DEVELOPMENT: The Elephant in the Room


Labour’s aim to build 1.5m new homes during their first term is certainly ambitious, but leaves a few things to be desired.

Last week saw the new Chancellor Rachel Reeves deliver her first major speech since Labour’s landslide election victory. Laying out the new government’s plans to rebuild Britain, a significant portion of Reeves’ address concerned reforms to the UK’s planning system, detailing the introduction of mandatory housing targets and the removal of “red tape” for the approval of developments. The overarching goal of the new Labour government is to kickstart an ambitious housebuilding goal of 1.5m new homes by the end of the current parliamentary term. According to David Hannah, Group Chairman of Cornerstone Tax, the plans outlined by Reeves, whilst ambitious, fails to mention one essential factor: private developers.

Across the UK, private developers have gone from crisis to crisis over the past few years, record high-interest rates and the highest tax burden in over 70 years have stymied the ability for developers to take risks and build speculatively. According to a CMA probe earlier this year, the complex and unpredictable planning system has resulted in persistent under delivery of new houses, with developers missing their target by 50,000 in 2023.

In light of Reeves’ speech, Hannah asserts that developers simply do not have the ability to ramp up their work overnight, whilst also suggesting that stricter housebuilding targets will only discourage growth within the construction industry through adverse incentives. In order to stimulate the development sector and get Britain building again, Hannah instead recommends that developers be offered a tax break, encouraging market entrants whilst providing the necessary capital to embark on Labour’s ambitious homebuilding goals.

David Hannah, Group Chairman of Cornerstone Tax, comments:

“The Chancellor’s first major speech was incredibly ambitious, no doubt about that, however, there remain several important elements that are yet to be addressed. It’s been described by some commentators as a ‘War on NIMBYs’ and it’s not hard to see why. The decision to cut red tape and remove blockages to planning make for good soundbites, but we have little clarity as to what this means in practice. Will Labour ignore the concerns of local residents in favour of the ‘greater good’? It remains to be seen.

“Labour must also address the ‘Developer-shaped’ Elephant in the room. For years private developers have been plagued with high interest rates and an ever-increasing tax burden. Earlier this year, a CMA probe found that several major firms had been persistently under delivering on their housing targets, perhaps due to a chronic lack of working capital. Developers cannot simply ramp up their output overnight, the new government must create new incentives for the sector, and punitive housing targets are not the way to go. 

“Private developers ought to be offered a tax break for the vital services that they provide, encouraging new entrants to the market whilst also stimulating further economic growth.”

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Mass Transit Promise for West Yorkshire

  • Mayor of West Yorkshire to set out proposed route options for first phase of a West Yorkshire Mass Transit system
  • It follows Mayor’s successful meetings with the Prime Minister and Chancellor over the last few days
  • Mass Transit key to boosting growth regionally and nationally
  • Plans have the backing of a variety of influential figures

Proposed route options for the first phase of a new West Yorkshire Mass Transit system will be revealed today in a major step forward for the region’s plans for growth.

The Mayor visited Downing Street last week for a meeting with Prime Minister Keir Starmer to discuss the government’s growth mission and how Metro Mayors will help deliver it.

Chancellor Rachel Reeves subsequently visited the West Yorkshire Combined Authority offices on Thursday for a discussion about growth and how devolution was key to boosting the economy.

Just a few days later (July 15), businesses, politicians and other stakeholders will gather in Leeds city centre to hear more about Mayor Tracy Brabin’s ambitious plans to revolutionise transport in the region.

Earlier this year the Mayor set out high level plans for the first phase of a West Yorkshire Mass Transit network.

Today marks the start of a public consultation in which people will be asked for their views on a series of possible route options across the Leeds Line and the Bradford Line.

The region’s plans for Mass Transit will form a key part of Mayor Brabin’s growth plan.

The first phase will be instrumental in connecting people to opportunity and boosting the economy.

Feedback from the consultation will be considered as part of ongoing development work to determine a preferred route for the Bradford Line and the Leeds Line.

The statutory preferred route consultation will be held in 2025, and the Mayor has previously promised to have spades in the ground on the project by 2028.

Mayor of West Yorkshire Tracy Brabin said:

“I’m committed to growing our economy and putting more money into people’s pockets – but to do so we need a transport network that is fit for purpose.

“Pivotal to achieving that is a modern, Mass Transit system interconnected with a West Yorkshire bus network under local control.

“I’ve promised to have spades in the ground by 2028 on Mass Transit, but we need to understand the views of the people who will use it to help inform the route it will take.”

Sir John Armitt, Chair of the National Infrastructure Commission, said:

“Our analysis suggests West Yorkshire is one of the country’s biggest priorities for a major public transport upgrade to meet the needs of local residents and businesses – and this is now firmly on its way.

“The effects of making journeys easier and reducing road congestion should unlock significant and sustainable economic growth for Leeds, Bradford and the wider region, as well as improving everyday life.

“Mayor Brabin and her team deserve credit for progressing plans to this point, where now the public have their chance to shape the future of a scheme that holds so much potential for boosting commuting, trade and leisure links across the region.”

Paul Swinney, Director of Policy at Centre for Cities, said:

“The UK economy will only close the yawning gaps we have with France and Germany if big cities like Leeds and the wider West Yorkshire area are able to reach their full potential.

“Improving public transport in West Yorkshire to better link people to jobs will be part of achieving this. This makes the Mass Transit consultation important not just for West Yorkshire but for the national economy too.”

Tom Forth, founder and CTO of The Data City, one of North England’s fastest growing AI companies, said:

“Whether it’s worrying about arriving late for hospital appointments or nursery pickups, opting out of a better-paid job because the commute doesn’t work, or businesses struggling to find the fantastic staff they need to expand, we know in our region how poor connectivity is holding us back.

“I can’t wait to make a positive response to the consultation, arguing for the investment that will unlock new homes, new business sites, and better access to nature, entertainment, family, and friends that long overdue investment can unlock

“This is our chance to make the plans for Mass Transit in West Yorkshire irresistible to a new UK government focused on growth and prosperity.”

Marcus Johns, Senior Research Fellow at IPPR North, said:

“Public transport is mission critical for driving up economic growth, opening up opportunities, addressing the climate crisis, and boosting living standards, all shown clearly by the evidence in the UK and internationally.

“This ambition to rapidly rollout a Mass Transit system across West Yorkshire is a major step in the right direction, and demonstrates how the gap left by decades of underinvestment in our public transport across the North and beyond can be plugged.

“This is not only good for West Yorkshire, as the benefits of bolstering West Yorkshire’s economy will be good for the whole North. It is a clear lesson of the high ambition and benefits that Mayors, devolution, and investment are bringing to our wider region. To unlock shared growth and renewal, we hope to see schemes like this brought forward for cities and towns across the country.”

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Injecta Fire Barrier help support the next generation with Nottingham Skills Academy partnership

 

Fire safety specialist and leading installer of passive fire barriers, Injecta Fire Barrier, have forged a new partnership with the Nottingham Skills Academy to offer work engagement for young people.

To help invest in the futures of aspiring tradespeople and construction workers, Injecta Fire Barrier has partnered with the Nottingham Skills Academy to provide work experience and training opportunities for individuals kickstarting their career.

Having supported over 8,200 learners in the East Midlands and South Yorkshire with fully-funded courses and training, the Skills Academy is expanding their service with help from Injecta Fire Barrier.

“We are delighted to announce our new partnership with the Nottingham Skills Academy! We’re always looking for ways to support the next generation, and by helping provide work placements we hope to give young people of Nottingham the tools they need to succeed” says Shaun.

Skills Academy is a training centre run by the Skills People Group that offers high-quality teaching and learning for construction, digital business administration and warehousing.

Established in 2008, the Skills People Group is the country’s leading provider of construction-related qualifications and now has seven dedicated training centres, including the Nottingham Skills Academy.

Their academies provide a first-class training environment to help young members of the local community to develop their knowledge, skills and behaviours.

“Gaining work experience can be a challenge for young people and we’re hopeful our partnership will give eager individuals a practical opportunity which helps boost their employability. As well as helping others, we also plan to utilise their courses to develop our own Injecta Fire Barrier team” adds Shaun.

Currently, Skills Academy works with some of the UK’s biggest construction companies and offer a series of courses for bricklaying, joinery, painting, labouring, CSCS card, Skills Bootcamps in construction and much more.

Now partnering with Injecta Fire Barrier, the Nottingham Skills Academy will be increasing their support materials with new opportunities for ambitious individuals to learn, develop and prosper in the fire safety industry.

“We see that Skill Academy has the location, knowledge and attributes to make a change and we can’t wait to help contribute towards a brighter future for Nottingham residents!” concludes Shaun.

Injecta Fire Barrier are the UK’s first independent approved installer of the patented Injectaclad system. With years of experience in passive fire protection, the company can help property managers and building owners seamlessly install cost-effective cavity fire barriers that protect their buildings and occupants.

More information about Injecta Fire Barrier can be found at: https://injectafirebarrier.com/

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West Fraser helps to tend and nurture Tillicoultry community allotment with £1,000 donation

Tillicoultry Allotment 

Cowie-based wood panel manufacturer, West Fraser, has donated £1,000 to a Tillicoultry allotment group, which serves as a nature haven for the local community.

Founded in 1978, the Tillicoultry Allotment Association has grown into a large allotment offering social areas, a community greenhouse, and vegetable plots. It also hosts Alloa school pupils, providing them with dedicated raised beds to learn about growing plants and vegetables.

The donation from West Fraser will help the group repair its communal tool shed floor and install new guttering to prevent water damage during heavy rain.

Elke Mackenzie, Co-chair of the Tillicoultry Allotment Association, said :

“We’re hugely grateful for this kind donation from the team at West Fraser. The Tillicoultry Allotment Association benefits from grants and donations to keep our allotments open for all members of our local community who make use of it, so this support is massively appreciated.

“Thanks to generous donations, such as this one from the team at West Fraser, we can further develop our allotments to cater more for the community, as well as put in place our plans to make the allotments accessible for all with a new accessible gardening patch.”

David Connacher, marketing manager at West Fraser, added:

“As a major employer in the local area, West Fraser recognises the importance of supporting the local community and the businesses making a huge positive difference within them in line with our own dedicated commitment to safety and staff wellbeing.

“We are happy to support the team at Tillicoultry Allotment Association, who provide a fantastic social and educational space for the local community to enjoy, with this donation and are excited to hear how these new updates progress.”

For further information call 01786 812 921

OR CLICK HERE TO VISIT THE WEST FRASER WEBSITE

 

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How does the architectural profession get to net zero?

Photograph by Unsplash

 

Architects are on the front line when it comes to achieving net zero carbon and reversing the status quo in an age where buildings contribute to around 40% of global energy-related carbon emissions. As the Royal Institute of British Architects notes, “The climate emergency is the biggest challenge facing our planet and our profession. To have significant impact, we need to turn warm words into meaningful actions.”

 

Geopolitical instability, economic uncertainty and an underlying energy crisis are constraints that only reinforce the need for urgent measures to address the sustainability of our built environment. Architects have the capacity to embed and encourage sustainable design strategies at each work stage. They can help their clients reach net zero by creating buildings that have no net carbon emissions during their construction and operation. This applies not only to new buildings but to retrofitting existing buildings to prepare them for a low-carbon future.

 

Choices made at the design stage are critical, contributing directly to the net zero goal. Using sustainable, natural, low-carbon building materials, such as timber, is crucial and allows carbon to be sequestered within the structure. Durable, high-quality materials will reduce long-term maintenance and replacement, creating buildings that last and lock up carbon. A building’s lifespan will also be extended by building in flexibility so it can be adapted to new uses in the future.

 

Second only to a fabric first approach that ensures the highest possible thermal performance and airtightness of the building envelope, comes energy. Often the remit of a variety of consultants, architects should, nonetheless, see the correct specification and integration of everything from solar panels to thermal stores as part of a necessarily multi-faceted approach.

 

In the race to net zero, architects carry an unprecedented responsibility to bring together and educate all those involved in the design, planning and building processes to ensure the best result for their client and the planet.

For further information call 01786 812 921

OR CLICK HERE TO VISIT THE WEST FRASER WEBSITE

 

 

 

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UK’s polar science hub, is nearing the finish line

Restoration of a 32-year-old Antarctic runway and significant construction milestones on the new Science and Operations building, mark the end of the austral summer season for British Antarctic Survey’s (BAS) Antarctic Infrastructure Modernisation Programme (AIMP).

July 2024

Modernisation of Rothera Research Station, the UK’s polar science hub, is nearing the finish line, which BAS and programme partners, BAM, Ramboll and Sweco and their teams have been meticulously planning and delivering since 2017. The transformation will ensure BAS continues to enable the UK to remain at the forefront of climate, biodiversity, and ocean research in the Antarctic.

Restoring Rothera’s Runway.

Critical to the continued effective operations of Rothera is its runway. At 32-year-old the extreme weather had taken its toll. This season, the planned Ramboll design and carefully sequenced resurfacing and restoration of the runway to its original length was completed by BAM amid challenging weather conditions. The new runway incorporates existing local rock materials from the previous wharf project, aligning with BAS’s commitment to sustainability. The team installed new and improved energy-efficient runway lighting to maintain safe flying operations in the station. The works also included upgraded drainage and a new aircraft turning pad as part of the overall modernisation programme.

Penultimate construction year for new science and operations building.

Scheduled for completion in 2025, the Discovery Building, a state-of-the-art facility for scientific support and operations, with its high degree of insulation took shape internally, with interior partitioning for offices, the medical centre, plant room and storage areas. Externally, glazing and solar panel installations, which will support the station’s energy needs have been completed. Mechanical and electrical, work was also undertaken with four other buildings on the station having new energy-efficient heating systems installed. Designed by Hugh Broughton Architects, internally the building will use colour, light and space to create an environment intended to foster well-being.

Elen Jones, Antarctic Infrastructure Modernisation Programme Director, BAS, said:

“At the end of a long, productive and challenging season, these strides forward would not have been possible without our incredibly collaborative team. We have progressed to such an extent that we’re looking forward to completing next season’s work, which will see the Discovery Building being handed over and brought into operational use”

For the first time, AIMP team members working on construction joined the existing on-site winterers who operate the station under extreme conditions and prolonged darkness. These ‘overwintering’ efforts see joiners and electricians focus on the interior fit-out of the Discovery Building, preparing the facility for the next austral summer construction phase beginning in November.

“Thank you to everyone involved for their commitment this season and good luck to all our winterers who make a huge contribution in an extraordinary environment,” Elen continued.

Huw Jones, Executive Director, BAM, said:

“Upgrading the runway to ensure access to Antarctica for the international science community in one of the world’s harshest and most remote locations is an incredibly complex operation. Our success this season is a result of the collective effort of our team, partners, and suppliers.  We’re proud to be part of a project that aligns perfectly with our own values of building a sustainable tomorrow and that will enable important climate research to continue in the region.”

Natalie Wathen, Framework Manager at Ramboll, said:

“It is incredible what the team has achieved this season, it has once again all been down to the collaboration across our partnership. Working to deliver a more sustainable and long-lasting future for Rothera has been extremely rewarding for us all”.

About the Antarctic Infrastructure Modernisation Programme (AIMP)

The Antarctic Infrastructure Modernisation Programme (AIMP) is a long-term investment in the Polar Regions, ensuring the UK remains at the forefront of climate, biodiversity and ocean research in Antarctica. The programme is delivered in partnership with BAM, Ramboll, Sweco, GA Barnies and Hugh Broughton Architects. Since 2017, BAS has utilised the expertise and knowledge of the partnership and its wider value chain to ensure the successful delivery of complex engineering solutions in the world’s harshest environment.

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Delivering mega onshore wind turbines

Size comparison between the WindRunner (L) and the record setting

Antonov AN-124 Ruslan heavy strategic military transport airplane (R). Image credit: Radia

 

US-based energy start-up Radia is planning to build the world’s largest aircraft, which the company claims will revolutionise the wind industry.

A June episode of the World Economic Forum’s Meet the Leader podcast highlighted the progress Radia is making in producing its WindRunner, a unique aerial transport solution designed to efficiently carry onshore wind turbines.

As turbines increase in size, Radia intends to aid in the transport of turbines, especially to remote areas. Radia claims that current road infrastructure can accommodate the transport of 70m turbines maximum, whereas the WindRunner cargo hold can carry a 100-metre-plus blade.

CEO and founder Mark Lundstrom explained in the podcast: “The world knows how to make offshore scale wind turbines. They’re just deployed in the ocean. And there’s this opportunity to bring gigantic turbines to onshore locations where the market is 10 or 20 times bigger…”

 

“This is the first time that an aircraft has been designed to optimize on volume instead of weight, and so it’s very unique in the sense that it can still move a lot of mass, 70 tons, but it has a volume that’s about 12 times bigger than a 747 aircraft,” Lundstrom added.

According to Lundstrom, the team intends to have a sizable fleet operating before 2029, with the “initial flights happening well before that”.

The aircraft will be manufactured and designed using off-the-shelf components that are already certified and mass-produced. This will lower the risk and speed up production.

The specs of the aircraft include:

  • Length 108 m / 356 ft
  • Height 24 m / 79 ft
  • Wingspan 80 m / 261 ft

Radia’s plan is to manufacture the initial fleet and then set up operating bases around the world to serve different regions.

From those operating bases, WindRunner will be able to deliver to a 2,000km range.

A scenario described on the Radia website shows blade turbines being loaded into the aircraft at 4am and delivered to a remote destination by 11am the same day.

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The Chancellors first speech – Re-Building Britain

CLICK HERE TO READ THE SPEECH IN FULL

 

Construction sector responses

 

Scott Black, Chief Operating Officer for Places for People.

“Today’s statement from the Chancellor has our unequivocal support, we need more new homes and there is no time to waste. This is one of the most pressing issues for the UK, for economic growth, for families across the UK, and for us all at Place for People, whose mission is to build, help, and support communities across the UK.

“The measures Rachel Reeves has announced today are a positive first step for housing of all tenures including much-needed new affordable homes. As well as bringing forward the delivery of new homes, our own ‘Time to Build’ research illustrated that approximately three-quarters of people also want greater investment in local infrastructure to support new housebuilding, which must not be forgotten.

“Building must be scaled up now and we are ready to do our part to help. On top of mandatory housebuilding targets and a taskforce to accelerate stalled housing sites, we think more can be done to get Britain building again.

“If we are to maximise investment into the sector and tackle the current housing crisis for those most in need, we need certainty and more specifically, confirmation on rent at CPI plus 1% while the financial settlement between Government and housing associations is reviewed. This would provide housing associations nationwide with the stability to invest in the homes they own and to accelerate building new homes.

“This is an exciting time, and we look forward to further details of the Government’s strategy, including the greenbelt review and recruitment of 300 more people into planning which will help to get things moving again. For too long we haven’t done what is necessary to meet the nation’s supply and demand challenges, and it is great to hear the new Chancellor address some of the key barriers that have held us back for too long, so early in her tenure, a clear framework that unlocks more land for new homes and delivers planning consents quickly and efficiently is needed if we are to meet the needs of the nation. At PFP we are here to help the government get Britain Building at scale and for everyone across the UK.

Nathan Emerson, CEO of Propertymark, comments:

“It is encouraging to see that the new UK Government is committed to reforming the planning system and delivering thousands of new affordable homes each year. Propertymark is keen to see a diverse mix of housing delivered that keeps pace with real-world demand.

“Fine details about reform to the National Policy Planning Framework must be mapped out and open to full stakeholder scrutiny. It’s crucial there is transparency on how they intend to meet their ambitious target of building 1.5 million new homes by the end of its term in government, which in reality would mean having a large housing estate built every day before the next general election. Whilst we support more homes being constructed, there needs to be careful consideration on background infrastructure to ensure we are making the best use of available land, ideally prioritising a brownfield-first approach.”

 Mitchell Pollington, Director (Historic Environment) at Lanpro said:

The lifting of the de-facto ban on onshore windfarm developments in England, and the desire to bring these under the NSIP regime, is a hugely welcome sign of the new government’s aim to massively accelerate the country’s transition to renewable energy. It has been estimated that this could boost the economy by £45bn and create around 27,000 jobs- and archaeology and heritage will again play a central role in environmental decision-making to enable these new schemes.

Since 2015, there has been an effective moratorium on the construction of new onshore windfarms, due to the introduction of footnotes to the NPPF, which required proof that there would be no local opposition of any type to such schemes – which, of course, there always will be at some level.

Prior to this, I was proud to work on the heritage and archaeological elements of numerous wind farm applications throughout the noughties – in both England and Scotland – working with passionate environmental consultants and developers who rightly saw that onshore wind was a vital part of our need for mixed renewable energy provision.

Archaeological assessment not only helps mitigate any impacts from wind farm developments, but also provides an opportunity for communities to gain a greater understanding of their surrounding historic landscapes, and the archaeological remains which lie within these. With appropriate initial assessment and survey, the layout of windfarms can easily be designed to avoid any significant impacts on archaeology, and rapid, non-intrusive archaeological survey methods, such as established geophysical survey techniques, and more recently adopted techniques such as multi-spectral imaging, can identify features without the need to necessarily dig up – and destroy – buried remains. The use of such methods will help speed up the delivery, and reduce the costs, of such projects and it’s important that archaeology is seen as a facilitator of these nationally vital developments, and not as an unnecessary delaying factor.

Bringing onshore wind back into the energy mix in England, is therefore vital to support the country’s move towards clean energy, but also provides great opportunities to further our understanding of our shared archaeological resource.

Federation of Small Businesses (FSB) Policy Chair Tina McKenzie, said:

“It’s good to hear the new Government setting a target of 1.5 million homes in the next five years and it will not be possible to reach these numbers without the contribution of small construction firms. Small housebuilders are the key to achieving ambitious housebuilding targets.

“It’s integral that a Small Housebuilders Strategy is created to put small businesses front and centre of decision-making, so the builders who have had the hardest time in recent decades can deliver the outcomes the new Government seeks.

“We hope this will be the start of a renewed focus on getting Britain building again, and that the new Chancellor Rachel Reeves will follow up with further much-needed reform such as to the Community Infrastructure Levy, so it’s no longer an upfront charge.

“It’s good to see a clear statement from the new Government that it will focus on the growth that our economy needs.”

 

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Will Today’s Oil Workers Mirror the Coal Miners of Yesterday?

The U.K. North Sea oil operations are in decline and even the recent natural gas boom is unlikely to return the region to its former glory. With oil demand expected to begin falling in 2030, as the U.K.’s green energy capacity grows, several oil majors are withdrawing from North Sea operations. In 2023, U.K. North Sea oil output fell to its lowest level since the 1970s, when production first began. The quantity of accessible reserves is rapidly depleting following decades of intensive drilling, Meanwhile, several oil majors are looking to new oil regions to tap “low-carbon” crude over the coming decades. Further, the International Energy Agency (IEA) is pushing countries to curb their oil production in favor of greener alternatives in support of the decarbonization goals outlined in the Paris Agreement.

In the far north-east of Scotland, around 60,000 workers continue to be supported by the oil and gas industry, demonstrating the continued reliance on crude revenues and the need for greater diversification in the region. Unions are concerned that if the government doesn’t do more to provide alternative job opportunities in the region, it could end up in the same position as the coal towns of the 1980s and 1990s, facing widespread unemployment and economic hardship. Mika Minio-Paluello, a policy officer at the Trades Union Congress, stated, “It is a test case in some ways, for the whole idea of a just transition, of what happens when we decarbonise… we simply can’t have a repeat of what happened to coal workers in the 80s.”

To avoid the same catastrophe that followed coal mine closures, the U.K. government must now plan for the impending decline of the North Sea oil industry. This could have the added bonus of supporting the rapid development of the green energy industry, as renewable energy companies across the U.K. look for skilled workers to support capacity building in the coming decades. Renewable energy companies worldwide have complained of the dearth of skilled workers needed to support a green transition. However, many oil and gas workers are equipped with the skills and knowledge to transition into a career in renewables, given the right training.

Environmentalists and labour organizations are calling on the U.K. government to finance a just transition, helping oil and gas workers to find job opportunities in clean energy. This year, over 60 climate organizations signed an open letter to all party leaders calling for a U.K.-wide industrial strategy, investment into domestic manufacturing and skills, expansion of publicly owned energy, and reorganizing the tax system for the public good. It also calls for a jobs guarantee to ensure all oil and gas workers can find equivalent, alternative employment or funded retraining.

North Sea oil production has been in a steady state of decline for several years, but it is now happening at an increased pace. In May, the oil major Chevron announced it was selling its 19.4 percent stake in the Clair field, one of the U.K.’s largest oilfields, along with all associated assets in the region. Chevron has been operating in the North Sea for over 55 years, but the oil major is looking to future-proof operations and it does not view the region as a strategic choice going forward. This is the latest of several oil majors, including BP, ConocoPhillips, ExxonMobil, and Shell, to cut operations in the region.

Despite the obvious trend, the Conservative Party continued to back oil and gas, with plans to max out North Sea reserves. The British Prime Minister Rishi Sunak bucked the global trend by hindering the development of wind farms and other renewable energy projects while introducing several new oil and gas licenses. The government has issued around 400 new licenses in six licensing rounds over the last decade, yet the number of jobs supported directly and indirectly by oil and gas has fallen from 441,000 to just 214,000 in that time.

Crude production in the region fell from a peak of 3 million bpd in 1999 to just 800,000 bpd in 2022, with proven oil reserves decreasing from 8.4 billion barrels in 1980 to 2.5 billion barrels in 2020. New projects, such as Rosebank – which has faced major opposition on environmental grounds – are expected to produce far less oil than previous operations in the region. Rosebank is expected to produce just 69,000 bpd of crude once operational. Lisa Fischer, an energy systems expert at the think tank E3G, explained, “The U.K.’s basin is fundamentally in decline… Propping it up is like pouring money down the sink.”

Rather than drawing out the North Sea decline, investment could be better used to develop the U.K.’s renewable energy capacity and support a just transition for oil and gas workers. This would help the U.K. achieve its climate pledges as well as boost energy security while ensuring that towns and cities in Scotland do not fall into a depression similar to that faced by many coal mining towns in previous decades.

 

Source: Oil Price.com

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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.”

 

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