Labour's Housebuilding Pledge Deemed 'Impossible' by Construction Leader
Rob Wood, the chief executive of construction materials firm Breedon Group, has declared that Labour's ambitious target to build 1.5 million homes before the next general election is destined to fail. In a stark warning, Wood argues that the government has not provided adequate support to the construction industry, making the goal unattainable from the outset.
Cement Supply and Regulatory Challenges
Wood is urging ministers to safeguard the UK's domestic cement supply, which faces significant threats from inconsistent carbon regulations, high energy costs, rising labour expenses, and increasing imports. He emphasized that without a robust domestic cement industry, the country would become overly reliant on overseas products, jeopardizing construction projects.
"The day they announced it, it was already impossible. I can't believe they still talk about it," Wood stated, highlighting the disconnect between Labour's promises and the reality on the ground. He pointed out that with time running out and current construction rates lagging, the target is far from achievable.
Declining Housing Additions and Economic Pressures
According to the Office for Budget Responsibility, net additions to Britain's housing stock are projected to decline from an average of 260,000 annually to 220,000 in 2026-27. Labour's relaxation of planning regulations has yet to translate into accelerated housebuilding, with the OBR noting that a substantial upturn in construction activity is not expected until 2030, beyond the 2029 election deadline.
Wood also highlighted broader economic challenges, including inflationary risks from global conflicts like the Iran situation, which strain mortgage rates and consumer confidence. He warned that these factors undermine the government's ability to rely on the domestic construction sector for its industrial strategy, potentially threatening jobs.
Industry Struggles and Infrastructure Concerns
Demand for key construction materials, such as concrete, aggregates, and asphalt, declined for the fourth consecutive year in 2025, as reported by the Mineral Products Association. Wood linked this to crumbling infrastructure, which he says hinders productivity growth.
"We don't have enough schools, we don't have enough hospitals, our road network is in a terrible state of repair, and the government keeps talking about productivity," Wood remarked. He argued that inefficient distribution networks, including rail and road systems, are major barriers to improving economic output.
Breedon Group's Financial Performance
In its annual results for the year ending December 2025, Breedon Group reported a nine per cent revenue increase to £1.7 billion. However, pre-tax profit fell by 16 per cent to £105 million, despite a record post-pandemic free cash flow generation of £133 million, up 17 per cent from 2024. The company described the construction sector as "subdued," with economic volatility overshadowing signs of potential growth.
The Ministry for Housing, Communities and Local Government was approached for comment but has not yet responded to these criticisms.
