Weekly Policy Update |
up to Friday 6th June 2025
Information provided by National Constructing Excellence
The week in policy
Royal Town Planning Institute (RTPI) calls for local net zero plans
On Thursday 29 May, the RTPI published new research on the merits of integrating energy planning and town planning in order to achieve net zero goals. The current laws require local plans to contribute to the achievement of net zero, but the RTPI argue that this obligation is too weak. Instead, the RTPI is calling for this requirement to become statutory and enforceable, with a clear legal duty for all local plans to be net zero compliant with nationally defined, enforceable criteria. Dr Victoria Hills, Chief Executive of the RTPI, said that “while the government’s clean energy ambitions are on the right track, they ultimately risk falling short if they cannot be delivered, or face too much resistance at the local level.” She added that “local planners can help alleviate this pressure, and are ready to deliver, but they need the tools and policy clarity to align ambition with reality.”
Ministry of Housing, Communities and Local Government (MHCLG) sets out strategy to embed local investment through the Local Government Pension Scheme
Local government funding is a key challenge for the government. On Thursday 30 May, MHCLG published its findings on reforming the Local Government Pension Scheme (LGPS) in England and Wales. In line with HM Treasury’s consultation on boosting growth through the UK pensions market last year, MHCLG will use the forthcoming Pension Schemes Bill to change the way the LGPS manages capital to embed investment in local communities. As part of this, the government will include a requirement for funds to work with local authorities and regional mayors to ensure collaboration and support objectives on local growth and clean energy.
Skills England publishes report on sector evidence to support growth and skills
Skills England published findings of their analysis and engagement with sectors on the growth and skills offer. The report found that technological change is a major driver of changing skills needs, especially in digital and technology sectors. Similarly, there are significant skill shortages in construction and manufacturing but an acute demand for skills at levels 4 and 5, particularly in advanced manufacturing and digital sectors. Foundation and shorter duration apprenticeships are suggested within the report to not only attract talent in the construction sector, but to offer flexible training options to quickly develop necessary skills for construction projects.
MHCLG summarises feedback on local government reorganisation
MHCLG published feedback following their February request for local government reorganisation proposals. They clarified how final proposals will be assessed, noting that while criteria are not weighted, decisions will be made based on overall judgment and available evidence. MHCLG reiterated that a population of 500,000 or more is a guiding principle, not a fixed requirement, and proposals involving boundary changes must be well justified and clearly mapped. Emphasis was placed on demonstrating how proposals will improve service delivery, particularly in areas like social care and special educational needs, and how risks will be managed where services may be split. Councils were also encouraged to strengthen collaboration, ensure consistent data use, and engage with local communities. Further detail is also expected on how proposals will support devolution and neighbourhood governance.
Chartered Institute of Building (CIOB) launch client guide
CIOB hosted the launch of their second edition of their client guide with Mike Reader MP, Labour’s champion for construction. The guide is a resource for construction clients providing expert guidance on project structure and management as well as providing information to empower clients with the knowledge and skills they need to succeed and includes some of our guidance.
NAO report on Improving local areas through developer funding
A report published this week by the National Audit Office concludes ‘Developer contributions support the delivery of vital new infrastructure and affordable housing for local areas, but they have significant limitations. Current policy is not reliably delivering the infrastructure funding required for new developments, even where it may be financially viable to do so.’ Improving local areas through developer funding
In the news
UK office construction drops to 10-year low – FT
Ministers to hand more than £1bn to Lower Thames Crossing in spending deal
Rachel Reeves to back Manchester-Liverpool rail link in transport spending boost
Reeves pledges £15.6bn for regional transport | Construction Enquirer News
Over 1,300 finished flats lying empty in Gateway 3 logjam | Construction Enquirer News
Inside Housing – News – Retrofit funding for social homes could save NHS £85m a year
Spending Review hopes fuelling industry optimisim, RLB says | News | Building
Slide in construction output eases but jobs-cutting hits five-year high | News | Building
Coming up next week
Monday 9 June: MHCLG will hear oral questions in the House of Commons.
Tuesday 10 June: The Built Environment Committee will hear oral evidence for their New Towns: Practical Delivery Inquiry.
Spending Review – Wednesday 11 June: The Chancellor Rachel Reeves will set out the detailed spending plans for individuals departments for the next three year