10-07-2024

Chancellor Reeves sets out Labour’s house-building plans

Having swept to power in dramatic but expected fashion, the Labour government has quickly started to set about putting its manifesto pledges into practice. One of the first announcements could have a major impact on small business owners in the UK.

House-building was prominent in the successful Labour election campaign, with Sir Keir Starmer pledging to take the brakes off the planning process.

Ambitious plans

In her first major address as Chancellor, Rachel Reeves announced a transformative plan for the UK's housing sector. The centrepiece of her financial agenda is the reintroduction of compulsory housebuilding targets, aiming to construct 1.5 million new homes over the next five-year parliamentary term. This ambitious goal is a response to the ongoing housing crisis and represents a significant policy shift from the out-going Conservative government.

Reeves emphasised the need for immediate reforms to the national planning policy framework to support infrastructure development and to attract private sector investment. Key to this strategy is the prioritisation of brownfield and "grey belt" land for development, which seeks to balance the needs for new housing with environmental conservation by protecting greenbelt areas.

The announcements were not limited to house-building, with the Chancellor also highlighting the broader scope of her plans. These included an overhaul of energy and infrastructure policies. Notably, she announced the removal of the ban on onshore wind developments, a move expected to boost the UK's renewable energy capacity by facilitating the construction of new wind turbines.

Good for jobs

The proposed changes will undoubtedly result in complex local issues where development or redevelopment is proposed. The Chancellor acknowledged that local services and infrastructure would need to keep pace with development.

Assuming these challenges can be successfully navigated, the announcement appears very positive for the significant numbers of people employed in the residential construction industry, with the potential for many new jobs.