Brian Berry, chief executive of the Federation of Master Builders (FMB) wonders whether the UK’s current political turmoil will halt the ‘levelling up’ ambitions.
The constant political turbulence over the last few years continues in earnest with a government on its way out and a drawn-out leadership contest underway. It will be some time until certainty is restored. None of this leaves small, local housebuilders in a positive place. Economic uncertainty is setting in and plans for levelling up and housebuilding are likely to stagnate under an interim government.
It’s clear for the next few months at least that we’ll see little input to support the sector, but will the new Government hit the ground running and what will they need to do to support my members?
TAKING STOCKÂ
Given the recent rumblings in Westminster, I thought now was the perfect time to take stock of what I laid out as my wish list in my first article of this year. I called it a ‘year of great potential’! Looking at it now, it hasn’t been an easy six months by any means, and it continues an unfortunate trend of political turbulence that we are struggling to shake off. Therefore, where do we stand now, with inflation still high, construction materials at eye watering prices, and skill shortages plaguing small, local builders. Â
So, is this still a year of great potential? It could still be, but that’s the optimist in me. I had hoped to see ambitious planning reforms, a fully-fledged levelling up agenda and comprehensive skills plan. Some of this has come to pass, albeit limited. Unfortunately, even though the ambitions in the Department for Levelling Up, Housing and Communities (DLUHC) were high, the output has been cautious. My members, local housebuilders, were set to gain from levelling up, as were the communities they work in.Â
However, will the next Government pick up the baton, or will it all just peter out? Â
WHERE DO SME HOUSEBUILDERS STAND WITH THE ‘GATEKEEPER GOVERNMENT’?Â
I had pinned hope on a resurgent DLUHC under Michael Gove, with ambitious plans for levelling up and tying this together with housebuilding. But, ultimately I still had doubts over his Department’s output, such as the Levelling up and Regeneration Bill.
The Bill has merit, but doesn’t seem to do enough to boost the ever-declining housing delivery of small builders. However, I will reserve final judgement for when it’s fully implemented. Now, we look towards a new government and potentially new plans, but ultimately what our industry needs is stability and a long-term vision.   Â
In September we will very likely see our thirteenth Housing Minister since 2010 (and the twenty-second since 1997), that’s if newly appointed Marcus Jones doesn’t stay in place. There has never been much certainty for the housing sector; I can only hope this trend will stop until the next election, at least. What the industry needs is stability, especially as the economy turns sour, and consumers become much more careful with their finances. We’ve seen the repair, maintenance and improvement market start to decline in output, and that is often the early warning sign for a wider sectoral problem. Â
WHAT WILL A NEW GOVERNMENT NEED TO BRING TO THE TABLE? Â
As with all business sectors, small, local housebuilders will not benefit from the malaise which grips Whitehall. Ambitious, hard-hitting policy and its delivery will turn the SME housing sector around, but also deliver net zero ambitions and levelling up.
As I’ve said in these articles time and time again, if there is a genuine want to boost local economies and unlock new opportunities, look no further than your local housebuilder. They enable people in local communities to train locally, work locally and ultimately stay local, which uplifts every part of the nation in equal measure, which is the ultimate deliverable of levelling up. Come September, the new Government has an opportunity to make it a reality and the industry as well as the public will ultimately judge them on what they deliver.Â