Overview
The Government has announced a series of policy and funding reforms aimed at increasing housebuilding and strengthening skills within the construction sector, in a bid to support economic growth and meet long-term infrastructure demands.
National Planning Policy Framework Reforms
Reforms of the National Planning Policy Framework (NPPF) were announced in December 2024 with the aim of increasing housebuilding in England.
If successful the reforms will increase annual housebuilding by around 30% by 2029-30, which the OBR estimates will add £6.8 billion to the economy.
Boosting Skills In the Construction Industry
The Government has realised that boosting skills in the construction sector is key to delivering the planned number of new homes and to delivering infrastructure projects. It has therefore committed to investing £625 million in England over 4 years to deliver up to 60,000 additional skilled construction workers.
This funding will be used to support construction-focussed skills boot camps, fund new construction Foundation Apprenticeships and to deliver more construction courses. The funds will also be used to establish 10 new Technical Excellence Colleges specialised in construction in every region in England.
How will the measures impact the industry?
The measures sound positive but it will take time before they have a positive impact.
In the meantime, the Government has done nothing to address soaring construction costs and the increasing number of construction sector insolvencies.
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