Government review warns of 'inexorable decline' in construction

The Farmer Review of the UK Construction Labour Model, commissioned jointly by the Department for Communities and Local Government and the Department for Business, Energy & Industrial Strategy, published a damning verdict on the sector this morning.

Its most radical proposal for change was the introduction of a ‘levy’ on schemes, which charges additional tax of up to 0.5% of the scheme’s value if it does not support innovation or training.

The report slammed the construction sector’s “dysfunctional training model, and its lack of innovation and collaboration, as well as its non-existent research and development culture”.

Led by Mark Farmer, chief executive of real estate and construction consultancy Cast, it made 10 recommendations, including using the residential sector to pilot offsite development.

It also called for wholesale reform of the current Construction Industry Training Board (CITB), including powers to fund and drive forward both appropriate training and innovation.

It also called on government to use its “education, fiscal, housing and planning policy measures” to modernise the industry.

Mr Farmer said: “What is clear to me following the nine months spent conducting this review is that carrying on as we are is simply not an option.

“The construction industry doesn’t have the impetus needed for this change, it requires external action to initiate change.”

The report said that more people were leaving the industry each year rather than joining, “placing increasingly severe constraints on its capacity to build housing and infrastructure”.

It said the industry was not attractive to school leavers and graduates, and the skills crisis could be made critical by Brexit reducing migrant labour.

Jesse Norman, industry minister, said: “[The review] makes a strong case for change in the industry, identifies areas where it needs to improve, and sets out areas for action. We will now carefully consider his recommendations.”