What the construction industry needs from the next government

The looming general election presents a critical opportunity for the next team of decision-makers to shape the future of the UK’s built environment. As the country navigates economic challenges, social demands and environmental priorities, construction stands at the forefront of change, ready – with the right support – to deliver.

The next government can, and indeed must, use the built environment as a catalyst to drive productivity, resilience and economic growth, putting in place appropriate policy and legislation.

With this in mind, SCAPE has published a charter that looks at how, with the right elements in place, the construction industry can play a part in boosting both the public and private sectors’ fortunes. The charter sets out a series of key recommendations for the next UK government across areas such as devolution, skills development, strategic asset management and decarbonisation.

‘Building for Public Good: A Charter for Change’ was a collaborative effort, drawn up by SCAPE with input from Arc Partnership, the Construction Waste Portal and Lungfish Architects. The aim of the charter is to unite voices across the sector and identify critical areas for improvement and opportunity.

Doing so will create the right conditions for the construction sector’s growth and prosperity, and empower the industry to deliver the projects we urgently need in a sustainable and economically viable manner.

Its key proposals include seeking to address the UK construction industry’s shortage of skills by: kickstarting a national recruitment campaign; restoring accountability across the industry by reviving the role of a Chief Construction Advisor to shape construction-related policy; introducing strict waste reduction targets; and encouraging investment in digital and green skills.

Attracting new industry talent and reinforcing construction’s key role as a driver of UK economic growth, productivity and investment is crucial. We need to think differently when it comes to attracting the next generation of workers. We need to take a leaf out of the books of others, such as the armed forces, who recruit through groundbreaking and distinct campaigns. Ensuring the sector is repositioned as a diverse and exciting industry that is underpinned by digital technology and innovation is no less important.

Why it might be seen as controversial by some, the charter’s suggestion to fix profit margins for contractors is not merely a financial matter, it represents a fundamental shift in mindset. By incentivising quality over quantity, we can foster a culture of excellence within the industry, ensuring that projects are completed to the highest standards while safeguarding the interests of taxpayers.

We also believe the Social Value Act needs a revamp to create a more targeted approach towards prioritising investment that is based on demand. SCAPE’s latest Social Value in Construction Benchmarking Report shows that the construction industry delivered £1.08bn of social and local economic value last year alone, providing a 23.62% return on investment. However, more can be done to help tailor these initiatives to local need, which, as our report shows, is exactly where the greatest returns can be made.

We should build on the success of existing decarbonisation initiatives with further long-term incentives that reward cost-effective, carbon-conscious buildings that save money through lower operational and maintenance costs. It is also vital that local authorities are able to direct and prioritise funding for maximum impact without having to sell off assets to alleviate financial pressures. Further support for devolution will ensure that urban planning and infrastructure projects deliver outcomes with local needs at the forefront.

A common thread running through the recommendations is that in many cases the public sector has a clear understanding of what it needs to succeed – be it skills, strategy, or resource – but that it lacks the capacity to implement it. With these asks, SCAPE recommends that key decision makers foster a more balanced division of power and responsibility between central and local governments, recognising that a one-size-fits-all national approach will not drive long-lasting change.

It is vital that whoever forms the next government takes the opportunity to create the legislative conditions for a new era across the built environment. Successive policy and funding announcements over recent years have missed opportunities to leverage construction to alleviate some of the pressures felt by both the public and private sector.

It is critical that the incoming government commits to recognising construction as a key driver of economic growth, innovation and community enrichment and then goes on to deliver the reforms to policy and legislation that would raise standards and drive improvement.

As parties of all persuasions consider how to reinforce the UK’s position as a leading socio-economic force ahead of the election, they should take note of the recommendations in our Charter for Change.

Its adoption would lead to a better built environment, which would benefit us all.