LABOUR LANDSLIDE – The industry Responds

LABOUR LANDSLIDE – The industry Responds

Gillian Charlesworth, CEO of the Building Research Establishment (BRE), commented on the result of the election earlier today:

“I want to congratulate the Prime Minister and his Government on their appointment and look forward to the implementation of ambitious manifesto pledges to decarbonise the UK economy and drive the energy transition forward.

“This Parliament begins as the UK finds itself at a major crossroads on its net zero journey. The international scientific community is clear that significant progress must be made by 2030 to reduce emissions and limit global temperature increases to 1.5°C.

“With the built environment being the UK’s second largest source of carbon emissions, it is imperative the Government’s upcoming industrial strategy is delivered in close partnership with the sector to unlock and accelerate action towards the clean heat transition, improving existing housing stock and leading the way on building standards.

“For over 40 years, BRE has championed the impacts of transformation in the built environment not only on the climate, but on societal, health and economic outcomes. We look forward to supporting the new Government in ensuring these opportunities are fully realised.”

Comments from CEA’s Director of Operations, Viki Bell, on the election results:

The Construction Equipment Association (CEA) congratulates the Labour Party on their landslide victory and Prime Minister Sir Keir Starmer on their historic election win. This significant change in leadership presents a unique opportunity to propel the UK construction equipment industry into a new era of innovation and sustainability.

“As the CEA, we are ready to engage actively with the new Labour Government to address the crucial challenges and seize the opportunities highlighted in our 2024 Manifesto. The commitment to decarbonisation, digital transformation, and skills development outlined in Labour’s platform aligns closely with our industry’s goals.

Labour’s plans to introduce a new industrial strategy, developed in partnership with businesses through an Industrial Strategy Council, will leverage Britain’s strengths in life sciences, digital, creative industries, financial services, and clean power. This collaboration will drive growth and innovation, benefiting the construction equipment industry and the wider economy.

The party’s promise to build 1.5 million new homes in England over the next five years is a remarkable initiative that will stimulate demand in the construction equipment sector, a level of housebuilding not seen since the 1960s. This very ambitious target and reforms in housebuilding economics and bureaucracy will likely boost private sector participation, benefiting our industry significantly.

Decarbonisation remains a critical priority for us. Labour’s substantial investment of £23.7 billion in green measures during the next parliament emphasises the central role of green policies in driving growth and prosperity. We anticipate robust support from the Labour Government in advancing innovative technologies, including electric and hydrogen-powered machinery. Establishing a national alternative fuel infrastructure is essential, and we look forward to contributing to these transformative efforts.

The party’s plan to allocate £1.7 billion a year for the Great British Energy company aims to accelerate the roll-out of renewables and nuclear power, creating 650,000 jobs by 2030. This initiative will drive industrial renewal, lower energy bills, and ensure secure, clean energy supplies, promoting a stable environment for construction projects.

The digitalisation of our industry is another important area. We are ready to collaborate on harmonising digital legislation and enhancing cybersecurity measures. Addressing the skills gap is imperative for maintaining our competitive edge, and we are eager to work with Labour to attract and develop the next generation of talent.

Lastly, we urge the new government to ensure regulatory stability and alignment with European standards, vital for maintaining our international competitiveness. Together, we can adopt a sustainable, innovative, and prosperous future for the UK construction equipment sector.”

Commenting on the election of the new Labour government, Gary Wright, CEO of deposit alternative specialists, flatfair, said:

“It is no surprise to see Labour winning the election by such a huge margin, the country has been crying out for change and have given Keir Starmer the mandate to make that change happen.

“A clear area requiring urgent attention is housing and more importantly affordability. Let’s hope he can live up to his pledge to build 1.5m new homes in the next 5 years, only house building can fundamentally improve the affordability crisis.

“Until that happens renters will remain under huge cost pressures and deposit alternatives will provide an important choice in allowing tenants to reduce their upfront costs of renting.

“But the government must take a balanced approach around renting to ensure landlords are not put off being landlords as this would only make supply issues worse and push costs up even higher.

“We will watch Labour progress with great interest…”

Jonathan Carr-West, Chief Executive, LGIU (Local Government Information Unit) said:

“As we witness a change of government, we should be proud of our democracy and grateful to the electoral administrators who make it all happen and to all the candidates, winners and losers, who put themselves up for election. We offer special congratulations to all the councillors and council leaders entering parliament.

We know that local government stands ready to work with the new UK government and we offer a reminder that national success has local foundations. Labour has set out clear missions for government, but these can only be achieved in partnership with local democratic institutions.

We congratulate the new UK government, and we urge it to set out a new relationship with councils across the country based on genuine collaboration and parity of esteem.”

Andrew Carpenter, Chief Executive Officer of the STA (Structural Timber Association), commented:

“The general election has been a significant milestone for the housebuilding sector, with Labour pledging to build 1.5 million homes during the next five years. Now, it’s crucial that Prime Minister Keir Starmer makes good on his election promises by implementing a clear strategy to deal with the housing shortage

“However, it’s important to emphasise that simply building more houses is not enough – this is a unique opportunity to revolutionise the way we build our homes in the UK. Adopting more sustainable construction methods such as structural timber, offers a speedy and clean approach to meeting current and future housing demands.

“What’s more, we urge the new Government to renew the commitment to increasing the use of timber that was established with the Timber in Construction Policy Roadmap, published by DEFRA in December last year. Increasing the use of timber presents a viable solution to both the housing shortage and the UK’s legally binding Net Zero obligations – it’s imperative that the progress we have already made is not lost in the change of Government.”

Carpenter also highlighted that structural timber solutions are well-positioned to deliver on multiple fronts. Construction times are much quicker than traditional methods due to the structures being manufactured offsite, ensuring timely delivery of much-needed homes.

What’s more, offsite assembly of structural timber houses is a clean method of construction, leading to less waste, reduced labour requirements and less disruption on site. Finally, as timber is a renewable and low carbon material, it offers a truly sustainable and long-term solution to the housing shortage, while also contributing to the UK’s Net Zero obligations.

Celia Greaves, CEO of The Hydrogen Energy Association said:

“We are looking forward to strengthening our existing solid relationships with Labour Ministers and working with the Labour government going forward to develop the details behind their manifesto commitments,” she said.

“We have had many, useful conversations with the party over recent months leading to collaboration around policies and endorsement for our ambition and work to date.

“In the last few weeks, we have seen Labour double down on its Clean Energy Superpower commitments to cut bills, create jobs and delivery energy security by 2030, with investment pledges and reconfirmation of a £500m green hydrogen manufacturing fund.

“We anticipate continuing to work in partnership with the new government to prioritise clean power in line with pledges made in the run up to the election to maintain momentum and push for climate leadership for the UK on the world stage.

“We hope that the incoming government will bring new enthusiasm to drive forward ambitions that require solid commitment and decisive action.”

Celia added that it was vital to maintain the momentum of the last five years that witnessed the launch of the Hydrogen Strategy in 2021, the Scottish Government’s Hydrogen Action Plan in 2022, the launch of the HAR scheme and the passing of the Energy Bill.

“A lot has been achieved but we have to move quickly to reap the benefits of hydrogen across clean growth, energy resilience and Net Zero goals which the Labour government understands,” she said. “Our new Prime Minister has to realise the ambition with policy specifics to underpin the rhetoric and be prepared to make the big decisions that are required to drive change.”

Mark Dyer – Deputy managing Director, Daikin UK

“We are looking forward to working with the new government to deliver a greener future for the nation. Labour’s commitment to support the deployment of low carbon heating through the ‘Warm Homes Plan’ is very welcome and it will help hundreds of thousands of households install air source heat pumps. We would urge the government to consult on the plan at the earliest opportunity.”

Kris Collett, Managing Director of Castlemere Developments

With Labour set to form the new UK government, Kris Collett, managing director of Windsor-based property developers Castlemere Developments, said: “Big change is now on the horizon with this landslide Labour victory.

“The housebuilding industry has struggled under 14 years of Conservative government and we are optimistic about the change a new government will provide.

“With a large parliamentary majority, Labour is in a position to bring forward much needed planning reforms required to get the housing sector and the country moving. I believe the whole industry is now a little more optimistic about the future.”

Rory MccGwire, founder of the UK’s largest small business advice website Start Up Donut, said:

“After 14 years in which the government soundbites about supporting small businesses were rarely matched by actual support for those businesses, I think the Labour victory is seen as a chance for real change and improvement.

“But how will the incoming government’s promised policy changes affect the 99 per cent of UK businesses classed as ‘micro’ or ‘small’?

“In reality, these policies will have remarkably little impact. Why? Because we have seen these plans and promises many times before, in one guise or another. And yet, successive governments have failed to make a positive impact on the lives of the UK’s smallest businesses.

“Let’s look at the three main new policies aimed at helping small businesses.

“Firstly, business rates. These have been discussed endlessly. I lost count of the number of consultations and reviews long ago. Pointing out the current flaws and problems is easy, but achieving a satisfactory solution is another matter entirely.

“Secondly, the national investment bank. There’s no shortage of banks wanting to lend to small businesses. The real problem is that lending to small businesses is high risk. The well-known solution is for the government to underwrite the lending with some kind of guarantee (such as the Loan Guarantee Scheme and its successor schemes) and for the government to offer an ‘enterprise allowance’ grant to anyone brave enough to try starting a new business.

“Thirdly, the promise of more public sector work being awarded to small businesses has been made endlessly and such schemes have a lousy track record. The reality is that submitting a tender is a time-consuming and costly process for small businesses – with no guarantee of success. And often, those that are successful end up making a loss anyway because they have to undercut others to win the contract.

“The fact is that politicians and policymakers simply do not understand what is involved in running a small business. There are so many ways that life could be made easier.

“So, we have another party in power and another set of changes. What most small business owners want is for politicians to stop moving the goalposts so that they can get on with employing people and running their businesses.

Places for People’s Chief Executive Officer Greg Reed said:

“Today marks a new dawn for our country, hopefully bringing a stability that Communities and industries across the UK have craved. The new Government must now put words into action and deliver the transformative national change it promised during its successful campaign. So much leads back to a lack of vital housing and Labour’s pledge to turbocharge housebuilding and invest in healthy Communities is very welcome.

“We’ve seen this housing crisis coming for many years and it’s getting worse every day. More people than ever before are homeless, fewer new affordable homes are being built, and social housing waiting lists are so long people can see neither the light nor the end. Urgent action is vital and we can be a key partner in helping the Government hit the ground running from day one.

“At PfP we will keep doing what we’re doing. We will keep building homes at scale with the largest five-year pipeline in the sector. We will keep investing in people’s lives and generate hundreds of millions each year in social value. We will keep growing our health and wellbeing offer to add to our healthy communities’ programme and to the millions of people, young and old, who visit our Leisure centres each month.

“There will be challenges along the way, but we know what it takes to create, manage and support thriving Communities. There is no other organisation quite like us and we are ready to work alongside Government to reinvigorate the lives of Customers and Communities right across the country – and deliver lasting change for generations to come. The time for talking is over, it’s time to build.”