The general election on 4th July has ushered in a Labour government for the first time in 14 years, marking a major shift in the country’s political landscape as Sir Keir Starmer’s party secured a historic landslide.
Various sectors are now waiting to see what effects the recent change in government could have on their respective industries, and construction is no different, with several of Labour’s manifesto pledges expected to have an impact on how we build in the UK.
So, what changes exactly could we expect to see in construction under a Labour government? Here’s a quick look at how the industry may evolve over the coming years.
Net zero acceleration
The previous Conservative government had targeted net zero by 2050, while Labour have brought this forward considerably to 2030. Their manifesto pledges £8.3bn of investment into the UK energy sector, with a new public company, Great British Energy, set to be created.
The delay on phasing out cars with internal combustion engines from 2030 to 2050 will also be reversed, a plan which will require the rapid expansion of electric car charging infrastructure across the country.
Click here to read more about the UK’s transition to electric vehicles and how ACS is involved.
Increased housebuilding targets
The new government has targeted 1.5 million new homes for England over the next five years, with changes being made to planning regulations in order to accommodate this.
This is set to include the creation of several entirely new towns, along with more social and affordable housing.
Also planned is the redevelopment of low-quality greenbelt land, referred to as the ‘grey belt’, as well as bolstered opportunities for development on brownfield sites.
A recent poll by data providers NBS and Glenigan reported that 52% of construction professionals expected more work following the election. However, only around one in three believed the change in government would lead to projects being greenlit more easily.
Infrastructure pledges
Labour have pledged to create a new infrastructure authority to oversee a ten-year infrastructure strategy for the country.
Plans include fixing five million potholes over the next five years, as well as further devolved powers for local authorities and greater infrastructure requirements for town regeneration schemes.
Also on the agenda is railways beginning to be brought back into public ownership, with improved rail services promised in the north of England.
However, the big infrastructure talking point on the country’s lips, HS2, is not directly mentioned in Labour’s manifesto.
In short
The new Labour government’s plans are poised to bring about a wide variety of changes to the construction industry. With accelerated net zero goals, increased housebuilding targets, and a range of new infrastructure plans. The coming years will reveal how these policies unfold and what their long-term impact on the sector could be.
ACS construction is a leading UK construction services group that delivers the complete construction solution. Got a question or want to find out more? Click here to contact us.