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Construction Government Policy Nationwide Sureties

UK sees unprecedented surge in infrastructure approvals

In its first year in office, the Labour government has overseen a record-breaking number of infrastructure approvals, setting a new pace for national investment. The decisions taken span across energy generation, transport upgrades, aviation expansion, waste management facilities and water treatment. Together, they mark a significant step in reshaping the UK’s physical and economic landscape.

Key Figures and Highlights

Within the first twelve months, twenty-one major projects received approval, more than any equivalent period in recent history. This represents a major start on the government’s “Plan for Change,” which sets a target of 150 major decisions across the parliamentary term. Among the approvals are the Lower Thames Crossing, valued at an estimated £9 billion, the £2.2 billion expansion of Gatwick Airport, and the Simister Island improvements at the M60, M62 and M66 interchange. These flagship projects sit alongside a host of renewable energy developments, demonstrating that the government’s ambitions are not only broad but also strategically aligned with its climate commitments.

Energy and Renewable Power

A significant share of approvals in Labour’s first year focused on renewable energy. Major solar developments, including the Gate Burton Energy Park, the Mallard Pass Solar Project, the Sunnica Energy Farm and the Heckington Fen scheme, will expand the UK’s clean power generation capacity. Additional approvals such as the Cottam and West Burton projects further consolidate solar as a cornerstone of the energy transition. Offshore wind received strong backing, with projects like Rampion 2, the Mona Offshore Windfarm and the Morgan Offshore Wind farm gaining the go-ahead. This wave of energy approvals underscores Labour’s commitment to strengthening energy security while progressing towards net-zero targets.

Transport and Connectivity

Transport infrastructure also features heavily in the government’s first-year decisions. The Lower Thames Crossing, designed to ease congestion and improve freight movement between Kent and Essex, represents one of the largest road projects of its kind. Improvements to critical junctions such as the Simister Island interchange and the M5 Junction 10 Upgrade are aimed at relieving traffic pressure points that have long frustrated drivers and logistics operators. Together, these projects support the smoother movement of goods and people while bolstering regional economies.

Aviation and Expansion

Air transport has also received a boost. Both London Gatwick and London Luton airports have been granted approval for significant expansions. These decisions reflect confidence in long-term growth in air travel demand and underline the government’s willingness to support the aviation sector as it seeks to recover from the impacts of the pandemic. The expansions are expected to increase capacity, support jobs and reinforce the role of aviation in connecting the UK to global markets.

Utilities, Waste and Water Management

Beyond energy and transport, a range of critical infrastructure approvals target utilities and environmental resilience. The Cambridge Waste Water Treatment Plant will undergo a major upgrade to support housing growth and improve environmental outcomes. Similarly, approvals for the Viking CCS Pipeline, the Immingham Green Energy Terminal and the Immingham Eastern Ro-Ro Terminal strengthen the UK’s industrial capacity and its ability to integrate carbon capture and low-carbon fuels into national systems.

Drivers Behind the Surge

The unprecedented pace of approvals reflects a deliberate policy reset. Labour has sought to streamline planning rules and accelerate decision-making, placing infrastructure delivery at the heart of its Growth Mission. Economic stimulus is a central motivation, as these projects are expected to generate construction contracts, support thousands of jobs and activate supply chains nationwide. At the same time, climate policy pressures have necessitated rapid investment in renewable energy and carbon capture facilities, ensuring that the UK can meet both energy security needs and environmental obligations.

Challenges and Risks

While the surge in approvals is notable, delivery is far from guaranteed. Large-scale infrastructure projects often face environmental challenges, with legal objections and habitat protections slowing progress. Financing remains a critical issue, as inflationary pressures and global competition for capital could affect project viability. The construction sector itself must contend with labour shortages, skills gaps and supply chain pressures, which threaten to undermine delivery schedules. Governance also remains complex, requiring coordination across central government, local authorities and regulators to prevent bottlenecks.

Implications for Stakeholders

For developers and investors, the increase in certainty around approvals encourages long-term planning and reduces perceived risk. Local authorities and communities, meanwhile, must prepare for heightened consultation demands and the delivery of associated local infrastructure. For the construction and engineering sectors, the approvals translate into concrete opportunities to expand operations, recruit skilled workers and pursue regional growth strategies. Policymakers and regulators must ensure that the new pace of approvals is matched by robust governance, transparency and accountability mechanisms.

Outlook for UK Infrastructure

The first year of Labour’s administration has set a clear precedent: infrastructure delivery is to be accelerated and scaled. With 129 major approvals still required to meet the government’s stated target, the coming years will test both the resilience of planning reforms and the capacity of industry to deliver. Net-zero ambitions will demand increased focus on carbon capture, grid modernisation and renewable expansion, while pressures on cost and supply chains will continue to test delivery. If the current momentum can be maintained, the UK could enter a period of unprecedented infrastructure development, reshaping the economy and the built environment for decades to come.

Cladding Construction Construction Materials Government Policy Materials

Government enforces legal deadlines for cladding remediation

More than seven years after the tragic Grenfell Tower fire, the UK government has taken decisive action to accelerate the removal of unsafe cladding from buildings across England. In a significant update to the Remediation Acceleration Plan, announced on 17 July 2025, new legal deadlines have been set for landlords to complete remediation works, backed by severe penalties for non-compliance. This move aims to address the ongoing crisis that has left thousands of residents living in unsafe conditions for far too long.

Key Deadlines and Penalties

The updated plan introduces strict timelines for landlords to ensure the safety of their buildings. For buildings over 18 metres in height, all remediation work must be completed by the end of 2029. For buildings between 11 and 18 metres, the deadline is set for the end of 2031. Failure to meet these deadlines without a reasonable excuse will result in criminal prosecution, with potential penalties including unlimited fines and imprisonment. This marks a significant escalation in the government’s approach, aiming to hold landlords accountable and ensure that residents are no longer left in limbo.

Building Height	Remediation Deadline	Penalties for Non-Compliance
Over 18 metres	End of 2029	Criminal prosecution, unlimited fines, imprisonment
11–18 metres	End of 2031	Criminal prosecution, unlimited fines, imprisonment

Legislative Framework

To enforce these deadlines, the government plans to introduce a new Remediation Bill, which will make the duty to remediate a legal requirement. This legislation will also grant powers to bodies such as Homes England and local authorities to step in and carry out remediation works if landlords fail to act, ensuring that progress is made even in cases of non-compliance. The bill is expected to be brought forward as soon as parliamentary time allows, underscoring the urgency of the situation.

Funding and Support

Recognising the financial burden on social landlords, the government has committed over £1 billion to support remediation efforts in the social housing sector. This funding aims to level the playing field, giving social landlords equal access to government funding schemes as their private sector counterparts. The Cladding Safety Scheme has been expanded to include buildings under 11 metres in exceptional cases, further broadening the scope of support. Additionally, the Building Safety Levy, set to take effect in October 2026, is expected to raise £3.4 billion over ten years to fund remediation efforts. Exemptions for affordable, supported, and small-scale housing, along with discounts for previously used land, will help balance safety and affordability.

Progress and Challenges

Despite these measures, the pace of remediation has been criticised as too slow. As of June 2025, only 44% of the 2,800 social housing buildings identified with unsafe cladding in England had begun remediation works. This statistic underscores the urgency of the government’s new approach and the need for accelerated action. The plan also includes measures to identify all buildings over 11 metres with unsafe cladding, with a National Remediation System to track progress and ensure transparency. Over £5 million has been allocated to Metro Mayors to develop Local Remediation Acceleration Plans, further supporting regional efforts.

Voices from the Top

Housing Secretary Angela Rayner emphasised the importance of this plan, stating: “More than seven years on from the Grenfell tragedy, thousands of people have been left living in homes across this country with dangerous cladding. The pace of remediation has been far too slow for far too long. We are taking decisive action to right this wrong and make homes safe. Our Remediation Acceleration Plan will ensure those responsible for making buildings safe deliver the change residents need and deserve.”

Building Safety and Fire Minister Alex Norris added: “We are determined to make buildings safe and protect residents. Since publishing our Remediation Acceleration Plan, we’ve made strong progress, and this update goes further to drive accountability and remove barriers to speed up remediation. There is now a clear pathway to remediate every building with unsafe cladding. We expect everyone to play their part in giving residents and leaseholders the peace of mind that they deserve.”

Impact on Stakeholders

This updated plan has wide-ranging implications for various stakeholders:

Landlords and Developers: Faced with legal obligations and potential penalties, landlords and developers must prioritise remediation works to avoid legal repercussions. The Developer Debt Collection programme, involving 53 major developers, aims to recover £700 million for taxpayer-funded remediation, with £120 million expected in 2025/26.
Leaseholders and Residents: The plan offers hope for safer living conditions, though the timelines may still seem distant for those currently residing in affected buildings. Continued support to reduce reliance on measures like Waking Watch is also part of the plan.
Social Housing Providers: With dedicated funding, social housing providers are better equipped to address safety issues, but the scale of the problem requires efficient allocation and utilisation of resources.

Addressing Criticisms

While the government’s plan has been welcomed for its ambition, campaigners from groups like End Our Cladding Scandal have called it “extremely disappointing” and “performative,” citing uncertainties for leaseholders and the need for more immediate action. The long timelines, particularly for medium-rise buildings, may leave some residents feeling vulnerable. The government has responded by emphasizing enforcement, with over 50 local authorities already taking action against 483 buildings and plans to strengthen the Building Safety Regulator’s capacity.

A Path Forward

The government’s latest update to the Remediation Acceleration Plan represents a critical step forward in addressing the unsafe cladding crisis. By setting legal deadlines, introducing robust enforcement mechanisms, and providing substantial funding, the plan aims to ensure that all buildings with unsafe cladding are remediated within specified timeframes. While challenges remain, particularly in accelerating progress and addressing leaseholder concerns, this decisive action signals a commitment to learning from past tragedies and prioritising the safety of residents across England.

Civil Engineering Construction Costs Government Policy News Public Works Contract

DfT orders cost reassessment of HS2 Phase One

The High Speed 2 (HS2) project, envisioned as a transformative high-speed rail network linking London to Birmingham and beyond, is undergoing a significant overhaul. The Department for Transport (DfT) has embarked on renegotiating contracts with major contractors to address persistent issues of cost overruns, delays, and poor management. This initiative follows sharp criticism from the Public Accounts Committee (PAC) and other stakeholders, who have called for a fundamental reset of the project to ensure it delivers value for money and meets its objectives.

Contract Renegotiation: Scope and Stakeholders

The renegotiation process targets the main works civils, stations, and systems supplier contracts, involving four major civil engineering joint ventures:

Align JV: Comprising Bouygues, McAlpine, and VolkerFitzpatrick
Balfour Beatty Vinci JV
Eiffage Kier Ferrovial Bam JV
Skanska Costain Strabag JV

These contracts, critical to the construction of the railway from London to Birmingham, have been criticized for their structure. According to reports, they lack sufficient incentives for timely completion, offer limited penalties for underperformance, and allow contractors to continually renegotiate scope and value, resulting in poor value for money. The renegotiations aim to address these shortcomings by pricing risks accurately, verifying historic expenditures, aligning the baseline schedule, and securing the supply chain’s commitment to new terms.

In February 2025, the Public Accounts Committee published a report titled “HS2: Update following the Northern leg cancellation,” which sharply criticized the project’s management. The report opens with a damning statement: “The High Speed Two (HS2) programme has become a casebook example of how not to run a major project.” It highlighted significant cost discrepancies, with the DfT estimating Phase 1 costs at £45-54 billion, while HS2 Ltd projected £54-66 billion. The PAC’s investigation suggested that the total cost, including inflation, could exceed £80 billion.

The report also pointed to specific failures, such as the lack of a concrete plan for the redevelopment of Euston station, which includes the Network Rail station, the underground station, and surrounding commercial and housing developments. Additionally, a bat tunnel, intended to mitigate environmental impact, escalated costs to approximately £100 million, doubling the cost of that section of the railway. The PAC questioned the balance between environmental considerations and financial efficiency.

Sir Geoffrey Clifton-Brown MP, Chair of the PAC, was unequivocal in his assessment: “The Department for Transport has failed to manage HS2 properly, and as a result, billions of pounds are likely to have been wasted through delays and overspends.” He called for a reset within the DfT, emphasizing the need for skilled staff to oversee the project and restore the department’s reputation. He expressed hope that future examinations would show improvement.

Table: Key Issues Highlighted by the PAC

The HS2 project has faced ongoing scrutiny for its escalating costs and management issues. Former HS2 Ltd chair Jon Thompson noted that the original contract structures were a primary reason for cost increases, as they provided little incentive for efficiency and minimal ability to penalize poor performance. Transport Secretary Heidi Alexander, in December 2024, acknowledged external factors like Covid and high inflation but also criticized the project’s management, citing cost underestimation and low productivity.

The Guardian reported on 22 October 2024 that contractors had taken advantage of poorly structured contracts, with Transport Secretary Louise Haigh describing the project’s delivery as “dire”. Additionally, a Construction News article from 14 March 2025 quoted a Balfour Beatty executive expressing scepticism about achieving significant savings through renegotiation, highlighting the challenge of aligning contractor and taxpayer.

The HS2 programme is undergoing a “fundamental reset,” as described by HS2 chief executive Mark Wild in December 2024. Speaking to the PAC, Wild confirmed there would be no re-procurement of existing contracts but emphasized immediate efforts to “bear down on costs,” particularly in the main works civils elements. HS2 chief financial officer Alan Foster noted that contractors recognize the need for better-aligned incentives, stating, “There’s a recognition that we need to find a better alignment of incentives between the taxpayer and the delivery of the works.”

The reset includes shifting more risk to the supply chain to enhance accountability. The DfT and HS2 Ltd are working to ensure that new contract terms are sustainable and deliver value for money. Official documents from GOV.UK indicate that recent contract awards for rail systems were approved by the Investment, Portfolio and Delivery Committee (IPDC) and subjected to rigorous Treasury and Cabinet Office oversight, with a focus on long-term affordability through the 2025 Spending Review.

However, the PAC remains unconvinced that contractors have sufficient incentives to agree to significant changes, warning that financial pressures could be passed down to smaller enterprises in the supply chain, which may struggle to absorb them. The committee has called for regular progress updates on renegotiations and a clear plan if favourable terms cannot be secured by the 2025 summer recess.

The renegotiation of HS2 contracts represents a pivotal moment for the project, aiming to address deep-seated issues of cost, efficiency, and accountability. While the DfT and HS2 Ltd are committed to a comprehensive reset, scepticism persists about the feasibility of achieving significant savings. The success of these efforts will be closely monitored by stakeholders, parliament, and the public, who are eager to see HS2 deliver on its promise of transforming UK rail connectivity. For more information on HS2 Ltd, visit https://www.hs2.org.uk/about-us/.

Government Policy Homes England House Building Nationwide Sureties

Homes England exceed Government targets

Homes England has significantly exceeded its 2023-24 housing delivery targets, demonstrating the agency’s pivotal role in supporting housing growth, economic regeneration, and community renewal across England. The latest figures show that the government’s housing accelerator enabled the construction of over 41,000 new homes, surpassing its internal forecast by more than 10%.

In total, 41,149 new homes were started or completed through Homes England programmes in the year ending March 2024, highlighting a sustained increase in output despite industry challenges including labour shortages, inflationary pressures, and planning delays.

Affordable Housing Boost: Thousands of Homes for Rent and Shared Ownership

A core focus of the delivery was the Affordable Homes Programme (AHP), which alone accounted for 33,345 new housing starts and completions. Within that total:

25,721 homes were delivered specifically for affordable rent or shared ownership.
7,624 homes fell under other tenures, including Rent to Buy and social rent.

This substantial delivery volume reaffirms the agency’s role in tackling the housing crisis by enabling more people to access quality, secure, and affordable homes in their local areas.

Key Output by Tenure (2023–24)

Strategic Land and Infrastructure: Unlocking Development at Scale

Beyond affordable homes, Homes England has made major strides in unlocking large-scale strategic sites and supporting enabling infrastructure through its Housing Infrastructure Fund (HIF) and Land Assembly Fund.

In 2023-24:

Over 7,800 homes were delivered through strategic land investment.
Critical infrastructure—roads, utilities, flood defences—was installed to unlock thousands of future homes.
The Brownfield Infrastructure Land Fund (BILF) and Levelling Up Home Building Fund (LUHBF) collectively mobilised over £1.2 billion in development finance and infrastructure grants.

Driving Housing Growth in Levelling Up Priority Areas

Homes England’s intervention has been strategically aligned with the government’s Levelling Up agenda, with targeted investment in northern cities, the Midlands, and coastal communities where market failure has historically constrained housing supply.

Notable highlights include:

Regeneration schemes in Bradford, Wolverhampton, and Hull.
£300 million investment in brownfield remediation to bring derelict sites back into productive use.
Expansion of SME housebuilder support through the Levelling Up Home Building Fund, enabling over 170 small developers to access working capital.

Delivering Specialist and Supported Housing

Specialist housing has also been prioritised. In the last year:

Over 1,100 new supported housing units were delivered for vulnerable groups including older people, those with disabilities, and people facing homelessness.
Collaboration with local authorities led to the release of surplus public land for custom and self-build housing.

Strong Pipeline Positions Agency for 2024–25 Success

Homes England enters the new financial year with a strong delivery pipeline:

Over 67,000 homes are contracted under the current Affordable Homes Programme (2021–26).
The agency has committed over £5 billion in long-term investment through joint ventures with housing associations, local councils, and private developers.

It continues to focus on:

Expanding modular and modern methods of construction (MMC).
Supporting net zero-aligned housing developments.
Strengthening the role of local partnerships in shaping place-led development.

A Year of Outperformance and Impact

Homes England’s performance over the past year not only exceeded numerical targets but also reflected a wider socio-economic impact—from creating jobs and apprenticeships to enhancing local infrastructure and community cohesion.

As the government continues to place housing delivery at the centre of its economic and social agenda, Homes England’s role as a delivery partner of choice is becoming ever more critical.

Sources:

Homes England Annual Housing Statistics (2023–24)
Department for Levelling Up, Housing and Communities (DLUHC)
National Housing Federation Policy Briefs

Accidents Brownfield Government Policy Green Belt Nationwide Sureties

Sadiq Khan proposes strategic use of London’s Green Belt to address housing crisis

London Mayor Sadiq Khan has announced plans to strategically release parts of the city’s Green Belt for housing development, marking a significant policy shift aimed at tackling the capital’s deepening housing crisis.

In a recent policy announcement, Khan described the current Green Belt protections as “wrong, out of date and simply unsustainable,” emphasising the need to adapt to the city’s growing housing demands.

Khan said: “We clearly face an extraordinary challenge. As Mayor, I’m determined to give it everything we’ve got – with a radical step-change in our approach.

“We’ll be working with councils and others to secure as many new homes as we can on brownfield sites, both large and small, but we have to be honest with Londoners that this alone will not be enough to meet our needs.

“That’s why I’m announcing that City Hall’s new position will be to actively explore the release of parts of London’s green belt for development.

“The perception many people have is that the green belt is all beautiful countryside, green and pleasant land, rich with wildlife. The reality is very different. The green belt can often be low-quality land, poorly maintained and rarely enjoyed by Londoners. Only around 13% is made up of parks and areas that the public can access.

“So given the quality of parts of the London’s green belt and the extent of the housing crisis, I believe the status quo is wrong, out-of-date and simply unsustainable.

“Development on carefully chosen parts of the green belt – done in the right way – would allow us to unlock hundreds of thousands of good quality new homes for Londoners. This would not only go a long way to ending the housing crisis but provide a huge boost to our economy.”

The proposal involves identifying and developing low-quality or inaccessible Green Belt land, often referred to as “grey belt,” particularly areas near existing transport links. This approach aims to construct hundreds of thousands of affordable homes, contributing to the target of approximately one million new homes over the next decade.

While reaffirming a commitment to prioritising brownfield sites, Khan acknowledged that this strategy alone is insufficient to meet the city’s housing needs, with current homebuilding at only 35,000 units annually compared to the 88,000 required.

Deputy Prime Minister and Housing Secretary Angela Rayner has expressed support for Khan’s initiative, highlighting a collaborative “partnership approach” between the government and City Hall to boost housebuilding in London. Rayner stated, “I know Mayor Sadiq Khan shares my commitment to tackle the housing crisis and boost economic growth to deliver real opportunities for Londoners.”

The government’s revised housing targets now expect London to build approximately 81,000 new homes per year, a reduction from the previous target of nearly 100,000, aiming for a more realistic and deliverable figure.

However, the proposal has drawn criticism from environmental advocates and some political figures. The London Assembly passed a motion urging the Mayor to avoid using Green Belt land to meet housing targets, expressing concerns over the potential loss of community green spaces.

Khan defended the plan, asserting that the policy strikes a balance between housing needs and ecological conservation. He emphasised that development would focus on poorly maintained “grey belt” land equipped with transport infrastructure, ensuring that the core purposes of the Green Belt are maintained.

The proposal is currently under consultation and will be reflected in a revised London Plan set for release in 2026, with adoption anticipated in 2028.

As London grapples with a severe housing shortage, the strategic use of select Green Belt areas represents a significant policy development, aiming to provide affordable housing while maintaining environmental considerations.

Construction Developers Government Policy Homes England Nationwide Sureties

Homes England funds affordable housing growth

Homes England has once again reaffirmed its pivotal role in driving forward sustainable housing growth across England. With hundreds of new homes backed by substantial public investment, the latest funding round is expected to unlock strategic development sites, catalyse regeneration, and accelerate the delivery of affordable housing aligned with local and national needs.

The agency’s funding packages, part of the government’s broader housing acceleration plans, are being deployed to tackle brownfield land constraints, improve local infrastructure, and support housebuilders in bringing forward quality developments that might otherwise stall due to financial or technical barriers.

New house build Homes England — Photo by Steffen Coonan: https://www.pexels.com/photo/aerial-photo-of-brown-3-story-house-2098624/

Multi-Million Pound Allocations Support Regional Regeneration Plans

Recent announcements detail how the agency is allocating multi-million-pound grants through the Affordable Homes Programme (AHP) and the Brownfield Infrastructure Land Fund (BILF). These schemes are actively facilitating:

The transformation of former industrial land into thriving residential neighbourhoods
The delivery of new homes where market demand is acute, but financial viability remains a barrier
Infrastructure-led site preparation to support mixed-tenure housing solutions

Examples include:

Wolverhampton and the Black Country: Over £15 million committed to the preparation of contaminated land to enable the construction of more than 800 homes
Bradford, West Yorkshire: A £10 million investment unlocking 500 new homes, including a significant proportion of social rent properties
Milton Keynes: Targeted support to deliver high-density urban living in proximity to transport nodes

These projects reflect Homes England’s commitment to levelling up communities and ensuring funding supports tangible outcomes aligned with local development frameworks.

Enabling SME Housebuilders Through Tailored Investment

While much attention centres around large-scale strategic sites, Homes England’s tailored financial tools are also empowering SME builders to participate in housing delivery. By offering development finance via the Home Building Fund, the agency reduces barriers for small developers who often struggle to secure commercial loans.

Notable impact includes:

Increasing build-out rates on small sites under 50 units
Reviving underutilised plots in town centres and village cores
Diversifying housing design and construction methods, particularly offsite modular techniques

The move aligns with the government’s target to increase housing supply beyond the 300,000 homes per year ambition, whilst diversifying market participants and construction typologies.

Driving Sustainability and Modern Methods of Construction

Homes England funding agreements increasingly mandate the use of sustainable construction practices and encourage developers to exceed minimum energy performance standards. Many funded projects now integrate:

Air source heat pumps and solar PV systems
Modular construction to reduce onsite waste and accelerate build times
Biodiversity net gain initiatives across developments

Such innovations not only reduce the carbon footprint of new homes but also set a precedent for future housing policy frameworks.

Case Study: Midlands Urban Renewal Project

A flagship scheme in the Midlands exemplifies how strategic Homes England funding can transform urban dereliction into vibrant housing districts. The scheme, comprising over 1,200 homes, combines:

£22 million in brownfield remediation funding
Strategic partnership with a local housing association
A tenure mix of 40% affordable housing, 30% shared ownership, and 30% open market sale

The project is integrated with local bus rapid transit routes, active travel links, and green infrastructure, representing a model of sustainable urbanism.

Partnership Working with Local Authorities and Developers

Homes England operates not merely as a funding body but as an enabler and partner in placemaking. Their proactive collaboration with:

Combined authorities
Local planning bodies
Registered providers
Private sector developers

ensures alignment of investment with local priorities, infrastructure delivery, and housing need. The agency’s new Strategic Place Partnerships framework is expected to formalise these relationships, offering a consistent and scalable model for future delivery.

A Data-Led, Place-Based Approach to Housing Growth

By leveraging granular data and spatial modelling, Homes England is identifying the most impactful interventions. The agency’s place-based approach is underpinned by:

Market analytics on supply and demand trends
Site constraint modelling
Viability assessments and delivery risk mapping

This rigorous evidence-based methodology ensures public funds achieve maximum leverage, delivering not just homes, but cohesive communities with access to jobs, transport, and services.

Funding That Delivers on Policy, People, and Place

Homes England remains at the forefront of efforts to transform the housing landscape of England. Through strategic investments, robust partnerships, and a focus on innovation and inclusion, the agency is turning stalled sites and underperforming land into opportunity.

As local and national ambitions for housing and regeneration evolve, Homes England’s role as a delivery agency will remain central to ensuring that communities across the country benefit from new homes that are affordable, sustainable, and future-ready.

Construction Government Policy House Building Nationwide Sureties

UK Construction Industry Responds to 2025 Spring Statement

Chancellor Rachel Reeves delivered the 2025 Spring Statement amidst a backdrop of global economic uncertainty. The construction sector, a pivotal component of the UK’s economy, has closely analysed the statement’s implications. This article provides an in-depth examination of the key announcements affecting the construction industry and the sector’s reactions.

Housing and Planning Reforms

Record-Breaking Housebuilding Projections

The Office for Budget Responsibility (OBR) forecasts that annual housebuilding will reach 305,000 units by 2029, culminating in 1.3 million homes over the next five years. This figure approaches the government’s ambitious target of 1.5 million homes within the current parliamentary term.

Planning System Overhaul

To facilitate this surge in housebuilding, the government has introduced comprehensive planning reforms. These include delegating planning decisions to professional officers, establishing national development priorities, and promoting development on underutilised land. The OBR anticipates that these changes will permanently boost GDP by 0.2% by 2029/30 and 0.4% by 2034/35.

Investment in Affordable Housing

£2 Billion Funding Injection

Chancellor Reeves announced a £2 billion boost to the Affordable Homes Programme, aiming to support the construction of 18,000 new social homes. This initiative is designed to bridge the funding gap for local authorities and housing associations, ensuring the timely delivery of affordable housing.

Industry Response

The Royal Institution of Chartered Surveyors (RICS) welcomed this investment. CEO Justin Young stated that the additional funding is a significant boost for the sector and, alongside planning reforms, should increase confidence among housebuilders.

Skills Development in Construction

£600 Million Training Package

Addressing the industry’s skills shortage, the government unveiled a £600 million package to train up to 60,000 new construction workers. This funding will support various educational and apprenticeship programmes, including 35,000 construction-focused skills bootcamp places and 10,000 new construction Foundation Apprenticeships.

Industry Endorsement

Tim Balcon, CEO of the Construction Industry Training Board (CITB), praised the initiative, highlighting CITB’s commitment of £32 million to support the government’s aim and plans to double the size of their New Entrant Support Team. He emphasised the importance of attracting new talent to the industry and seizing this opportunity to equip more people with essential skills.

Infrastructure Spending and Road Maintenance

Capital Investment Increase

The government announced an additional £13 billion of capital spending over the course of this parliament, signalling a commitment to infrastructure development.

Road-Building Budget Reduction

Despite the overall increase in capital investment, England’s road-building and repair budget for the coming year has been reduced by 5%, allocating £4.8 billion to National Highways. This reduction has raised concerns about potential impacts on economic growth, road maintenance, and congestion management.

Economic Growth and Fiscal Policies

Revised Growth Forecasts

The OBR has revised down the UK’s growth forecast for 2025 from 2% to 1%. However, it predicts GDP growth of 1.9% in 2026 and growth in every year thereafter.

Inflation Projections

Inflation is expected to average 3.2% in 2025, decrease to 2.1% in 2026, and reach the Bank of England’s target of 2% from 2027.

The 2025 Spring Statement presents a mixed outlook for the UK construction industry. While substantial investments in housing, planning reforms, and skills development are poised to stimulate growth, concerns remain regarding infrastructure funding reductions and the broader economic implications of fiscal policy adjustments. The industry’s response underscores the necessity for continued collaboration with the government to navigate these challenges and capitalise on emerging opportunities.

Construction Government Policy House Building Nationwide Sureties

Government unveils £350 million social housing initiative

Government unveils £350 million social housing initiative

In a move to address the UK’s escalating housing crisis, the government has announced a substantial £350 million investment aimed at enhancing the availability of affordable and social housing. This initiative underscores a commitment to providing secure homes for vulnerable populations and rectifying systemic issues within the housing sector.

The newly allocated funds are designated to bolster two primary housing programmes:

Affordable Homes Programme (AHP): Receiving £300 million, this programme is set to facilitate the construction of up to 2,800 additional homes, with a significant emphasis on social rent properties.
Local Authority Housing Fund (LAHF): Allocated £50 million, the LAHF aims to support the development of approximately 250 council homes, specifically designed to offer improved temporary accommodation for those in urgent need.

An additional £30 million is projected to be reallocated from previous funding rounds, bringing the total number of homes delivered under the LAHF to 2,700 by the conclusion of its third phase.

Concurrently, the government has articulated a robust strategy to combat the malpractices of rogue landlords who exploit the housing benefit system while neglecting property maintenance. These measures aim to safeguard vulnerable tenants from substandard living conditions and ensure that public funds are utilized appropriately.

This financial injection is a component of the broader “Plan for Change,” which aspires to construct 1.5 million homes over the next five years. The initiative seeks to address both population growth and the prevailing housing shortage, ensuring that more families have access to safe and affordable housing.

The announcement has garnered positive reactions from key stakeholders within the housing sector. Kate Henderson, Chief Executive of the National Housing Federation, emphasized the importance of this funding, stating that it reflects the government’s recognition of the necessity to increase affordable housing stock, particularly social rent homes. She highlighted that this investment would sustain momentum in delivering essential housing solutions ahead of the forthcoming Affordable Homes Programme outlined in the Spending Review.

Beyond immediate construction goals, the government is focusing on sustainable development practices. This includes the intelligent reuse of existing vacant properties to enhance habitability, foster community integration, and reduce environmental impact. Such strategies are pivotal in creating resilient housing solutions that align with modern living standards and environmental considerations.

In summary, the government’s comprehensive £350 million social housing initiative represents a significant step toward alleviating the housing crisis. Through strategic fund allocation, stringent regulation of landlord practices, and a commitment to sustainable development, this plan aims to provide secure and affordable homes for those most in need.

Construction Government Policy Nationwide Sureties

The Climate and Nature Bill’s progress has been stopped

The Climate and Nature Bill, introduced by Liberal Democrat MP Roz Savage on 16 October 2024, has sparked significant debate within the UK’s political and industrial sectors. Aimed at establishing legally binding climate and nature targets, the bill seeks to position the UK as a leader in environmental stewardship. However, its potential impact on various industries, particularly construction, has led to widespread discussion and differing perspectives.

Countryside at sunset — Image by 0xCoffe from Pixabay

Objectives of the Climate and Nature Bill

The bill outlines three primary objectives:

Reducing Greenhouse Gas Emissions: Mandating measures to align the UK’s emissions with its fair share of the global carbon budget, consistent with the Paris Agreement’s goal of limiting warming to 1.5°C.
Reversing Environmental Degradation: Implementing strategies to halt and reverse environmental damage by 2030, including ecosystem restoration, species protection, and improvements in air, water, and soil quality.
Establishing a Climate and Nature Assembly: Creating a temporary citizens’ assembly to advise on comprehensive strategies, thereby democratizing decision-making and fostering public engagement.

Parliamentary Proceedings and Opposition

On 24 January 2025, the House of Commons voted to end the debate on the bill by 120 votes to seven, effectively halting its progress. Critics argued that imposing legally binding targets could lead to higher costs, increased taxes, job losses, and greater reliance on imported fuels. The National Federation of Builders (NFB) supported this outcome, expressing concerns about the bill’s potential negative consequences on the construction industry.

Implications for the Construction Industry

The construction sector, particularly small and medium-sized enterprises (SMEs), plays a crucial role in implementing environmental solutions, such as integrating renewable energy into buildings and engaging in nature conservation projects. However, the NFB highlighted that these businesses often face challenges, including insolvencies. In October 2024 alone, 319 construction firms became insolvent, contributing to a total of 4,208 insolvencies that year up to October.

The NFB emphasized that while the bill’s intentions are commendable, it could inadvertently exacerbate existing challenges within the industry. They cited previous government decisions that have led to increased taxation and lower growth without yielding significant environmental benefits. For instance, the removal of the construction industry’s access to red diesel increased project costs and maintenance expenses, with most machinery still reliant on diesel fuel due to limited availability of electric alternatives.

Broader Environmental Policy Context

The debate surrounding the Climate and Nature Bill reflects broader tensions in UK environmental policy. While there is a clear need for ambitious action to address climate change and biodiversity loss, it is essential to balance these goals with economic considerations and the practical realities faced by industries.

For example, the UK’s Environment Act 2021 mandates a 10% biodiversity net gain (BNG) for most developments to improve natural habitats. However, some experts suggest that for renewable energy projects, raising the BNG requirement to at least 100% could maximize biodiversity benefits and enhance local communities’ access to nature.

The Climate and Nature Bill represents a bold step toward aligning the UK with its environmental commitments. However, its potential economic implications, particularly for the construction industry, warrant careful consideration. A balanced approach that integrates ambitious environmental targets with practical strategies to support affected industries is essential for sustainable progress.

As the UK continues to navigate the complexities of environmental legislation, it is crucial to foster collaboration among policymakers, industry stakeholders, and the public to develop solutions that are both effective and equitable.

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Government’s comprehensive plan for change

In a decisive move to bolster the United Kingdom’s infrastructure and stimulate economic growth, the government has unveiled the “Plan for Change“. This ambitious initiative aims to streamline the planning process, accelerate major infrastructure projects, and address the nation’s housing shortage, thereby laying the foundation for a more prosperous future.

Streamlining Legal Challenges to Infrastructure Projects

A significant component of the Plan for Change involves reforming the legal framework that governs challenges to major infrastructure developments. At present, projects can face up to three legal challenges, often resulting in lengthy delays and increased costs. The new plan proposes limiting such challenges to a single instance, thereby reducing the time and resources expended on legal proceedings.

Government data reveals that 58% of all major infrastructure decisions are subjected to court challenges, with each case taking an average of 18 months to resolve. Notable projects delayed by such challenges include the East Anglia wind farms, Sizewell C nuclear power station, and the A47 National Highway Project. By restricting the number of legal challenges, the government aims to expedite project timelines and alleviate pressure on the judicial system.

Image of countryside that could be a target for Plan for Change — Image by Peter H from Pixabay

Accelerating Housing Development Near Transport Hubs

Addressing the housing crisis is a central pillar of the Plan for Change. The government has set an ambitious target to deliver 1.5 million homes within the current parliamentary term. A key strategy to achieve this goal is the promotion of residential development around England’s commuter train stations. By introducing a “presumption in favour of building” and zoning schemes prioritising development near transport hubs, the plan seeks to improve access to jobs and enhance living standards.

Inspired by successful initiatives in cities such as Manchester, these planning reforms aim to reduce bureaucratic barriers and hasten the construction of new homes. Major housebuilders have welcomed these measures, recognising them as a positive step towards more efficient planning and development.

Revitalising the Oxford-Cambridge Arc

In a bid to position the UK as a global leader in innovation, the government has revived plans to develop the Oxford-Cambridge Arc, envisioned as a rival to Silicon Valley. This initiative aims to double the economic output of the region by 2035 through significant investment in research and development. The project has the potential to add £78 billion to the UK economy and has garnered support from key stakeholders, including university leaders and major firms such as AstraZeneca UK and Arm.

However, the plan faces challenges, including local opposition to new developments, housing shortages, and infrastructure requirements. The government has pledged to address these issues, with plans to construct 1.5 million homes and prioritise development to unlock the Arc’s full potential.

Expanding Airport Infrastructure to Boost Connectivity

Improving the UK’s connectivity is another focus of the Plan for Change. The government supports major airport expansions, including a third runway at Heathrow Airport and full-time use of Gatwick Airport’s second runway. These developments aim to increase airport capacity in southeast England, stimulate economic growth, and create jobs.

The proposed third runway at Heathrow involves upgrading existing infrastructure and adhering to environmental standards. At Gatwick, a £2.2 billion investment could operationalise the second runway by the end of the decade, generating substantial economic benefits. Furthermore, Luton Airport’s expansion plans await government approval, aiming to double passenger capacity with a new terminal.

Implementing the National Infrastructure Delivery Plan

The Plan for Change aligns with the objectives outlined in the National Infrastructure Delivery Plan, which details how the government will support the delivery of infrastructure projects and programmes. The plan highlights the importance of both public and private sector investment in achieving the nation’s infrastructure ambitions.

The latest National Infrastructure and Construction Pipeline outlines projected and planned investment over the next ten years, with a total value of £600 billion. This comprehensive approach underscores the government’s commitment to revitalising the UK’s infrastructure and driving long-term economic growth.

On the Plan for Change, prime minister Keir Starmer said: “For too long, blockers have had the upper hand in legal challenges – using our court processes to frustrate growth.

“We’re putting an end to this challenge culture by taking on the NIMBYs and a broken system that has slowed down our progress as a nation.

“This is the government’s Plan for Change in action – taking the brakes off Britain by reforming the planning system so it is pro-growth and pro-infrastructure.

“The current first attempt – known as the paper permission stage – will be scrapped. And primary legislation will be changed so that where a judge in an oral hearing at the High Court deems the case Totally Without Merit, it will not be possible to ask the Court of Appeal to reconsider. To ensure ongoing access to justice, a request to appeal second attempt will be allowed for other cases.”

Melanie Leech CBE, chief executive of the British Property Federation, said: “We can build great infrastructure in the UK – eventually. From power stations to bypasses, we take longer to deliver important national projects than other developed nations, and that has to change.

“If we want to grow the economy and fund vital public services, then we have to better balance environmental and community interests with the benefits of development, and do so in a clear and timely way. Reducing the scope for vexatious and unmerited legal challenges, whilst retaining a right to appeal, is a very positive step in achieving this.”

However, Roger Mortlock, CPRE chief executive, said: “The government should bring people together to tackle the climate emergency, not set them against each other with tired, divisive language.

“Campaigners bringing legal challenges only do so because they think the law is being broken. Allowing judges to block these concerns as ‘totally without merit’ is anti-democratic and, when it comes to the climate crisis, dangerously short-sighted.

“Climate change is the single biggest threat to the countryside. It’s clear we’ve got to build a clean energy grid fit for the future but the best way to achieve this is with local communities involved from the start.

“The UK could learn from countries such as Ireland and Australia, which involve communities in decision making from the beginning, reducing the need for lengthy and expensive legal processes without eroding democracy. For everyone’s sake, we should be building consensus, not dismissing people with real ideas and solutions as ‘blockers’.”

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