UK ELECTION
small and medium-sized construction businesses into consideration. Much like with large, strategic sites, we believe these new sites should be broken down into smaller plots so the developments can feature a diverse range of housing. Social housing could be an important route for small, local house builders, providing a consistent pipeline of work from local authorities or social housing providers choosing to use smaller developers, particularly in rural areas. Improving energy efficiency Labour has also focused on the existing housing stock, with the ambition to improve the energy efficiency of five million homes – somewhat downsized from its earlier plans, a revision that the FMB has criticised. But five million is still a big number, and these retrofits could provide significant work for local builders. The new Government has backed its energy-efficiency pledge with funding and consumer incentives to upgrade their homes, which we know will be valuable, as consumers have been wary of how expensive retrofitting is. The Government will also reintroduce plans to upgrade rented housing to improve energy-efficiency standards, which provides another long-term supply of work for builders. Closing the skills gap So, how do you find the skills for all this? We know the industry already struggles to keep pace with staffing requirements, without the added pressure of retrofitting and increased house building. Labour does have promising plans to: ● create a strategy for post-16 education; ● establish ‘Skills England’ to bring together industry and Government to assess skills needs; ● guarantee training, apprenticeships or work for all 18 to 21-year-olds; and ● create specialist technical colleges. All of this should improve the picture for builders short on staff, but we are not the only industry lacking the numbers. Others such as the care sector are
Prime Minister Keir Starmer
front of mind for Labour, and are set to receive a boost in staffing numbers to accommodate the ageing population. The construction sector will need to continue to improve its image to highlight what positive careers it can offer. Better for business There may also be improvements in the general business environment, with a loose guarantee to tackle late payments. Contractors in the supply chain might welcome the news but we’ve heard this before with little impact. There will also be enhancements to government procurement rules so SMEs should gain more public sector contracts, which could lead to healthy pipelines of work. Pay changes are also on the horizon, with the Labour Party wanting to match wages to the cost of living – meaning the minimum wage will reflect the wider costs facing employees. The result may well be increased wages. There are glimpses of positivity, but we should balance it with a healthy dose of scepticism, as so much depends on improving the number of new entrants into the construction sector’s workforce. If the skills issue can be addressed, we may see local builders thrive. But that remains a big ambition, which successive governments have failed to solve.
Labour’s plans for housing include delivering 1.5 million new homes over the next five years
Labour also plans to make social housing a top priority and has proposed the development of new towns. At first glance, neither of these focuses provide a clear route for driving growth for smaller house builders, but they could unlock opportunities and a consistent pipeline of work. The FMB will campaign to make sure any plans for new towns take
Due to the print schedule, this article was written on 5 July and reflected the situation at the time. For the latest updates on the Labour Party’s plans for builders, visit www.fmb.org.uk
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Master Builder
www.fmb.org.uk
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