Construction industry needs solutions, stability and long-term policymaking from Sir Keir Starmer’s government, not just more reports on the problems we face, says David Barnes, head of policy and public affairs at the Chartered Institute of Building
As we enter a new political era, and the prime minister’s cabinet is now firmly in situ, the construction industry will be ramping up its engagement with relevant ministers to ensure scrutiny and balance to the Labour government’s plans for construction, housing and infrastructure as outlined in its manifesto.
What does the new government need to do to fulfil its pledge to “get Britain building”?
Stop chopping and changing in Whitehall
Matthew Pennycook MP is now the 15th housing minister in the last 10 years. The housing minister position has been consistently chopped and changed in recent years and this has led to inconsistent policymaking and delivery, and uncertainty in the sector.
The same is true with the unofficially titled “construction minister”, which has been taken up by Sarah Jones MP, who will become the 16th minister with responsibility for construction (among numerous other industries) in the last decade.
These constant changes have meant professional and trade bodies, such as the Chartered Institute of Building (CIOB), have been forced to regularly restart engagement and brief the new ministers on the challenges faced by the sector, with each one having differing opinions about what issues should be addressed first and how to go about it.
Other key appointments for the built environment include Angela Rayner as secretary of state for housing, communities and local government, Ed Miliband as secretary of state for energy security and net zero, and Jonathan Reynolds as secretary of state for business and trade.
Part of the solution for the new Labour government is to ensure there is longevity in both the housing minister and construction minister appointments.
This will send a positive message to industry that the built environment is a valued social and economic driver. It will instil confidence in the sector to deliver on the Labour government’s manifesto aims, which include building 1.5m homes over this parliament (2024-2029), reforming the planning system, delivering a Warm Homes Plan to upgrade the energy efficiency of 5m homes, and developing a national industrial strategy to drive economic growth.
Clarity on industry challenges
Stability is hugely important for the construction industry and Glenigan’s latest UK Construction Industry Forecast is beginning to show encouraging signs, with 7% growth in 2025 and 6% in the following year due to a reduction in political uncertainty.
Furthermore, with an expected Spending Review imminent, where the government will set out its funding commitments and priorities, it will likely provide further clarity about public sector construction activity and in turn the stability the industry craves.
But stability isn’t the only ask from the sector; the new government must also be open to listening to the challenges it faces and expert views from within on the potential solutions.
The Chancellor, Rachel Reeves MP, has already promised to “get Britain building again” by bringing back compulsory housebuilding targets as part of a wide-ranging plan to reboot the UK economy.
While we welcome the aspirations to kickstart construction activity, we must be realistic that there are significant issues with the supply of skilled workers to deliver.
The announcement by the chancellor also stated additional planning officers will be recruited to speed up the planning process. However, this is only a small part of the construction process, which covers planning, design, construction and post occupancy.
Focusing primarily on the construction phase, data from the Construction Industry Training Board (CITB) indicates the number of construction workers in the UK has fallen by 14% to 2.1m since 2019.
There are several reasons for this including many workers opting to return to their home countries after Brexit, the ageing profile of the workforce and simply the lack of new entrants into the sector.
Significant investment in workforce capacity will be required from day one to kickstart activity in the housing market, but even then, it will fall significantly short of the government’s housebuilding target of 300,000 net additional homes over the next five years.
A wholesale review of apprenticeships
There is also the wider challenge to build quality homes with quality infrastructure such as schools and transport to make these new sites desirable.
In our research examining the new build housing market carried out in 2023, we found poor workmanship, structural issues and lack of infrastructure were three of the most critical concerns for people when considering purchasing a new build home.
We are therefore pleased that the Government is seeking to reform the current Apprenticeship Levy to ensure it is fit for purpose and adequately resourced as part of the Skills England Bill, which was announced in the King’s Speech on 17 July.
The number of starts in construction, planning and the built environment apprenticeships in 2022-23 fell to 24,530, a 6% fall from 26,080 in the previous academic year and the Apprenticeship Levy has been underspent, while many construction firms bear a double cost from both the Apprenticeship Levy and CITB Levy.
To add to the issue, many construction businesses feel disincentivised to offer apprenticeships due to an ongoing struggle to retain staff, with many leaving to work elsewhere once qualified. This is especially true for SMEs, and we need a system that works for businesses of all sizes.
A wholesale review of the apprenticeship system and its funding mechanisms is needed, to make sure training is affordable and incentivised for construction businesses to deliver the number of qualified professionals needed by the construction industry and wider economy.
We would encourage Apprenticeship Levy funding to be opened to other forms of training and upskilling in construction to give businesses greater flexibility in meeting their skills requirements.
These are just some of the issues the new housing minister and Labour government will need to get to grips with from day one. The construction industry does not need more reports on the problems, but solutions, stability and long-term policymaking.
