Earlier today, PM Keir Starmer announced he would be stepping down from his position and as leader of the Labour Party, following an extended period of unpopularity
Waves have been made in the construction industry by the prime minister’s announcement that he will resign.
In the past two years under his leadership, the industry has been rocked by several different events, including changes to the NPPF, the Planning and Infrastructure Bill entering law, energy subsidies given in the Industrial Strategy, and the setting of the 1.5m new homes target.
Besides that, we’ve also seen a new housing minister in Steve Reed after Angela Rayner stepped down, the conclusion of the long waited Grenfell Inquiry, and controversy after controversy after controversy regarding the HS2 project.
Below, we’ve compiled some reactions from industry leaders following the PM’s announcement to stand down.
The Federation of Master Builders
Brian Berry, chief executive of the FMB, said: “Over the course of Sir Keir Starmer’s time as Prime Minister it was welcome to see a pro-building agenda placed at the heart of his government’s plans. But words only go so far, and ambition has not yet resulted in delivery on the ground. Small builders continue to face tough trading conditions, with rising costs, employment troubles, planning delays, weak consumer confidence and stalling housing numbers all holding back growth. The next Prime Minister must keep the nation’s small builders at the heart of the government’s work. They will need a much stronger focus on delivery, cutting barriers to building, and creating the conditions for small local firms, who make up the majority of the industry.”
Browne Jacobson
Peter Ware, partner and head of government at UK and Ireland law firm Browne Jacobson, said: “Sir Keir Starmer’s resignation will prompt a rush to define his legacy, but for those working in and with the public sector, there is a genuine record of structural ambition worth acknowledging.
“The English devolution programme has been one of the most significant shifts in local government architecture in a generation. The move from a two-tier to unitary authority structure, along with a greater number of mayoral strategic authorities, should unlock more place-based decision-making and give local areas real tools to shape their own economic futures.
“Arguably the most ambitious policy brought forward by this government is in planning reforms, featuring the Planning and Infrastructure Act as well as the most significant changes to the National Planning Policy Framework since its inception. While not without its challenges, this could be transformational in the long term for unlocking new housing and infrastructure development.
“Meanwhile, the commitment to social housing, backed by the largest public investment in half a century, offered a meaningful signal about where national priorities lie, even if the government has been slow in translating into completions on the ground.
“Whenever there is a change in leadership, there will always be concerns that long-term projects already underway could be undone. The damage this would create means it’s vital the next leader recommits to all these workstreams.
“The biggest challenge for this government has been the erosion of a coherent, communicable vision. What began as a bold mission-driven programme gradually lost its shape under the pressure of fiscal constraint and political turbulence.
“It’s therefore crucial the next Prime Minister sets out a new vision that goes further and faster, while giving the public and private sectors something tangible to get behind. This can’t just be a case of restating missions, but in creating the delivery architecture that makes them credible.
“Critically, this means honesty about the tools needed for government to succeed in its ambitions.
“If investment in social infrastructure such as hospitals, schools and transport projects is a priority, for example, then we need to acknowledge the role that can be played by modern public-private partnership models that learn the lessons from previous models such as PFI and PF2. The sooner that case is made clearly, the sooner the market can respond.”
Search Acumen
Andrew Lloyd, managing director at Search Acumen, said: “The biggest risk from any leadership upheaval isn’t politics itself, it’s the uncertainty that follows. We’ve seen an immediate drop in the value of the pound against the dollar, with markets already reacting to possible changes in fiscal policy.
“Housebuilders, investors and lenders can adapt to almost any policy framework, but they can’t invest confidently if they don’t know whether that framework will still exist in six months’ time.
“Andy Burnham has shown that smart intervention can unlock growth. Manchester’s record-breaking city centre regeneration proves what can be achieved when government works in partnership with the private sector. If Andy can’t help fix Britain’s housing crisis, it’s difficult to see who can. But the 1.5 million homes pledge was always a unicorn, and as the clock ticks, it still looks more like a headline than a housing pipeline.
“The good news is that we’re finally seeing signs of real delivery. The move towards AI-assisted planning and digital infrastructure points to a government that understands that growth requires modernisation. Technology isn’t a silver bullet, but a faster, more predictable planning system is exactly the kind of reform housebuilders and investors have been calling for.
“The danger now is that political drift stalls momentum just as the foundations for growth are being laid. Investors don’t need another reset; they need delivery. The next Prime Minister must focus relentlessly on execution, doubling down on the built environment investment needed to unlock private capital.
“The UK’s growth story will ultimately be judged not by political headlines, but by whether we can build more homes, attract more investment and create the conditions for businesses to scale. The next few months will determine whether confidence grows or fades.”
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