King’s Speech: Planning reforms to accelerate infrastructure and housing

Planning reform will play a pivotal role in the direction of travel for the new Labour Government’s first 12 months in office, following the King’s Speech.

In the first State Opening of Parliament under a new Labour Government, King Charles unveiled 40 policy bills and draft bills to support delivery of the government’s first steps to ‘rebuild Britain’.

Prime minister Keir Starmer said now is the ‘time to take the brakes off Britain’, with key policy areas including planning reform, re-nationalisation of infrastructure and devolution taking centre stage in Labour’s blueprint for the country.

King Charles opened his speech by outlining the government’s ‘mission-led’ legislative programme, with an emphasis on shoring up stability and securing economic growth. Here’s how the program will affect construction…

Planning

Labour’s election manifesto pledged to build 1.5 million homes, restated by Chancellor Rachel Reeves who committee to house building by introducing planning reform in her first address to the Treasury.

During his speech the King said: “My ministers will get Britain building, including through planning reform, as they seek to accelerate the delivery of high-quality infrastructure and housing.”

Rail 

Re-nationalisation has also been on the Labour agenda, the King’s Speech confirmed the party’s commitments to rail nationalisation through the proposed introduction of great British railways. 

Under the new government, rail services will be brought back into public ownership.

The King said: “Taken together, these policies will enhance Britain’s position as a leading industrial nation and enable the country to take advantage of new opportunities that can promote growth and wealth creation.” 

Devolution 

On Tuesday, deputy prime minister Angela Rayner wrote a letter to council leaders to offer greater autonomy to local authorities in “devolution deserts”, which could speed up delivery of projects.

In his speech the King announced the government will introduce an English Devolution Bill.

Through new legislation metro-mayors and combined authorities will gain greater powers to “support local growth plans that bring economic benefit to communities.”

Energy

Since Labour formed the new government, the party announced the end of the ban on new onshore wind and the new secretary of state for energy security and net zero, Ed Miliband, approved three new solar farms that could power 400,000 homes.

Energy policy also drew focus during the King’s Speech, to meet climate challenges and promote the new job opportunities 

The King announced the introduction of a bill to set up Great British Energy, a publicly-owned clean power company headquartered in Scotland which will help accelerate investment in renewable energy such as offshore wind. 

King Charles also announced legislation to help the country achieve energy independence and unlock investments in energy infrastructure.

Apprenticeships 

Jobs are also a key issue for the new Labour government and one faced in the construction industry.

In May, the Construction Industry Training Board (CITB) released a report revealing over 250,000 extra construction workers are required by 2028 to meet demand to meet the skills shortage in the industry.

The Labour government’s new policy programme could help meet the industry’s talent problem.

The King said the government will establish Skills England, to bring together businesses, providers, unions, mayoral combined authorities and national government to ensure we have the highly trained workforce that England needs, according to a Number 10 press briefing document.

The King also announced that the Government will reform the apprenticeship levy.

Industry Response

Jonathan Willcock, managing director of transportation at Costain, said: “The UK needs a world-class rail network to support jobs, growth and net zero. 

“The Rail Reform Bill lays the groundwork for bringing track and train back together under Great British Railways. 

“The new body should adopt an approach to investment that directs improvements in infrastructure towards opportunities for economic growth.

“The UK needs to ensure that its transportation network is part of a holistic and long-term view of wider infrastructure. This requires a joined-up strategic approach across government.” 

Sam White, managing director of natural resources, Costain, said: “GB Energy will provide industry with some assurance around the UK’s long-term approach to decarbonisation.

“Carbon capture and hydrogen have real potential to play a crucial and sizable role in achieving the UK’s 2050 net zero target, but long-term, strategic thinking around creating interconnected infrastructure systems is needed to make this a reality.

“Accelerating improvements and upgrades to the energy infrastructure ecosystem will give confidence to investors, help with job creation, and boost regional economies, fuelling a virtuous circle that goes beyond energy security.”

Thomas Vandecasteele, managing director at Legendre UK, said: “Labour’s ambitions to ‘get Britain building’ through loosening planning rules is a positive move towards strengthening the pipeline of new homes, but this is no mean feat and only one piece of the puzzle.

“The next obvious focus is supply chains which have been hit by multiple challenges over the last few years – Brexit, insolvency, lack of skills and poor productivity.

 There isn’t an easy solution, and the government needs to instil considered policies, fulfilling its promise today to invest in the industry, skills and new technologies. 

Without addressing these issues, we could see higher construction costs and homes becoming more unaffordable.”

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