The new government has revealed plans in the King’s Speech for a “mission-led” drive to create economic growth and jobs – creating clear opportunities for the construction industry.
The ceremonial speech from King Charles, delivered this morning, set out the legislation aimed at meeting Number 10’s pledge to “build more housing and infrastructure”.
In just 12 minutes, 35 forthcoming bills were set out in plans that could amount to the biggest boost to the sector in generations.
“Ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high-quality infrastructure and housing. They will also pursue sustainable growth by encouraging investment in industry, skills and new technologies,” the King’s Speech said.
There was also a pledge to ensure stability and secure economic growth, plus a promise to create “a new relationship with business and working people”.
Although good news for firms battered by more than a decade of uncertainty, there will be questions on how the people, funding and materials will be found to deliver the government’s ambitions.
Key legislation proposed in the King’s Speech covers:
- Planning and infrastructure
- High-speed rail
- A new industrial strategy council
- Employment rights and equal pay
- Reform of the apprenticeship levy
- Duty for mayors and government to collaborate.
Planning and housing
Planning reform is coming: the government’s programme will include a planning and infrastructure bill.
This will:
- Streamline the delivery process for critical infrastructure;
- Simplify the consenting process for major infrastructure projects
- Allow new and improved National Policy Statements on infrastructure to come forward;
- Reform compulsory purchase compensation rules;
- Increase local planning authorities’ capacity;
- Use development to fund nature recovery.
“Ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high-quality infrastructure and housing. They will also pursue sustainable growth by encouraging investment in industry, skills and new technologies.”
Driving up output figures is the aim. But What types of housing also matters: a critical issue is older people living in family homes who have no incentive to move. Independent living developments and age-friendly public realm infrastructure will have to be part of the solution.
Later this year, the Grenfell Tower Inquiry will publish its findings and recommendations. The industry can expect more legislation – and an evolution of the Hackitt recommendations that standards start at the architect’s desk and follow a ‘golden thread’ to handover.
The government will use new developments as an opportunity to move the market into new ways of working.
Rob Norton, UK director at PlanRadar, said: “The golden thread will continue to dominate construction workflows. I hope to see further collaboration in construction’s approach to fire safety, bringing greater consistency and quality to fire-safety checks and strategies.”
Making it happen
Devolution as a key driver of growth is one of the government’s central planks. Metro mayors will be empowered to support local growth plans.
On infrastructure, the government will want local authorities to work together to agree on what is needed. But, as former West Midlands mayor Andy Street discovered when HS2 was cancelled by the previous prime minister, getting that to happen in reality is difficult when there are competing agendas such as local opposition.
The pressure point will be at regional level, with mayors – such as Manchester’s Andy Burnham – being the key negotiators.
Alongside devolution will come a new industrial strategy council. In effect it is a return to the boards that worked with government in the 1970s.
The High Speed Rail (Crewe-Manchester) Bill – the legislation used by former PM Rishi Sunak to kill off the next phase of HS2 – is being brought back. But it is now a vehicle for creating new links between the East and West of England. Details are scant as ministers are still unpicking how the project ballooned into a massively expensive project.
But the government said: “We can deliver on our manifesto commitment to improve rail connectivity in the North of England at pace. The bill includes powers for important rail infrastructure in Manchester and the surrounding area, including new stations at Manchester Piccadilly and Manchester Airport.”
The National Wealth Fund will also be used as a lever to meet the net-zero agenda. GB Energy will accelerate investment in offshore wind. Energy independence – including hydrogen production – is now a national priority.
Water firms will also come under pressure to end sewage discharges – and that means new plant capacity.
Growth
The overarching theme in the King’s Speech was driving growth throughout the UK and the English regions. The Greater Manchester blueprint is likely to be reused.
Henri Murison, chief executive of Northern Powerhouse Partnership, said: “This growth is a result of transfers of powers and funding to build the tram to towns like Bury in Greater Manchester, the net zero boom in offshore wind on the Humber and better cross-Pennine links, which could help further if extended properly to cities like Bradford. These limited advances so far have all depended on places taking back control, now we need more of that.”
The full detail of government plans will emerge over the next two weeks.
Starting tomorrow, MPs will work through questions about energy, the environment and housing. Economic growth, infrastructure and employment debates are scheduled in parliament for next Monday.
There are questions about what happens to the freeports programme that was one of ex-prime minister Boris Johnson’s centrepieces. Work is underway but will it survive the shift of central government focus in their current form?
Skills
There was a commitment to “invest in skills” and this will be a top priority for the new industrial strategy council.
Reform of the apprenticeship levy – a key ask of the sector – was also confirmed.
Tim Balcon, chief executive of the Construction Industry Training Board (CITB), said: “Key to achieving the government’s housebuilding targets is to get the right skills policies in place. It is essential that the new Growth and Skills Levy drives up construction apprenticeship numbers that have declined under the Apprenticeship Levy.
“We simply do not have enough workers in the construction industry right now – in 2023 there was a net loss of 10,000 construction workers. Our research shows that under Labour’s housebuilding plans, up to an additional 152,000 workers will need to be found.
“Last year CITB helped over 29,000 apprentices during their courses. We’re ready to work with government, industry, and training providers to ensure that the coordinated reforms are put in place to drive sustained growth in the construction industry.”
Employment rights
During the election campaign, unions had a row with Labour over plans for reform. They now know what to expect.
Legislation is coming and it will be controversial for some: equal pay, zero-hour bans, more safeguards against unfair dismissal plus new statutory rights for sick pay.