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The election of a new Labour government in the UK marks a critical opportunity to unlock productivity and accelerate economic expansion. Having been stifled by high inflation and interest rates, supply chain volatility, shortages of skilled labour, and high materials costs, the UK construction industry now needs a prolonged period of stability and consistency. Our chief operating officer for UK and Europe, Nick Gray, outlines the key areas which the new government should prioritise to help the construction industry fully realise its potential. ✅ A clear long-term strategy for growth to give the industry the confidence to invest in itself – for example in key areas, such as modern methods of construction. The government must also commit to a properly costed infrastructure development plan and deliver against these commitments to avoid the volatility that has left earlier important initiatives, such as HS2, with unclear or ambiguous goals. ✅ The new government has committed to creating over a million new homes. But there’s a chronic shortage of skilled labour, which the industry can’t solve on its own. It's within the government's gift to consider how it can support the industry to invest in training and apprenticeships for tradespeople through fiscal concessions – notably tax breaks. ✅ There is a clear focus from government to deliver net zero. The costs associated with the development of technology and infrastructure to support wind, nuclear and solar energy generation and transmission are as substantial as the challenge. The new government needs to articulate a cogent plan for net zero. What’s urgently required is a detailed picture of the desired energy mix, achievable targets, and realistic timescales and costs. ✅ High levels of debt and a commitment to keeping the tax burden as low as possible creates a tricky conundrum. This could be resolved through public private partnerships. This could deliver obvious advantages for both the public purse and for institutional investors seeking long-term liability matching investment opportunities. For more of our insights on what the election of a new government means for the construction industry, stay tuned for our forthcoming UK Construction Market Outlook report.

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Bruce McKenzie

Construction Project Management professional with over 25 years’ experience. I specialize in Hotel & Resorts & other luxury high quality developments like International Schools, Apartments, Restaurants etc.

3w

On behalf of the front line workers, such as brickies..say no to cheap imported labor! Also, the UK can bring back its massive ''expat'' community of well qualified Engineers & Architects like Ireland did during it Celtic Tiger years. The UK needs a massive affordable housing and infrastructure programme that can keep everyone in work for years.

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