Plan will be overseen by new mission board co-chaired by Mace chaiman Mark Reynolds
Rachel Reeves has announced a £600m investment in skills training for the construction industry.
The government hopes the new cash will train up to 60,000 additional engineers, bricklayers, electricians and carpenters by 2029.
A new Construction Skills Mission Board, co-chaired by the government and Mark Reynolds, executive chair of Mace, will be set up to oversee the government’s construction skills plan.
“We are determined to get Britain building again, that’s why we are taking on the blockers to build 1.5 million new homes and rebuild our roads, rail and energy infrastructure,” said Reeves (pictured).
“But none of this is possible without the engineers, brickies, sparkies, and chippies to actually get the work done, which we are facing a massive shortage of.
“We’ve overhauled the planning system that is holding this country back, now we are gripping the lack of skilled construction workers, delivering on our Plan for Change to boost jobs and growth for working people.”
The announcement, which comes ahead of the spring statement this Wednesday, will provide £100m for 10 new technical excellence colleges and £165m to help colleges deliver more construction courses.
Skills Bootcamps in the construction sector will also be supported with a £100m cash boost, while all Local Skills Improvement Plan areas will benefit from £20 million to form partnerships between colleges and construction companies.
Construction will also be one of the sectors included in the government’s plans for new foundation apprenticeships, which will be launched in August, backed by an extra £40m.
As part of this, employers will be given £2,000 for every foundation apprentice they take on and retain in the construction industry.
A further £100m from the government, and £32m from the Construction Industry Training Board, will fund more than 40,000 industry placements each year for Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships.
An additional £80m capital fund will help firms deliver bespoke training.
Industry reaction
Mark Reynolds, executive chair, Mace
“This is fantastic news and demonstrates that Government is committed to working with the construction industry to deliver 1.5m homes by the end of this Parliament and its ambitious plans for infrastructure delivery. It’s a hugely significant funding package, and the establishment of the Construction Skills Mission Board will enable us to collaborate with Government to drive change at pace.
Understandably, construction firms across the country are looking for certainty of pipeline before they commit to investing in new jobs and skills – but this investment by the Chancellor will be critical in giving them the confidence they need. There is now no excuse – industry must embrace the Government’s growth mission and match their ambition.”
Tim Balcon, chief executive, CITB
“We are delighted with the support the Government is giving the construction sector with increased investment. This package will provide vital support, where it is needed most – it will cut straight to the heart of the construction industry being able to address the challenge of building 1.5m new homes for people that desperately need them.
As an industry, we now need to grasp this opportunity and play our part in delivering it. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.”
Steven Boyes, deputy chief executive at Barratt Redrow
”Construction faces a long-standing skills shortage at a time when we are challenging ourselves to build even more much-needed new homes across the country. I started out as a trainee on a Barratt Homes’ construction site 47 years ago, and so welcome this significant, long-term investment in skills, which will create real opportunities for people of all backgrounds to build a successful career in homebuilding.”
Leo Quinn, chief executive Balfour Beatty
“We welcome this positive announcement today and the Government’s focus on skills in construction and infrastructure - sectors that are key to driving the UK’s growth. Balfour Beatty and others are investing heavily in skills, but gaps remain, and they’ll only grow as the demand for critical infrastructure - to support clean, secure energy and better connectivity - ramps up.
As NISTA takes shape, we’re looking to it to take a holistic view of both skills and supply chain needs to ensure the industry is ready to deliver the infrastructure pipeline. We’re also keen to see the full details of the Growth and Skills Levy, which could make a real difference.”
Gavin Smart, chief executive, Chartered Institute of Housing
“CIH welcomes the recent announcement from the Chancellor, setting out a £600 million investment in construction skills to help build 1.5 million homes and transform communities. Addressing skills shortages is critical to tackling the housing crisis - we need to create a strong and sustainable pipeline of skilled workers so that we can meet housing demand both now and in the future.
Through our CHOOSE Housing campaign, led by our President Elly Hoult, we continue to champion housing as a career of choice, highlighting the wide range of roles in the sector and the critical role that housing professionals play in shaping strong, thriving communities.
Housing is central to economic growth and community wellbeing. We look forward to working with the government and partners to ensure this investment translates into more high-quality, affordable homes for people across the country.”
Melanie Leech, chief executive, British Property Federation
“The Government’s bold 1.5 million homes target requires every part of the industry to be firing on all cylinders, and significant investment in construction skills is a core part of this. The package announced today is welcome not only in addressing skills shortages holding back development today, but in retaining experience in the sector and inspiring young people to embark on a career in construction in the future. Great jobs that pay well are available across the industry, and this partnership between the sector and Government is an important step in delivering the workforce of tomorrow.
Fiona Fletcher-Smith, chair of the G15 and chief executive of L&Q
“We welcome the Government’s announcement of new investment in skilled construction workers. Given the chronic shortage of tradespeople, this is a positive step that will help not-for-profit housing associations and the wider construction sector to support the Government’s target of delivering 1.5 million new homes.
However, additional construction workers alone will not solve the housing crisis. It is now important for the Government to commit to a 10-year rent settlement, a rent convergence mechanism, and full access to the Building Safety Fund, enabling housing associations to make the best use of this newly skilled workforce to build the affordable and social homes we desperately need.”
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