Clive Feeney is group managing director of LHC Procurement Group
Labour’s determination to build 1.5 million homes over the lifetime of this parliament has created a national debate and one crucial question: how?
There are several obstacles. First, there’s the construction skills shortage: the Home Builders Federation warns that for every 10,000 homes planned, 30,000 people will be needed to build them. Where do we find them?
“It’s time to look beyond the volume housebuilders to see what these new public-private partnerships could contribute”
Then there is the issue of convincing volume housebuilders that the conditions are right and the economy strong enough for them to step up investment and production, rather than sit on their hands.
Planning laws? That will all take time. Greenbelt, brownbelt, greybelt? For discussion.
So there is no silver bullet to get 1.5 million homes constructed, but rather a series of measures focusing on different parts of a long and expensive process. It is here that public sector framework organisations can play a useful role.
The deputy prime minister, Angela Rayner, is determined to hand back more control to the regions. She has pledged to work with local leaders “to deliver the most ambitious programme of devolution this country has ever seen”, in a bid to drive economic growth and help get Britain building again.
This creates an opportunity for construction firms to pitch for new business, supporting the creation of local growth plans, which aim to identify economic clusters and build on local advantages. The new business pitches will also help local authorities and social landlords fulfil local housing goals.
Making it work
Based on recent conversations I’ve had with senior figures in the sector, there are probably well over a thousand framework providers in the UK helping to knit together local supply chains, and helping councils and registered social landlords find new partners to work with. So it’s time for organisations like this to step forward and make these commercial and strategic relationships work to the benefit of the country’s housing target.
I think it’s time to look beyond the volume housebuilders to see what these new public-private partnerships could contribute in terms of a new golden age of council housing. Our view is that, with each agency or organisation doing what they do best and providing technical help to both parties, not only will the delivery of new homes be speeded up, but housing associations and authorities will be assured of getting the best value for their communities.
For construction businesses, the pipeline of work that should come from frameworks creates greater certainty and helps protect jobs for contractors who may be worried about the future. And having inside knowledge of the client’s longer-term pipeline provides opportunities for contractors to plan investment and work more efficiently, improving their resource planning and identifying cost efficiencies – and driving economies of scale.
From a social value point of view, too, frameworks offer the chance to help local communities at the same time. They are delivered via regional business units that understand the communities that they are active in.
The recent King’s speech setting out the government’s legislative agenda marked an important moment. For Labour, it represented the first opportunity to deliver change after a lengthy period in opposition. What bigger change could there be than to turbo-charge housing delivery, social or otherwise, and transform the lives of thousands?
