A new Government doesn’t often mean much for the construction industry because politics doesn’t leave much room for creativity which breaks the mould and challenges the orthodoxy; however, Labour set out their growth stall twelve months ago and in their first three months in office, have not dropped their ambitious language and have acted to put their money where their mouth is.

Planning reform, planning reform, planning reform; it feels like it’s all the housebuilding industry ever talk about and for a fleeting period, the last Conservative government agreed. However, where they withdrew in panic, Labour have forced their way through the door.

An ambitious 1.6m homes target has been supplemented by a consultation on the National Planning Policy Framework (NPPF). They have announced the ‘greybelt’, which is greenbelt that isn’t green, without public consultation removed paragraphs from the NPPF which stopped onshore renewables and indicated that meeting ‘golden planning rules’ on design, affordable housing and placemaking will ensure they dismiss NIMBY opposition.

They have started the process to ensure Nutrient Neutrality doesn’t stop projects starting, permissioned the expansion of London City Airport (LCA) and made grid reform a priority with digitisation, GB Energy and amendments to the Electricity Supplier Obligations (ESO) already being implemented.

And they have set up the New Towns Taskforce.

Many of the announcements are logical changes which industry has been asking for, but to see them enacted is fascinating and the ambition has been so great, most of the media has not caught up.

The first real test will be the NPPF review because beauty is ‘out’ for well designed, density is being welcomed, small and medium sized builders (SMEs) have a strong focus and there is a chance to reverse some of the vague language inserted by Michael Gove when he sought to win favour in Tory shires.

There is also the small matter of housing targets returning, with a different focus which is based on affordability. Much has been made of the way some Labour cabinet London boroughs have seen targets reduced, but as the Mayor will apportion targets to each borough, it is not clear how the extra 50,000 homes will be delivered and where.

There is also a good openness to work with the Government, and Ministers are in listening mode. The NFB has been contacted by several government departments already, especially regarding energy, and I just finished a two hour call regarding SME housebuilders.

Dare it be said, this government is serious about growth because it recognises that construction is core to it! This was made very clear when the Chancellor strayed away from ‘just finances’ to highlight that planning reform was vital to growth. And this makes sense, lower taxes which get swallowed up by delays and bureaucracy is not a growth strategy!

Of course there are issues regarding procurement, skills, broader planning reform, Biodiversity Net Gain, quangos, lack of public sector funding and Building Safety to name a few, which have not yet been discussed or even mentioned; however, in three months the Labour government has decided they are going to do as much as they can.

History suggests this cannot last but because it has been some time since industry has shown any excitement, it would be unfair to judge these early days as anything lower than a nine out of ten!

Rico Wojtulewicz

Head of Policy and Market Insight