Blow for Labour as staffing issues threaten housebuilding targets
The construction industry has been hit by a ‘very sharp rise’ in recruitment problems in a blow to Labour’s plan to see 300,000 homes built per year.
Sir Keir Starmer has pledged to reform the planning system and set compulsory targets for councils to ensure 1.5m houses are built in the next five years.
But a report by the British Chambers of Commerce suggests this may not be easy due to a ‘very worrying’ shortage of workers.
![Target: Keir Starmer has pledged to reform the planning system and set compulsory targets for councils to ensure 1.5m new houses are built in the next five years](https://i.dailymail.co.uk/1s/2024/07/15/18/87367711-13636903-image-a-10_1721066120818.jpg)
Target: Keir Starmer has pledged to reform the planning system and set compulsory targets for councils to ensure 1.5m new houses are built in the next five years
It comes just days after FTSE 100 housebuilder Barratt Developments said it would build fewer homes this year.
The firm, which is hoping to merge with smaller rival Redrow in a £2.5billion deal, said it intends to build no more than 13,500 houses in the year to June 2025 compared to 14,000 a year earlier.
The BCC noted that 82 per cent of construction and engineering firms found it difficult to hire staff between April and June.
Staff costs are putting pressure on businesses, with 76 per cent of construction and engineering firms outlining concerns, according to the report.
BCC deputy director of public policy Jane Gratton said: ‘It’s alarming that recruitment difficulties have increased in recent months across all sectors.
The very sharp rise in the construction industry is particularly worrying.
‘People shortages and labour costs are ramping up pressure on firms and holding back growth.
‘We need to prioritise help for people to get back into the labour market. Better planning for skills is crucial.’
The survey of nearly 5,000 companies by the BCC also found issues in hospitality and manufacturing.
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