Construction must start facing up to new labour pains

By Simon Rawlinson2025-06-16T06:00:00

The government is stuck in a spending straitjacket of its own making. However, borrowing for investment will help to sustain future workload for construction, writes Simon Rawlinson of Arcadis

There is a Chinese proverb which states that it is unwise to accept a reward without merit. When the government promises to increase housebuilding to 1.5 million units, or offers £600m for enhanced basic training, then we should assume that a wider and more challenging agenda is in play.

The government’s willingness to combine carrots and sticks was well illustrated by the recent planning reform working paper on the accelerated delivery of housing. Hidden among a number of sensible proposals for a faster rate of build was the controversial delayed homes penalty. Increasingly, the government appears comfortable mixing policies that simultaneously support and frustrate the efforts of key industries like housebuilding.

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