The Labour Party’s recent 2024 General Election win marks a significant shift in the UK’s political landscape. With a landslide victory, Keir Starmer, and the Labour party now hold the reigns for the next 4 years and will begin to plan and implement their ambitious manifesto. The Labour Party’s manifesto outlines significant plans for the UK construction industry, aiming to tackle key issues such as housing, infrastructure, and sustainability. In this blog, we take an in-depth look at the impact these plans could have on the UK construction sector and what to expect over the next 4 years.

Housing Development 

Labour aims to address the housing crisis by building 1.5 million new homes over the next five years. The party is also aiming to support the build of 150,000 social homes per year by the end of their first term.  

  • Increased Projects and Jobs: The push for the boost in housing will likely result in a surge of construction projects, subsequently creating a wealth of new jobs and opportunities within the industry. 
  • Skill Development: To meet the increased demand, there will need to be a focus on training and upskilling workers in the construction sector. With the current skills shortage looking to be a potential setback with these plans, Labour has introduced a youth guarantee, offering training, apprenticeships, or employment support for all 18–21-year-olds. This initiative is aimed at building a skilled workforce for the construction industry and combating the current skills shortage that has been a concern in recent years. 


Infrastructure Investments

Labour’s plans include a focus on significantly increasing the investment in public infrastructure This will be aimed at improving and modernising the UK’s transport, energy, and digital networks, which is part of a wider strategy to improve public services and boost economic growth. 

  • Large-Scale Projects: Major national infrastructure projects such as railways, roads, and more will create an array of new opportunities. This means an uplift in new projects for construction companies, which should lead to a surge in job opportunities within the construction industry.   
  • Partnerships and Contracts: Construction companies in the UK can expect a range of new public-private partnership opportunities, providing a stable pipeline of work for the foreseeable future. 


Environmental and Sustainability Goals 

Labour’s manifesto emphasises a strong commitment to combating climate change and promoting sustainability. Labour is committed to achieving clean energy by 2023 which will require the construction industry to adopt greener practices whilst adhering to more prominent environmental regulations. The manifesto includes plans for significant investment in green infrastructure and the reconstruction of existing buildings to improve energy efficiency. 

  • Sustainable Construction: There will be a greater focus on eco-friendly and sustainable building practices and materials, driving innovation within the UK construction sector. 
  • Energy Efficiency Projects: Reconstructing existing buildings to meet the new energy efficiency standards will create a stream of new projects, particularly for firms specialising in sustainable technologies and renovations. 


Potential Impact on the Industry 

Labours victory anticipates growth and stability within the UK construction industry. Analysts forecast a 14% rise in private housebuilding by 2025. Additionally, industry leaders have expressed their support for Labour’s plans to invest in infrastructure and streamline planning. 

There are, however, concerns around the feasibility of these plans and the environmental impact of such large-scale projects. It will be crucial to achieve a balance between rapid development and sustainable practices for these plans to be effective. Additionally, with the hurdle of the skills shortage in which the UK construction sector is currently facing, acquiring an estimated 251,000 more workers by 2028 to meet Labour’s goals could prove to be a challenge. 


Advantages of Labour’s Plans 
  • Increase in jobs: The plans for a huge uplift in housing and infrastructure projects are likely to generate multiple jobs, addressing unemployment and skills shortages. 
  • Investment Boost: Labour’s plans for significant public and private investment could enhance growth and innovation within the construction industry. 
  • Sustainability Focus: Emphasising eco-friendly materials and renewable energy aligns with global trends and future regulatory requirements. 
Challenges and Concerns 
  • Achievability of implementation: There are views that Labour’s plans may be overly ambitious and challenging to achieve within the proposed timelines. 
  • Environmental Impact: Rapid development needs careful management to prevent adverse environmental effects. 
  • Economic Strain: Significant public spending could lead to economic pressure, especially if private investment does not meet expectations. 


Labour’s landslide victory signals transformative changes for the UK construction industry, driving significant growth and innovation. Despite concerns about the feasibility of their ambitious manifesto, construction companies must prepare to adapt to new standards and regulations while capitalising on the increased demand and investment. If successful, Labour’s plans could address current industry challenges, setting the stage for sustainable growth.