Fundemental Reset needed by Industry Training Board

An independent review commissioned by the Department for Education has called for a ‘fundamental reset’ of the current Industry Training Board model to safeguard growth.

The review, Transforming the Construction Workforce, led by industry expert Mark Farmer and published by the government last week, said the current system is not effectively addressing the construction sector’s needs and that a more strategic, unified approach is necessary to build a more resilient, productive and skilled workforce.

Mark Farmer’s report calls for a “complete rethink” of skills and training priorities to address the construction industry’s “hollowing out” of the workforce.

The review makes 63 recommendations to transform how the industry approaches workforce development. The Department for Education’s response accepted 34 recommendations without amendment, and partially accepted or accepted in principle 26 recommendations.

The review calls for a pivot from focusing solely on new entrants and apprentices, to a “whole workforce” approach that includes upskilling and reskilling existing workers.

Industry Training Boards (ITBs) need to deliver more innovative and impactful programmes to drive at-scale improvements in industry competency, productivity, and retention. The review emphasises a need to focus on both the employed and self-employed workforce.

Farmer said:

“There is a sense that many are persevering to make a difference whilst feeling that they are fighting the tide. Collectively we need to think and act differently if we are going to make all this hard work and effort really count going forward.”

He added: “If we are serious about cementing growth and future-proofing the industry, then we cannot ignore the capacity gap that is widening across our construction sector.”

The report highlights that construction has the lowest employment levels since 1998. Since the previous employment peak in 2008, construction employment has fallen by 20%, while the UK’s population has grown by 10%.

“Importantly, we cannot just assume we are going to recruit our way out of this crisis by setting ever more unattainable new entrant targets,” said Farmer. “This review confirms that the industry has a basic attraction and absorption problem that needs to be urgently addressed, but in the meantime, we need to be able to do more with the resources we already have.

“The industry struggles for many different reasons to modernise and improve its productivity but there remains a significant training-led opportunity to raise the capacity and capability of the existing and future workforce.

“I am convinced that with the right leadership from ministers and with a reformed ITB intervention, key parts of the engineering, construction and homebuilding industries will get behind the review’s call to arms and endorse the need to think differently.

“Doing nothing is not an option and there is now a clear and present danger to Britain’s growth plans, which are underpinned by building new housing, infrastructure and green energy sources.”

Recommendations made in the Farmer review include:

  • The ITB model should be retained in terms of its basic statutory mandate but its strategic priorities, core capabilities and activity require wholesale transformation. This all needs to be ruthlessly focused on addressing the fundamental workforce resilience challenges facing the construction and engineering construction industries.
  • The statutory levy-grant system should also be retained but modernised and refocused to ruthlessly drive measurable outcomes linked to the new priority industry challenges. SMART KPIs should be developed aimed at maximising outcomes from levy spending with more balanced accountability between industry and government.
  • A fundamental reset is required across both ITBs (Construction and Engineering Construction) to change both direction and effectiveness. There is a common fundamental challenge which both industries face in terms of declining workforce resiliency resulting in growing workforce gaps and skills gaps and a more strategic and unified approach spanning both industry sectors should be adopted including operational convergence/merger after a suitable transition, minimising disruption to ongoing activities.

Tim Balcon, chief executive of the Construction Industry Training Board (CITB) said:

“Importantly, the report recognises the significant skills challenges facing the construction and engineering industries and the vital role that the ITBs play in helping address these. Further, it asserts that the best way of doing so is to retain the ITB model and industry-specific levies.

“Grant funding for apprenticeships and new entrants is vital, with more than two-thirds of apprenticeship starts in the construction industry being employed by companies of fewer than 50 employees.

“We are already well advanced in improving our engagement with employers and learners, such as the nationwide rollout of our Employer Networks and the significant improvements at our National Construction Colleges.”

Andrew Hockey, CEO of the Engineering Construction Industry Training Board (ECITB), said:

“We welcome closer collaboration with the CITB, particularly in the area of infrastructure skills where there is the most commonality between the ITBs’ respective footprints.

“As the review acknowledges, there is significant benefit in both ITBs collaborating more closely on infrastructure; nuclear new build being a clear example where workers in both civil construction and the engineering construction industry (ECI) work alongside each other.

Brian Berry, chief executive of the Federation of Master Builders, said:

“For too long the construction industry has been plagued by an ongoing skills crisis which is holding back economic growth. The urgent need to build new infrastructure projects and deliver much-needed housing won’t happen unless there is radical review of the training landscape – the Mark Farmer report shows the way forward

Source: Personnel Today

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Connecting talent & opportunity with globalbridge 

   

In 2025, the CEA (Construction Equipment Association) is making significant strides with globalbridge—a platform designed to level the playing field for young people and redefine how talent is discovered. With momentum already building, the goal remains clear: to ensure every young person has the chance to shine while every employer gains access to the diverse skills our industry urgently needs. 

 

What is globalbridge? 

globalbridge was born from a simple yet transformative goal: to provide every young person with a fair opportunity, regardless of their background or connections. The platform empowers students to showcase their skills and achievements beyond traditional grades. It enables them to create multimedia profiles that include projects, videos, and personal highlights—offering a fuller picture of their talents.

This approach extends beyond students. globalbridge also delivers data-driven insights to schools, enabling them to refine their support programmes and identify what truly works. Employers benefit from an innovative opportunity-matching system, bringing the right talent directly to their doorstep while promoting inclusivity and diversity within their workforce.

 

Why it matters to the CEA 

This initiative underlines the CEA’s commitment to addressing the industry-wide skills shortage. By connecting employers with the next generation early, globalbridge creates a fairer, more inclusive approach to talent development. For young people, it’s a gateway to careers within construction equipment and other sectors, showcasing roles that might otherwise remain hidden.

Jacqui Miller-Charlton MBE,  a key supporter of globalbridge and part of the Miller Groundbreaking dynasty, describes it as a “game-changer” for connecting young people with meaningful career opportunities.

 

“We’re absolutely blown away by what the team has achieved so far,” said Jacqui.

 

As the first CEA member company to adopt the platform, Miller Groundbreaking is collaborating with globalbridge to create a seamless application system. At the same time, Jacqui is calling on employers to create more opportunities across the construction sector and beyond.

 

Viki Bell, Director of Operations at the CEA, added:

 

“The skills shortage in our industry is a challenge we cannot ignore. globalbridge offers a practical and innovative solution by connecting employers with young talent and giving students a chance to shine in ways that go beyond traditional grades. It’s an inspiring step forward for workforce development, and we’re proud to support it.” 

 

 

Shaping the future workforce 

globalbridge goes beyond traditional recruitment by actively shaping tomorrow’s workforce. The platform introduces young people to the wealth of opportunities in industries like construction at an early stage.

 

 “Kids are always on their tablets and phones,” Jacqui notes. “globalbridge leverages technology to connect with them directly, providing guidance, inspiration, and a pathway to meaningful careers.” 

 

globalbridge is already making waves across the construction sector and beyond. It is supported by influential partners and strongly focused on innovation. Collaborating with organisations like the CEA ensures its message reaches educators, parents, employers, and policymakers alike.

 

 

A vision for the future 

Jacqui praises the platform for its originality and vision.

 

“globalbridge is truly one of a kind. There’s nothing else out there that connects young people, educators, and employers so seamlessly. It’s a platform that’s ahead of its time, and the vision behind it is extraordinary. Ben has done an amazing job bringing this idea to life, creating a solution that not only opens doors for young people but also helps businesses find the next generation of talent in a smarter, more accessible way.” 

 

 

Join us on 25 February 2025, 12.30-1.30pm, for a webinar exploring myglobalbridge, the platform transforming how young talent connects with industry.

 

Featured guest Jacqui Miller-Charlton MBE will share insights on how globalbridge is helping employers engage with future talent and address the skills shortage.

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MMC: MEETING DEMANDS

Work has started on a new housing development in Somerset to ‘meet the demands’ of a local town. Stonewater development in Frome has been designed to be built quicker and to cut down on disruption while work is taking place.

The Cherry Grove project will provide 24 ultra energy-efficient homes that meet the local demand for affordable, high-quality housing. The homes, designed to meet stringent Passivhaus Trust standards, will be constructed using Modern Methods of Construction (MMC) by Ashcot Construction Ltd to help reduce waste, accelerate build times and minimise disruption on-site.

Passivhaus homes are renowned for their exceptional comfort and energy efficiency, offering a consistent indoor temperature and reducing heating costs by up to 90 per cent. The homes will include fundamental features of Passivhaus standards, including very high levels of insulation, airtight building fabric, high performance windows and doors, and ‘thermal bridge free’ construction that ensures thermal heating of the properties is minimal.

VerdeGO timber frames used in the builds will also provide exceptional durability and sustainability, ensuring the homes are built to last while reducing environmental impact. As well as contributing to Stonewater’s net-zero ambitions, the features support wider sector and government goals to combat climate change, while reducing bills for customers.

Jonathan Layzell, Stonewater’s Chief Officer for Customer Experience and Growth, said:

“We are delighted that the Cherry Grove development will include Passivhaus fundamentals for the benefit of our customers. The project is a testament to our commitment to working with partners to provide not just affordable housing but sustainable, comfortable homes that are more efficient to run.

With the current cost-of-living crisis, these energy-efficient homes will make a meaningful difference to customers’ lives. By integrating sustainability at the heart of our developments, we’re helping to build a greener future. Cherry Grove is an exciting step forward for us, our partners, customers and communities.”

Lee Slade, Ashcot Construction Ltd’s Managing Director, said:

“The combination of Passivhaus principles and modern construction techniques will mean these homes will not only meet, but exceed, expectations for quality, efficiency, and sustainability. We’re thrilled to partner with Stonewater on such an exciting development and to deliver these fantastic homes for local people.”

David Craddock, VerdeGO Founder, said:

“Partnering with Stonewater on this project will ensure that these homes are not only energy efficient for local customers, but importantly are built to last. The precision-engineered design of the timber frames will give residents with a warm, comfortable and cost-effective place to call home.”

Plans for Cherry Grove have been developed in collaboration with Frome Town Council and Somerset Council, forming part of Stonewater’s mission to provide everyone with a place to call home and deliver warm, energy-efficient housing to address the urgent need for affordable homes in the area.

The development, which includes eight two-bedroom flats and 16 two- and three-bedroom houses, will be available for social rent, ensuring affordability for those unable to access housing on the open market. Built on a brownfield site, the homes also reflect Stonewater’s dedication to making the best use of land while reducing environmental impact.

 

Source: Somerset Live

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Flood risk challenges rising

Oxfordshire flood risk challenges rising, warns trade body

Dangerous flash flooding, rising water tables, and insurance difficulties are among the increasing flood risk challenges facing households in Oxfordshire.

This is according to The Property Care Association (PCA), which has called for a strategic approach to flood risk management to encourage better resilience as the UK government aims to fulfil its manifesto pledge of building 1.5 million homes.

Earlier this month, the PCA, which represents the UK’s building protection industry, raised the need for a cohesive strategy for flood risk at planning, community, and individual levels to the Bricks and Water cross-party committee at the House of Lords.

The trade body also indicated post-flood repair costs are set to spiral for insurers and property owners, while the expiration of the Flood Re initiative between government and insurers in 2039 could result in appropriate household insurance not being provided for property in flood risk areas.

Andrew Devitt, technical manager (waterproofing) at the PCA, said: “The current approach to flood mitigation is uncoordinated, resulting in low uptake of currently available flood resilience schemes, despite clear evidence that homes that are resiliently designed are effectively protected from future flood events.

“The PCA has a network of members involved in flood protection and aims to further develop specialist training so surveyors can deliver actionable solutions and enable insurers to reassess financial risks and potentially extend cover to properties that are currently deemed uninsurable.”

 

Source: Bicester Chronicle

 

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COMPLEXITIES OF UK ENERGY PROCUREMENT

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Chris Goggin observes how the UK procures its energy and the complexity in which it is then distributed and reacquired. As the UK progresses towards NetZero Rinnai looks to assist the industry in understanding what roles specific energies will fulfill and what approach the UK utilizes towards both the national and international energy markets.  

 

UK domestic energy procurement and distribution is a complex process that is reliant on a number of separate countries, huge commercial enterprises and separate forms of energy. The UK currently imports and cultivates energy from a tangled mass of outlets and prime suppliers. For example, we have electricity from interconnectors held by Belgium, Denmark and The Netherlands, LPG from America as well as the extraction of Norwegian North Sea natural gas and oil.

 

UK Electrical power company Drax has recently issued a statement on its website stating in their headline:

“UK Spends £250 million each month Importing Record Volumes of Electricity from Europe.”

This means that 20% of the UK’s monthly electrical energy requirements are wholly reliant on outside influence.

 

Extensive outside ownership heavily contributes towards meeting the UK’s power demand: one of the UK’s largest energy suppliers is Scottish power who distribute gas and electricity to over 5 million private households and commercial premises. Scottish Power is a subsidiary of global Spanish energy company Iberdrola.

 

State owned French electrical company EDF accounts for 18.5% of total UK market share in wholesale electrical generation. In 2023 EDF’s nuclear facilities provided around 13% of the UK’s total power demand. EDF supply energy to over 5 million UK customers.

 

Additional layers of complexity within the UK energy market become prevalent once scrutinised. Not all oil and gas extracted from UK North Sea territory is owned by UK companies but by private foreign investors. For example, the Rosebank oil field is owned by Norwegian state enterprise – Equinor. Norwegian gas reserves were responsible for satisfying 58% of the UK’s gas demand during 2023.

 

Online non-partisan energy news outlet, Energy Monitor released a story in January 2024 stating that at least 40% of oil and gas licenses in the UK North Sea oil and gas fields were passed on to foreign investors.

 

Any profits earned by the investors do not enrich the UK treasury nor do investors have to follow NetZero guidelines; and any energy extracted from UK territory can be immediately sold on the open market to any bidder – NOT direct to the UK.

 

So, energy extracted in the UK by foreign investors is occasionally purchased by the UK government from the international market. To add further confusion to this scenario, UK companies that also acquire gas from home waters export 46% of their product to other countries. UK Domestic demand is ignored in favour of making bigger profits from the international energy market by UK companies.

 

International geopolitics heavily influences global energy prices and distribution routes as well as highlighting the commercially driven nature of the global energy market. The Ukrainian / Russian war exposed Shell for buying Soviet gas at cheap prices despite their being international financial sanctions placed on Russia. Shell continues to work with Russia due to preset contractual agreements.

 

As the intricacies of the present international energy market are complex and confusing, the UK is moving towards clean renewables that are not subject to cost spikes nor interfering geopolitics that beset fossil fuels. In 2023 the UK energy mix consisted of 36.7% renewables. In 2024 that share has increased to 43.1%.

 

The current plan by the UK government is to increase naturally sourced energy extraction such as solar and wind power and to eventually cease fossil fuels. UK oil and gas usage has discernibly dropped over the last decade, in 2014 the UK’s energy mix included 58.1% of fossil fuels – in 2023 that number has dropped to 32.2%.

 

The UK government is particularly keen on introducing an age of cheap and clean electrical power and has very recently publicly released a document entitled:

“Clean Power 2030 Action plan: A New Era of Clean Electricity.”

This governmental report details the UK government’s ambition of fueling UK domiciles and commercial properties with green electricity at low cost.

 

This document also provides further objectives in adding clean power to the UK national grid. Renewables will increasingly play a huge role in the UK domestic energy mix; the UK government aims to increase overall and individual capacity of renewably sourced power. Offshore wind will be increased to 43 – 50GW, onshore wind will be expanded to 27-29GW, whilst solar power capacity will also be increased to 45 – 47GW.

 

A move towards renewables means that UK domestic energy security is strengthened whilst NetZero targets can be met whilst customer costs will lower in time. Modern energy extraction and distribution is a complex process driven by geopolitics and corporate commercial ambition. By expanding renewable capacity, the UK aims to reduce reliance on outside influences and to cease operating as a net importer of energy.

 

However, the UK approach to energy cultivation and distribution is heavily reliant on external players who do not necessarily have to abide by UK rules and regulations. Huge companies such as EDF and Scottish Power will have to follow instructions passed down by foreign organizations, a process that could harm the validity of domestic energy security and customer cost control.

 

Rinnai will continue to monitor global energy issues and deliver non-bipartisan news items that best represent the current machinations of the international energy market. Any change in legislation or market conditions that may affect product and energy options will be shared accordingly.

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Barnsley is ‘Open for Business’ with New Development Site

GREGORY GROUP COMPLETES PURCHASE OF 10 ACRE INDUSTRIAL DEVELOPMENT SITE IN ROCKINGHAM, BARNSLEY

 

Gregory Property Group, in conjunction with Commercial Development Projects Limited of Elland, has completed the purchase of a 10-acre development site at Junction 36 of the M1 at Dearne Valley Parkway, Rockingham from Barnsley Council.

 

Having obtained planning permission to develop the site, the plan is to deliver three units totalling approximately 125,000 sq. ft of new, high specification industrial accommodation.

 

The Otley-based developer has confirmed that, with work commencing before the end of February 2025, completion is expected by February 2026.  The contractor will be Marshall Construction Ltd.

 

The site is located a few hundred yards from J36 of the M1 just off the Dearne Valley Link Road and is included in the Hoyland North Masterplan framework.

 

John McGhee, Managing Director at Gregory Property Group, said:

 

“The site is a high profile and popular location for industrial occupiers because of its excellent transport links and local labour force.  The design which includes various tree, shrub and flower planting schemes to improve the biodiversity of the area will make this a very pleasant place to work, and we expect demand for the units to be high”.

 

Simon Marshall for Commercial Development Projects Limited said:

 

“We are pleased to be able to continue our excellent working relationship with Gregory’s and look forward to working together to deliver this exciting opportunity”.

 

Councillor Robin Franklin, Barnsley Council’s Cabinet spokesperson for Regeneration and Culture, added:

 

“We’re thrilled by this new development, which proves that Barnsley is open for business.

“It’s in an excellent location with great links to the M1 at Junction 36, and we’re excited to see how the land is developed for the new high-spec industrial units which will encourage business growth, provide new employment opportunities for our residents and boost our local economy.

“We wish Gregory Property Group every success as they continue their journey with us here in Barnsley.”

 

Barnsley Council was advised by Shoosmiths.  Kellie Hatton, who led the transaction, commented,

 

“his is a complex site which the council has worked hard on to realise value for Barnsley, so it really is a great achievement to know that the developer will be starting on site soon.”

 

 

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Backing Heathrow to Kickstart Growth

Government backs Heathrow expansion to kickstart economic growth

 

  • Plan could create over 100,000 direct jobs, boost a better-connected British economy by billions, and lead to cheaper fares and fewer delays for families as part of Plan for Change.
  • Expansion must be delivered in line with UK’s legal, environmental and climate obligations.

Working people and businesses across Britain will benefit from a government going “further and faster” to kickstart economic growth, as the Chancellor today [29 January] announced the government’s support for a third runway at Heathrow.

Speaking to an audience of business chiefs at Siemens in North Oxfordshire this morning, the Chancellor set out the government’s latest set of reforms to kickstart economic growth and drive up living standards across the UK by driving investment, getting Britain building and tackling regulatory barriers. This included the announcement that the government supports and is inviting proposals for a third runway at Heathrow.

The Chancellor confirmed that the government will move at speed to review the Airports National Policy Statement (ANPS). This provides the basis for decision making on granting development consent for a new runway at Heathrow, to ensure that any scheme is delivered in line with our legal, environmental and climate obligations.

In her speech, Chancellor of the Exchequer Rachel Reeves said:

I have always been clear that a third runway at Heathrow would unlock further growth, boost investment, increase exports, and make the UK more open and more connected as part of our Plan for Change.

And now the case is stronger than ever because our reforms to the economy – like speeding up our planning system, and our strengthened plans to modernise UK airspace – mean the delivery of this project is set up for success.

So I can confirm today that this Government supports a third runway at Heathrow and is inviting proposals to be brought forward by the summer.

As well as creating over 100,000 jobs in the local area and many more indirectly, research published today by Frontier Economics finds that 60% of the economic boost from a third runway would be felt by areas outside of London and the South East – putting more money in the pockets of working people across the UK through lower fares and greater choice for passengers as part of our Plan for Change.

During the speech, Reeves announced that the Transport Secretary Heidi Alexander is expected to take decisions on expansion plans at Gatwick and Luton shortly, and that the government will work with Doncaster Council and the Mayor of South Yorkshire to support their efforts to reopen Doncaster Sheffield Airport as a thriving regional airport.

The Chancellor also announced that a new partnership between global logistics giant Prologis and East Midlands Airport to build a new advanced manufacturing park within the East Midlands Freeport zone to unlock £1 billion of investment and 2,000 jobs. It follows this government’s swift approval of similarly stalled plans for London City Airport to expand to nine million passengers per year by 2031 and a £1.1 billion investment at Stansted Airport to extend its terminal and create 5,000 jobs.

After delivering stability to the public finances and wider economy as the basic precondition for economic growth, the pace of investment and reform demonstrates the government’s willingness to secure the future of the UK’s world-class aviation sector and the sustainable growth it can provide. Air freight represented 57% of the UK’s non-EU exports by value in 2023, with over 60% of freight coming through the UK doing so through Heathrow. International connectivity also supports vital tourism and business links, with overseas visitors spending £31 billion on their visits to the UK in 2023 and 15 million business travellers using Heathrow in the same year.

It comes after reforms to speed up the planning system and a presumption to ‘back the builders over the blockers’ were set out by the Prime Minister Keir Starmer last week. The government has committed to making decisions on 150 major economic infrastructure applications over this Parliament, having already made decisions on multiple significant projects within its first six months spanning airports, data centres, energy farms, and major housing developments. The Planning and Infrastructure Bill to be introduced in Spring will enact further sweeping reforms and take an axe to the red tape that slows down approval of infrastructure projects.

Alongside these reforms and plans to modernise UK airspace, the government is taking great strides in transitioning to greener aviation. Sustainable Aviation Fuel reduces CO2 emissions compared to fossil jet fuel by around 70% and the Chancellor announced that the government is supporting UK producers by investing £63 million in 2025-26 into the Advanced Fuels Fund and setting out details of a Revenue Certainty Mechanism. This will support investment and high-skilled green jobs in plants across the UK – with previous winners of the Fund ranging from across the north of England to South Wales – and follows the Sustainable Aviation Fuel Mandate coming into law at the start of 2025. Taken together, our commitments to SAF will support thousands of jobs in places like Teesside and Humberside, bring down our transport emissions, and help make the UK a clean energy superpower as part of our Plan for Change.

The government is also assessing options for privately financing the Lower Thames Crossing, which will improve connectivity across vital ports and alleviate congestion as goods to be exported come from across the country to markets overseas.

In further recognition that the Government’s clean energy superpower mission is helping to drive the UK’s economic growth mission, Reeves announced that the government will designate new Marine Protected Areas to enable offshore wind, whilst protecting our marine environment. In doing so, barriers to 16 gigawatts of offshore wind will be unblocked – as much electricity as was produced by all gas power plants in 2024 – and up to £30 billion of private investment in homegrown clean power will be unlocked, creating thousands of good clean energy jobs in the offshore wind sector in areas like East Anglia and Yorkshire.

A new approach to the Oxford-Cambridge Growth Corridor – a centre of innovation which could become Europe’s answer to Silicon Valley – will be spearheaded by Sir Patrick Vallance as a Ministerial Champion. The economic potential of this region will be unlocked through leveraging the strengths it boasts in sectors across Britain’s new modern Industrial Strategy, from life sciences and tech to advanced manufacturing.

The Chancellor set out the government’s plans to increase investment across the whole of the UK. She stressed that the government would do more to support city regions and local leaders outside of London and the South East, in recognition that bringing the productivity of major cities like Manchester, Birmingham and Leeds to the national average would deliver an extra £33 billion in output for the UK economy.

Reeves confirmed the backing of the Mayor of Greater Manchester’s plans for the regeneration of the area around Old Trafford, including new housing and commercial development, and the new approach to planning decisions on land around stations, changing the default to yes. The Office for Investment is expanding its support to local leaders across the UK to help develop and promote their investment plans, and new strategic partnerships from the National Wealth Fund (NWF) will provide deeper, more focused support for city regions starting in Glasgow, West Yorkshire, the West Midlands, and Greater Manchester.

NWF and Aviva have today invested £65 million in Connected Kerb to back plans for the electric vehicle smart charging infrastructure company to expand its UK EV charging network towards 40,000 sockets – up from 9,000 as of the end of 2024. This substantial investment into the UK’s public charging infrastructure – one of the NWF’s priority sectors – is crucial for delivering the forecast requirement of at least 300,000 public EV chargers by 2030. NWF is also investing £28 million in Cornish Metals to provide the raw materials to be used in solar panels, wind turbines and electric vehicles, supporting growth and jobs in the South West of England.

Reeves announced that the Treasury will review the Green Book and how it is being used to provide objective, transparent advice on public investment across the country, including outside London and the South East. There were also further details announced on Investment Zones, with the Wrexham and Flintshire Investment Zone to focus on the area’s strengths in advanced manufacturing. Backed by the likes of Airbus and JCB, this is expected to crowd in £1 billion of private investment over a decade and create up to 6,000 jobs.

The Chancellor said that the Business and Trade Secretary Jonathan Reynolds will visit India next month to relaunch talks on a free-trade agreement and bilateral investment treaty, She set out that the guiding principle the government will take in its approach to trade is acting in the national interest of Britain’s economy, its businesses and working people. A trade deal with India, as one of the fastest growing economies in the world and one which is projected to be the fourth largest global importer by 2035, is in line with this approach.

 

Source: Gov.UK

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Clear Energy Strategy Necessary for UK Manufacturers

Manufacturers are still being hit with rising gas and electricity prices, and while the record highs of early 2022 have abated, many businesses are struggling to meet the cost of their energy needs. However, according to Make UK, one in five manufacturers has still not put a clear energy procurement strategy in place to protect them from the volatility in Britain’s energy market.

The organisation says that the industrial energy market does not have the protections afforded to domestic consumers through the price cap, so working without an energy strategy leaves companies catastrophically exposed to energy market disruption. The lack of a ‘fall back price’, like the domestic energy cap as protection, means that future charges for industry could theoretically be limitless. To further mitigate, the Government should also look at creating an industrial energy market regulator to protect businesses, particularly Britain’s SMEs from the impacts of poor behaviour on the part of energy companies.

The latest research published by Make UK in partnership with Inspired plc, Energy Procurement: The Cost of Complacency, shows that one in three manufacturers haven’t revised their energy procurement strategy since the energy crisis of 2022. While this still may be prudent for those on longer-term fixed contracts, the abatement of the crisis risks businesses putting their energy procurement strategy on the back burner, leaving them vulnerable to any potential subsequent crisis.

The UK imposes several energy-related taxes and levies (for example, the Climate Change Levy), which push up costs for industrial consumers further. Some European countries offset such levies for energy-intensive industries to maintain competitiveness and while the UK has introduced some levy exemption schemes to support the sector, Make UK says there is more to be done.

Furthermore, European countries like Germany and France provide more substantial subsidies or compensatory frameworks for industries exposed to high energy costs such as partial exemption for energy-intensive industries from certain grid fees or renewable energy surcharges. France also maintains tight control over energy pricing for industrial consumers through regulated tariffs tied to nuclear energy costs (for example ARENH in France).

 

‘Wild West’ of energy markets

James Brougham, a senior economist at Make UK, said: “Energy forms a huge part of UK manufacturers’ input mix, subsequently accounting for a large proportion of production costs. With differing playing fields for UK producers when compared to those abroad, even in our closest neighbours within Europe, it is little surprise that the sector struggles to remain competitive even when productivity enhancements elsewhere have been sought. Compounding the risk, the significant proportion of the sector that is exposed to what is effectively the ‘Wild West’ of energy markets in terms of regulation and support, without a formal strategy in place further highlights the need for intervention lest we see the UK’s production base continue to erode.”

Dan Hulme, head of sales (key accounts) at Inspired plc, added:

“While energy prices are much lower than they were during the peak of the energy crisis, they are still around twice the pre-pandemic average. This is not a time to be complacent. Given how sensitive the market remains, manufacturers need to review their strategies and ensure they are aligned with their goals and the behaviour of the energy markets. These strategies should be dynamic and regularly revisited to ensure they continue to achieve their goals and provide protection in an ever-changing market.”

Make UK concludes that the Government should also give stronger incentives for on-site energy generation alongside an industrial energy price cap. Equalising pricing to the Eurozone through a variable energy subsidy would also be hugely beneficial to drive industrial growth in the UK.

 

Source: Machinery Market

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27,000 historic planning applications could now be approved

27,000 historic planning applications could now be approved due to green belt to grey belt reclassification

 

The latest internal data release from Searchland, the development site sourcing specialists, has revealed that there are some 3,425 planning applications that were previously rejected due to being located on green belt land, green belt land that would now be classified as optimal grey belt under the government’s new guidelines.

 

Should these applications be looked at again and approved, it could help deliver over 27,000 new homes to the market.

 

Searchland’s internal data looked at planning applications submitted across England since 2010 and specifically those that were rejected due to being located on green belt land that now meets the gret belt criteria as set out in the new National Planning Policy Framework.

 

Previous data from Searchland revealed that there are an estimated 30,597 grey belt sites across England, enough to deliver 3.4m homes to the market if developed.

 

The firm’s latest figures have also shown that there have been 3,425 planning applications rejected since 2010 due to being located on green belt land, green belt land that may now be considered grey belt, as classified by the Labour Government.

 

Should these planning applications be revisited and granted approval, it could bring an estimated 27,197 new homes to the market, with an estimated market value of £12.2bn.

 

The South East is home to the highest proportion of rejected planning applications that could now be approved, accounting for 21% of the national total, with the potential for 9,001 new homes to be delivered with a market value of £4.8bn

 

19% of these rejected applications were found within the East of England with the potential to deliver 4,215 new homes.

 

The North West was also home to a considerable proportion at 16%, followed by London (12%), the West Midlands (10%) and Yorkshire and the Humber (10%).

 

To keep up to date on the latest grey belt developments sign up to Searchland’s Grey Belt Insights Newsletter.

 

Co-founder of Searchland, Hugh Gibbs, commented:

 

“With the grey belt now formally recognised by the National Planning Policy Framework, developers are benefitting from a significant increase in the number of opportunities available to them.

 

As our previous research found, the grey belt could potentially deliver 3.4m new homes to the market, but it’s not just current grey belt plots that need to be considered.

 

Since 2010, no less than 3,425 planning applications have been rejected due to the fact they were located in green belt land.

 

With the creation of the grey belt, the likelihood is that these applications are well worth revisiting as they could lead to the construction of thousands of new homes with a market value to the tune of £12.2bn.”

 

Data tables

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Overhauling the UK’s Infrastructure and Construction Landscape: A Legal Perspective

Charles Banner KC

In a landmark move to accelerate the delivery of major infrastructure projects, the UK government has approved significant reforms aimed at streamlining legal processes and reducing the delays that have hampered development. Spearheaded by the recommendations of the independent Banner Review, these changes promise a faster and more efficient implementation of significant infrastructure projects, aligning with the government’s Plan for Change to bolster economic growth and sustainable energy.

The Banner Review and Its Recommendations

The reforms are rooted in the findings of the Banner Review, led by Charles Banner KC. The review highlighted the detrimental impact of excessive use of judicial review on the timely delivery of infrastructure projects. Under current procedures, legal challenges often see projects dragged through the courts up to three times, prolonging delays and inflating costs. The review proposed a reduction in the number of judicial review attempts, particularly for cases deemed “totally without merit” and suggested other procedural amendments to expedite the process.

According to Charles Banner KC, “reducing the number of permission attempts to one for truly hopeless cases should weed out the worst offenders” and accelerate infrastructure delivery.

Government’s Commitment to Reform

The government has embraced these recommendations with a firm resolve. Speaking in support of the reforms, PM Starmer criticised the prevailing “challenge culture” whereby pressure groups and local opponents, colloquially referred to as “nimbys” (“Not In My Back Yard”), use legal avenues to obstruct crucial infrastructure developments. In a statement to The Times, Starmer reiterated his commitment to prioritising national prosperity over local opposition, thereby reshaping the legal landscape to favour growth and development.

Key Changes and Implications

The reforms introduce a critical shift in the judicial review process. The initial “paper permission” stage will be eliminated, and the scope for appeals in cases dismissed as “totally without merit” by a High Court judge will be curtailed. Additionally, league tables of court delays will be established to foster quicker judicial decisions. This is expected to reduce consenting times by six to twelve months, translating into substantial economic savings and efficiency gains.

Such changes are anticipated to expedite large projects such as nuclear plants, railways, and wind farms which will in turn lower long-term energy bills and improve transport efficiency.

Moreover, the government has introduced a Nature Restoration Fund, allowing developers to offset environmental impacts more efficiently, thus addressing ecological concerns while maintaining project momentum.

Industry Response

The response from industry leaders has been overwhelmingly positive. Executives from major firms, including ScottishPower, National Grid, and SSE, have lauded the reforms as a vital step towards unlocking investment and accelerating the transition to clean energy. This regulatory overhaul is seen as a catalyst for economic growth, sending a strong signal to global investors about the UK’s commitment to fostering a conducive environment for infrastructure and development.

Leo Quinn, Balfour Beatty Group Chief Executive stated that “Today’s announcement is a vital step towards kickstarting major infrastructure projects more swiftly, while keeping essential safeguards in place. Reducing the uncertainty that delays progress and drives up costs should help unlock significant economic benefits and enable faster delivery of the critical infrastructure that the UK urgently needs“.

Keith Anderson, CEO of ScottishPower also commented, saying that “We’ve consistently said we’ll increase our investment in the UK if the Government can enact meaningful reforms that speed up planning and unlock economic growth. We welcome today’s announcement as an important step forward, in line with our commitment to doubling our investment in UK electricity grids and renewable energy to £24bn by 2028“.

Conclusion

The UK government’s decision to implement the Banner Review’s recommendations marks a pivotal moment for the infrastructure and construction sectors. By reducing bureaucratic obstacles and expediting judicial processes, these reforms are set to transform the landscape, facilitating the swift delivery of projects that are crucial for the nation’s future prosperity. As these changes take effect, contractors and employers can anticipate a more predictable and streamlined path to project completion, heralding a new era of growth and development in the UK.

Source: Watson, Farley & Williams

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