Construction Sector Deal — House of Commons, 2018-07-05
Topic: Housing
Richard Harrington (Conservative, Centre-right): I note with respect, Mr Speaker, that you are wearing the same badge as I am, and I therefore hope you will join me in wishing the NHS a very happy birthday. That, of course, is also relevant to the construction sector deal, because the NHS is responsible for a large amount of construction With permission, Mr Speaker, I will make a statement in response to the Government’s publication of the sector deal for construction. Sector deals, in which industries are invited to come forward with plans for their future, embody the ethos of our collaborative approach. They show how industry and the Government, working in partnership, can boost the productivity and earning power of specific sectors. We have already struck ambitious deals with the artificial intelligence, life sciences, automotive and creative industries sectors, and the nuclear sector deal was announced last week. We look forward to building on that in the months ahead In keeping with the ethos to which I have referred, today’s deal represents a joint vision agreed by the Government and the construction sector which aims to transform the sector’s productivity through innovative technologies and a more highly skilled workforce Construction underpins our economy and society. Few sectors have such an impact on communities across the UK, or have the same potential to provide large numbers of high-skilled, well-paid jobs. The construction sector, encompassing contracting, product manufacturing and professional services, had a turnover of about £370 billion in 2016, and employs 3.1 million people. Given its size and importance, the sector has a vital role to play in achieving the vision set out in our industrial strategy: strengthening the foundations of our economy, achieving the grand challenges of putting the UK at the forefront of the artificial intelligence and data revolution, maximising the advantages from the global shift to clean growth, becoming a world leader in the future of mobility, and meeting the needs of an ageing society We are in the early days of what is one of the greatest construction programmes in our history, from delivering more affordable and safer homes in places where people want to live, to major infrastructure projects such as Crossrail and the third runway at Heathrow. This infrastructure pipeline represents more than £600 billion over the next decade, including at least £44 billion for housing. The pace of that change, and its size, demands a construction sector that is the best in the world, and today’s deal sets out to make that a reality First, the sector and the Government are making a joint £420 million investment to develop and commercialise digital design and offsite manufacturing technologies. We aim to reduce the cost of new buildings by a third, and to halve the time taken to deliver them. That will ensure that we get value for money from the Government’s national infrastructure and construction pipeline. The current projections are for about £600 billion of public and private investment in infrastructure over the next 10 years, as well as a doubling of expenditure on economic infrastructure in the decade to 2022-23. The investment will also support the Government’s aspiration to deliver 1.5 million new homes by 2022 Secondly, we will ensure that the construction sector is able to attract, train and retain the workforce that it needs both now and in the future, as it meets the demographic challenge of a workforce in which nearly a third of workers are over 50. That includes working with the Construction Industry Training Board to ensure that there is a strategic focus on future skills needs, and to increase significantly the number of approved apprenticeship standards. The sector will also aspire to increase the number of apprenticeship starts to 25,000 a year by 2020, and will work with professional institutions and the higher and further education sectors to ensure that all those training for or working in the industry are able to develop and increase their skills Finally, to ensure that the construction sector is home to more sustainable, profitable businesses, the standard business model needs to change to one that is based on strong integrated supply chains and higher levels of collaboration. Key to that is a boost in the sector’s exporting capability, driven by our new investments in digital and manufacturing technologies to make the most of a market that is estimated to be worth £49 trillion between now and 2030. We will also ensure that construction firms have better access to the capital that the industry needs to invest and grow. That will include taking account of existing funding streams and the conclusions of the patient capital review, which aims to increase the availability of long-term finance to innovative firms History shows that the business community is best placed to identify what firms really need, and the Government will be there to support them. Sector deals rely on committed and visionary leadership. I therefore thank Andrew Wolstenholme, the sector deal champion, and the whole Construction Leadership Council, without whom this ambitious deal would not have been possible. After the statement I shall be visiting Battersea power station, where I will meet the leading members of the sector who have been so influential in bringing the deal to fruition The sector deal will drive economic growth, create well-paid, highly-skilled jobs in every part of the UK, and improve lives across the country. It represents a shared commitment to achieve those goals by establishing a strategic partnership between the Government and the sector, which we will seek to strengthen in the years ahead.