In response to Angela Rayner’s speech at UKREiiF last week in which she called for partners to “back, build, invest, and succeed,” the NFB have published a statement on achieving the 1.5m homes target
The statement prioritises SME support for hitting goals, as well as reviewing the situation that the government and construction industry face.
The statement also examines Labour’s first ten months in government and their actions for the industry.
Many issues were inherited
The issues highlighted by the NFB statement that the government inherited include:
- Building Safety Regulator issues with resourcing and operations, causing delays to up to 800 high rise projects
- Levelling Up and Regeneration Bill (LURB) being too complex, and Local Planning Authorities that used the LURB needing to reassess reduction in housing targets
- Biodiversity Net Gain legal and knowledge challenges, even preventing some housing developments altogether
- Policies that harmed SME housebuilders and benefited big builders over 14 years
- Huge inflation in the cost of building
The NFB then examined the Labour government’s first 10 months in power and the reforms they’ve brought, including reintroducing housing targets, defining the grey belt, reviewing the greenbelt and Planning Policy Guidance.
These all bring certainty and increase opportunities for builders, and the New Towns Plan is likely to bring around 500 extra homes to existing large planning applications, totalling tens of thousands of homes.
However, the NFB say that while these reforms are welcomed, they do not go far enough and in some cases, vital opportunities have been missed and existing reforms are generally minor.
Issues also persist with National Insurance rises, reducing employed labour, and changes to inheritance tax meaning more smaller companies are being sold or absorbed into larger ones. The Building Safety Levy is also still being called an arbitrary tax and a “growth inhibitor”.
SME support will be vital
Training 73% of construction apprentices, bringing local investment, and rarely a part of national scandals such as “fleecehold”, SMEs are crucial for delivering 1.5m homes, say the NFB.
The statement says: “99% of the industry will want to know whether SMEs will be handed the annual, ‘here’s some funding you cannot draw down without full planning’ crumbs, or, if they will finally be appreciated as a key player to solving the housing crisis, reducing reliance on immigration and providing much needed competition to lift outcomes. Let us hope National Planning Policy Framework (NPPF) reforms which did nothing on small and medium sized sites indicate major reforms are coming for SMEs, particularly for developments of under fifty and one hundred homes.”
Writing for PBC Today, Tim Barrett, chair of the Construction Alliance Northeast, agrees wholeheartedly, saying: “As the UK faces mounting pressure to meet housing targets, the role of SMEs has never been more crucial. They are not just the backbone of local economies but also key drivers of innovation and quality. Smaller, more agile teams can adapt to specific community needs, implement sustainable practices and deliver projects that are in tune with local environments.
“If the 1.5m homes target is to become a reality, the government must prioritise practical measures that empower SMEs. This includes addressing the skills gap through fully funded apprenticeships, simplifying procurement processes and ensuring smaller builders are fairly included in housing schemes.
“There is also a social value case to be made. SMEs train local people, support regional supply chains and reinvest in their area. The more support SMEs receive, the more inclusive and resilient the housebuilding sector becomes. By creating an ecosystem in which local businesses can thrive, the government will not only build more homes but help strengthen the fabric of the regions most in need of investment and regeneration.
“Without a genuine shift in policy and a commitment to supporting SMEs, the target will remain far out of reach. SMEs have the ability, the expertise and the desire to contribute to solving the housing crisis, but they need the right environment to flourish.”
The NFB have also recently responded to a government statement telling housebuilders to “get on with it” and proposing new legislation to hold builders more accountable.
The post National Federation of Builders say SME support vital to hitting targets appeared first on Planning, Building & Construction Today.
