The built environment sector is the UK’s largest sector generating £568bn in GVA, according to a new report by NLA, developed in partnership with GLA Economics, LSE and Polygon Place Strategy.
The sector accounts for 24% of national GVA, which is twice as much as financial services and four times as much as the creative industries. The built environment sector also supports one in eight British jobs and boasts a workforce of 3.8 million people.
The NLA report proposes a new definition of the sector to capture the full scope of industries and occupations within the built environment – from architecture and planning, through construction and manufacturing, to real estate and consultancy – strengthen its identity and facilitate targeted support from policymakers.
The report also argues that a cohesive definition of the built environment sector is essential for recognising its full economic value and potential.
Nick McKeogh, chief executive of the NLA, said: “In the 1980s, the ‘British invisibles’ of banking, finance, insurance, law and accountancy professions came together to define the financial services industry as a single sector, and the government and Bank of England seized the opportunity to get behind this concept and put this burgeoning and world-leading sector at the heart of its economic strategy for growth.
“We believe that the opportunity exists for the government to do the same with the built environment sector. Redefining it as a high-growth sector in the Industrial Strategy – rather than as merely a facilitator of growth in other key sectors – would allow built environment industries to reach their potential. Policy, taxation, education and skills reform are needed to change the public’s understanding of its true scale and potential to support national prosperity.”
Katie Stewart, executive director – environment at the City of London Corporation, added: “In London, the built environment is uniquely interdependent with our world-leading financial and investment industries. Global capital flows into London’s real estate and infrastructure projects, while our financial institutions manage investments that shape skylines, regenerate communities, and deliver the infrastructure on which the UK depends. Together, the built environment and financial services form an ecosystem unmatched by other global cities, reinforcing London’s position alongside – and often ahead of – hubs like New York and Hong Kong.”
Catherine Staniland, director at NLA, said: “With better understanding of where the sector is expanding, where greater collaboration across sub-sectors could unlock value, where emerging skills and innovation are most concentrated, and where the UK holds a clear competitive advantage in global markets, we can support the sector to thrive.
“This report has, for the first time, presented a unified assessment of the entire built environment value chain and highlighted its immense potential as a wealth generator. This is a starting point. As we call on government to take a fresh look at the role of the built environment in driving economic growth, we also urge people across the industry to collaborate, contribute and be ready to act in concert should we get our ‘big bang’ moment.”
