LEADING figures from across Scotland’s construction and housebuilding sectors hope the arrival of new UK prime minister Andy Burnham will lead to greater cross-border cooperation on key issues impacting investment, skills shortages, and housing delivery.
While construction and housebuilding policy are largely devolved matters, UK-wide public sector plans, taxation, and infrastructure funding will have direct consequences north of the border. Industry leaders have told Project Scotland of their desire for the new UK Government to provide momentum and help drive positive change.
A spokesperson for Homes for Scotland said the organisation would welcome a ‘stronger strategic partnership’ between the UK and Scottish Governments to support housing delivery, investment and economic growth across Britain.
The spokesperson added, “Many of our members operate on a GB-wide basis, so policy divergence on taxation, regulation, infrastructure, skills and access to finance can materially influence where investment is directed. Greater coordination would help ensure Scotland remains competitive and that businesses can plan and invest with confidence. There is also a clear opportunity for the UK Government to use its wider economic and investment agenda to support housing as essential national infrastructure. Where additional UK housing investment generates Barnett consequentials, we would strongly encourage the Scottish Government to prioritise these funds for housing delivery, including infrastructure and site enablement. Closer collaboration on skills, supply chains, innovation and development finance would also help strengthen capacity, improve productivity and support the delivery of more homes across all tenures.”
Those sentiments were echoed by Paul Kelly, MD at AS Homes and Briar Homes, who said the biggest opportunity for SMEs is creating the confidence to invest and grow. “We have the capacity to deliver more homes, regenerate complex brownfield sites and work in partnership with housing associations, but this depends on viable developments and a stronger pipeline of deliverable land. A more joined-up approach between the UK and Scottish Governments, alongside faster planning decisions and policies that recognise the value SMEs bring to local economies and communities, would help unlock more land for development, bring more homes to the market and support sustainable growth across Scotland.”
Alison Condie, regional MD Scotland at Barratt Redrow, said planning remains the biggest bottleneck for housebuilders, and while planning policy itself is devolved, ‘chronic under-resourcing’ of planning departments is a UK-wide problem. “A new prime minister serious about unlocking housing delivery should back investment in planning capacity and skills across the board, so local authorities on both sides of the border can process applications faster. Skills and workforce also need urgent attention. We need a UK-wide commitment to funding construction apprenticeships and supporting trades qualifications, because the labour shortage doesn’t stop at the border and Scotland feels the knock-on effect of any UK-wide squeeze.”
Mark Nolan, operations director at Cruden Homes, described the new PM’s comments about valuing hard hats as much as graduation caps as a positive step. He wants to see those words backed up with practical support to help employers attract, train and retain the next generation of skilled workers. “While housing is devolved, the UK Government still has an opportunity to work alongside the Scottish Government and industry to create the right conditions for growth. Long-term investment in all-tenure housing, continued support for apprenticeships and removing unnecessary barriers that slow projects down would give businesses the confidence to plan ahead and invest in their people. Closer collaboration across the UK on skills, innovation and improving productivity would also benefit the sector, helping us deliver the homes Scotland needs while creating jobs, strengthening local supply chains and leaving a lasting legacy in communities.”
Sharon Miller, MD of SELECT, the trade body for Scotland’s electrotechnical contracting industry, also welcomed the comments regarding valuing hard hats – adding that meaningful cross-border cooperation is required to make this a reality in Scotland. “Upskilling the next generation is crucial, yet ongoing feedback from our members is that the costs of employing apprentices and adult trainees is becoming a big disincentive. The Scottish Government is currently reviewing contribution rates and there is a clear opportunity to create a win-win. Increasing apprenticeship numbers and funding for the next five years could tackle both youth unemployment and the construction skills crisis, which will in turn increase economic growth across Scotland. Introducing regulation and protection of title for the profession of ‘electrician’ would also ensure our net zero future is delivered safely by fully qualified operatives.”
Paul Mitchell, MD of the Scottish Building Federation, highlighted that Westminster still retains essential levers that could immediately relieve growing pressures on building firms. “Reversing recent National Insurance contribution increases and threshold adjustments would offer immediate relief to employers managing soaring operational costs. Crucially, a national strategy to tackle youth unemployment, supported by practical financial incentives and more nuanced adjustments to the ever-increasing National Minimum Wage rates, would help address falling apprentice numbers and secure our future talent pipeline. Finally, reducing or removing the 20% standard rate VAT on housing refurbishments, repairs and maintenance would unlock substantial sector potential. Lowering this tax burden would drive consumer demand, stimulate construction activity and help tackle the housing emergency. A thriving Scottish construction industry is essential for national growth, and bold fiscal leadership from Westminster would provide much-needed momentum.”
Dr Jocelyne Fleming, Scottish policy and public affairs lead at the Chartered Institute of Building (CIOB), said the new PM has ‘rightly recognised’ the important role housing and infrastructure play in delivering wider social and economic outcomes, with construction central to achieving these ambitions. She emphasised the sector’s need for long-term certainty. “Construction needs confidence in policy direction to invest in people, skills and build capacity. After all, projects require significant upfront investment over long periods of time. The greatest contribution the UK Government can make to Scotland’s construction sector is providing supportive, long-term certainty on the policy levers it controls, particularly taxation and energy. One practical step would be reforming VAT on repair and retrofit. The current tax structure financially incentivises demolition and rebuild over renovation and retrofit. Addressing this long-standing imbalance would support widespread improvements to housing stock and provide an economic boost to the sector while helping to level the playing field between repair and retrofit and demolition and rebuild.”
Fergus Adams, director at East Kilbride-based engineering consultancy Dougall Baillie Associates, said the new PM could be positive for Scotland’s construction sector, particularly if his focus on regional investment, housing and infrastructure continues. “If it includes Scotland to the same extent as northern England then we may benefit from increased funding for affordable housing, transport, regeneration and energy projects, including offshore wind, grid upgrades, hydrogen and port infrastructure. His support for devolution and reindustrialisation could also create opportunities in industrial developments, logistics hubs and public-sector developments. Scottish design teams and contractors with local employment, apprenticeship, sustainability and social-value credentials may be better placed to win public contracts if, as he has indicated, procurement rules shift in that direction. My only concern is that housing and planning are largely devolved, so the impact will depend on cooperation between Westminster and the Scottish Government. Risks remain though, especially pressure on public finances. The books have to balance, after all. So, Scotland may lose out to ‘the north’, where Andy Burnam’s allegiance appears to lie. Only time will tell.”
Stuart Fleming, director at Will Rudd Edinburgh, said the new PM’s appointment suggests a welcome sense of optimism for the construction sector, adding that a clear 10-year vision can restore business confidence by unlocking development opportunities and future-proofing supply chains. “While England pledges to roll out technical pathways for 14-year-olds, Scotland must build on its established frameworks with a bolder vision that firmly elevates construction as an exciting, high-value career choice. To ease industry pressures, Holyrood and Westminster must closely align on infrastructure funding, planning regulations and standards to keep Scotland an attractive place to invest and build. Furthermore, ongoing support for North Sea oil and gas infrastructure is essential to deliver a just transition and the evolution of our renewables sector. Strengthening collaboration between both governments will help to streamline project delivery, address skills shortages and drive sustainable growth for both countries.”
Innes Smith, chief executive of The Springfield Group, said a ‘swift and significant’ contribution could be made by revisiting the decision that blocked Ming Yang’s proposed £2 billion investment at Ardersier. “Investment of this scale would strengthen the UK’s renewable energy supply chain and send a powerful signal that Britain is open for business. As growth is a priority for the government, we also need intervention to accelerate planning for major infrastructural investment to unlock Scotland’s potential as a renewable energy leader.”
Michael Cairns, director at celsiusplumbers.com, said it is encouraging that Andy Burnham is considering giving schoolchildren more opportunity to study technical skills from the age of 14 while continuing their education at school. “Like many people, we in the plumbing and heating industry see the challenges facing businesses, families and the wider communities where we live and work. Ongoing economic uncertainty and the increasing adoption of AI agents are just two examples of the challenges facing many people today. Internally, we have been discussing the important role that further education colleges can play in supporting young people aged 16 and over who decide that a technical or vocational route is the right choice for them. Finally, it will be interesting to see what action the UK Government takes to support apprentice recruitment and how this will be reflected in Scotland.”
