So today, Nick, we are talking about the new government in the UK. One of the biggest headlines so far is about their plans to increase housing. This will have a knock-on effect, whether immediate or in the future. Let’s break down some of those plans and discuss what they could mean for the construction industry. What’s the big message from Labour at the moment?
Good morning. The biggest commitment from the Labour government is a long-term housebuilding plan. They have committed to building 1.5 million new homes over the course of the new Parliament. This is a significant commitment to the building industry, and it will have implications regarding the availability of labour, materials, and the infrastructure needed to support this construction programme. Additionally, there have been discussions about changes to the planning rules to free up land for future development, and re-imposing the mandatory targets for local councils that were abolished under the conservative government.
Let’s break down Labour’s housing plans. With the commitment to 1.5 million new homes, what should construction businesses be thinking about?
This commitment focuses on new build construction. The industry will need to gear up by increasing workforce availability. One significant issue will be funding for the building programme. The government has not yet provided clear indications on how they will free up funds for this. Additionally, the availability of skilled workers has been an ongoing issue, especially post-Brexit. There hasn’t been a significant increase in apprenticeships or training to establish a healthy young workforce.
What are some of the specific changes Labour is proposing in terms of Employment Status in the construction industry?
Labour has plans to simplify the discussion around Employment Status, which will be very welcome. Labour’s manifesto outlines changes to Employment Status to simplify this. At present, there are three classes of Employment Status in UK law: employee, self-employed, and worker. Labour intends to remove the "worker" status, leaving only two classes: employees engaged under an employment contract and fully self-employed individuals.
How will this change impact the construction industry?
This change will make the distinction between self-employed and employed much more straightforward, which is beneficial for all industries. The complexity of current employment status tests, based on various case laws, will be reduced. There’s also talk of introducing a statutory employment test to clearly define the difference between employees and self-employed individuals.
It seems like there will be more attention on the benefits of a flexible workforce. How important is this for the construction industry?
Extremely important. The flexibility of the workforce is crucial for the construction industry. Most contractors have a core group of employees and flex their workforce with additional self-employed labour. This has always worked well for the industry and will continue to be essential as we see growth in housebuilding.
Can you reiterate EEBS’s position in supporting the construction industry?
We act as a contracting intermediary. Clients looking to expand their workforce outsource the supply of self-employed subcontractors to EEBS. We provide certainty over the employment status of individuals and simplify the entire CIS management process. This is a win-win situation for both clients and subcontractors.
Thank you for your insights, Nick. I’m sure this conversation will evolve as we get the first budget and as plans are put into place. We’ll keep an eye on this topic together, won’t we?
Absolutely. Watch this space.
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*Image taken from theguardian.co.uk
