As we return bleary-eyed and sated from our Christmas holidays, thoughts turn to what the year ahead holds for the construction sector. With major policy changes and ambitious targets in place or being prepared, will the government’s promises to “get Britain building again” translate into meaningful action?
The Procurement Act, which aims to streamline public sector projects, comes into force in late February. If implemented effectively, it could help level the playing field for smaller contractors and make procurement more efficient. However, sceptics argue that the new rules will simply replace old red tape with new.
Planning reforms have also been touted. Ministers have pledged to simplify and speed up planning decisions, but recent history suggests this is easier said than done. Local resistance and delays in setting clear local plans could hamper progress.
Construction leaders will be watching closely for any real movement, especially given the government’s pledge to deliver 1.5 million homes by the end of the current parliament. With housing targets consistently missed in recent years – and little discernible progress since Labour’s election win last July – it could be wishful thinking rather than an achievable plan.
Then there’s the Future Homes Standard, which continues to cause headaches across the sector. Aiming to decarbonise new-builds by 2025, it’s a critical step for sustainability but fraught with practical challenges around the availability of skilled installers, for instance.
On the infrastructure front, the rhetoric is promising. Prime minister Keir Starmer promised to accelerate major project approvals in his Plan for Change reset speech on 5 December, and the government will publish a 10-year investment strategy in the spring. But these plans hinge heavily on the upcoming spending review (also due in the spring). The government has already scrapped five road schemes and delayed until May a decision on the Lower Thames Crossing project.
While inflationary pressures are expected to ease, Goldman Sachs predicts just 0.4 per cent GDP growth in the first quarter and 0.25-0.30 per cent after that. If growth is sluggish, pressure may mount for cuts and delays to expensive multi-year infrastructure projects.
It’s clear, then, that the coming year will test whether the government can align ambition with action. Getting Britain building again has been its mantra, but the proof lies in tangible progress on housing, infrastructure and planning reform against an uncertain economic backdrop and a long-running skills shortage.
So will we see real momentum, or just more big talk followed by frustrating inertia? Sceptics in the sector will take some convincing.
