The tenure of the Conservative Party in UK government came to an end after 14 years, shaping the construction sector with austerity measures, infrastructure projects, Brexit challenges, and a focus on carbon emissions. Labour’s ambitious plans for the sector signal potential changes ahead.
The Conservative Party’s 14-year tenure in UK government concluded on July 4, following a general election that saw Labour leader Keir Starmer secure an emphatic majority with 412 seats. Reflecting on the Conservative legacy in the construction sector reveals several key impacts.
The era began in 2010 with austerity measures under a David Cameron-led coalition, significantly reducing public sector budgets and affecting construction funding. Despite a 2019 announcement from then-Chancellor Sajid Javid ending austerity, public sector spending has yet to recover to previous levels.
Big-ticket infrastructure projects marked the Conservative period, characterized by notable delays and budget overruns. HS2, Crossrail, and Hinkley Point C are prime examples. The Grenfell Tower fire in 2017 led to sweeping regulatory changes in building safety.
Brexit posed challenges for the construction industry, influencing labor availability and complicating regulations. Efforts towards achieving net-zero carbon emissions evolved during this period, with commitments made by Theresa May and Boris Johnson, despite some controversies over subsequent target adjustments.
Labour’s manifesto, unveiled during the election campaign, outlines ambitious plans for the construction sector. Key pledges include building 1.5 million new homes, establishing a National Wealth Fund for development, enhancing rail connectivity, and ending reliance on overseas workers. A ‘British Infrastructure Council’ and a global investment summit are planned to attract private capital.
Industry responses have been largely supportive. Balfour Beatty CEO Leo Quinn expressed enthusiasm for Labour’s growth plans, while the Chartered Institute of Building emphasized the importance of a robust skills base to meet construction demands. NIS Group CEO Davie Carns highlighted the need for an additional 251,000 workers by 2028.
