Committee report outlines concern over new towns

A House of Lords committee has warned threats to supplies of building materials and a “perma-crisis” shortage of skilled construction workers could hamper the building of seven new towns.

The Built Environment Committee has today published New Towns: Commit and Build, the third and final report of its inquiry into the Government’s new towns programme.

The report identifies five key barriers that could prevent or delay the delivery of new towns, highlighting the need for greater collaboration between government and industry to ensure the programme can be delivered successfully.

In September last year, an initial shortlist of a dozen new towns was whittled down to a final seven, including Leeds South Bank, and Victoria North in Manchester.

The sole Midlands scheme at Wychavon in Worcestershire was controversially cut from the final list, although the government said it was a “credible development opportunity” that “may continue to be supported” through its existing housing programmes.

A perma-crisis?

In its report, the committee warns that the UK’s reduced capacity to produce and manufacture building materials has left domestic supply chains exposed to global volatility – which could increase the risk of shortages in materials needed to build new communities.

The committee also highlighted the scale of the workforce challenge facing the construction industry, describing it as a “perma-crisis” of an ageing workforce and a lack of younger workers entering the industry.

It said the new town delivery bodies must establish “strong and effective working arrangements” with employers and training providers to establish accredited training and apprenticeships tailored to the requirements of new town developments.

Greater support for MMC

Innovation will also be critical to delivering new homes at the pace and cost required. The report calls for new and innovative technologies to be better integrated into new town design, including modular construction and greywater harvesting.

Such technologies could help accelerate housebuilding and reduce the cost of living in new homes – but the committee said the government has a role to play in removing barriers that prevent their wider adoption.

Call for ‘clarity and decisive action’

The final limiting factor identified by the committee is the need for greater certainty from government that the new towns programme will be delivered.

The built environment sector needs clarity and decisive action to build confidence in the programme and encourage businesses to invest in the capacity, skills and resources required, it said.

The report stressed that government commitments to the new towns programme must now be supported by “practical action” and closer collaboration with industry.

“We recognise that the new towns programme is a massive endeavour and the government has told us that they remain absolutely committed to it. However, our committee has identified the barriers which must be overcome if these new towns are to become a reality,” said Lord Gascoigne, chair of the built environment committee.

“First and foremost, the government must take decisive action and provide the necessary assurances to the key interested parties that the programme will be delivered.

“The government needs to inspire confidence across the supply chain to boost building material availability, secure a steady pipeline of skilled workers, and safeguard the future of energy and water by introducing a national resilience framework plan. It also needs to support the wider use of innovative technologies.

“The committee believes it is possible for the government to overcome the challenges facing the new towns programme, but now is the time to act.”