The skills gap hampering the New Towns vision

The new Labour government has pledged to deliver 1.5 million new homes during its first term. A key part of this commitment relies upon the successful delivery of New Towns across the UK: large-scale communities of at least 10,000 homes each. Following the launch of the New Towns taskforce in September 2024, it is likely that this initiative will be a prominent feature in the upcoming Autumn Statement. 

However, while adequate funding is essential for realising the government's New Towns vision, any programme risks faltering unless equal attention is paid to upskilling the construction sector to meet the demands of this agenda. The Construction Industry Training Board estimates that over a quarter of a million construction workers will be needed by 2028 to meet current demands, let alone what’s coming down the track with New Towns or the government’s other investment initiatives. 

The success of the New Towns vision will depend on the government's commitment to collaborating with our industry to bridge this gap. Without such collaboration, we risk falling short of delivering the homes the UK needs within the promised timeframe. 

Create more training opportunities 

Delivering the government's ambitious New Towns promise will require a robust and well-equipped national construction sector. However, with skills shortage rates exceeding 20% in 2023, supply chains across the country risk being unable to support government ambitions. Effective upskilling in the construction sector is therefore essential and will require significant investment in training opportunities. 

Collaborating with organisations such as Skills England to build on the success of nationwide apprenticeship schemes and creating alternative pathways into the industry will be crucial. 

In addition, with recent changes to CSCS card rules requiring fresh qualifications it is more important than ever to support capable individuals in obtaining the necessary credentials. Finally, newer technologies like Modern Methods of Construction (MMC) or Building Information Modelling (BIM) offer significant productivity boosts, but only if staff receive the right training to make the most of these approaches. 

Without adequate commitments, including in the upcoming budget, we will continue to face the resource shortages that have plagued the industry for the past two decades. With 20% of the industry’s workforce nearing retirement age, this problem risks being compounded as time progresses. 

Collaborate with industry to upskill local supply chains 

Of course, New Towns and any housing developments are inherently local and interact with a web of regional suppliers, service providers and contractors for successful delivery. A nationwide view is essential, but the government should also pay attention to local skills deficits in New Towns hotspots. 

Complex supply chains are inherent in the delivery of any major programme and will be essential for the successful delivery of major housing developments. If links in these chains are at risk of failure due to inadequate resource to keep up with the demands of these programmes, new developments could face delays at best but at worst risk being undeliverable. 

Key to overcoming this risk is the government collaborating both with local housing authorities as well as built environment leaders with experience in delivering complex and multi-faceted projects. Local authorities can best advise on the skills gaps their regions face, while industry leaders can share knowledge effectively across complex supply chains to upskill effectively while spotting opportunities to shore up risks as part of delivery. Such delivery partners can also offer a more holistic view, bringing experience from differing sectors to best benefit New Towns campaigns. 

This undoubtedly needs to play a key part of the New Towns Taskforce’s remit, and it is encouraging to see this already in action through the group’s meetings with organisations in Greater Cambridge. However, establishing clear links to industry leadership must become a greater priority to both drive awareness of current skills shortages while identifying opportunities to improve resourcing nationwide. 

Strengthening UK PLC 

Creating opportunities to improve national and local supply chain skills can do more than strengthen our ability to deliver New Towns and other major programmes. It can also build a global reputation for the UK as a vibrant workplace for construction professionals. 

We know from our experience working around the world that markets like the UAE or North America are providing attracting work opportunities and enticing overseas workers, including those from the UK. If the improvement of training and skills opportunities nationwide drives stronger construction capacity, and therefore the delivery of higher profile and complex projects, then we can turn this tide. 

Through building the UK’s as a hotspot for construction excellence with strong opportunities to deliver high profile and impactful programmes, we can not only retain strong homegrown talent while also attracting talent from global markets as well. 

We know that the UK’s current reputation as a hub for construction excellence has taken hits in recent years, most notably with the reduction in the scope for HS2. However, with the built environment sector acting as a catalyst for so many of the government’s investment initiatives, including New Towns delivery, this must become a priority for the next five years. 

With the right commitments to training, upskilling supply chains, and collaborating with industry leaders, there is a real opportunity to create a legacy both for the construction sector as well as the national economy. Together, can make the UK a hub for investment and turn the New Towns dream into a reality.