Weekly Policy Update |
up to Friday 27th June 2025

The week in policy

Government publishes its industrial strategy 

The UK’s modern industrial strategy aims  to position the country as a global leader in key industrial sectors by 2035. The strategy focuses on advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services. Construction is considered a cross-cutting theme. There is a strong focus on local and regional growth and on leveraging public procurement to support objectives.  The strategy includes initiatives like the strategic sites accelerator, which will allocate over £600m to expedite site development for enterprise zones, innovation districts and infrastructure projects. Investment in skills development and upskilling for high-growth sectors is also a priority, along with increased funding for research and development.  

Government publishes its trade strategy 

Most recently published is the new trade strategy. We will review this and provide insight next week. 

Public Procurement: Growing British industry, jobs and skills – consultation on further reforms to public procurement

The proposals in this consultation aim to build on the changes introduced in the Procurement Act 2023 to ensure that public procurement plays its full role in delivering the Government’s industrial strategy and fostering a resilient economy that supports British businesses and creates good jobs in communities across the country. These reforms will enhance the UK’s economic resilience and strengthen supply chains in line with the Government’s  industrial strategy. They will open up more opportunities for small and medium-sized enterprises (SMEs) and voluntary, community, and social enterprises (VCSEs), which are vital for driving the UK economy. This approach will enable public procurement to advance the national interest while respecting the UK’s international trade commitments.  Public Procurement: Growing British industry, jobs and skills – consultation on further reforms to public procurement.

Over the summer we will be pulling together a response to the Consultation, please feed any views or responses through to the CE team. 

Government launches consultations on transition planning and sustainable finance 

The government committed in its manifesto to require large businesses and the finance sector to have “transition plans” – pathways to ensure their corporate emissions are in line with carbon reduction goals. It has now published three consultations on this and on sustainable finance: 

• A consultation on how businesses should develop and implement credible transition plans aligned with their climate goals and helping to scale the transition finance market.  
• A consultation on new UK Sustainability Reporting Standards, designed to ensure clear, consistent information for investors on sustainability-related financial risks and opportunities.  
• A consultation inviting views on regulation of sustainability assurance services.   

New government/CITB agreement to expand access to construction roles for jobseekers 

The government has announced a new agreement between the Construction Industry Training Board (CITB) and the Department for Work and Pensions (DWP) to expand access to construction careers for jobseekers. The initiative will open up a range of roles, from bricklayers to project managers, with over 40,000 industry placements supported by £100m in government funding and a further £32m from the CITB. 

Climate Change Committee (CCC) releases 2025 net zero progress report 

The government’s official advisory body, the CCC, have released their annual report, Progress in Reducing Emissions – 2025 Report to Parliament. The findings have been discussed in the media as representing good news, with the CCC reporting policy progress, as well as market progress in areas such as electric vehicles. However, and most relevant to BRE, buildings represent a significant gap with CCC highlighting heat pump rollout as a key area where faster action is needed. They call for a policy action to change the relative costs of gas and electricity to incentivise heat pumps and wider electrification. See coverage in the Guardian 

Government responds to Awaab’s Law consultation  

The government have responded to the consultation on Awaab’s Law which aims to address serious housing hazards. From October, the law will mandate that social landlords investigate hazards within 10 working days, provide written summaries within three days, and start repairs within five days, with emergency repairs addressed within 24 hours. Implementation will be phased from 2025 to 2027, starting with damp, mould, and emergency hazards. The policy will be monitored and adjusted as needed, with guidance provided to support landlords and tenants. 

Construction Skills Mission Board launched with £625m committed to skills 

Senior leaders from the construction sector and Government Ministers have launched the Construction Skills Mission to address workforce needs. The Construction Skills Mission Board, chaired by Mark Reynolds, aims to recruit 100,000 workers annually by the end of the Parliament. The government has committed £625m to construction skills and plans to invest £725bn in infrastructure over the next decade. The Board will focus on five key areas: confidence to employ, clear entry pathways, training support, effective funding, and rewarding careers. The initiative seeks collaboration across the sector to ensure successful implementation. 

In the news

• Government wields procurement stick on late payment: https://www.constructionenquirer.com/2025/06/27/government-wields-procurement-stick-on-late-payment/
• UK ministers line up £500mn transport package for Universal theme park
• UK schools and offices not equipped for impact of global heating, report warns | Climate crisis | The Guardian
• Why the government is looking to the Thames Tideway project for ways to fund £14.2bn Sizewell C | Features | Building
• Universal submits planning application for Bedfordshire theme park set to be Europe’s largest | News | Building

Coming up next week

Wednesday 2 July: The Energy, Security and Net Zero Committee will hear oral evidence for their inquiry into building support for the energy transition.  

Thursday 3 July: The House of Lords will hear oral questions on providing further financial assistance to housing associations. Tuesday 24 June: There will be oral questions in the House of Lords on working with local authority leaders on energy efficiency and fire safety measures.