The King’s Speech and construction: what did we get and what’s next?

With a new government avowing to ‘get Britain building’, Michael Comba and David Owens go over the contents of the first King’s Speech of this parliament and share their insight into what comes after.

We look at the key pledges in housebuilding and infrastructure and what might happen next.

Housebuilding

Arguably taking centre stage was the promise of a new Planning and Infrastructure Bill. The government promises that this will overhaul the planning system with a view to delivering 1.5m new homes over this parliament. Key elements are likely to include:

• More planning officers;
• Greater powers given to metro mayors;
• Updates to the National Planning Policy Framework (including designation of ‘greybelt areas’); and
• the return of mandatory housebuilding targets for local authorities.

Infrastructure

Proposed planning reforms are also intended to boost new infrastructure delivery. The new planning bill is trailed to also simplify consent for major projects like pylons and hospitals. Transport-wise, there are plans to repurpose HS2 legislation for the expansion of northern rail connectivity.

The government also saw a greater role for itself here. GB Energy will be tasked with investing in the construction of new renewable energy projects. The success of this will be vital if the government hopes to succeed with its manifesto commitment of a carbon-free grid by 2030. Infrastructure investment will also see a boost through the introduction of a new National Wealth Fund, proposed to focus on ports, hydrogen and gigafactory projects.

What next?

The delivery of housebuilding continues to be centred on the private sector. The King’s Speech did not contain any measures for new powers or funding for central government, local authority or registered provider led housing programmes.

Recent years have seen a resurgence in local authority housebuilding (particularly in London) but it remains marginal. Housebuilding by registered providers has recently fallen back.

It may be that the government begins to see it having a greater role in housebuilding as scrutiny inevitably ramps up on delivery of its new targets.

Housing and infrastructure targets also require sufficient skilled workers, currently considered to be in short supply by the construction industry. The Labour manifesto had plans for a new Industrial Strategy Council, a National Infrastructure and Service Transformation Authority, and skills and training plans for construction. The sector no doubt looks forward to seeing those come to fruition.

Finally, the government will soon need to turn its gaze on upgrades to existing housing and infrastructure. Local authorities and registered providers are under increasing financial pressure to refurbish and maintain housing stocks in severe disrepair, while Labour has an ambitious Warm Homes Plan to retrofit energy efficiency into housing.

This King’s Speech focused on the government getting a start on building, the next might be on giving the construction sector the tools to finish the job.

Michael Comba is an Associate and David Owens is a Partner at Sharpe Pritchard LLP.

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