Columnist

Is construction critical to Government growth plan?

As the Government rolls out plans for national growth, a core sector stands at the heart of its economic vision: the built environment and construction industry.

From housing and infrastructure to energy and employment, construction must be recognised as an engine driving national development, using its current capacity and embracing new technologies.

Foundation for UK growth

Keir Starmer’s administration has made it clear rebuilding the UK requires more than policy, and that it demands bricks, steel and skilled hands.

The pledge to build 1.5 million homes by the end of this Parliament is not just a housing target but a central plank in the country’s economic recovery. 

Backed by more than £600 million in training investment, it aims to address the housing shortage and stimulate local economies. 

However, questions remain over whether the investment is sufficient and if the target is achievable.

Construction’s role extends beyond housing. 

Infrastructure projects – roads, rail and energy – are core to the Government’s plans to modernise the UK and improve productivity.

Skills shortages and workforce development

Despite its central role, the construction industry faces a critical challenge: a shortage of skilled workers.

According to the Office for National Statistics, the sector has more than 35,000 vacancies, more than half due to insufficient skills, which is the highest of any UK industry.

In response, the Government has introduced several workforce initiatives:

•          Technical excellence colleges and foundation apprenticeships

•          Skills bootcamps to retrain workers

•          Mentorship incentives for experienced builders

These measures aim to build a sustainable talent pipeline, but the skills gap remains the sector’s biggest risk and is only partially offset by modern methods of construction.

Planning reform and regulatory shifts

Construction’s ability to deliver growth has long been hindered by planning delays. 

The Government is overhauling the system to streamline approvals and unlock stalled projects, which is vital if housing and infrastructure goals are to be met.

However, new regulations also bring complexity. 

The industry must now navigate the Building Safety Act, biodiversity net gain and the upcoming Building Safety Levy. 

While these aim to improve quality and sustainability, they also increase the compliance burden on developers and contractors.

Investment and public spending

Public investment is another key pillar. 

The £39 billion Affordable Homes Programme supports not only housing demand but job creation and local economies. 

Beyond housing, infrastructure spending on transport, energy and green tech is set to create thousands of jobs and open new markets. 

The Government’s message is clear: investment in construction is investment in Britain’s future.

Sustainability and innovation

Growth must also be sustainable.

The industry is being called on to lead in green building, from low-carbon materials to energy-efficient design.

Government support for retrofitting homes, building renewables and modernising public transport puts construction at the centre of environmental progress. 

Digital tools like BIM and smart construction further enhance efficiency.

A strategic partnership

The Government/construction relationship is symbiotic. 

Policy, funding and reform must be matched by industry delivery. 

Together, they can achieve economic growth, social equity and environmental resilience.

Construction is not just critical to UK growth, it is indispensable.

With the right investment, regulation and skills, it can build not just homes and infrastructure but a stronger, fairer and more prosperous Britain.

Tim Barrett is chair of Construction Alliance North East

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