Labour housing policy 2025 is taking shape after a major cabinet reshuffle that introduced new ministers for housing, construction and infrastructure. With Steve Reed, James Murray and Chris McDonald now in key positions, the construction industry is watching closely to see how Labour will deliver on its promises of 1.5 million new homes, stronger infrastructure and better project delivery. This article explores the new leadership and what it means for the built environment across the UK.

Unless you’ve been living in a cave, you can’t help but have noticed the big changes in government announced recently.

While cabinet reshuffles are common, largely unremarkable affairs, the fact that this one came about by the very public resignation of Deputy Prime Minister Angela Rayner meant that all eyes were on PM Kier Starmer.

For those in construction the reshuffle took on an extra level of significance as Rayner had also held responsibility for housebuilding, not only pushing the 1.5 million homes target but ensuring significant funds were secured for the development of affordable homes, and reintroducing housing targets for local authorities. It also meant that the sector, at least on housebuilding, had a seat at the very highest levels of government – although with responsibility for 8% of GDP and as a crucial employment and growth area one could argue that the sector should already enjoy senior cabinet representation, but I digress…

Starmer was apparently always planning a reshuffle at this point in order to freshen things up after a tricky first year in office, but the resignation of the Deputy PM perhaps forced more seismic change that originally planned. Whatever the case, it means new faces in the ministerial roles that most closely affect the sector.

Here, I’ve summarised the key players along with some thoughts on how they may approach their respective briefs:

Contents

• Steve Reed – Housing

• James Murray – Infrastructure

• Chris McDonald – Construction Minister

• Time to Deliver

• FAQs

The Rt Hon Steve Reed OBE MP – Secretary of State for Housing, Communities and Local Government

The architect of the ‘Build, Baby, Build’ catchphrase, Steve Reed has previously served as Shadow Communities minister and was highly critical of the then Conservative government’s attempts at planning reform. He also has some practical experience in the delivery of housing having chaired the Vauxhall Nine-Elms Battersea regeneration board, which oversaw the regeneration of 20,000 homes, during his tenure as leader of Battersea Council.

His apportionment has been welcomed by the sector, for the most part, although there is pressure on Reed to both deliver and to maintain the commitments fought for by his predecessor. Per reports in Inside Housing, Mark Washer, group chief executive of Sovereign Network Group said the appointment of a “strong” secretary of state in Steve Reed shows “housing has maintained its central place in the government’s agenda.”

“He will need to make sure the department and its 1.5 million-home milestone carries the same weight in Cabinet.”

It’s hard to disagree with that. ‘Build, Baby, Build’ indeed…

James Murray MP – Infrastructure (as part of role as Chief Secretary to the Treasury)

One of the most unexpected moves in the reshuffle was the promotion of Darren Jones to a senior post. Despite only previously holding a junior ministerial title Jones was often the most visible spokesperson for the government in media, a sign of trust from the top and an act of loyalty that has been repaid with a position as Chancellor to the Duchy of Lancaster and a position in the cabinet office.

The move means that Jones vacates his brief in the treasury and with it, his role in overseeing the National Infrastructure and Service Transformation Authority (NISTA), it has recently been confirmed. This is seen as a blow to the sector as Jones is highly thought of be senior figures in the sector.

As Rachel Reeves’ new number two, James Murray will now pick up the mantle. Despite having no direct infrastructure experience in his past, Murray has an understanding of construction project delivery from his time as deputy mayor for housing for the London Assembly under Sadiq Kahn.

He’ll need to draw on all of this as he works with the sector to deliver on existing HS2 commitments, whilst also progressing Northern Powerhouse Rail and new runways at two of the UK’s busiest airports.

Chris McDonald MP – Parliamentary Under-Secretary of State at the Department for Business and Trade, with responsibility for construction

The big news for the sector was undoubtedly the appointment of Chris McDonald as construction minister, succeeding Sarah Jones, who moves to the home office.

While strictly speaking the construction minister role is a junior position, the sector’s economic and strategic importance means that it’s a vital function. Thankfully, Mr McDonald has plenty of experience in the sector, despite being one of the new MPs that joined parliament at the last election.

McDonald has spent the last two decades in the steel industry, including senior roles at Tata where he oversaw the divestment of the Materials Processing Institute and notably also served as its Chief Executive until joining parliament.

This experience is no doubt why he’s been offered a ministerial post so early in his political career, as the government balances the twin tasks of increasing delivery with supporting energy transition.

McDonald becomes the 27th holder of the post in 25 years, let’s hope this one is a long-term bet.

Time to deliver

Initially, the soundbites coming from Downing Street were ‘business as usual’.

On housebuilding, the targets and investment levels previously set all seemed to stand, and commitments on infrastructure were doubled-down on, particularly in the face of proclamations from others during the party conference season, including Reform UK deputy leader Richard Tice advising would-be bidders for Northern Powerhouse Rail projects to not bother, as his party would be tearing up the scheme if elected.

This doubling down reached its crescendo at the Labour Party conference in Liverpool, with Reed leading a photo call and appearing on stage in a red cap bearing his ‘Build, Baby, Build’ catchphrase, something he and the party seem intent to back in behind.

The big eye-catching news from the conference thus far is the announcement of 12 new-towns, with pledges to get shovels in the ground within the parliament. The details are still being rolled out as I write this (on the second day of the conference), but strategic locations have been ear-marked, and the noise from the sector is positive – albeit there is a note of caution on the potential viability of a 40% affordable homes target in the face of cost pressures.

That said, the government is making the right noises, which hopefully gives the sector, investors, and the public more confidence in the feasibility of plans outlined.

For now, it’s all eyes on Liverpool, and it’s over to Starmer and his chosen team to make these plans a reality.