Rachel Reeves: All you need to know
An expert has suggested that the Government will not hit a key target thanks to Rachel Reeves. Steven Mulholland, CEO of the Construction Plant-hire Association, highlighted that new Office for National Statistics (ONS) figures showed construction vacancies to be down by more than 24% in just a year. This underlines a “simple truth”, he said – Rachel Reeves’ tax hikes are “piling unsustainable pressure on the sector, making it harder for firms to hire and retain the people needed to deliver Labour’s 1.5million new homes”.
The specialist added: “SMEs, which make up 95% of the sector, are being hit from all sides: higher National Insurance, rising build costs through regulation such as the Future Homes Standard, and soaring energy prices that feed into every project. Some of the reasons why activity is now falling at the steepest rate since Covid, with the number of homes completed in London already down 12% year-on-year.
Rachel Reeves’ tax hikes are making things harder for businesses, critics suggest. (Image: Getty)
Steve Mulholland is CEO of the Construction Plant-hire Association (Image: Steve Mulholland)
“If the Chancellor presses ahead with looming inheritance tax changes at the next Autumn Budget, the situation will only deteriorate – fewer projects, more job losses, and a killer blow to the wider supply chain needed to deliver Labour’s 1.5million homes pledge.”
Steve Reed, who replaced Angela Rayner as Housing Secretary following her resignation, issued what officials described as a “call to arms” at a meeting with developers last week.
Pledging to “build, baby, build”, he said the Government was “doubling down on our plans to unleash one of the biggest eras of building in our country’s history and we are backing the builders all the way”.
Steve Reed is the new housing secretary. (Image: Getty)
One of those present at the meeting told the PA news agency they had detected a “definite change in tone”, with Mr Reed focusing on areas beyond planning reform, such as mortgage availability, Government support for home buyers and the costs faced by developers.
They said: “I think we are already seeing a broader look and engagement from that secretary of state level than maybe we did, which can only be positive, but clearly it’s very early days.”
Adding that officials had shown a different perspective under Mr Reed’s direction, they described the new Housing Secretary as “someone who is clearly a doer”.
