Continued: What policies are most likely to shape the UK construction industry in the coming years?

The opportunities for those involved in UK construction was clear from the Conservative and Labour parties outlining ambitious infrastructure plans at their October 2023 annual conferences. While Rishi Sunak's cancellation of the second phase of HS2 between Birmingham and Manchester was a significant shock to many in the industry, construction, engineering, infrastructure, transport and energy projects are at the forefront of the evolving policy landscape. Industry stakeholders who stay vigilant and adopt strategies in line with these developments will benefit, whichever party forms the next government.

The most important announcements were:

The Conservatives see connectivity and sustainability as key

Transport

• £36 billion was promised for transport improvement projects such as:

  • Network North and the Midlands Rail Hub, designed to enhance northern and central transport via a new electrified rail line connecting Manchester, Bradford, Sheffield and Hull, a new station in Bradford, a new tram in Leeds, and new major roads, stations and reopened train lines, creating work in the form of station upgrades and rail line enhancements

• An additional £12 billion was promised for improving links between Manchester and Liverpool

  • preserving the maximum £2 bus fare for most local routes until the end of December 2024

  • fixing potholes in roads.

• An upgrade to the Ely rail junction in eastern England and rail across the south west of England.
• The Shipley bypass and Blyth relief road, comprehensive road improvements to the A1, A2, A5 and M6, and 70 other road schemes.

Energy

• A nuclear roadmap, featuring small modular nuclear reactors. Six companies are already shortlisted for potential reactor construction.
• Regulations eased to facilitate the installation of solar panels on industrial buildings and warehouses.

Labour presents a vision for renewal and innovative financing

• Proposing to "get Britain back building again" by focusing on key infrastructure, expanding jobs in the construction sector and promoting financial investment in the construction industry.
• Creating a National Wealth Fund to catalyse private investment, with every £1 of government investment matched by £3 from the private sector. The emphasis is on green industries, including gigafactories, clean steel plants, renewable-ready ports, and energy storage.
• Overhauling infrastructure planning to accelerate critical infrastructure projects (given the 65% increase in decision times since 2012) by introducing a fast-track route to planning approvals for infrastructure in "priority growth" areas of the economy, such as battery factories and laboratories.
• Updating all national policy statements relevant to Nationally Significant Infrastructure Projects in the first six months of being in government so that roads, tunnels and power stations can be built more quickly and cheaply.
• Setting up an Infrastructure Acceleration Unit to examine, alongside industry experts, all current major capital project to assess whether they are in delay, over budget and delivering value for money.
• Commissioning an independent expert inquiry into HS2 to learn lessons for future projects
• Announcing an ambitious energy agenda committed to sustainable and diverse energy sources, with a new, publicly owned clean-energy provider, GB Energy, to drive it forward
• Reforming National Grid rules to allow for the easier upgrading of national energy infrastructure and introduction of clean energy providers.
• Promising investments to double onshore wind, treble solar and quadruple offshore capacity, and to explore nuclear, hydrogen, carbon capture, and tidal power technologies.

Next steps

You can hear further insights on these proposals from Rupert Sydenham's interview with our Director of Government Affairs, Robert Gardener, who attended both party conferences.

Authored by Rupert Sydenham, Steph Leung, Sian Walker, and Mark Crossley.