What does the new Labour Government mean for the construction market?

Following Keir Starmer’s Labour Party’s victory in the 2024 general election, the Labour government made some significant promises in their manifesto. In this blog we will take a look at what the new Labour government might mean for the construction industry.

Following Keir Starmer’s Labour Party’s victory in the 2024 general election, the Labour government made some significant promises in their manifesto. In this blog we will take a look at what the new Labour government might mean for the construction industry.

What have Labour promised?

Planning reforms

The government has said it will publish a draft National Planning Policy Framework before the parliamentary recess in August. Labour has promised comprehensive planning reforms to streamline the approval process. This includes prioritising brownfield sites and setting new guidelines for greenbelt developments.

Local mayors will be given enhanced powers over planning and housing investment, allowing them to tailor solutions to their specific regional needs and expedite housing projects​

Labour also plans to introduce a ‘planning passport’ which will be a streamlined approval process for high-density housing on urban brownfield sites, aimed at quickly increasing the housing supply and revitalising urban areas​.

These changes aim to accelerate the construction of new homes, particularly affordable housing, and support the creation of several new towns.

1.5 Million New Homes

One of Labour’s first actions after their election victory was to reaffirm their manifesto commitment to build 1.5 million new homes during the next parliamentary term. They aim to “deliver the biggest boost to social and affordable house building in a generation.”

Rachel Reeves, the new Chancellor, stated that this will be achieved by reinstating mandatory housing targets and introducing a new land classification called “grey belt.” This classification applies to specific areas within the existing green belt that are either brownfield sites or of lower environmental quality. Examples include car parks and scrubland on the outskirts of towns, disused petrol stations, and areas around railway stations.

Infrastructure investment

Labour plans to establish a new National Infrastructure and Service Transformation Authority (Nista) to manage a ten-year infrastructure strategy. This strategy includes enhancing rail connectivity in the north of England, repairing five million potholes over the next five years, and improving community resilience against extreme weather events such as flooding and drought.

The manifesto also indicates an intention to bring the railways into public ownership. Labour has pledged to update national planning policies to ensure the planning system accommodates the needs of a modern economy, making it easier to construct laboratories, digital infrastructure, and gigafactories.

In summary, the Labour government’s policies promise significant investments across the construction industry. Streamlined planning processes and prioritisation of brownfield sites aim to accelerate developments. These measures could ultimately drive significant growth for the industry.

As a key partner to the commercial construction industry, SL2 are well placed to help make some of these projects a reality. Contact us on 01145 518222 and [email protected] or visit www.sl2-ltd.co.uk for further information.