A critical opportunity to accelerate economic expansion

The recent general election has seen the Labour Party return to government after 14 years. With masses of untapped potential, the construction industry now needs a new level of certainty and stability.

It requires a government which is prepared to work more collaboratively – at both a national and a local level – to deliver effective policy and regulatory interventions. The new administration must bring forward policies which create the optimum conditions to give the economy the best chances of success.

By using her first speech as chancellor to announce a suite of planning reforms, Rachel Reeves addressed one of the main obstacles to growth and demonstrated a willingness to act. Whilst this was a positive step, her subsequent statement on 29 July 2024 cancelled several major infrastructure projects and cast doubt over the future of the New Hospital Programme (NHP).

Arguably, the UK construction industry has suffered more than most due to high inflation and high interest rates. Continuing supply chain volatility, shortages of skilled labour, and high materials costs have made it hard for the industry to recover at the same pace as other parts of the economy. And yet, it serves many other sectors from energy and infrastructure to education, healthcare, defence, hospitality, housing and retail. It therefore plays a significant role in achieving the growth ambitions of the wider economy.

Our latest market outlook report analyses the latest UK economic data and how the shifting political tides will reshape the industry. It provides insights into both short and long-term impacts, unveiling the opportunities and challenges that lie ahead.