First impressions of the new regime – and I‘m cautiously optimistic

Rachel Reeves claimed in her first speech as Chancellor of the Exchequer that the new government had achieved more in 72 hours in planning than the previous administration had in 14 years. As a political statement, it was highly debatable, but it did not lack in ambition and confidence.

For a government with a huge majority but a relatively small vote share, establishing its credibility and mandate in the early days of the administration is crucial. How are they getting on? Even in the first week of the administration, there are some strong indications of the character of the administration and here are six that have stood out for me.

The first tell-tale sign is consistency. With few exceptions, members of the shadow front bench have retained their ministerial briefs as they have transitioned to Cabinet roles. Ministries have also remained intact, even if some of the names have changed.

A smooth transfer of power to a new, knowledgeable leadership is a strong start for the government. Continuity of leadership will also be an important element of industrial strategy. The Construction Leadership Council for example had 13 ministerial co-chairs while I was involved.

There will be plenty of triggers for government reorganisation over the next five years, but Labour has recognised that stable leadership drives better delivery. It is a good start, so let’s wait and see.

The second indicator is a strong focus. So far, all of the attention has been on the growth mission. Even Wes Streeting has described the NHS as an engine of growth, getting people back to work and providing work and training opportunities.

Should the growth agenda trump the net zero agenda or the just transition agenda, or will the tough decisions be deferred? 

Over time, the policy landscape will become a lot more complex as the other four missions and reality intrude. However, repeatedly over the first few days of the administration, growth has been highlighted as the North Star in decision-making – in planning, in extending the roles of the combined authorities and, ultimately, in making difficult choices.

These choices could be very difficult indeed. Should the growth agenda trump the net zero agenda or the just transition agenda, or will the tough decisions be deferred? We will soon know as complex problems such as the future of the Port Talbot steel works hove into view.

My third positive sign is ambition. In this case, ambition channelled to well defined objectives. Ambition is baked into the idea of mission-based government and can be seen in action in the very clear links drawn by the chancellor between a universal growth agenda and actions in planning and devolution.

In a further step, the creation of a “mission control” unit for net zero, led by Chris Stark, previously chair of the climate change committee, will be tasked with eliminating blockers to progress towards the 2030 deadline. A much clearer alignment of the mayoral authorities to growth objectives will help to crowd in local ambition too.

Ambition will inevitably be deflected by crises as they occur throughout the parliamentary term, but with luck will withstand multiple contacts with reality.

Following from ambition is pace and pragmatism. I bracket the two together, because there are strong signs that the new administration is willing to use existing mechanisms to deliver change without delay.

Using the UK Infrastructure Bank to deliver the national wealth fund is a great example, enabling rapid deployment of the £5.7bn fund and highlighting a willingness to accept advice from an industry-led taskforce, which also included the establishment of a wider remit for the fund.

Labour’s readiness to promote freshly elected MPs into ministerial positions is a really positive indication of the depth of the talent pool within the parliamentary party

A similar pragmatic approach will be needed in connection with planning reform – using as much of the work that has been undertaken over the past three to four years to hit the ground running. There simply is not the time to overhaul the national planning system.

My final two pointers cover people and the willingness to use power. One is a strength, the other might be a harbinger of challenges ahead.

Labour’s readiness to promote freshly elected MPs including Georgia Gould and Miatta Fahnbulleh into ministerial positions is a really positive indication of the depth of the talent pool within the parliamentary party. Similarly, the government’s eye-catching appointments of industry heavy hitters, from Patrick Vallance to Lord Hendy and political veterans, potentially including Nick Boles for planning, highlights a willingness to reach beyond the party for big characters with influence and deep expertise.

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Labour’s willingness to use power for me is the interesting one. Exercise of power always requires an investment of political capital. Angela Rayner has made some very interesting early interventions in planning. These are not only in connection with unblocking of four housing schemes and the recovery of planning appeals for two stalled data centres but also in a requirement for investment opportunities with “important planning considerations” to be brought to ministerial attention.

Such a muscular approach will always result in winners and losers and the trick will be to get the balance right – avoiding wasting too much precious capital in order to preserve the mandate for growth. Even as the pendulum swings in favour of a more centrally-led approach to planning, some focus on retaining legitimacy at the local level will be needed.

The new government… will need good luck as well as good intentions and great capabilities

So, I have highlighted six reasons why we can have further confidence in the ability of the new government to progress its missions and deliver an ambitious programme. You may or may not agree with those points but will recognise that it faces many headwinds, not least being the tight outlook for spending and the pent-up demands for improvement in so many aspects of life in the UK, ranging from health and social care to mapping out new alliances in an unstable and uncertain world. It will need good luck as well as good intentions and great capabilities.

For construction, the importance of this first week is not necessarily the calibre of the government team, its unity, or the scale of its ambition. It is that the growth mission has dominated the messaging and that, ultimately, development has been positioned at the heart of the government’s agenda.

Based on the characteristics that I have highlighted – consistency, focus, ambition and pragmatism – the pressure to deliver will be intense and will come from multiple angles as the government’s growth, net zero and the service improvement imperative combine and collide.

Construction is well positioned to play a major role in enabling the growth agenda and the industrial strategy. However, based on the evidence so far, the sector will be the junior partner and will be expected to deliver.

Simon Rawlinson is a partner at Arcadis