London: Britain will invest £600 million ($775 million) to train construction workers and address severe skills shortages that threaten its goal of building 1.5 million homes by 2029 and driving economic growth, the government announced on Saturday.
Housebuilding and infrastructure development are central to the Labour government’s economic strategy. While construction accounts for approximately 6% of the country’s GDP, it also plays a crucial role in supporting growth across various other industries.
“We are determined to get Britain building again. That’s why we are tackling the barriers to constructing 1.5 million new homes and modernizing our roads, rail, and energy infrastructure,” Finance Minister Rachel Reeves stated in a Treasury email on Saturday. “We’ve overhauled the planning system that was holding this country back, and now we are addressing the shortage of skilled construction workers.”
Britain’s labor shortages in the construction sector have worsened since the 2016 Brexit vote and the COVID-19 pandemic, which collectively led to higher vacancy levels than before the pandemic.
Recent official data revealed that there were 38,000 unfilled construction jobs in the three months leading up to February. Additionally, the industry’s workforce is aging, with the Construction Products Association estimating that 500,000 employees—a quarter of the total workforce—will retire within the next 10 to 15 years.
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To mitigate these challenges, the government plans to allocate £165 million to expand construction courses at colleges and £100 million to upskill existing, new, and returning workers. The Construction Industry Training Board, representing both homebuilding and infrastructure sectors, will contribute an additional £32 million to fund over 40,000 industry placements annually for the next four years.
In total, the initiative is expected to train up to 60,000 bricklayers, electricians, engineers, and carpenters by 2029, ensuring a steady supply of skilled workers to meet the country’s construction demands.
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Reeves is expected to outline further fiscal strategies during her spring statement next Wednesday, alongside new economic and public finance forecasts from Britain’s fiscal watchdog.
