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A new prime minister: the construction industry reacts

5 Sep 22 Liz Truss takes over from Boris Johnson as UK prime minister on 6th September 2022 and construction industry representatives have been swift to react.

Liz Truss MP
Liz Truss MP

The overriding message is that the construction industry wants lots of work and low taxes. World peace was not mentioned.

From the National Federation of Builders (NFB), director of policy James Butcher said: “The election of a new prime minister means that the proactive work of government can restart, having had a period of stasis over the summer. Inflation has caused our industry no end of problems but the biggest threat is the rolling-back of demand as clients of all shapes and sizes consider putting off work. Liz Truss said during her election campaign that ‘a recession is not inevitable’ so we hope she will take the opportunity to ensure we have a healthy pipeline for our industry, and across all work types. We want to see continued investment in major infrastructure, public sector capital projects, housing and implementation of a national retrofit strategy to support builders in the domestic sector as well as our net zero ambitions.”

NFB head of housing and planning policy Rico Wojtulewicz added: “Liz Truss has promised to be a low-tax Conservative, and we cannot wait a day longer to see the fruits of that promise. The last government put up national insurance contributions, removed the sector’s entitlement to use red diesel and has added a myriad of levies to housebuilders. It’s high time to roll-back the burden on business and give the industry the room to invest in the future.

“The biggest blocker to our nation’s construction potential, not least to meet our housing need, is the horrendous state of our planning laws. As the former housing secretary Robert Jenrick stated over the weekend, the planning reforms the last government decided not to proceed with were its ‘greatest missed opportunity’. He could not be more right. We must have a revolution in planning laws and that will require radical and bold leadership.”

Chartered Institute of Building chief executive Caroline Gumble said: “We want to see the new prime minister continue the government’s existing agendas on levelling up and net zero, both of which can make a positive difference to what we’re sure will be their number one priority, the cost of living crisis. The levelling up agenda provides significant opportunities for the construction sector, through local job creation and stability, while property retrofit schemes to improve energy efficiency for example, will further boost the sector and go some way to helping residents mitigate rising energy costs. 

“In tandem, we would like to see the prime minister appoint a cabinet that will work meaningfully with the construction industry and professional bodies to understand and alleviate pressures on the built environment sector. The appointment of a housing minister and construction minister for the long term will go a long way in helping improve the consistency and collaboration that the industry desperately needs and strengthen the excellent collaboration that has been achieved through the Construction Leadership Council.”

Melanie Leech, chief executive of the British Property Federation, said: “We urgently need strong government leadership after a period of drift. The new prime minister must address the immediate cost pressures facing businesses and families, but in parallel there must a clear focus on the longer-term objectives to tackle inequalities across the UK and transition to a greener, high-productivity economy. We look forward to working with Ms Truss to harness the power and potential of the property sector to deliver the homes, work and leisure spaces that will revitalise our town and city centres and underpin our future prosperity as a nation.”

Liz Truss is reputedly more committed to free markets than saving the planet but the Building Research Establishment (BRE) hopes that she is persuaded that there really is a climate emergency going on.

BRE chief executive Gillian Charlesworth said: “The new UK government must ramp up its action on climate change – and central to this should be driving a green transition in the built environment. We were pleased to see the newly appointed prime minister Liz Truss pledging to help people insulate their homes as the UK heads towards net zero. However, we will need to go much further if we are to fully decarbonise the UK’s building stock, which currently makes up a quarter of the UK’s greenhouse gas emissions.

“What’s more, improving the energy efficiency of our homes and buildings is one of the only viable ways to lower energy bills, which are now at record highs and set to rise even further in October. With macroeconomic pressures worsening, rolling out measures to improve the energy efficiency of our housing stock will be paramount in relieving households of the financial pressures they are currently facing.

“This is why we are urging our new prime minister to publish a credible and effective plan to decarbonise our existing homes and buildings. At its core, this would set out a fully funded national retrofit strategy defining energy efficiency measures, such as insulation, for all UK households. This would help to address fuel poverty for thousands of households head-on, significantly lower energy bills, and ensure our buildings are fit for the future.

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“It is crucial that any plans to scrap green levies do not impact energy efficiency schemes, which are critical in delivering improvements to our housing stock.

“These are priorities we cannot afford to ignore as the UK seeks to establish itself as a world leader in climate policy.”

The Federation of Master Builders (FMB) has also been championing a national housing retrofit programme for many years. FMB Brian Berry said:  “The UK is fronting an unprecedented energy crisis with over 12 million households facing fuel poverty. This dire and unsustainable situation requires immediate commitment to a long-term national retrofit plan to insulate our 29 million homes to cut energy consumption and reduce bills.

 “A national retrofit plan needs to be treated as an urgent infrastructure priority because of the benefits it can bring to both consumers and business. To succeed it must prioritise consumer information on what can be done to make existing homes better insulated; provide a range of financial incentives such as a VAT cut to help householders start retrofitting; and commit to work with the building industry to ensure there is a supply of competent, local installers to do the work.

 “Liz Truss has a once in a lifetime opportunity to transform our existing homes to help ensure everyone has a place they can afford to heat. A national retrofit strategy also offers the opportunity to create thousands of new jobs and deliver growth in every village, town, and city. The energy crisis needs a green revolution, but this requires bold leadership, so I’m looking to Liz Truss to deliver.”

Aecom Europe chief executive Colin Wood said: “The new prime minister is to lead a country which, in economic terms, is set to face one of the toughest winters in living history. Rising inflation and the energy price shock will mean that many people have to make difficult decisions about how to spend their money. It is a crisis for which infrastructure is one of the paths to recovery.

“Our message to the incoming prime minister is not new, but it needs reiterating: investment in both big ticket infrastructure projects as well as smaller regional and local schemes is critical. For example, we won’t be able to achieve an affordable, sustainable and secure energy supply and reach net zero without significant investment in energy infrastructure, such as offshore renewables.

“To grow the economy and to level up, the infrastructure sector can do more than build, it can design with outcomes for community, value and sustainability at a scheme’s heart. Encouraging innovation and harnessing new technologies will be critical to developing infrastructure which allows people to optimise how they chose to live and work in their local communities. Sustainable, well-insulated, fit-for-purpose homes that are connected by safe, reliable public transport choices is integral to growing our economies across the UK, focusing on the creation of jobs, skills and economic prosperity in those regions that need it the most.

“Liz Truss has laid out her vision for an ‘aspiration nation’ full of opportunity, with local areas revitalised the same way as London Docklands. Encouragingly, she has already committed to delivering the ‘full fat’ Northern Powerhouse Rail project, which will drive investment and growth in major northern cities. At the same time tackling the cost of energy is central to her plans. Industry is ready and set, with the skills and knowledge to deliver this.

“As an industry, we understand the immediate pressures on the public purse and that people will need short term, quick fixes to help alleviate the cost of living crisis. But we implore the new prime minister to invest in the long term too with a clear pipeline of deliverable projects and empower the industry to build resilient infrastructure which gets to the root of many of our problems.”

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MPU
MPU

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