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Labour’s industrial strategy falls flat for the construction sector

The government’s industrial strategy, published for consultation yesterday, has left the construction industry concerned over future investment.

The UK’s Invest 2035 industrial strategy, acclaimed as a plan “to simplify the investor journey and create long-term, inclusive, secure, and sustainable growth” is set to be unveiled in its final form in spring 2025, alongside a comprehensive spending review. Designed to offer a roadmap for economic growth, the strategy focuses on eight key industrial sectors, including clean energy, creative industries, defence, advanced manufacturing, and digital technologies.

However, one glaring omission has caught the attention of industry leaders: construction is not on the list. Despite its vital role in shaping the UK’s infrastructure and future growth, the sector has been left out of the government’s priorities, raising concerns within the industry.

Chief Executive, Sean Keyes, expressed his disappointment with the oversight, saying:

“The announcement of multi-billion-pound infrastructure investments today marks a significant turning point for the UK’s civil and housing sectors. The scale of these projects, from energy and green industries to logistics and transportation, will not only unlock economic growth but also create the foundation for a more resilient future.”

However, Sean suggests, “We cannot afford to overlook the very industry that builds the foundation of Britain’s future. As announced in the industrial strategy, the government’s focus on eight key growth sectors will undoubtedly provide stability and confidence to give investors a 10-year plan to choose Britain, showcasing how the UK can compete to win on a global stage. However, it is concerning that construction, a fundamental pillar of our economy and an essential driver of infrastructure development, is missing from this list.”

Sean Keyes speaks to The Construction Index, highlighting the central role of construction in supporting all industries, from housing to the infrastructure upon which every sector depends. He warned that excluding construction from the government’s strategic focus could hinder the full potential of the plan, stating:

“Construction is the backbone that supports and enables growth across all sectors, from housing to the infrastructure these key industries rely upon. Without recognising the central role of construction, there is a real danger that the government’s strategy will fail to deliver on its full potential. The omission undermines not only the sector’s contribution to GDP but also its capacity to generate jobs, innovation, and the future-proofed infrastructure required for a thriving economy.”

As the government presses ahead with its industrial strategy, sector leaders like Sean Keyes and Sutcliffe stress the importance of including the construction sector in long-term growth plans.

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Loren Slade, Fundraising Manager, Liverpool Women’s Hospital Charity