At the end of a very busy year, here鈥檚 a reminder of the stories that stood out for our readers
Every week 黑洞社区 publishes the big impact stories that affect companies working in construction, and here are some of the long-running stories that have demanded our attention at multiple points during the year.
The general election and a new Labour government
Even before it was announced by a rain-sodden Rishi Sunak outside Number 10 to the sound of protestors blasting out D:Ream鈥檚 Things Can Only Get Better, July鈥檚 general election was a foregone conclusion.
Everyone, within the industry and the country at large, fully expected Labour to win; the only question was by how much. When Starmer rolled in with a majority of 174 seats, the biggest since Tony Blair in 1997, it seemed to spell the end of the prolonged period of chaos in Westminster that had done so much to hold back confidence and investment.
The new government promised growth, but concerns about how exactly this would be achieved mounted over the summer as the party repeatedly warned of the dire state of the public finances. It was not until the autumn Budget that the picture became clearer as chancellor Rachel Reeves unveiled 拢40bn in tax rises, including a 拢25bn hike in employers鈥� national insurance and a rise in the national living wage.
As the business community reacted angrily to many of the announcements, the government was forced to defend a major boost to public spending which the Office for Budget Responsibility (OBR) does not think will have a lasting impact on growth. While the fact that industry commentators are still talking about the tax rises on an almost daily basis says a lot about the impact which her measures have had, others have seen reasons for optimism. Major supply side reforms, including in the planning system, and a series of ambitious targets for housing and decarbonisation, have raised the prospect of a more promising year ahead for construction.
>> New government sets out plans for housing and infrastructure in first King鈥檚 Speech
>> Autumn Budget 2024: key measures for construction at a glance
The collapse of ISG
ISG鈥檚 collapse was the biggest contractor failure since Carillion at the start of 2018.
At the beginning of the year, the firm - which employed more than 2,000 staff, was dismissing claims about the state of its finance as 鈥渋naccurate and false鈥�. Rumours about the health of the company disappeared for a few months 鈥� although the departure of Matt Blowers in February confirmed to many things were not right鈥揵ut they resurfaced again in the early summer.
Then, in July, a bolt from the blue and hope of salvation: the company was 鈥渄ays away鈥� from being sold. But days turned into weeks and by early September the optimism generated by the news that a deal would be struck was disappearing fast.
The week ISG eventually went into administration began with more noise that something was up. Then on the Thursday, rumours swept the industry the company would go. That evening its chief executive Zoe Price confirmed the news and the following day it formally went into administration. It collapsed with debts of more than 拢1bn and owing trade creditors more than 拢300m.
Here鈥檚 how 黑洞社区 covered the story this year:
>> Offices closed and sites shut as ISG set to file for administration, chief executive confirms
>> ISG鈥檚 collapse: a huge blow to construction that raises urgent and difficult questions
>> ISG set to be sold 鈥榠n coming days鈥�
Plans to redesign of Liverpool Street Station
It has been one of the most talked about projects in London since the pandemic. Network Rail鈥檚 plans to redevelop Liverpool Street station immediately provoked an outcry from heritage campaigners when first unveiled in 2022. Things got worse for the 拢1.5bn scheme, designed by development partner Sellar and lead architect Herzog & de Meuron, when a planning application was submitted the following year and the full scale of the grade II-listed station鈥檚 proposed transformation was revealed.
Rumours soon began to swirl that a redesign was in the works, confirmed first by 黑洞社区 in May this year. Then, Network Rail dropped a bombshell by announcing a radically different proposal in November, designed by a different architect, Acme, and with Sellar nowhere in sight.
A planning application for the new scheme is due to be submitted in January, and with the same heritage groups which blasted the former proposals already expressing similar levels of dismay about the new designs, the controversy looks set to continue for some time yet.
Here鈥檚 how 黑洞社区 covered the story this year:
>> Sellar鈥檚 拢1.5bn Liverpool Street station plans hit by more than 2,000 objections
>> Sellar making changes to 拢1.5bn Liverpool Street station redevelopment following flood of objections
>> Sellar to cut down controversial tower on 拢1.5bn Liverpool Street station redevelopment
>> Network Rail unveils 鈥榗ompletely reimagined鈥� plan for Liverpool Street station redevelopment
>> Campaigners rip into Acme鈥檚 new Liverpool Street station plans
Barratt seals Redrow takeover deal
The merger of two of the country鈥檚 largest housebuilders was undoubtedly the biggest news in the housing market this year.
Barratt and Redrow announced in February that they had agreed a deal for the former to acquire the latter鈥檚 entire share capital to create a housebuilding giant with a combined turnover of 拢7.5bn.
Redrow鈥檚 founder Steve Morgan said at the time that the 拢2.5bn deal - between the UK鈥檚 biggest and sixth biggest housebuilders - would not have been necessary in a healthier housing market.
The Competition and Markets Authority had its concerns about the impact of the deal itself on the health of the market, raising concerns about an expected 鈥渟ubstantial lessening of competition鈥� in one local market in Shropshire.
Nonetheless, Barratt officially took ownership of Redrow鈥檚 shares in August after shareholder approval in May, with the competition concerns still outstanding, meaning the two businesses had to continue to operate independently.
It was not until October that Barratt Redrow satisfied the CMA and were given permission to proceed with its integration plan, which Barratt said could result in 850 job losses.
There was very nearly a second mega-merger in 2024. After two failed bids, Bellway鈥檚 拢720m proposal to take over Crest Nicholson in July meant a deal looked likely. But the larger firm dawdled over committing to a firm offer before abandoing plans in August, with analyst speculating that the perceived risks were too high.
Here鈥檚 how 黑洞社区 covered the story this year:
>> Barratt鈥檚 acquisition of Redrow: the numbers and key players
>> Barratt deal would not have been necessary if not for 鈥榙ire鈥� housing market, says Redrow founder
>> Barratt and Redrow to complete 拢2.5bn merger after clearance from competition watchdog
>> Barratt Redrow anticipates closure of nine divisions as part of integration programme
The row of demolishing Oxford Street鈥檚 M&S store
If ever there was a litmus test of the new government鈥檚 commitment to reforming the planning system and to 鈥榞et Britain building鈥�, then the saga over whether the country鈥檚 best-known retailer could rebuild its flagship store was it.
At the start of the year, M&S was putting the finishing touches to its appeal 鈥� which had been granted the previous autumn 鈥� against the then communities secretary Michael Gove鈥檚 decision to refuse it planning last summer on the grounds of its heritage and carbon impacts.
The appeal began in February and a couple of weeks later 鈥� at breakneck speed given the protracted delays that have hit the ITV Studios scheme on London鈥檚 Southbank 鈥� a High Court judge quashed Gove鈥檚 decision.
Fast forward several months to a new government and Gove鈥檚 successor Angela Rayner decided M&S could go ahead, after all, and knock down its main base of nearly 100 years on London鈥檚 Oxford Street.
The retailer鈥檚 chief executive Stuart Machin, who has not been shy to use punchy language throughout the process, said: 鈥淚 am delighted that, after three unnecessary years of delays, obfuscation and political posturing at its worst, under the previous Government, our plans for Marble Arch have finally been approved.鈥�
Opponents were less pleased, calling it a 鈥渕issed opportunity鈥�. The director of Save Britain鈥檚 Heritage Henrietta Billings said: 鈥淭he government has chosen the easy option when it had a real chance to show leadership and ambition.鈥� Watch this space.
Here鈥檚 how 黑洞社区 covered the story this year:
>> High Court overturns Gove鈥檚 decision to reject M&S鈥檚 Oxford Street plans
>> What does the High Court鈥檚 ruling mean for M&S鈥檚 Oxford Street plans? Lawyers give their views
>> To retain or rebuild? M&S case shows the industry needs rules
>> Rayner backs M&S鈥檚 Oxford Street plan to demolish flagship store
>> Heritage, sustainability and dysfunction: the lessons of the M&S decision
Industry reckons with damning findings of Grenfell Inquiry
On 4 September came construction鈥檚 day of reckoning as the Grenfell Tower Inquiry published the findings of its second phase. The conclusions were damning.
The seven-volume report found that decades of government failure, a slapdash construction culture and the dishonesty of building product manufacturers had, in combination, resulted in the deaths of 72 people at the hands of the fire on 14 June 2017.
Those responsible for the disaster bore that responsibility 鈥渋n most cases, through incompetence, but in some cases through dishonesty and greed,鈥� the inquiry chair Martin Moore-Bick concluded.
Despite being branded as 鈥渄ishonest鈥� in the report, product manufacturers Arconic, Celotex and Kingspan came out fighting, defending their involvement in the disaster.
Nonetheless, the government promised to bar companies named and shamed in the Grenfell Inquiry report from being given government work in future.
The industry is still waiting for the government鈥檚 full response to the report.
>> Decades of central government failure led to Grenfell tragedy, says inquiry
In other news鈥�
Here鈥檚 a reminder of 10 more of our most popular stories that stood out for our readers this year:
1. Lendlease to pull out of UK and sell its overseas construction business
Published May
Lendlease is pulling out of the UK and selling its overseas construction businesses so that it can focus on its operations in Australia.
Click here to read the full article
2. Familiar woes to blame as 拢400m turnover Essex contractor set to sink into administration
Published February
Essex contractor Readie Construction has told staff to start looking for new jobs after the logistics and warehousing specialist confirmed this morning it was heading for administration.
Click here to read the full article
3. Laing O鈥橰ourke鈥檚 Des O鈥橰ourke dies after short illness
Published July
Ray O鈥橰ourke鈥檚 younger brother Des has died after a short illness. He was 75.
Click here to read the full article
4. Lendlease lands Crystal Palace stadium expansion
Published July
Lendlease has won the race to build the new main stand at Premier League club Crystal Palace, 黑洞社区 can reveal.
Click here to read the full article
5. Tunnelling to HS2 station at Euston to start next year
Published March
HS2 is hoping to start tunnelling work from Old Oak Common station to the mothballed Euston station next year.
Click here to read the full article
6. Mace on hunt for new construction head after shock departure of Andrew Jackson
Published October
Mace鈥檚 group deputy chief executive Jason Millett is taking temporary charge of the firm鈥檚 construction business after previous boss Andrew Jackson left yesterday.
Click here to read the full article
7. Osborne on the brink as firm set to appoint administrators
Published April
Familiar problems of rocketing inflation, subcontractors going bust and jobs being put on hold are being blamed after historic industry name Geoffrey Osborne said it was preparing to appoint an administrator.
Click here to read the full article
8. Canary Wharf unveils first images of what revamped HSBC tower will look like
Published July
The first images of what the revamped HSBC tower in Canary Wharf will look like have been released.
黑洞社区 revealed last month KPF had won the architectural competition to reimagine the 45-storey building at 8 Canada Square which the banking giant is planning to move out of by 2027.
Click here to read the full article
9. 800 still working on Co-op Live as embattled project runs 24 hours a day in race against time to open
Published May
Around 800 workers are still working on the delayed Co-op Live venue in Manchester two weeks after it was due to open, with the project running 24 hours a day as contractors race against time to get the embattled scheme ready this month.
Click here to read the full article
10. London QSs among top earners as Hays says higher salaries behind employees switching jobs
Published January
Partners in cost consulting firms in London and health and safety directors in the capital are the best paid in the construction industry, according to the latest Hays salary survey.
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