The UK Construction Industry and the positive impact of the General Election 2024
The upcoming general election in the UK is poised to be a pivotal moment for the construction industry. As the nation prepares to cast its votes, what are the main parties promising the UK construction industry?
A Catalyst for Growth and Confidence
The general election could serve as a catalyst for growth, dispelling political uncertainty and bolstering investor confidence. A new government, potentially led by Labour, is expected to take office, bringing with it a fresh wave of optimism and a commitment to legislative and administrative reforms. These changes could unlock private sector investment, including in construction, which could significantly boost economic growth and government revenues.
Revitalising Housing
Labourer’s manifesto pledges to update the National Policy Planning Framework, restore local authorities’ mandatory housing targets, and increase the presumption in favour of sustainable developments. This approach is designed to kick-start the economy and accelerate the flow of new developments. Additionally, Labour’s intention to deliver 1.5 million new homes in England over the next 5 years prioritises brownfield sites, urban extensions, and regeneration projects, promising a substantial increase in construction activity.
Staying on the same theme, the Conservatives state that they intend to fast track brownfield residential development in cities and build 1.6m homes in England through the next parliament. They hope that by promising a new and improved Help to Buy Scheme and making the 2022 stamp duty threshold permanent they will not only solve the demand for housing but also stimulate demand.
Meanwhile the Liberal Democrats, state that they intend to build 380,000 new homes across the UK each year, with 150,000 of these representing social housing. That’s 1.9m new homes, of which 750,000 would be social housing over a 5 year period. They have also announced plans to introduce “use it lose it” planning permission to stop developers sitting on land and refusing to develop it.
The Green Party, intend to build the least new homes, namely 750,000 over a 5 year period, ensuring that all new builds meet Passivhaus or equivalent standards. They also want housebuilders to incorporate solar panels and heat pumps in all new homes built. Turning to social housing, they intend to end the Right to Buy Schemes in order to ensure that social housing is not converted into private residential property ensuring a stock of social housing is available.
Clearly house building is a running theme for all parties, but what is less clear is how the parties intend to build these homes, given that the current Government is behind the promised 300,000 new homes that was promised annually.
Infrastructure
Labour have focused their campaign upon improving rail connectively in the north of England and have called for the railways to be brought back into public ownership. They also give a special mention to fixing potholes, suggesting that 5 million could be fixed over the next 5 years. Labour also promise a 10 year infrastructure strategy in order to provide the private sector with much needed certainty about project pipelines.
The Conservatives state that they will invest £8.3 billion in fixing potholes and resurfacing roads and have also referred to committing a further £12 billion to the Northern Powerhouse rail network between Liverpool and Manchester. They also state that they will reduce the time it takes to sign off on major infrastructure projects from 4 years to 1 year.
The Liberal Democrats intend to increase the roll out and support for electric vehicles whilst devolving additional powers to local authorities to upgrade local infrastructure.
The Green Party has set out an intention that all new developments be accompanied by additional investment in local health, transport and other services. In contrast to the other parties, the Green Party has stated its opposition to new road projects, pledging instead to reinvest money in other transport infrastructure instead.
Embracing Sustainability
The general election presents an opportunity for the construction industry to align with the government’s green agenda.
Under Labour’s plans they intend to reach clean energy by 2030, with net zero to follow. They say they will make a £5 billion investment in gigafactories, carbon capture and green hydrogen and a £6.6 billion investment in upgrading energy efficiencies in homes to cut bills. It also pledged to create 650,000 new jobs in green energy by 2030.
Meanwhile, the Conservatives say that they can deliver net zero by 2050, and that they plan to scale up nuclear power and also invest £1.1 billion into the Green Industries Growth Accelerator.
The Liberal Democrats plan to upgrade the National Grid to meet growing energy demand and invest in renewable power with a view to 90% of the UK’s electricity being generated from renewable energy by 2030. They also mention making homes warmer and cheaper to heat, and state that all new homes should be zero-carbon.
The Green Party would like to see 70% of the UK’s electricity created by wind by 2030 and state that investment will be made into energy storage capacity together with upgrading our electricity distribution networks.
The UK construction industry stands to benefit from the initiatives promised by the general election, as it will likely lead to increased demand for sustainable infrastructure and energy-efficient buildings.
Conclusion: Building a Stronger Future
As the UK construction industry faces a complex future, the general election stands as a beacon of hope. The general election offers the potential for a more stable political landscape, increased public and private investment, and a stronger commitment to sustainability. By embracing the changes and opportunities that the general election may bring, the UK construction industry can build a stronger, more prosperous future for all. This years’ general election has been described as the “built environment election” by Simon McWhirter of the UK Green Building Council, and this comes at a time when it’s never been so important.
Further suggested Reading:
News + Resources
