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Andy Burnham’s £10bn housing pledge is a bold first step

Prime Minister Andy Burnham has confirmed one of the most significant housing interventions in recent memory, allocating nearly £10 billion to 33 Strategic Partners tasked with delivering 73,600 new social and affordable homes across England, outside London, over the next decade. The announcement, made alongside Housing Secretary Angela Rayner, represents the first major tranche of the wider £39 billion Social and Affordable Homes Programme (SAHP) and signals a deliberate shift back towards council-led housebuilding after decades of decline.

The scale of the funding is matched by the scale of the need it addresses, with close to 180,000 children currently reported to be growing up in temporary accommodation and many more households stuck on local authority waiting lists.

Prime Minister Andy Burnham stated: “No child should be raised in a hostel room. And no family should wait ten years for a front door of their own.”

He added: “Councils built this country out of a housing crisis once before. Backed properly, and trusted to get on with it, they will do it again.”

That framing matters, because the practical heart of this announcement is not simply the cash but who is being trusted to spend it. For the first time, individual councils have been awarded Strategic Partnership status directly with Homes England, rather than having to bid scheme-by-scheme as in previous funding rounds.

Cambridge City Council, Eastleigh Borough Council and Newcastle City Council are the three local authorities to secure this status, joining a roster of 33 partners that also includes major housing associations such as Clarion and Stonewater, and developers including Vistry Homes, several of which have picked up the maximum individual allocation of £350 million.

Angela Rayner, speaking alongside the Prime Minister, brought a personal note to the announcement, saying that families should not be left raising children without a place to call home and that nobody should spend years waiting for somewhere safe and affordable to live. She also drew on her own background, recalling that a secure home was the foundation of a better life for her and that she would not have reached her current position without one. That personal framing is likely to resonate with voters who feel housing policy is too often discussed in abstract, technical terms.

On the numbers, roughly £9.58 billion of the total is earmarked for the 33 partners outside London, with around 60 per cent of the resulting homes expected to be for social rent, the cheapest form of tenancy, let at close to half of typical market rates. More than £2 billion is destined for mayoral areas, with Greater Manchester alone in line for an estimated £529 million to support around 4,400 homes, reflecting Burnham’s own political roots as the region’s former mayor. Liverpool City Region has been told to expect £380 million. London, meanwhile, is being handled separately through the Greater London Authority, which has secured up to £11.7 billion of its own funding envelope for the capital.

Beyond the headline grant, the government has attached some supporting measures designed to help councils actually use the money. An additional £46 million will be invested over three years to build up councils’ skills and capacity for large-scale housebuilding, an area many local authorities have struggled with after years of reduced direct delivery. Ministers have also pointed to Right to Buy receipts, worth £1.61 billion from sales in the last financial year alone, as a further funding stream councils can draw on alongside the new grant.

Reaction from the housing sector has been broadly welcoming, if watchful. Gavin Smart, chief executive of the Chartered Institute of Housing, welcomed the strong focus on social rent homes and the recognition of the role councils, housing associations and other providers will play in delivering the next generation of affordable housing, while noting that the investment could meaningfully reduce homelessness and ease pressure on temporary accommodation if it is delivered at pace. That caveat, delivered at pace, is likely to be the defining test of this policy over the coming years, given the well-documented planning, procurement and construction capacity constraints that have slowed previous housebuilding drives.

It is also worth noting the political backdrop to the announcement. Burnham had previously argued, before taking on the role of Prime Minister, that the entire £39 billion fund should be reserved for social rent housing rather than split between social rent and other forms of affordable tenure. The 60 per cent split confirmed in this announcement represents something of a compromise on that earlier position, a reminder that even flagship housing policy is subject to the trade-offs of government. Separately, the government used the same announcement to confirm it will strip back social value requirements on government contracts, removing certain sustainability and net zero conditions, a move that has drawn less attention but could prove significant for how these homes are built.

Taken as a whole, this is a genuinely substantial commitment, both financially and symbolically, restoring councils to a central role in housebuilding for the first time in a generation. Whether it translates into front doors for the families currently stuck in temporary accommodation will depend less on the size of the headline figure and more on the unglamorous work of planning permissions, contractor capacity and local delivery over the next ten years. For now, the ambition is clear; the proof will be in the build.

Construction Government Policy Nationwide Sureties News

What do the proposed changes to earned settlement mean for construction

The Government’s proposed overhaul of UK settlement rules could have significant consequences for the construction industry, which relies heavily on migrant labour to fill skills shortages.

The proposed earned settlement system would replace the current model under which many migrants can apply for indefinite leave to remain (ILR) after five years. Instead, the Government wants settlement to become something that migrants must effectively earn through their contribution to the UK economy and society.

The consultation on the proposals closed in February 2026 after receiving more than 200,000 responses. However, the Government has yet to publish its final response. In July, Immigration Minister Mike Tapp confirmed that a substantive response would be provided alongside the consultation outcome in autumn 2026.

What is earned settlement?

Settlement, also known as ILR, gives a person the right to live and work permanently in the UK without the restrictions attached to most temporary immigration routes.

Under current rules, many Skilled Worker visa holders can apply for ILR after five years, provided they meet the relevant requirements. Once settled, they are no longer dependent on an employer for immigration sponsorship.

The Government’s proposed earned settlement model is based on the principle that permanent residence should reflect an individual’s contribution and integration rather than simply the passage of time.

The Home Office says settlement should recognise “sustained good conduct, contribution and integration”, with applicants assessed against four broad pillars: contribution, integration, character and residence.

The central proposal is to increase the standard qualifying period from five to 10 years, with the possibility of reducing or extending that period according to an individual’s circumstances.

How would the new system work?

The consultation proposed a 10-year starting point, with a series of adjustments.

For example, achieving C1-level English could reduce the qualifying period by one year. Earning taxable income of at least £50,270 for three consecutive years could reduce it by five years, while earning £125,140 or more for three years could provide a seven-year reduction.

Five years of employment in a specified public-service occupation could also produce a five-year reduction, while significant community involvement, such as volunteering, could potentially reduce the period by three to five years. Global Talent and Innovator Founder applicants could potentially benefit from a seven-year reduction.

The proposals also contain penalties. Receiving public funds for less than 12 months could add five years to the qualifying period, while receiving them for more than 12 months could add 10 years. Illegal entry, entering on a visit visa or overstaying for six months or more could add up to 20 years.

The Government has also proposed removing the existing 10-year long-residence route, replacing it with the new system of adjustable qualifying periods.

One particularly controversial element is the suggestion that some lower-skilled workers could face a 15-year baseline. This matters considerably to construction because a number of trades have historically relied on overseas recruitment.

Why construction could be particularly exposed

Construction already faces persistent shortages in skilled workers, while the industry has a substantial migrant workforce. Research cited by PBC Today puts the proportion of construction workers born outside the UK at around 16%.

The Government’s own immigration rules also demonstrate the importance of overseas recruitment to some construction trades. Bricklayers, roofers, carpenters and joiners, and certain construction trades are currently included on the Immigration Salary List, allowing qualifying workers to access reduced salary and skills thresholds.

That creates a potential mismatch between immigration policy and the industry’s labour requirements.

A worker may be sufficiently skilled and sufficiently valuable for a construction business to sponsor them, but still earn below the proposed £50,270 threshold needed for the five-year settlement reduction. Such a worker could therefore face the full 10-year qualifying period, or potentially longer if the final rules retain differentiated treatment for lower-skilled occupations.

This is particularly important for trades where salaries do not necessarily reflect their economic importance. A highly experienced bricklayer, carpenter or roofer may be difficult to replace but is unlikely to earn anything close to £125,140 a year.

The House of Commons Home Affairs Committee has already questioned the logic behind the proposed earnings thresholds. Dr Madeleine Sumption of the Migration Observatory described the use of tax thresholds as “a little arbitrary”, while former Migration Advisory Committee chair Professor Alan Manning warned that the £50,270 threshold could even create an incentive for employers to suppress migrant workers’ wages to delay their settlement.

That is a significant concern for construction employers because the ability to retain experienced workers is already an important part of managing skills shortages.

Sponsorship costs could increase

For construction businesses, the practical impact would extend beyond immigration status.

A worker who takes twice as long to achieve settlement could remain sponsored for twice as long. That means additional visa applications, immigration administration, compliance responsibilities and associated costs.

Joanne Hennessy, partner and head of business immigration at TLT, warned that employers who previously expected to face “at most five years of cost and compliance” could potentially see that period double. She also highlighted the risk that longer settlement routes could make it harder for construction companies to attract and retain international workers.

There is also a retention issue. Once an employee obtains ILR, they have considerably greater freedom to change employer. Keeping someone on a sponsored visa for longer may therefore give employers greater control, but it can also make the UK less attractive to workers considering where to build a long-term career.

That could become particularly problematic when construction companies are competing internationally for experienced engineers, project managers and specialist tradespeople.

A potential incentive to pay more

There is, however, another side to the proposals.

Linking settlement to earnings could encourage employers and employees to invest in progression, training and higher-skilled roles. A worker who moves into a more senior position and crosses the relevant earnings threshold could potentially shorten their route to settlement.

For construction, that could support career progression from skilled trades into supervisory, managerial and technical roles.

But it also risks creating a two-tier workforce in which the workers most essential to delivering projects are not necessarily those who benefit most from the settlement system.

The Parliamentary Home Affairs Committee has warned that the proposed earnings reductions could be poorly targeted. It noted that the median income of Skilled Workers, excluding Health and Care workers, was £56,600 in 2023/24, meaning many would potentially qualify for the five-year reduction, but questioned why someone making a positive fiscal contribution while earning below £50,270 should face the full 10-year route.

What happens next?

The most important point for construction employers is that earned settlement is not yet law. The existing settlement rules remain in force while the Government considers the consultation responses.

The Government has indicated that the final consultation response is expected in autumn 2026. It is also considering whether transitional arrangements should protect people already in the UK who are working towards settlement.

That transitional issue could be critical. Applying substantially longer settlement periods retrospectively to workers who came to Britain expecting to qualify under the existing five-year system has attracted strong criticism. The House of Lords Justice and Home Affairs Committee described retrospective changes as potentially “manifestly unfair” and recommended against applying them to people already on a qualifying route.

For construction businesses, the sensible approach is therefore to treat earned settlement as a significant potential workforce-planning issue rather than a settled immigration rule.

The industry needs clarity on whether existing workers will be protected, how lower-paid but strategically important occupations will be treated, and whether the final system will recognise contribution in terms broader than salary alone.

For a sector already struggling to recruit and retain enough skilled people to meet housing, infrastructure and net-zero ambitions, making the route to permanent residence longer and less predictable could carry a substantial cost. Unless the final rules are carefully designed around genuine skills shortages, there is a risk that earned settlement could make the UK less competitive in the global market for construction talent at precisely the time the industry needs more workers, not fewer.

Construction Nationwide Sureties News

RICS Construction Monitor Q2 2026: Workloads improve but remain in negative territory

The UK construction industry showed signs of improvement during the second quarter of 2026, but workload levels remain firmly in negative territory, highlighting the fragile nature of the sector’s recovery. The latest RICS UK Construction Monitor found that the headline construction workloads net balance improved from -12% in Q1 to -4% in Q2. However, this was the fifth consecutive quarter in which the measure remained negative.

RICS describes the improvement as a partial unwinding of the sharp deterioration recorded in the first quarter rather than evidence of a sustained recovery. For construction businesses, therefore, the latest figures offer some encouragement but little reason for complacency.

Infrastructure Leads UK Construction Recovery

Infrastructure continues to provide the strongest area of activity, with workloads recording a net balance of +16% in Q2, up from +4% in Q1 and the strongest result for seven quarters.

Energy infrastructure was particularly strong, rising from +24% to +39%, while water and sewage increased from +20% to +23%. Communications also strengthened significantly, reaching +22% compared with +8% in Q1. Rail moved into positive territory at +10%, while roads increased modestly to +7%.

This reinforces the increasingly important role being played by major infrastructure investment in supporting the wider construction industry. However, the strength of infrastructure also highlights the uneven nature of the recovery, with private-sector construction continuing to struggle.

Private housing remained the weakest major sector, although its workload balance improved from -19% to -12%. Private commercial workloads improved from -15% to -7%, while private industrial increased from -15% to -9%.

There was a more positive picture across public-sector work. Public housing moved into marginally positive territory at +1%, compared with -2% in Q1, while other public works increased from -1% to +9%.

Construction Outlook Improves

One of the more encouraging aspects of the RICS Construction Monitor is the improvement in expectations. The headline twelve-month workload expectations balance increased sharply from +2% in Q1 to +13% in Q2, suggesting that construction professionals expect activity to strengthen over the coming year.

Infrastructure remains expected to be the principal engine of growth, with its twelve-month workload expectations rising from +19% to +34%.

Expectations also improved across private residential and non-residential construction. Private residential expectations moved from -2% to +6%, while private non-residential increased from -4% to +11%.

The gap between current workloads and expectations is significant. While the current balance of -4% indicates that more respondents are still experiencing falling workloads than rising workloads, the +13% forward-looking balance suggests that confidence in a recovery is beginning to return.

The question for construction businesses is whether those expectations will translate into actual projects, particularly in the private sector where viability, financing and regulatory obstacles continue to delay developments.

Financial Constraints Remain A Major Barrier

Financial pressures remain one of the biggest constraints on construction activity. RICS found that 67% of respondents identified financial constraints as a barrier, while 61% highlighted planning and regulatory issues.

Credit conditions have nevertheless improved considerably. The three-month outlook improved from -51% in Q1 to -21%, while the twelve-month measure increased from -42% to -13%. Although both remain negative, the change suggests that respondents expect financial conditions to become less restrictive.

Cost pressures also remain substantial. Expected materials cost inflation fell from 7.5% to 6.7%, but remains high by historical standards. Labour cost expectations were broadly unchanged, at 5.2% for skilled workers and 3.9% for unskilled labour.

Labour shortages remain an issue for more than a third of respondents, increasing slightly from 34% to 36%, while material shortages increased from 18% to 25%.

Housebuilding Remains A Concern

The continuing weakness in private housing is arguably the most significant warning contained within the latest RICS report, particularly given the Government’s ambitions to increase housing supply.

RICS Chief Economist Simon Rubinsohn said: “The latest results continue to demonstrate the ongoing challenges facing much of the construction industry. Rising material costs are exacerbating existing financial hurdles and being reflected in further pressure on profit margins.”

He added: “Infrastructure continues to show a degree of resilience with workloads benefiting from a number of substantive projects.”

However, Rubinsohn warned that there is “little evidence of any improvement in sentiment in the housebuilding sector”, highlighting the challenge facing the new Prime Minister in attempting to reignite construction activity and significantly increase social housing delivery.

Regulation remains another obstacle. Rubinsohn said respondents continue to point to regulatory barriers affecting development timelines, with problems surrounding the Building Safety Regulator still frequently cited despite improvements to the process.

What Does The RICS Report Mean For Construction?

The Q2 Construction Monitor presents a construction sector that is improving, but not yet recovering on a broad basis.

The movement from -12% to -4% in the headline workload balance is undoubtedly positive. However, the fact that workloads remain negative for a fifth consecutive quarter demonstrates that the industry is still operating below the level required for a genuine broad-based recovery.

Infrastructure is providing a crucial source of activity, while public-sector workloads are beginning to improve. Yet private housing, commercial and industrial construction remain in contractionary territory.

The improving twelve-month outlook is therefore important. If better credit conditions, infrastructure investment and greater regulatory certainty translate into projects getting underway, the second half of 2026 could mark the beginning of a more meaningful recovery.

For now, however, the RICS data suggests the construction industry is moving in the right direction without having reached a clear turning point. The workload balance may have improved significantly, but at -4%, it remains a reminder that the sector still has considerable ground to recover.

Construction Government Policy Nationwide Sureties News Public Works Contract

New Hospital Programme awards 11 construction partnerships

The Government has taken another major step in delivering its long-term NHS infrastructure plans by confirming 11 construction partnerships under the New Hospital Programme (NHP). The agreements mark a significant milestone for the programme’s innovative Hospital 2.0 delivery model, which aims to build hospitals faster, more efficiently and at better value for taxpayers through standardised design and collaborative procurement.

The partnerships will deliver the first wave of major hospital projects using the Hospital 2.0 Alliance (H2A), bringing together NHS trusts and leading construction companies under a new collaborative framework designed to replace traditional procurement methods that have often delayed major public sector projects.

The announcement represents one of the most significant developments in the Government’s wider £37 billion New Hospital Programme, which aims to modernise England’s ageing hospital estate while creating greater certainty for the construction industry and supporting thousands of skilled jobs.

Hospital 2.0: A New Way to Build Hospitals

At the heart of the programme is Hospital 2.0, a standardised approach to designing, constructing and operating NHS hospitals.

Rather than treating every new hospital as a bespoke project, Hospital 2.0 introduces repeatable designs, standardised components and modern methods of construction. Around 80% of each hospital will follow common design principles while allowing the remaining elements to be tailored to local clinical requirements. The approach is intended to reduce design costs, speed up construction, improve quality and enable multiple hospitals to be built simultaneously.

The programme also focuses on improving patient outcomes. New hospitals will feature predominantly single-patient bedrooms, digitally enabled facilities, flexible clinical spaces, improved patient flow and sustainable building techniques. The standardised designs are intended to provide hospitals capable of meeting NHS needs for at least the next 60 years while enhancing infection prevention, staff wellbeing and operational efficiency.

Eleven Partnerships Confirmed

The Hospital 2.0 Alliance has matched ten leading construction organisations with 11 Wave 1 hospital schemes following a collaborative allocation process.

The proposed delivery partnerships include Airedale NHS Foundation Trust with GRAHAM; Royal Cornwall Hospitals NHS Trust with Willmott Dixon; Frimley Health NHS Foundation Trust with Sacyr UK; Hinchingbrooke Hospital with Kier Construction; Hillingdon Hospitals NHS Foundation Trust with Laing O’Rourke; James Paget University Hospitals NHS Foundation Trust and Queen Elizabeth Hospital King’s Lynn NHS Foundation Trust with Skanska; Mid Cheshire Hospitals NHS Foundation Trust with Integrated Health Projects; Milton Keynes University Hospital NHS Foundation Trust with Morgan Sindall Construction; North Manchester General Hospital with Bovis Construction; and West Suffolk NHS Foundation Trust with Dragados.

The collaborative model differs significantly from conventional procurement by creating long-term partnerships rather than one-off contracts. The intention is that lessons learned on one hospital can be rapidly applied across future projects, improving productivity, safety and consistency throughout the programme.

Cutting Bureaucracy and Speeding Up Delivery

The Government says the new arrangements will reduce procurement delays that have historically slowed major NHS capital projects.

Karin Smyth, Minister of State for Health, said: “For too long, the construction of new hospitals has been bogged down by bureaucratic procurement processes, even after full approval and funding was in place, and we’re determined to change that.

“The changes announced today are a major step forward in streamlining the procurement process. Patients can look forward to new hospitals being delivered quicker, industry can plan with certainty, and taxpayers can be assured that we are getting maximum value for their money.

“With stronger collaboration, shared learning and a boost for jobs, this further demonstrates this government’s commitment to the New Hospital Programme, providing world-class facilities for the NHS and helping the economy in the process.”

Learning from Every Project

One of Hospital 2.0’s defining features is the creation of a collaborative supply chain through the Hospital 2.0 Alliance.

Instead of contractors working independently on individual projects, the framework encourages knowledge sharing across every scheme. Construction partners will work to common standards for health and safety, quality, sustainability and productivity, enabling continuous improvement as each new hospital progresses.

The programme also places significant emphasis on industrialised construction methods, including greater use of off-site manufacturing, standardised building components, digital design and data-driven project management. These approaches are expected to reduce waste, improve programme certainty and help address skills shortages within the construction sector.

Delivering Better Hospitals

The first annual New Hospital Programme report highlights Hospital 2.0 as a key enabler for delivering future NHS infrastructure more efficiently following the programme’s reset in 2025.

The report states that the standardised design is now substantially complete, with prototype patient rooms already tested and final design products being shared with participating NHS trusts. The programme has also strengthened governance, commercial oversight and technical expertise through the appointment of its Health Delivery Partnership and the mobilisation of the Hospital 2.0 Alliance.

While challenges remain, including maintaining market capacity and delivering multiple large-scale projects concurrently, ministers believe the new delivery model provides a more realistic and sustainable framework for transforming the NHS estate.

For patients, the programme promises modern, digitally enabled hospitals designed around privacy, safety and clinical efficiency. For the construction industry, it offers a long-term pipeline of work with greater certainty. For taxpayers, the Government hopes Hospital 2.0 will deliver better value through standardisation, collaboration and reduced procurement delays.

Construction Government Policy House Building Nationwide Sureties

Angela Rayner reaffirms commitment to 1.5 million new homes

Housing Secretary Angela Rayner has reaffirmed the Government’s commitment to delivering 1.5 million new homes during the current Parliament, insisting she will not abandon one of Labour’s flagship housing pledges despite mounting economic and construction challenges.

Speaking after Prime Minister Andy Burnham placed housing at the heart of his new administration’s agenda, Rayner acknowledged the scale of the task but stressed that the target remains unchanged: “1.5m homes is a difficult target. It was when I made the target, but I’m going to keep the target, and I’m not going to be defeated.”

The comments come as the Government seeks to accelerate housebuilding through planning reforms, increased investment in affordable housing and a renewed emphasis on council house construction, with Burnham promising the largest council housebuilding programme since the post-war era.

Housing target remains central to Government plans

The commitment to build 1.5 million homes has been a cornerstone of Labour’s housing strategy, but recent figures have highlighted the scale of the challenge.

Higher construction costs, labour shortages, elevated borrowing costs and slower-than-expected housing completions have all raised questions over whether the target can realistically be achieved within the parliamentary term. Rayner herself has acknowledged that rising build costs have made the objective even harder to reach, although she has rejected suggestions that ministers are preparing to abandon it.

Alongside maintaining the target, Rayner has ruled out introducing rent controls, arguing that increasing housing supply remains the most effective long-term solution to improving affordability.

Construction industry welcomes ambition but calls for further action

The construction and housebuilding sectors have broadly welcomed the Government’s determination to increase housing delivery but warn that planning reform alone will not be enough.

The Home Builders Federation said the return of Rayner as Housing Secretary provides continuity and welcomed the Government’s commitment to housing. However, it stressed that wider barriers must also be addressed, including planning delays, viability issues, infrastructure investment, workforce shortages and the availability of development finance if the industry is to deliver homes at the required pace.

Industry experts have repeatedly highlighted shortages of skilled tradespeople, including bricklayers, electricians and plumbers, alongside supply chain pressures and rising material costs, as significant constraints on increasing housing output. These challenges have become more acute following several years of inflation across the construction sector.

Many developers also argue that greater certainty around planning decisions, faster approvals and continued support for affordable housing are essential to unlock new developments.

Housing sector backs renewed council housebuilding

Construction industry welcomes Burnham’s housing and skills ambitions — Official Portrait. Image: GOV UK

The Government’s renewed focus on council housing has been welcomed across much of the housing sector.

Responding to Prime Minister Andy Burnham’s pledge to expand council housebuilding, Gavin Smart, chief executive of the Chartered Institute of Housing, said:“Andy Burnham’s speech rightly puts housing at the centre of the national debate, recognising that a safe, secure home underpins people’s life chances and the country’s economic success. The focus on large-scale council housebuilding reflects the urgency of the housing crisis, but delivering on this ambition will require sustained investment and a whole-sector effort.

“CIH will continue to work with government, local authorities, housing associations and partners across the sector to help turn this ambition into reality – delivering the homes people need and the foundations for healthier, fairer and more prosperous communities.”

The Chartered Institute of Housing has consistently argued that increasing the supply of affordable and social housing is critical to reducing homelessness, easing pressure on temporary accommodation and improving long-term economic productivity.

Balancing ambition with reality

While many within the housing and construction sectors support the Government’s ambition, most agree that delivery will require far more than political commitment alone.

The industry continues to call for sustained investment in infrastructure, expanded skills training, greater certainty for developers and long-term planning reform to enable local authorities and housebuilders to accelerate delivery.

Burnham has pledged to publish a wider 10-year plan for Britain later this year, with housing expected to remain a central pillar of the Government’s economic growth strategy. The Prime Minister has also made ending rough sleeping and expanding council housing early priorities of his administration.

For construction firms, developers and housing providers, Rayner’s latest comments provide reassurance that the Government remains committed to its headline housing pledge. However, with completions still well below the level required to meet the target, the coming years will determine whether planning reforms, investment and industry collaboration can translate political ambition into homes on the ground.

Construction Government Policy Nationwide Sureties

Construction industry welcomes Andy Burnham’s housing and skills ambitions

The UK construction industry has broadly welcomed Prime Minister Andy Burnham’s commitment to a major council house building programme and a renewed focus on technical education, while stressing that success will depend on long-term investment, planning reform and tackling persistent skills shortages.

In his first speech outside 10 Downing Street, Burnham pledged to “build more council homes”, overhaul the education system to help more young people into work, continue devolving power “to every postcode in the land”, re-industrialise parts of the country left behind since the 1980s and publish a new 10-year plan for Britain later this year. He also promised immediate measures to ease the cost-of-living crisis and give households “some breathing space”.

For the construction sector, the speech offered a strong indication that housebuilding, skills and regional investment will sit at the heart of the new government’s economic agenda.

Burnham’s commitment to expanding council housing echoes proposals he outlined during his Labour leadership campaign, where he described plans for the biggest council house building programme since the post-war era. His wider vision includes making greater use of public land, strengthening British supply chains through public procurement and creating stronger links between technical education and industry.

The emphasis on vocational education has also been welcomed across construction, an industry that continues to face acute labour shortages. Burnham said the education system would place greater emphasis on helping young people into work while improving mental health support, signalling a move towards greater parity between academic and technical routes. His approach is widely expected to build on the Skills Bootcamps introduced under Sir Keir Starmer’s government.

Industry commentators believe a stronger pipeline of skilled workers could help address one of construction’s biggest challenges. Employers have consistently warned that shortages of bricklayers, carpenters, electricians, plumbers and site managers remain one of the biggest barriers to increasing housing delivery and infrastructure investment.

Reaction from across the sector has been cautiously optimistic. Industry publication PBC Today noted that while Burnham’s speech contained relatively few policy details, his commitment to building more council homes and reforming education represented encouraging signals for construction. It added that expanding technical education and potentially extending Skills Bootcamps could further strengthen recruitment into the industry.

However, many organisations are now looking beyond the rhetoric and awaiting greater detail. The promised 10-year plan, expected later this year, is likely to be closely scrutinised by developers, contractors, housing associations and local authorities seeking clarity over funding, planning reform and procurement.

The proposed devolution of power has also generated interest across the sector. Burnham pledged to continue transferring decision-making away from Westminster and into local communities, arguing that growth is best delivered locally rather than through centralised government. For construction businesses, greater local control over housing, infrastructure and regeneration could accelerate decision-making and allow investment to better reflect regional priorities.

Similarly, Andy Burnham’s ambition to re-industrialise areas that have struggled since the 1980s could create significant opportunities for construction firms involved in manufacturing facilities, industrial estates, transport infrastructure and energy projects. His commitment to favour British industry through public procurement may also provide additional opportunities for domestic construction supply chains.

The government’s focus on reducing living costs has indirect implications for the industry as well. If successful, measures to improve affordability and increase housing supply could stimulate demand across the residential construction market while supporting wider economic confidence.

Nevertheless, analysts have cautioned that delivering a large-scale council house programme will not be straightforward. Rising construction costs, planning constraints, limited availability of development land and continuing skills shortages all present significant challenges. Recent analysis has questioned whether the proposed investment alone would be sufficient to deliver housing at the scale suggested without broader planning and private sector reforms.

The coming months will therefore be critical. Construction businesses are expected to welcome the government’s clear recognition of housing and skills as national priorities, but they will also be looking for practical measures to support delivery.

If Andy Burnham’s forthcoming 10-year strategy combines sustained investment, planning reform, expanded technical education and genuine devolution of power, it could provide the construction industry with the long-term certainty it has sought for many years.

For now, the sector appears encouraged by the direction of travel. The challenge facing the new Prime Minister will be turning ambitious commitments on housing, education and regional growth into projects that can be delivered on the ground.

Government Policy Homes England House Building Nationwide Sureties

MP’s call for the use of historic buildings as homes

A hard-hitting new report from Parliament’s Culture, Media and Sport (CMS) Committee has warned that the UK’s approach to protecting its built heritage is “failing miserably”, as leaking roofs, crumbling brickwork and vacant premises continue to blight historic buildings across the country.

Published on 13 July 2026, Protecting Built Heritage is the result of an 18-month inquiry into the funding, planning and workforce challenges facing the UK’s historic environment, from listed buildings and places of worship to industrial heritage and conservation areas. The committee received 113 written submissions and held five oral evidence sessions with heritage charity leaders, architects, church officials, local authorities and government ministers.

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The report’s headline finding is stark: Historic England estimates that up to 670,000 homes could be delivered by bringing vacant or under-used historic buildings back into residential use, equivalent to almost half the government’s target of 1.5 million new homes by 2029. Yet the committee found this potential remains largely untapped, with reuse still treated as an afterthought rather than a priority in housing and planning policy.

“A Deep Complacency”: The Chair’s Verdict

Dame Caroline Dinenage MP, Chair of the CMS Committee, did not mince her words when the report was published. “Old buildings and other pieces of our past play a vital economic, social and cultural role in our communities, but the sight of leaking roofs, crumbling brickwork and vacant premises illustrates how the current policy approach to heritage is failing miserably to support either its protection or potential,” she said.

She went further, criticising the government’s ambition on housing: “Historic England says that there is potential to create a whopping 670,000 new homes and yet the government’s approach reveals a deep complacency, is devoid of ambition, and shows a complete lack of imagination.”

She called for a fundamental shift in mindset, arguing that “‘reuse first’ should be the guiding principle, with a heritage to housing scheme offering a clear win-win by preserving our historic buildings and helping to meet the pressing need for new homes.” She also pressed ministers to address funding gaps and the skills shortage that is undermining the sector’s ability to carry out repairs.

Dame Caroline reserved particular criticism for double standards in how public and private heritage assets are treated, noting that “it also shouldn’t be right that private owners face significant obligations to protect historic buildings, while government departments are able to allow heritage assets to rot at public expense.” She warned that continued deterioration risked “not just links to our past but… opportunities for economic growth and regeneration in our communities.”

Learning from Italy’s €1 Homes Scheme

Among the report’s central recommendations is a call for a UK “heritage-to-housing” scheme modelled partly on international examples, most notably Italy’s much-publicised €1 homes initiative, which sells historic properties cheaply on condition that new owners restore them.

Tanya Szendeffy, Senior Conservation and Design Officer for Lewes and Eastbourne Councils, told the inquiry that a similar approach could be adapted for British conditions, suggesting “a company could be formed between local government and the developer which would ideally be the local community who can then rent etc to whomever they wish.” The committee acknowledged the Italian scheme has not been without problems, including heavy renovation costs and speculative purchases, and recommended any UK version include strong safeguards for genuine long-term occupation.

Industry Voices: “The Greenest Architecture Is the Building That Exists”

Witnesses were united in stressing that active use, not preservation in aspic, is the best safeguard for historic buildings. Ben Cowell, Director General of Historic Houses, told the committee “the best protection for a building in the long term is for it to be occupied, used, utilised, lived in and loved.” Camilla Finlay, Director of Clews Architects, made a similar point, observing “our greenest architecture is the building that exists.”

The report also flagged deep concern about the specialist skills pipeline. Emma Squire, co-Chief Executive of Historic England, warned that “76% of heritage construction organisations cannot find people with relevant skills when they go out to market and one in six are turning down work due to skills shortages,” adding that the sector faces an additional 105,000 jobs a year in demand through to 2050 it currently cannot fill.

On funding, the Heritage Alliance told the inquiry that 81 per cent of heritage organisations it surveyed cited a lack of funding as a major concern, with a third ending the last financial year in deficit. Reverend Paula Griffiths, a retired Church of England priest, criticised the closure of the Listed Places of Worship Grant Scheme, arguing “without it, the cost of all repair schemes will increase by 20%, whether or not the parish are successful in any grant application.”

VAT, Planning and the Public Estate

The report is also sharply critical of the current VAT regime, which charges 20 per cent on repairs and alterations to listed buildings while new-build construction is largely zero-rated. Witnesses described this as a “catastrophic” burden on major restoration projects, and the committee has urged the Department for Culture, Media and Sport to open formal talks with the Treasury on targeted relief.

MPs were equally scathing about the government’s own record as a custodian of heritage. Responsibility for publicly owned buildings, including former Ministry of Defence sites, is spread across departments with weak oversight and no mechanism to enforce standards, leaving public assets to fall into avoidable disrepair.

On planning, the committee welcomed reforms recognising reuse of vacant buildings as a public benefit, but warned changes may not go far enough to tackle the delays discouraging investment in historic buildings.

What Happens Next

The government is now expected to respond formally to the committee’s recommendations, which include a national dataset on the condition of heritage assets, protected training pathways for endangered heritage crafts, and embedding heritage considerations within the One Public Estate programme. The committee’s message is unambiguous: without urgent reform, the UK risks losing not only irreplaceable pieces of its past, but a substantial opportunity to tackle the housing crisis and drive local economic growth.

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How the Ureaka Project is turning waste concrete into carbon-negative building materials

Cement is one of the most widely used materials on the planet, and one of the most damaging to the climate. Responsible for around 8% of global CO2 emissions, the industry has long been regarded as one of the hardest sectors to decarbonise. Now, a prospective spinout from the University of Strathclyde is developing a process that could fundamentally change that picture, turning low-value mineral waste into carbon-negative materials capable of replacing a significant portion of cement in everyday construction.

The company is called Ureaka, and it was founded by scientist Dr Philip Salter. Working at the intersection of circular chemistry and mineral processing, Ureaka has developed a method to create supplementary cementitious materials (SCMs), powdered additives that can be blended into standard concrete mixes in place of traditional cement, from waste streams such as demolished concrete. Critically, the process does not require manufacturers to overhaul their existing production methods, meaning the technology is designed to slot directly into current supply chains.

How the Ureaka Project Is Turning Waste Concrete into Carbon-Negative Building Materials — L to R: River Gowans, Philip Salter and Parvez Patel

Why Cement Is So Difficult to Clean Up

The scale of the challenge facing the construction industry should not be underestimated. Cement and concrete production collectively account for roughly 8% of global CO2 emissions, a figure that is nearly double the contribution of the entire aviation sector. Unlike many other industries, the problem is not solved simply by switching to renewable energy. A substantial proportion of cement’s emissions arise not from burning fossil fuels but from the chemical reactions inherent in the manufacturing process itself, reactions that release CO2 as limestone is converted into clinker.

Dr Philip Salter explained: “Cement is one of the hardest industries to decarbonise because, even if you electrify production, a large share of emissions still comes from the chemical reactions involved. Ureaka is taking a fundamentally different approach: starting with the mineral value already present in waste concrete, reacting it with captured CO2, and turning it into a cement-replacement material that can work within existing supply chains.”

The Global Cement and Concrete Association reported in November 2025 that the sector had reduced its CO2 intensity by 25% since 1990 — progress that is real but insufficient given the pace of decarbonisation required to meet net zero targets by 2050. New approaches that can permanently remove carbon, rather than simply reduce emissions, are urgently needed.

How Ureaka’s Process Works

Ureaka’s approach centres on recovering valuable mineral components, particularly calcium and silica, from waste concrete streams that would otherwise be landfilled or left to degrade. These elements are then reacted with captured CO2 in a process that forms stable carbonate minerals, effectively locking the carbon into a solid, durable form. The resulting SCM, branded as Carbonis, is produced as a drop-in powder suitable for standard concrete manufacturing.

The environmental credentials are striking. According to the company, Carbonis captures between 0.2 and 0.4 tonnes of CO2 per tonne of product manufactured during its biological mineralisation process. Ureaka estimates that if all UK concrete were produced using Carbonis, it could avoid the production of 14.8 megatonnes of CO2 whilst sequestering a further 6.7 megatonnes, the equivalent of removing more than five million petrol cars from the road for a year.

The CO2 used in the process is sourced from industrial point sources such as distilleries and biogas plants, creating a closed-loop approach that draws on existing waste gas streams rather than relying on large-scale direct air capture. Beyond cement replacement, the company’s earlier work in biocementation also points to potential applications in soil stabilisation for construction projects and the repair of existing concrete structures through mineral formation.

From Lab to Market

Supported by the Industrial Biotechnology Innovation Centre (IBioIC) Spin Out Fund and developed in collaboration with researchers at the University of Strathclyde, Ureaka has now moved beyond laboratory-scale experimentation. The project is progressing through factory-scale modelling and is preparing for third-party product testing and validation in a live manufacturing environment — a significant milestone on the road to commercial readiness.

The company is also seeking additional grant funding and preparing for a seed investment round to support team growth. It has already attracted international recognition, having been named one of 50 global finalists in CarbonX Program 2.0, a climate solutions competition run by technology company Tencent.

Caroline Kewney, senior impact manager at IBioIC, added: “Construction materials are a significant contributor to global emissions, so there is a clear need for scalable alternatives that can support decarbonisation across the sector. This project demonstrates how industrial biotechnology can turn waste streams into valuable new materials, while also supporting carbon capture and more circular approaches to manufacturing. We’re excited to see what’s next for Ureaka as it progresses towards commercialisation.”

A Broader Shift in Construction Materials

Ureaka is not operating in isolation. Across the globe, researchers and start-ups are racing to develop viable low-carbon cement alternatives. Academic research published in late 2025 found that SCMs derived from industrial and agricultural waste have the potential to reduce the global warming impact of cement by 50 to 90% compared to ordinary Portland cement, depending on the material used. Fly ash, slag, and calcined clay have emerged as leading candidates, but supplies of many traditional SCMs are expected to tighten as coal-fired power generation — a key source of fly ash — declines.

What distinguishes Ureaka’s approach is its ability to generate a new SCM from waste streams that would otherwise offer no value, whilst simultaneously sequestering carbon in a permanent mineral form. Rather than simply reducing the carbon intensity of construction, the process actively removes CO2 from the atmosphere and binds it into the built environment.

With the UK government committed to net zero by 2050 and construction remaining one of the economy’s most emissions-intensive sectors, the timing could hardly be more pressing. If Ureaka can successfully scale its technology and navigate the path to commercialisation, it may offer the construction industry something it has long needed: a genuine route to becoming part of the climate solution rather than part of the problem.

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Keir Starmer meets mayors to accelerate housebuilding and infrastructure delivery

Prime Minister Sir Keir Starmer has met with mayors from across England as part of the Government’s latest push to accelerate housing, transport and infrastructure projects, signalling a renewed determination to remove barriers that have long delayed development and economic growth.

The meeting, which brought together regional leaders from across the political spectrum, focused on how devolved powers can be used to unlock stalled construction schemes, increase housing delivery and improve local transport networks. The discussions form part of the Government’s wider agenda to boost growth, tackle the housing shortage and give greater decision-making powers to local leaders.

At the centre of the talks was the challenge of speeding up housebuilding. With the UK continuing to face significant housing pressures, ministers are increasingly looking to mayors to help overcome planning delays, local opposition and bureaucratic obstacles that have prevented developments from progressing.

Prime Minister Keir Starmer said: “For too long, Britain has been held back by a system that says no, delaying projects, blocking growth and leaving communities behind.

“We’re turning that on its head by backing our mayors to get Britain building again, with spades in the ground and more jobs across the country. There will always be the naysayers and the blockers, but we cannot afford to give into them – because it will be the next generation that suffers.”

Starmer also highlighted the Government’s commitment to devolution, arguing that local leaders are best placed to understand the needs of their communities and drive economic development.

He added: “This government is backing mayors with the biggest devolution drive in a generation, putting real power in the hands of local leaders, because those with skin in the game know best what their communities need. That is the right thing to do for communities, and it’s the right thing to do for growth.”

A key outcome of the meeting was the Government’s pledge to support mayors in pushing forward projects that have stalled or been scaled back. Ministers also discussed a new “Right to Request” process that will enable mayors to seek additional devolved powers, further strengthening local control over housing, infrastructure and public services.

The Government believes greater devolution will help accelerate decision-making and improve the delivery of major projects. Recent announcements have already included proposals to give mayors more influence over transport schemes, innovation funding and strategic development initiatives.

Among the strongest supporters of the initiative is West Yorkshire Mayor Tracy Brabin, who has consistently argued that improved transport infrastructure is essential to unlocking economic growth and supporting new housing development across the region.

Brabin stated: “We have ambitious plans for our region and a Mass Transit network is a key part to unlocking our untapped potential which will boost growth and put more money in people’s pockets.

“With backing from the government and more powers devolved to mayors who know their areas best, we will transform West Yorkshire.

“Building the Mass Transit system our region needs will benefit the economy, strengthen connections, and improve lives for generations to come.”

The focus on housing comes at a critical time for the construction sector. Industry leaders have repeatedly warned that planning delays, skills shortages, infrastructure constraints and uncertainty around development funding continue to hamper the delivery of new homes.

Neil Jefferson, chief executive of the Home Builders Federation, recently described falling planning approvals as “disastrous” for both the industry and the Government’s housing ambitions, warning that without urgent intervention there is little prospect of delivering the homes the country needs.

Construction industry observers have broadly welcomed the Government’s willingness to tackle project delays. Analysts suggest that giving mayors greater powers could help unlock housing and regeneration schemes, particularly where local transport improvements and housing growth are closely linked. However, they also caution that faster approvals alone will not guarantee delivery if issues such as infrastructure capacity, procurement challenges and development viability remain unresolved.

The meeting reflects a broader shift in Government policy towards empowering regional leaders and accelerating delivery on the ground. With housing affordability remaining a major political and economic issue, ministers are increasingly focused on ensuring that planning reforms and devolution measures translate into tangible construction activity.

For the construction sector, the success of the initiative will ultimately be measured not by announcements, but by whether more homes, transport links and infrastructure projects move from the drawing board to reality. As Starmer’s Government continues its drive to “get Britain building”, mayors are set to play an increasingly influential role in shaping the country’s development pipeline.

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3D printed concrete in UK infrastructure and construction

3D printed concrete is rapidly moving from experimental technology to a practical solution for the UK construction and infrastructure sectors. As the industry faces mounting pressure to improve productivity, reduce carbon emissions and address labour shortages, additive manufacturing is emerging as a viable method for delivering buildings and infrastructure components faster and more efficiently.

The technology, often referred to as 3D concrete printing (3DCP), uses robotic systems to deposit layers of concrete according to a digital design. Unlike traditional construction methods, which rely heavily on formwork, 3D printing creates structures directly from computer models, reducing material waste and enabling complex geometries that would otherwise be costly or impossible to achieve.

3D printed concrete in UK infrastructure and construction — Image: Costain

The UK’s interest in 3D printed concrete has accelerated significantly over the past five years. Early adoption was largely focused on housing and demonstration projects, but the technology is now finding applications across infrastructure, utilities and civil engineering. One of the most notable developments came in 2026 when Costain deployed 3D printed concrete components on a major carbon capture project on Teesside. Working alongside A E Yates and Hyperion Robotics, the company used 90 low-carbon printed concrete pipe supports for a CO₂ pipeline within the East Coast Cluster network. According to project data, the printed components reduced concrete and steel consumption by 40 per cent and cut embodied carbon by up to 50 per cent compared with conventional precast alternatives.

The appeal of 3D printed concrete lies in its potential to address several longstanding challenges in construction. Industry suppliers report that automated printing can reduce project costs by around 30 per cent, accelerate delivery times by as much as 50 per cent and significantly reduce material waste. By placing concrete only where it is structurally required, the process supports both efficiency and sustainability objectives.

Housing remains one of the most promising applications. Harcourt Technologies (HTL), the exclusive distributor of COBOD’s 3D construction printing technology in the UK and Ireland, has been actively promoting the technology for affordable housing developments. The company states that 3D concrete printing can help facilitate “the rapid delivery of high-quality, affordable, and sustainable housing reliably and consistently.”

Industry collaboration has also played a crucial role in advancing the technology. Major materials suppliers have invested in developing printable concrete mixes that use conventional ready-mix materials rather than specialist mortars. CEMEX and COBOD jointly developed a system that enables standard concrete to be used in 3D printing applications, reducing costs and improving scalability. According to the companies, the innovation allows contractors to utilise locally sourced materials while achieving significant time savings compared with traditional methods.

Despite the progress, challenges remain before 3D printed concrete becomes mainstream across the UK. Regulatory compliance, quality assurance and structural standards continue to evolve. The construction industry is traditionally cautious about adopting new methods, particularly where long-term performance and safety are concerned. However, efforts to develop standardised approaches are helping to overcome these barriers. Harcourt Technologies, working with engineering consultancy Cundall, has been involved in projects aimed at establishing standards and protocols for 3D construction printing across Ireland and the UK.

Labour shortages are another factor driving interest. The UK construction sector faces a growing skills gap, particularly in trades associated with traditional building methods. Automated concrete printing can reduce the amount of manual labour required on site while improving consistency and productivity. Rather than replacing workers entirely, the technology is expected to shift demand towards digital design, robotics operation and advanced manufacturing skills.

Infrastructure applications may ultimately prove more transformative than housing. Printed concrete components such as pipe supports, retaining structures, foundations and utility assets can be manufactured off-site and delivered ready for installation. This approach aligns closely with the industry’s broader move towards modern methods of construction and off-site manufacturing. The success of recent infrastructure projects suggests that 3D printed concrete could become a valuable tool for delivering low-carbon assets while reducing programme times and site disruption.

Looking ahead, the outlook for 3D printed concrete in the UK is increasingly positive. As standards mature, equipment becomes more widely available and contractors gain confidence through real-world projects, adoption is likely to expand. While the technology will not replace conventional construction entirely, it is becoming an important addition to the industry’s toolkit.

For a sector under pressure to build more sustainably, more quickly and with fewer resources, 3D printed concrete represents one of the most significant construction innovations of the past decade. The transition from pilot projects to operational infrastructure schemes indicates that the technology is no longer a future concept but an emerging reality within the UK’s built environment.

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