Procurement director at Stanmore, Haman Manak, reflects the plans of the new Labour Government and the role immigration has to play in resolving the worker shortage
I know it’s early days for the Labour Government, but for us in construction and housebuilding, some big promises have already been made. In particular, I’m talking about their pledge to ‘get Britain building again’ and build 1.5m homes over their 5-year term.
Political rhetoric aside, the announcement has definitely come at a welcome time. As industries, we’re just about reaching growth after what has been a tough 18 months in a challenging economic climate. Contractors, subcontractors and developers alike are all itching to take on more projects and stabilise their balance sheets once and for all. This housebuilding drive could potentially do just that.
But, despite all the optimism, there’s a glaring catch to these plans: there just aren’t enough workers to meet Labour’s target.
Construction is currently facing a dire worker shortage
The number of construction workers has fallen by 14% since 2019 – and despite the fact that construction’s workforce boasts some of the most industrious and dedicated people you’ll ever meet, the shortage will prove to be a real bottleneck in the completion of developments.
Even if the Government breaks the planning deadlock and re-writes environmental rules – and they’re trying to do both of these things – this worker shortage will ultimately reduce the number of houses they can realistically build. In fact, the Construction Industry Training Board (CITB) has predicted that 251,500 more workers will be needed to meet the UK’s construction output over the next 5 years. That’s a staggering number.
Of course, construction’s not the only industry staring down the barrel of a labour shortage – and Starmer’s taken it upon himself to tackle the issue. He’s recently announced a big, nationwide skills upgrade that will end the skills gap and reduce any potential industry fallout from immigration controls. He wants to wean the UK off from relying on, what he calls, “importing skills”.
I’m all for upskilling the workforce and encouraging more young people into the sector; after all, construction and housebuilding are some of the most gratifying and rewarding industries to work in. But I can’t help but feel Starmer and Labour have underestimated the importance of migrants to our workforce in the UK.
Migrants play a vital role in the construction and housebuilding sectors – both on and off sites. If the number of overseas, experienced talent is reduced, there’s a big risk Labour’s housebuilding ambitions will not be met – and especially given our already strained workforce. In fact, our overall activity as a sector, our growth, could be affected – and I don’t need to say how costly this will prove to Labour’s overall economic goals.
Immigration cannot be forgotten in Labour’s plans to deliver housing and infrastructure
Right now, at least, apprenticeships or even a skills upgrade cannot fill this hole. Ultimately, if the Government wants to meet its ambitious housebuilding revival, they have to ensure our sectors’ worker shortage is well-considered as they draw up and implement their immigration policies. And that’s without mentioning the myriad of other projects they have planned, too – the data centres, the laboratories, the prisons, the offshore wind farms and even Sizewell C Nuclear Power Station, which is due to get up and running this October. These will only worsen the issue.
Labour’s success in the built environment depends on them driving more workers into the sector – and fast. Even with large-scale infrastructure projects like the Stonehenge tunnel and the Arundel bypass cancelled, that still won’t free up just enough workers to meet their targets. They have to tackle our shortage with as much courage and zeal as they have conjured up their goals and addressed the planning deadlock.
I welcome Starmer’s long-term skills upgrade – I really do. But it’s no silver bullet. Short-term solutions to our worker shortage are needed to generate growth across construction, housebuilding, and, indeed, the economy. That’s the only way to truly get ‘Britain building again’.
