Labour members gathered in Liverpool this week for the party鈥檚 first conference in government for 15 years. Daniel Gayne and Tom Lowe report
The sun was shining at last year鈥檚 Labour conference, the good weather adding to a sense of optimism for a party that was clearly on the brink of power.
This year? Almost incessant rain. Despite July鈥檚 general election triumph, the mood has been somewhat dampened in Liverpool by months of warnings about the need for spending cuts and tax rises and a string of embarrassing donor scandals which have taken the shine off Labour鈥檚 front bench.
Here are the key talking points from the conference for construction
Reeves smiles through the fiscal pain
This goes someway to explaining the alarmingly wide smile deployed by Rachel Reeves for the majority of her speech on Monday in an apparent attempt to give the audience a much needed morale boost.
The chancellor promised there would be no return to austerity and insisted the autumn budget, due on 30 October, would be a plan with 鈥渞eal ambition鈥�. This is despite the Labour leadership having spent much of their 11 weeks in power so far warning of tough times ahead as the government tries to repair the damage which it says the previous Conservative government did to the country鈥檚 finances.
Already the Treasury has scrapped a series of major infrastructure projects including the 拢2bn Stonehenge tunnel, ruled out reinstating the cancelled northern leg of HS2 and announced a review of the 拢20bn New Hospital Programme.
And despite Reeves鈥� efforts to put a positive spin on her speech, there was precious little in terms of spending announcements to get the audience smiling as much as she was.
YIMBY and net zero lobbies riding high
It was not doom and gloom across the entire conference, though. Labour鈥檚 development and environmental lobbies were both in great spirits at their respective rallies on Sunday evening.
Both groups are riding high with their favourite issues at the top of their party鈥檚, and now the government鈥檚, agenda.
This time last year, Labour鈥檚 pro-development camp crammed into a dour, stuffy hotel room in the middle of the afternoon to discuss their progress and their plans for the year ahead.
The atmosphere among delegates in the room that day might be described as quietly confident. If the sense that day was of a movement on the rise, then this year鈥檚 Labour YIMBY Rally, in its glitzier environs, was that of a movement whose time had come.
On the day the conference began, the government announced a call for evidence on a brownfield passport policy, which aims to speed up development, while chancellor Rachel Reeves used her speech on Monday to promise 鈥渟hovels in the ground鈥� and not to 鈥渓et tough decisions dim our ambition for Britain鈥�.
Attempting to address the rally over the din of busy networkers, Vistry鈥檚 Stephen Teagle said it was 鈥渇antastic to see a government that is not normalising a housing crisis鈥� and applauded the moves the government had taken in its first 80 days to fix planning.
Over at SERA, Labour鈥檚 environment campaign, former Undertones singer Feargal Sharkey played as opener to a bombastic speech from the energy secretary Ed Miliband. The former Labour leader thanked SERA for 鈥渟ustaining the cause, the movement, the argument鈥� during opposition. 鈥淲e didn鈥檛 just win an election, we won an argument鈥�, he said, describing how voters had rejected Rishi Sunak鈥檚 attempt to win them over with anti-net zero rhetoric.
He said the creation of the National Wealth Fund and GB Energy, the overturning of the onshore wind band and a rush of solar power consents was 鈥渏ust the start鈥� and said combatting climate change was 鈥渨hat I stayed in politics for鈥� after losing the 2015 general election.
鈥淲e鈥檙e not going to screw it up, we鈥檙e going to make sure that we use this moment and use this majority to transform the country,鈥� he concluded.
Whether Labour achieves its goals for housing and net zero remains to be seen. But what鈥檚 clear from this year鈥檚 conference is that the interest groups pushing on both issues from within the party are now strong and growing in confidence.
No answers for housebuilders over nutrient question
While the two aforementioned group will find common cause in championing Labour鈥檚 planning reforms, which it wants to use to boost construction of houses and energy infrastructure alike, they may run into conflict over some of its finer points, particularly as reforms concern environmental protections. Iit will be interesting to see how the government attempts to satisfy both.
At a reception on Tuesday evening, Housing Today caught up with Neil Jefferson, chief executive of the Home Builders Federation, who by luck had bumped into housing minister Matthew Pennycook earlier that day in the lunch queue.
Jefferson pressed the minister on a range of matters, including proper funding for social landlords and a new first time buyer scheme, but also the key issue of nutrient neutrality, which housebuilders feel is unreasonably holding up development.
According to Jefferson, Pennycook was unable to provide any strong assurance on the issue, and a discussion of the topic on an earlier panel showed the political difficulties Labour faces in navigating it.
The panel, which was focused on how the government could 鈥榞et Britain building鈥� while promoting nature鈥檚 recovery, saw Baroness Taylor of Stevenage, the Lords minister for housing and local government, asked about the government鈥檚 plans on nutrient neutrality.
鈥淚鈥檒l put my hands up and say I was one of the two peers who fought this tooth and nail in the house of lords,鈥� she said, explaining that 鈥渘ot enough thought鈥� had gone into the Tories鈥� policy and that it would have led to new housebuilding 鈥渢urning out more stuff into our rivers and seas鈥�.
鈥淭here are ways of mitigating it, but we couldn鈥檛 carry on with the process as it was,鈥� she added. 鈥淲e are working on a clear plan about how nutrient neutrality can be dealt with. So please be assured there is active work, as we speak鈥�
At the same panel session, Abi Bunker, director of conservation and external affairs at the Woodland Trust, said she was looking forward to hearing how Labour would be 鈥渉olding firm on nutrient neutrality鈥�.
Inside business day at Labour conference
Monday at Labour conference is business day, and that means a full day of senior party figures talking to leaders across British industry behind closed doors. Fortunately, 黑洞社区 had a source on the inside. Unfortunately, the headline from the sessions was 鈥渘othing new鈥�.
Business secretary Jonathan Reynolds apparently told attendees that 鈥渄evolution is key to the industrial strategy鈥�, which is set to be published next month. Our friend, a senior figure at a major contractor, said he was hoping it would include a plan for modern methods of construction.
Rachel Reeves, predictably, spoke about 鈥済etting Britain building鈥�, while also promising to halve consultancy spend. Keir Starmer, apparently, arrived late, answered four questions from the chair and left without doing a Q&A.
Our contractor friend did find out one interesting tid-bit from his conversations with politicians. We understand that the industry can expect major capital spending plans to come next Spring, rather than the autumn statement.
Small builders wait for answers on how government plans to support them
Another question that did not receive a clear answer from ministers was how Labour planned to help smaller firms in the construction industry.
Brian Berry, chief executive of the Federation of Master Builders, cut a frustrated figure at an SME4Labour fringe event.
The housing minister, Matthew Pennycook, had been scheduled to appear on the panel, but was replaced by a relay of backbench MPs.
Berry said earlier this year that engagement with Labour had been 鈥減oor鈥�, and, asked by Housing Today whether this had changed since the election, he answered rather unhappily: 鈥淲ell, we were expecting the housing minister but he is not here鈥�.
He then turned to the Labour MP tasked with deputising and asked what the government鈥檚 plan for council house building was. 鈥淚鈥檓 not here to speak on behalf of the minister,鈥� the MP floundered in response.
Eyebrows raised, Berry turned back to Housing Today鈥檚 questioner and added: 鈥淪o, it鈥檚 ongoing鈥�.
Perhaps trying to make amends, Pennycook spoke in strong terms about the importance of SME housebuilders in a later panel session hosted by the New Statesman and Nationwide, explaining that the industry was 鈥渙ver reliant鈥� on a handful of volume builders and needed to diversify.
Support for small firms was also a theme in the 鈥榖ig construction debate鈥� on Tuesday morning, which saw a number of the major industry trade bodies come together as well as a brief appearance from the new industry minister, Sarah Jones MP.
But it was Mike Reader, who had been a director at Mace until he was elected as MP for Northampton South in July, who was left to answer a question on what the government should do about the late payment issue.
Reader said he was a 鈥渂ig advocate of project bank accounts鈥� and said there had not been 鈥渢he commercial skills in the client base in the public sector to make them work鈥�, although he said they had worked well in National Highways.
鈥淲e are looking now at prompt payment as a government and dealing with late payment particularly,鈥� he said. 鈥淚 would advocate very strongly for punitive measures where people don鈥檛 pay on time and there are technology solutions that can help us to start to monitor that鈥�.
He suggested that firms should be blocked from new government contracts if they cannot prove they are a prompt payer, noting that: 鈥淚f you create the stick [鈥 to drive businesses to pay on time, they will do it鈥�.
Concerns over mixed messages on infrastructure
The same panel included Kate Jenning, chief executive, Association for Consultancy & Engineering Group. She called on the government to press on with its plans to combine the National Infrastructure Commission (NIC) and the Infrastructure and Projects Authority (IPA) into a new body called the National Infrastructure and Service Transformation Authority (NISTA).
鈥淚 think the NIC, most of us will agree, they pretty much always say the right thing,鈥� she said. 鈥淭he problem has been that the government hasn鈥檛 committed to the things they have recommended. So I think the new government needs to get on with whatever it is doing with the NIC and IPA, because the IPA has the pipeline for the big infrastructure stuff, the NIC makes very sensible recommendations for how to do stuff, very difficult questions, so we just need to get on with it and commit to it鈥�
Manchester mayor Andy Burnham gave a barnstorming speech at a panel event hosted by Transport for the North on how Labour could improve connectivity in the region. Arriving halfway through the event, he immediately took to his feet and launched into a 15-minute tirade against the previous government鈥檚 broken promises on the levelling up agenda.
Criticising Rishi Sunak鈥檚 decision to cancel HS2鈥檚 northern leg between Birmingham and Manchester as typifying a London-centric political culture which seemed happy to tolerate regional inequality, he warned the truncated line would become a 鈥渕onument to the British mentality鈥�.
Burnham called for the Treasury under Rachel Reeves to 鈥渦ndergo a big change鈥� if it wanted to fulfil the chancellor鈥檚 pledge in her conference speech to ensure growth across the country, and recognise this would not happen without transformative investment in regional transport upgrades. Conveniently, Burnham is currently trying to secure 拢17bn of public funding for a new rail line between Liverpool and Manchester which would form the western end of the Northern Powerhouse Rail scheme, although transport secretary Louise Haigh appeared to cast doubt on the mayor鈥檚 prospects this week, claiming that the money was not 鈥減ractically available鈥�.
Ed Miliband鈥檚 one-man crusade to keep spirits up
The first thing conference attendees saw as they emerged through the security gates into the main exhibition area was a small, two-storey show home. On its wall was a large screen saying 鈥淚 was built in a factory last week, right here in Liverpool鈥�. This was a 鈥榋ero Bills鈥� home manufactured by modular firm Starship in partnership with Octopus Energy, which is promising to 鈥渆liminate鈥� energy bills for homeowners for at least ten years. It works by using a combination of passivhaus design, solar panels, heat pumps and batteries which keep energy requirements ultra low while generating most of the energy the house needs.
More from the Labour party conference
Keir Starmer promises 鈥榙uty of candour鈥� law by next April as called for by Grenfell families
Reeves promises budget with 鈥榬eal ambition鈥� and defends cuts to key projects
HS2 cuts will leave line as a 鈥榤onument to the British mentality鈥�, Manchester mayor says
Ministers seek views on brownfield planning passport scheme to speed up development
黑洞社区 safety remediation acceleration plan will be brought forward this autumn, says Rayner
Ministers seek views on brownfield planning passport scheme to speed up development
Delivery of new homes 鈥檕ver-reliant on a handful of volume builders鈥�, says housing minister
Around 1,000 are already being built and Octopus, which was inviting people in to the model home to take a look around, believes the concept is about to go stratospheric. More than 50 partners are signed on, including Vistry, Bellway, Hill, Persimmon and Clarion, with a combined target to build 100,000 of the homes by 2030.
The prominence of the home outside the conference鈥檚 main gate shows Labour鈥檚 endorsement of the idea, and it fits nicely into the party鈥檚 plans to decarbonise the UK grid by 2030. This is a huge task, criticised by the Tories as unachievable and even dangerous, but energy secretary Ed Miliband used his speech to describe the ambition as the 鈥渂iggest economic opportunity of our time鈥�. Blaming the Conservatives for leaving homeowners at the 鈥渕ercy of global fossil fuel markets鈥�, he promised to use a huge expansion of renewable energy capacity to 鈥渂reak the power of the petrostates and dictators over our energy policy鈥�. The former party leader鈥檚 giddily optimistic speech was one of the few instances of genuine positivity from Labour鈥檚 top team.
Unsurprisingly, decarbonisation and net zero was a ubiquitous topic on panels across the conference fringe. At a breakfast event on Monday, Leeds MP Alex Sobel suggested greening the grid was almost the low hanging fruit of the net zero transformation. 鈥淲e need to decarbonise rapidly and the energy system actually is probably the easiest place, because it is effectively further away from people and can be done with big industrial partners,鈥� he said.
Old Trafford team make major display
The Old Trafford regeneration team had a surprisingly large presence in the exhibition centre. Having only been announced as leading the development masterplan a few days ago, staff from Foster were out explaining their hopes for the scheme with two large models to help them.
One architect told 黑洞社区 that the development team was hoping to strike a deal with Freightliner to take over a freight terminal site near the stadium, which would allow the team to open up the wider masterplan, increase the number of homes included to more than 20,000, and potentially introduce a passenger rail station to the area.
According to reports by the BBC from elsewhere in the conference, Andy Burnham said it was possible that public cash could be used for infrastructure.
The Greater Manchester mayor reportedly called for the government to fund plans to connect an under-construction freight terminal near Wigan to the West Coast Main Line, which could provide an alternative to the site currently used near Old Trafford.
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