Industry bosses called in to meet new chancellor to discuss ways to improve housing and infrastructure delivery

Construction industry leaders were invited in for high level discussions with the new government last week as Labour in its very first days in power looks to engage the sector ahead of planned reforms.

Last Friday, a group of senior figures in the housing and infrastructure sectors met with Rachel Reeves, the new chancellor, along with Treasury officials at Number 11 Downing Street. 

The delegation included representatives from volume housebuilders Berkeley, Barratt and Taylor Wimpey, energy groups Scottish Power, SSE and National Grid and firms including Jacobs, Skanska and Mace.

Also present was a representative from telecoms firm Open Reach and the chair of the National Infrastructure Commission, Sir John Armitt. 

According to one person close to the talks, industry leaders were “asked for feedback and gave feedback good and bad”.

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Business leaders emphasised the importance of a “joined-up approach” to investment that is ring-fenced and outlives the current government and stressed the need for consistency on planning requirements and the pipeline of projects.

Another source said “I think the government clearly see construction as a catalyst for growth. They’re just wanting to listen to industry to look at what can we do to get construction going”.

They said that attendees had felt cautiously encouraged by what they had heard. “I’d give them 10 out of 10 for intentions”.

“I think the will is absolutely there. Obviously the challenge is always to make that reality, isn’t it? And the devil’s in the detail. But at the moment, I’m feeling hopeful and positive.” 

Attendees were told that the government wanted to “keep this discussion going” and were asked to flag when major projects hit planning blocks. 

“I think this and other groups will convene again because there was also a group that worked with the advisory panel pre-election with Darren Jones,” one source told Building, referring to the new chief secretary to the Treasury, who conducted a major review into infrastructure delivery before Labour’s electoral victory.

“So, this was a slightly different mix of that group because we had housebuilding in there, as well as John Armitt. You definitely feel like the door’s open,” they added.

Reeves has already announced a number of changes relevant to the built environment, scrapping the de-facto ban on onshore wind and re-instating mandatory housing targets. 

The King’s Speech, which takes place tomorrow, is expected to reveal further changes to planning and infrastructure policy.