What Does the New Government Mean for the Construction Industry?
July 8, 2024
The recent General Election saw Labour sweep to power with a significant majority. This was watched carefully by the construction industry, as well as related companies, such as Molson, who offer construction equipment for sale.
So, now that Labour have their feet under the cabinet room table, what does the future look like for the sector, and what plans and promises have emerged in the first few weeks of the new Government?
Significant homebuilding targets
The headline pledge from new Chancellor of the Exchequer, Rachael Reeves, was a goal to build 1.5million new homes in England over the next parliament. This is not dissimilar to the previous Government’s target of 1million homes over the last parliament, which some figures show that it broadly achieved, with net additional dwellings for 2022-23 being 234,000.
How will they achieve this?
By Rachael Reeve’s own admission, the new Government “can’t build overnight”. However, they will be reintroducing mandatory house building targets to encourage local authorities to build.
To stimulate the sector, Labour have proposed some significant planning reforms that will speed up the process for homebuilders. This includes recruiting additional planning officers, and a review of green belt boundaries to prioritise brownfield and poor quality land in the green belt, which has been dubbed ‘grey belt land’.
Major infrastructure projects
In a further boost to the construction sector, the new government has pledged to boost investment in major infrastructure projects. This includes removing restrictive planning on onshore windfarms.
Major infrastructure planning decisions will now be taken nationally, rather than locally, to cut red tape. The Transport Secretary and Energy Secretary will be tasked with prioritising decisions on major infrastructure projects that have been stuck in the system for some time.
What has been the industry response?
The construction industry has broadly welcomed the change of Government,with Viki Bell, Director of Operations at the Construction Equipment Association commenting:
“This significant change in leadership presents a unique opportunity to propel the UK construction equipment industry into a new era of innovation and sustainability.”
Stuart Butler, Construction Sales Director at Molson, was also optimistic for the future:
“Any Government policy that boosts the construction industry is welcome news,” he said. “The homebuilding pledge alone involves levels of activity not seen for sixty years. Combined with new support for major infrastructure projects, including significant investment in the green energy sector, this is a promising time for the industry.”
Helping you build the future
When it comes to seizing the new opportunities in the construction sector, Molson are perfectly placed to support your business and your project every step of the way. Far more than just a company with construction equipment for sale, Molson are an expert strategic partner for the sector. Our experienced team will work with you from initial project planning and equipment purchase, to providing ongoing service and support to help you get the best from your budget, your equipment and your workforce.
“Yes, Molson have a huge range of the very best construction equipment for sale, from the world’s leading brands,” says Stuart. “But it’s by building partnerships that we will really help to build the new homes and new infrastructure that Britain needs for a prosperous future. It’s this level of experience and expertise, innovation and inspiration that truly sets Molson apart.”
To find out more about the Molson range of construction equipment for sale, and the many other benefits of partnering with the UK’s leading equipment supplier, contact our team today.
With a new Government, promising a new era of investment and intent for the construction sector, it’s never been more important to have the right team behind you.
