The Labour Party’s landslide victory in the 2024 General Election indicates a significant shift in the political landscape, with several key implications for the construction industry.
Labour’s manifesto entitled ‘Change’ has a strong emphasis on growth, planning reform, and partnership with businesses, which sets a promising foundation for development for the construction industry under a new Labour Government.
Labour’s manifesto promises an immediate update to the National Planning Policy Framework (NPPF), 1.5 million homes over the next parliament, restore mandatory housing targets, and ensure local authorities have up to date local plans. These measures are expected to streamline the planning process and reduce delays.
A commitment from Labour to maintain and renew the road network, embed public and active travel, and launch significant infrastructure projects, such as Great British Energy, could generate new opportunities for construction companies.
Reforms to procurement rules to better favour SMEs, along with actions on late payments and easier access to capital, would provide much-needed support to SMEs within the construction industry.
Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said: “After the NFB’s decade long commitment to lobbying government for planning reform, Labour’s recognition of the impacts of a broken planning system is encouraging, and its commitment to fixing the planning system and drive growth through strategic reform is a positive step for our industry. If these promises are fulfilled we can look ahead to more homes, better infrastructure, and stronger businesses.”
Rico Wojtulewicz, Head of Policy and Market Insight at the NFB, said: “Although planning reform, infrastructure development, and support for SMEs is welcomed, there is a precedent of such plans facing setbacks. The Labour Party must, therefore, provide reassurance that these reforms will be implemented successfully and without delay.
“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. What the construction industry now needs as we transition to a Labour Government, is clarity, detailed policy plans, and realistic timelines on the outcome of these proposed reforms.
“The Labour Party now has a unique opportunity to demonstrate its commitment to the growth of our industry. Only time will tell how these policy commitments may come into fruition, however the NFB remains dedicated to working hard to collaborate with the Labour Party on policies that will shape the future of the construction industry, ensuring that our sector remains a top priority for the UK’s economic growth and development.”
Neil Jefferson, Chief Executive of the Home Builders Federation, said he looked forward to engaging with the new Government on how to deliver its “very welcome ambitions” for housing delivery.
“Recent years have seen sharp falls in both the number of homes being built and the planning permissions being granted and there are some major barriers that need to be removed if we are to meet the challenge,” he said.
“We welcome the Government’s commitments on planning. The recent weakening of the planning system and the lack of capacity in local authority planning departments are the current biggest constraint on delivery.
“We also need to see effective support for first-time buyers to address the lack of affordable mortgage finance, and workable solutions to the nutrients issue that is holding up around 160,000 homes.
“If Government can create a pro-development policy environment the industry stands ready to deliver.
“Building the homes the country needs will address the social issues our housing crisis is creating, provide young people with access to decent housing, whilst creating tens of thousands of jobs and boosting investment in communities in every area of the country.”
The new Prime Minister, Sir Keir Starmer MP, has made clear on the steps of Downing Street that building the homes Britain needs will be a key priority for his Government, but he will need to take urgent action to tackle the skills crisis to make them a reality, says the Federation of Master Builders (FMB).
Brian Berry, Chief Executive of the FMB, commented: “The new Prime Minister’s promise to make building affordable homes a priority will come as welcome news to builders across Britain, as well as those looking to get on to the property ladder and own their own homes. However, the construction industry is experiencing a severe shortage of skilled workers. SME building firms across the country stand ready to join the national effort to tackle the housing crisis, but Labour’s ambitions will only be deliverable by taking serious action to boost the workforce.
“While the Prime Minister’s promise to rebuild Britain with a clear reset in society, will offer hope to many, it was disappointing to see that tackling the skills crisis was absent from his opening statement of intent. It is essential that the new Government focuses on delivering sustainable long-term growth in the economy, and that will only be achievable by boosting the construction sector, with a long-term action plan for skills.”
