In a hurry to get on with things, Labour鈥檚 deputy prime minister who is in charge of housing, communities and local government looks like she might dodge the fallout from the Budget that is blunting optimism in construction

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Source: MHCLG/Flickr

Angela Rayner with London mayor Sadiq Khan visiting the John Lewis store on Oxford Street in September. Last week, Rayner approved plans by M&S to rebuild its store on the same street after a three-year planning saga

Given that one of your party鈥檚 slogans in the run-up to this summer鈥檚 general election was to 鈥済et Britain building again鈥, it is just as well you have a politician who is taking a high-profile involvement in the built environment right now.

The list of schemes in which Angela Rayner, Labour鈥檚 secretary of state for housing, communities and local government for the past six months, has got involved is eclectic.

A housing project in Kent, plans for the new Chinese embassy in London, a data centre in Buckinghamshire, the redevelopment by Marks & Spencer on London鈥檚 most famous street and a tower in the Square Mile 鈥 all have been touched by the hand of the 44-year-old from Stockport, who also doubles up as deputy prime minister.

There will be, no doubt, more to come but one thing seems certain: Rayner looks to be positioning herself as a friend of builders.

The decisions over M&S and the data centre are testament to that while her intervention on plans to build 8,500 homes in Kent came after local planning officials had recommended that they be refused.

She wants to get stuff done. She鈥檚 hands-on. It鈥檚 still early days, but she has a lot to offer and could be really good for the industry

Mark Robinson, chief executive, Scape

There may be gripes and grumbles about the Chinese embassy and City tower decisions 鈥 this week that scheme鈥檚 developer, without naming Rayner, made pointed remarks about its benefits in the wake of the City recommending it for approval 鈥 but Rayner is coming across as someone who wants to get cracking and is in a hurry to do it. It is difficult to think of a more high-profile politician since the late John Prescott more than 20 years ago who recognises the importance of the industry and its beneficial impact.

鈥淚 really like her,鈥 enthuses Mark Robinson, chief executive of public sector procurement specialist Scape. 鈥淪he wants to get stuff done. She鈥檚 hands-on. It鈥檚 still early days, but she has a lot to offer and could be really good for the industry.鈥

In the lead up to the election, the Labour party leader Keir Starmer and shadow chancellor Rachel Reeves were keen to be seen as being on the side of development. There was a photo opportunity for the pair at Mace鈥檚 scheme to build a new headquarters for HSBC near St Paul鈥檚 Cathedral in March, while in its manifesto, Labour promised to put building things at the heart of the country鈥檚 economic recovery.

Now prime minister, Starmer, in between gloomy talk about the state of the country鈥檚 economy, has made headlines with plans to build 1.5 million homes and get 150 infrastructure projects signed off by the end of this parliament.

鈥淲e will send a very clear message to the nimbys,鈥 he said last week, 鈥渢he regulators, the blockers, the bureaucrats, the alliance of naysayers, the people who say Britain can鈥檛 do this, we can鈥檛 get things done in our country. Well, we say to them, you no longer have the upper hand. Britain says yes.鈥

While his soundbites get the headlines, it is Rayner who appears to be tasked with getting Britain building.

Her plans to overhaul the planning system will include allowing planning officers to approve applications without permission from committees of councillors if they comply with local plans and the National Planning Policy Framework, the update version of which is coming out today.

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Keir Starmer and Rachel Reeves visited Mace鈥檚 HSBC site in the spring when they were in opposition. Labour has put building and reforming the planning system at the heart of the country鈥檚 economic recovery

Her M&S decision was also hugely symbolic. It had been refused by her predecessor Michael Gove.

He also took an interest in the built environment; before M&S, he had refused plans for the Tulip, a tower scheme by Foster & Partners slated for a site next door to the Gherkin in the City 鈥 although, to be fair, he was agreeing with a decision made by London mayor Sadiq Khan to throw it out.

The following year, in 2022, Gove also put the brakes on the redevelopment of the ITV Studios site on London鈥檚 Southbank 鈥 a legal decision on which has still not been made despite a promise that it would be by the end of last month.

But, along with his critical rhetoric about housebuilders, Gove was seen by many as being anti-developer and, for those in this camp, his decision on M&S鈥檚 plan to rebuild its Marble Arch flagship was the high watermark of this position. By giving it the green light, Rayner has planted herself firmly on the other side of the fence.

Robinson, who started on the tools when he was a teenager, says it is up to the industry to repay Rayner鈥檚 boldness. 鈥淚 hope the industry can deliver,鈥 he admits, 鈥渂ut I鈥檓 confident that we can. Whatever challenges come up, the industry finds a way of doing it.鈥

鈥淏ut鈥. There is always a but.

While Rayner is being viewed positively, her colleague at Number 11 has not been so well received. Chancellors who increase taxes never are, but the Budget in October caught many on the hop with where the rises to plug the 拢22bn black hole and so on were coming from.

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This week, Arcadis said it had put back what it called a full recovery in the sector by a year to 2026. A month before the Budget, it had been predicting a meaningful recovery by the middle of 2025. The national insurance (NI) tax rises were partly to blame for the revision, it said.

Last week, the PMI index also flagged worries that the hikes had dampened firms鈥 positive outlook for the coming 12 months. Again, the NI rises were partly to blame, the index said.

The chancellor鈥檚 tax raid in the Budget dealt a blow to thousands of small businesses, especially construction firms 鈥 many of whom are already on a knife edge

Amit Oberoi, executive chairman, the Considerate Constructors Scheme

Amit Oberoi, executive chairman of the Considerate Constructors Scheme, says: 鈥淪etting new targets on infrastructure, loosening planning rules and pushing back against blanket local opposition can take you only so far when policies elsewhere are actively harming those firms and contractors needed to build the future that Keir Starmer envisions.

鈥淚 understand the need for tough choices to be made to balance the country鈥檚 books, but the chancellor鈥檚 tax raid in the Budget dealt a blow to thousands of small businesses, especially construction firms 鈥 many of whom are already on a knife edge. The decision to raise national insurance contributions could mean more are sent into administration.鈥

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Source: MHCLG/Flickr

Rayner and Greater Manchester mayor Andy Burnham (right) visit Victoria North in Manchester, which is turning unused brownfield land into 15,000 new homes along with parks and shops

Only time will tell. One way to deal with the rises is to pass them on and Arcadis clearly thinks that this will happen, given it is predicting that project costs will go up by 1%.

Andrew Davies, the chief executive of Kier, which employs 10,000 people, admits the NI rise 鈥渨ill have an impact鈥 but he adds: 鈥淲e鈥檒l deal with it 鈥 that鈥檚 what you have to do when you鈥檙e running a company. You don鈥檛 run away from [issues], you just deal with them.鈥

The government will be hoping that most of its suppliers will be able to do just that. Because Rayner鈥檚 interventions will quickly start to look a little hollow if they cannot.