Labour’s budget pledges to boost housing through infrastructure investment

October 30, 2024

The Autumn Statement 2024, delivered by the new Labour government, has placed a strong emphasis on housing growth, promising infrastructure investments that could drive housebuilding and improve connectivity across the UK. Key announcements outline a strategic shift in fiscal rules to unlock funding for critical projects, with the goal of creating sustainable housing development and resilient communities.

Richard Risdon, Managing Director for UK and Europe at Mott MacDonald, welcomed these changes, stating, “Today’s confirmation on the changing of the fiscal rules, which could free up significant funding for major projects, shows that the government has recognised that growth is not possible without investment in infrastructure.” This approach, he noted, aligns the UK with European models of long-term investment, enhancing opportunities for the housing sector while delivering social benefits. Risdon added, “The benefits extend to more than creating a firmer pipeline of work for us as an industry – the new assets it funds will deliver a better outcome for society too.”

Supporting housing-led growth is central to these plans. Thomas Knight, Transport Development Director for UK and Europe at Mott MacDonald, highlighted the role of improved public transport in meeting housing demand. “Access to good quality and efficient public transport will be critical to meeting the government’s housebuilding plans,” he said, citing the new funding for the West Yorkshire Mass Transit scheme and Transpennine Upgrade as pivotal to both housing and community prosperity.

The Labour government’s commitment to expanding HS2 from Birmingham to Euston also demonstrates a focus on connectivity to boost housing potential in key regions. Yet, Risdon noted that achieving these housing and infrastructure goals remains dependent on skilled labour: “The biggest challenge to realising these infrastructure investment plans is still the people.” He praised the £1.4 billion boost to the schools rebuilding programme, aimed at developing future talent to address these workforce demands, while advocating for immediate collaboration to tackle skills shortages.

For housing projects to progress efficiently, reforms in the UK planning system are essential. Mott MacDonald’s Technical Director for Town Planning, Sarah Henderson, stated, “It’s important that the government recognise that planning reform is critical to delivery of its planned infrastructure investment.” The government’s commitment to tackling bottlenecks and expediting permits for essential housing and transport projects will, she said, benefit “the country in the long term” but must include regulatory bodies like the Environment Agency to ensure timely responses.

Beyond infrastructure, the government’s environmental goals will also influence housing developments, with green energy schemes supporting sustainable housing communities. Clare Rhodes-James, Mott MacDonald’s Business Development Manager for Energy, praised the potential of planned carbon capture and hydrogen projects to drive job growth and skills diversification, saying, “What’s needed now for CCUS is ongoing confidence in the commercial models so current projects are built,” while advocating for sustained backing for emerging technologies that will bring cost-effective, energy-efficient solutions to future housing initiatives.

Labour’s Autumn Statement reflects a clear commitment to fostering housing growth through comprehensive infrastructure investment. By aligning with sustainable practices, enhancing planning efficiency, and focusing on the necessary skills base, the government aims to create a housing market that is robust, accessible, and future-ready.

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