In the thick of it

Early next week we’ll finally see Liz Truss or Rishi Sunak appointed as Boris Johnson’s successor. Given that most of the hustings over the summer have focussed fairly narrowly on issues like taxation, it’s hard to discern what lies in store for construction.

Speaking with both my construction and public sector hats on, here are just a few of the issues I would like to see our new Prime Minister prioritise before we head into the next general election: ?

Inflation and input costs

Perhaps unsurprisingly, one of our current priorities at SCAPE is helping our clients and delivery partners work together to overcome the budget pressures presented by current market conditions. The latest forecasts suggest inflation may reach as high as 18% next year but the construction industry has already seen growth in material costs, such as rebar, surpass that figure. Community regeneration is dependent on local authorities and other organisations being able to invest with budgetary certainty. The industry has coped admirably to date, but a long-term fiscal strategy is needed to quell the impact.

Public finances

The prominence of the tax debate and which leader we move forward with will have a significant impact on the public purse – which, as the Office for Budget Responsibility has pointed out, is on an ‘unsustainable path’. The next Prime Minister and the Treasury will need to find a route forward that puts public finances on a more stable footing but also accounts for the growth that investment in local communities brings.

A new minister for the industry

The construction industry has worked with seven different ministers in the past three years, with Lee Rowley serving for a third of that time. We engaged with Mr Rowley on a number of key issues including the benefits of mandating life cycle costing within the public sector and will continue to do so with whomever the new Prime Minister appoints. Some of those issues are reflected in the new Carbon Emissions (Buildings) Bill which had its first reading in the House of Commons in June. My hope is that the next Construction Minister will continue to push this forward as well as effectively champion the needs of the industry through until the next general election.

Net zero and best-in-class procurement

Despite the inflationary pressures that took hold of the market earlier this year, it is incredibly rewarding to see the progress clients are making against the net zero commitments – supported by guidance within the Construction Playbook. The Playbook – soon to be supported by the Procurement Bill – has encouraged more public sector organisations to adopt best-in-class standards of procurement. These have improved the UK’s chances of meeting its net zero targets while boosting the provision of social value. Our next Prime Minister needs to re-affirm the nation’s commitment to the green economy and encourage the public sector to lead the charge by encouraging sustainability-led thinking at all levels.

I would welcome the industry’s thoughts on what it would like to see from the new administration, so please feel free to leave your thoughts in the comments or direct message me.