Why skills training is critical to the New Towns vision

The Labour government has pledged to deliver 1.5 million new homes during its first term. In addition, it has also committed to the delivery of a series of New Towns across the UK: large-scale communities of at least 10,000 homes each. Following the launch of the New Towns taskforce in September 2024, it is likely that this initiative will be a prominent feature in the upcoming Autumn Statement.

However, while adequate funding and investment are essential for realising the government's New Towns vision, any programme risks faltering unless equal attention is paid to upskilling the construction sector to meet the demands of this agenda. The Construction Industry Training Board estimates that over a quarter of a million construction workers, both skilled trades and professional services, will be needed by 2028 to meet current demands, let alone what’s coming down the track with New Towns or the government’s other investment initiatives. 

The success of the New Towns vision will depend on the government's commitment to collaborating with our industry and education providers to bridge this gap. Without wholesale investment in making construction careers attractive with strong growth opportunities, we risk falling short of delivering the homes the UK urgently needs while failing to create a strong ecosystem for the future delivery of New Towns. 

Create more training opportunities

Delivering the government's ambitious New Towns promise will require a robust and well-equipped national construction sector. However, with skills shortage rates exceeding 20% in 2023, supply chains across the country risk being unable to support government ambitions. 

Effective training and upskilling in the construction sector is therefore essential and will require significant investment in training opportunities. 

Collaborating with organisations such as Skills England, the Construction Leadership Council, higher and further education organisations alongside other groups to build on the success of nationwide apprenticeship schemes and creating alternative pathways into the industry will be crucial. 

In addition, with changes to the CSCS Industry Accreditation scheme from December 2024, it is more important than ever to support capable individuals in obtaining the necessary credentials, especially those from underrepresented or disadvantaged backgrounds. 

Finally, newer technology like Modern Methods of Construction offer significant productivity boosts across numerous sectors, but only if staff receive the right training to make the most of these approaches. 

Without adequate commitments, including in the upcoming budget, we will continue to face the resource shortages that have plagued the industry for the past two decades. With 20% of the industry’s skilled trade workforce nearing retirement age, and the number of young people entering the industry to take their place failing to fill the gap, this problem risks being compounded as time progresses. 

Collaborate with industry to upskill local supply chains

Of course, New Towns and any housing developments are inherently local and interact with a web of regional suppliers, service providers and contractors for successful delivery. A nationwide view is essential, but the government should also pay attention to local skills deficits in New Towns hotspots.

Complex supply chains are inherent in the delivery of any major programme and will be essential for the successful delivery of major housing developments. If links in these chains are at risk of failure due to being unable to keep up with the demands of these programmes, new developments could face delays at best but at worst risk being undeliverable.

Key to overcoming this risk is the government collaborating both with those responsible for delivering housing, including local housing authorities and Homes England, as well as built environment leaders with experience in delivering complex and multi-faceted projects. Local authorities can best advise on the skills gaps their regions face, while industry leaders can share knowledge effectively across complex supply chains to upskill effectively while spotting opportunities to shore up risks as part of delivery. Such delivery partners can also offer a more holistic view, bringing experience from differing sectors to best benefit New Towns campaigns.

This undoubtedly needs to play a key part of the New Towns Taskforce’s remit, and it is encouraging to see this already in action through the group’s meetings with organisations in Greater Cambridge. However, establishing clear links to industry leadership must become a greater priority to both drive awareness of current skills shortages while identifying opportunities to improve resourcing nationwide.

Strengthening UK PLC

Creating opportunities to improve national and local supply chain skills can do more than strengthen our ability to deliver New Towns and other major programmes. It can also build a global reputation for the UK as a vibrant workplace for skilled trades and construction professionals.

We know from our experience working around the world that markets in the Middle East or North America are providing attractive work opportunities and enticing overseas workers, including those from the UK. If the improvement of training and skills opportunities nationwide drives stronger construction capacity, and therefore the delivery of higher profile and complex projects, then we can begin to turn this tide.

Through building the UK’s reputation as a hotspot for construction excellence with strong opportunities to deliver high profile and impactful programmes, we can not only retain strong homegrown talent while also attracting talent from global markets as well.

We know that the UK’s current standing as a hub for construction excellence has taken hits in recent years, most notably with the reduction in the scope for HS2. However, with the built environment sector acting as a catalyst for so many of the government’s investment initiatives, including New Towns delivery, this must become a priority for the next five years.

With the right commitments to training, upskilling supply chains, and collaborating with industry leaders, there is a real opportunity to create a legacy both for the construction sector as well as the national economy, ultimately making the New Towns vision an achievable reality.