UK's Burnham Proposes Largest Post-War Council Housing and Devolution Plan

en.Wedoany.com Reported - UK Prime Minister-in-waiting Andy Burnham has recently proposed a plan, driven by a "Number 10 North" office, to launch the largest council housing construction program since the post-war era and to devolve more powers to regions across the UK. The built environment sector has broadly welcomed this, but multiple institutions and businesses have simultaneously pointed out that the government needs to more fully recognize the funding pressures and short-term cost challenges facing the industry.

In his speech, Burnham stated that the plan would be overseen by a new branch of Number 10 Downing Street based in Manchester, and would also devolve more powers to regions including London to ensure "good growth in every postcode." Paul Rickard, CEO of Pocket Living, believes that focusing on empowering metro mayors and local authorities to support economic growth is "absolutely right," and that this enhanced devolution and focus on innovative, place-first good growth (including large-scale urban regeneration and housing) constitutes the necessary bold thinking. Rickard also expressed great satisfaction in seeing housing directly linked to the success of the UK's overall economic strategy.

Gavin Smart, Chief Executive of the Chartered Institute of Housing, stated that Burnham's speech "rightly placed housing at the center of the national debate," but implementing large-scale council housing construction requires sustained investment and effort across the entire sector. John Guest, National Head of Social Housing at RSM UK, pointed out that the industry needs to see more details on specific plans and financing methods. While affordable housing completions are increasing, substantial government investment is urgently needed to meet current supply targets. Guest emphasized that due to limited fiscal space, it remains unclear how additional social housing will be funded, while persistent headwinds in the economy and cost pressures from the Iran conflict have increased short-term uncertainty.

David Crosthwaite, Chief Economist at the Building Cost Information Service (BCIS), argued that Burnham only proposed construction targets without specifying who would build them, how they would be financed, or how delivery would be accelerated, and that "what is conspicuously missing is any acknowledgment of the short-term cost pressures on businesses." He stated that labor costs remain the primary driver of construction projects, and the current government's introduction of increased employer National Insurance contributions has added to the burden on the supply chain.

Richard Caten, CEO of planning firm Ardent, said that if regions are given the powers, certainty, and resources to advance key infrastructure, they will be better able to attract investment and unlock development. Richard Frudd, Senior Director at planning consultancy Quod and head of its Leeds office, stated that devolving powers over urban regeneration, industrialization, and utilities to regions has "transformative potential," which could accelerate housing construction, unlock stalled urban regeneration projects, and drive the delivery of major industrial and logistics schemes. Frudd added that this would send a strong signal that the North is truly open for business.

Valentin Boboc, Senior Economist at the Institute of Economic Affairs, welcomed Burnham's focus on devolution but emphasized that the question is whether there is a willingness to grant local authorities regulatory independence alongside responsibilities and powers. Boboc pointed out that the key to devolution promoting growth lies in regions being able to test different regulatory environments and fiscal plans and compete with each other. If it merely involves allocating funds while everything else remains subject to the same rules, it will not bring about substantive changes to growth barriers.

It is widely expected that Burnham will become the next Prime Minister on July 20 if no one challenges him in the potential Labour leadership contest. Nominations for the contest are expected to open on July 9 and close on July 16.