On 4th July 2024, the UK held a general election. Millions of Brits rushed to the polls to vote on the formation of a new government which will last up to five years. It’s a big deal – and the outcome of the election may mean construction industry changes.
Let’s take a quick look at what we know so far and how it might affect you.
The current UK Prime Minister, Rishi Sunak, has called for a general election to determine whether his Conservative party will remain in power, or whether a new party will take the reins. It will take place on 4th July 2024, with the results predicted to be known by the weekend.
If you’re familiar with politics, you’ll know it’s a pretty safe bet that either Labour (currently holding 205 seats in the House of Commons) or Conservative (currently the majority seat holders with 344) will win. But what would each outcome mean for the construction trade?
Construction is a trade that is particularly sensitive to political changes and new government policies. We’ve all seen those staged photographs of eager new PM’s touring building sites and chatting to contractors, a pristine hard hat and hi-vis vest over their suit.
This is because the construction industry is a major indicator of economic growth. Public infrastructure, housing and capital works become great success stories that reflect well on politicians and their policies – with new jobs created and local economies stimulated into the bargain.
Labour leader Sir Kier Starmer (the favourite to win), has pledged to build 1.5 million homes over the five year term of Labour’s leadership should they get in, with the Conservative party’s Rishi Sunak pipping him to the post with their pledge of 1.6 million. These are ambitious targets and the equivalent of several new towns’ worth of accommodation springing up on our shores in a relatively short time. Both parties intend to prioritise freeing up the sluggish planning system which can slow the progression of building affordable housing.
There’s been stiff criticism of the feasibility of these plans, including kickbacks from lobby groups around building on green belt land as well as the tight turnaround time in which to deliver these targets. But someone’s got to get cracking on building the millions of new homes, so if either pledge comes off then it could be great news for the construction trade.
Both the Labour and Conservative parties have indicated their intention to develop so-called ‘brownfield land’ (unused post-industrial land), with Labour going one step further with their plans to build on green belt land in order to address Britain’s housing crisis. Both will be positive for tradespeople, with land and property lawyers also rubbing their hands together with glee at the prospect of all these land acquisition disputes to come.
The Labour manifesto sets out an infrastructure strategy which would benefit the private sector (such as construction contractors), and would see streamlined rules around the compulsory acquisition of land for building projects, among other priorities. Fast-tracked planning processes will obviously clear the way for more rapid growth in terms of both housing and infrastructure, with the construction industry set to benefit.
The current Conservative Prime Minister Rishi Sunak cancelled the northern leg of HS2 back in 2023, which was a significant blow to construction. However, the Conservatives will provide £44 billion during their term to deliver the Lower Thames Crossing and A303 projects, both huge-scale construction industry projects which would create thousands of jobs.
It seems that Labour plans to reform IR35, with a proposed two discrete categories: ‘worker’ and ‘self-employed’. Many in the industry feel that the current IR35 setup is penalising bona fide freelancers and can’t see how this simplification would help, although time will tell whether Labour’s proposition will be the end of IR35 as we know it.
Labour also plan to stimulate small businesses, including reforms for the tax system with balanced business rates which are more favourable to small business without ‘high street’ shop fronts (e.g., building contractors), plus new regulations to stop larger businesses from paying smaller firms late.
For their part, the Conservative party plans to end National Insurance contributions for self-employed people, without this affecting their entitlement to the state pension. It seems that both parties are demonstrating their commitment to making things fairer and less bureaucratic for self-employed people, but it remains to be seen which will have the most real-world positive impact on contractors in the construction industry.
It’s no secret that sustainability and greener living are a huge priority for most leaders at the moment. The Labour and Conservative parties are no different, with several initiatives towards meeting carbon neutral targets. Labour’s pledge to make Britain a ‘clean energy superpower’ includes upgrading millions of home to include the latest in green energy solutions, such as loft and cavity insulation, solar panels and other green tech. According to their ‘5 Missions for a Better Britain’, this will create jobs for construction workers, plumbers and installers across the UK.
The Conservatives promise to cut red tape that prevents brownfield development and get the UK’s struggling city outskirts built up to mirror the resident density seen in cities like Paris and Barcelona. This means plenty of work for those in construction once the planning permissions have been granted. Further, their cladding remediation scheme continues, which proposes to make it possible for every building to replace hazardous cladding with safe material at no cost to the residents.
The general election impact on construction may not be felt immediately. Remember, most of these pledges are more slow-burning strategies, so don’t expect to see all the potential changes happening at once. Also, those ambitious targets for creating millions of new homes may need to be taken with a pinch of salt, as neither party fulfilled their housebuilding targets set in 2019.
The most important thing to do is stay informed. The official Labour and Conservative websites are good places to get information straight from the horses’ mouths – give their manifestos a read if you have a spare couple of hours. Otherwise, trusted independent information sources like the Construction Industry Council (CIS), Construction News and Contractor Weekly are all worth your time.
Networking is always a good idea. Signing up to newsletters, joining forums and attending events aimed at construction industry workers will mean you’ll have your ear on the ground and will know that’s brewing before it hits.
Finally, consider diversifying your skill set to reflect changing market demands. For example, green construction is a growing trend that plays into both major political parties’ five year plans, so it’s a good time to upskill in areas including solar panel installation, eco-friendly building techniques and sustainable work-site practices.
Rhino aren’t here to tell you how to vote. We’re here to stand by your side as the world around us changes. Thousands of UK tradesmen and women know that whatever happens in the House of Commons, their businesses are protected by our no-fuss, low-cost policies which simply do what they say they will. There’s no wordplay, spin or fluff at Rhino. Just outstanding insurance cover at a low price, with a high level of customer service and support available to our policyholders.
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