Although the government is on a mission to reduce red tape, quangos and bureaucracy, it has announced the creation of a new Construction Skills Mission Board.
Its role will be to “develop and deliver a construction skills action plan and provide strategic leadership to the construction sector” – a bit like the Construction Industry Training Board was once expected to do, and very like the role that the Construction Leadership Council’s people and skills workstream has more recently sought to carve for itself.
Like the Construction Leadership Council (CLC), the Construction Skills Mission Board will have two co-chairs – one a government minister and one from the construction industry (selected and appointed by government). Also just like the CLC, the industry-side co-chair of the Construction Skills Mission Board is Mark Reynolds, executive chair of Mace.
To help make a difference to the labour shortages across the industry, the government is putting in £100m to fund 10 new Technical Excellence Colleges and £165m to help existing colleges deliver more construction courses.
Skills Bootcamps in the construction sector will also be expanded, with £100m of funding to ensure new entrants, returners, or those looking to upskill within the industry will be able to do so.
All Local Skills Improvement Plan (LSIP) areas will be able to access a £20m pot to form partnerships between colleges and construction companies to boost the number of teachers with construction experience.
Construction will also be one of the sectors that will benefit from new foundation apprenticeships backed by an additional £40m, which will be launching in August 2025. As part of this new offer, employers will be provided with £2,000 for every foundation apprentice they take on and retain in the construction industry, on top of fully funding the training costs through the new Growth & Skills Levy.
A further £100m of government funding, alongside a £32m contribution from the Construction Industry Training Board (CITB) will fund more than 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships. The CITB also plans to double the size of its new entrant support team (NEST) programme to support SMEs in recruiting and retaining apprentices.
An additional £80m capital fund will support employers wanting to deliver their own bespoke training.
Mark Reynolds, co-chair of both the Construction Skills Mission Board and the Construction Leadership, said: “This is fantastic news and demonstrates that government is committed to working with the construction industry to deliver 1.5 million 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.”
Construction Industry Training Board chief executive Tim Balcon said: “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 1.5 million 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 of house-builder Barratt Redrow, said: “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.”
Balfour Beatty chief executive Leo Quinn said: “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.”
