and the planning system all commanded significant initial attention, it currently feels that any initial momentum established may have been lost. It wasn’t even mentioned in the industrial strategy published earlier this week.
“Rachel Reeves’ first budget as Chancellor on October 30th is, therefore, an excellent opportunity to address these areas and potential options which I’d urge her to consider include, permanent reform to SDLT, the reintroduction of some form of assisted purchase for private home ownership similar to Help to Buy, a significant commitment to invest in the delivery of new rental stock and demonstrable investment in UK infrastructure. These would all contribute significantly to the construction and housebuilding sectors, yet the detail continues to be scant in this respect.
“We are also still waiting for clarity on when promises such as reform to the planning sector can be expected and this must absolutely be a priority.
“For all these reasons, I will be watching intensely on Wednesday 30th in the hope the rhetoric transfers into clear actions that help both the construction sector and UK plc!”
