UK market view: Q2 2024

With a general election now due to take place on 4 July, this report, produced during the pre-election period may, like much of the country, may feel somewhat in limbo.  

Currently, polls predict a change in governing party, but it will take time for new policies to have an effect if this transpires. Furthermore, financial constraints are likely to limit what is possible, particularly in the short-term, and it would be unwise to expect anything too fundamental to change this year.  

Clarity on many government sectors will only become available once a spending review has been conducted. Similarly, projects will take time before getting approval, but even if it takes time before construction starts, consultancies should benefit, as plans are worked up.  

Even if money isn’t instantly forthcoming, a new government can very quickly change impressions and policies. Labour has already announced they will merge the National Infrastructure Commission and Infrastructure and Projects Authority. Aimed at better defining plans, designs and costs from the start, the hope is that improved structuring of such projects from the outset will deliver improved outcomes. The National Infrastructure and Service Transformation Authority’s remit will include looking at the bigger picture, in providing policy advice and supporting with strategy, as well as focusing on project specific issues through delivery assurance and contract negotiations.  

Boosting housing should also be high-up on a new government’s agenda. While lower levels of building activity can be pinned on higher interest rates, which are out of their control, planning reform and increased support for local authorities are both potential sources of support for the industry. Again, for construction, neither of these will change overnight, but consultancy work will pick-up earlier, and the hope is that as we move through 2025, progress starts becoming evident. 

Read our full report for more analysis.