A stark contradiction lies at the heart of the government’s ambitious building agenda: the very local authorities tasked with delivering a new wave of housing and infrastructure are warning that widespread project delays are now the norm. A new survey reveals that despite Whitehall’s sweeping reforms, councils feel hamstrung by financial uncertainty and skills shortages.
The survey, conducted by the Local Government Information Unit and procurement body Scape, found that 64% of senior council officers are seeing construction projects delayed. When asked to identify the cause in their own words, many simply wrote “funding”. The call for more predictable financing was near-universal, with 94% of officers demanding greater certainty through multi-year funding settlements.
Caroline Compton-James, Scape’s deputy chief executive, said authorities were “galvanised” to deliver for communities but faced clear constraints. “The ask for long-term funding settlements, where local authorities and their partners will be able to invest in pipelines of work across those settlements, is really key,” she stated.
This local-level caution casts a shadow over Westminster’s plans. Labour entered government promising to be the party of “the builders, not the blockers” and has pledged to enable 1.5 million new homes in England during this parliament—a target some in the industry view with scepticism. Chancellor Rachel Reeves altered fiscal rules in her first budget to allow more borrowing for investment, and further planning changes are expected this month.
Reforms meet reality on the ground
The government’s central legislative response is the landmark Planning and Infrastructure Act, described by the Ministry of Housing, Communities and Local Government as bringing “seismic reforms” to a system that “for too long has held back growth.” A ministry spokesperson said it would make it easier for councils to seize land and approve developments for homes and critical infrastructure.
Yet on the frontline, officers report that problems often arise long before shovels hit the ground, during the scoping, planning, or contracting stages. Beyond funding, 40% pointed to skills shortages as a major obstacle, while more than a third (34%) warned that Labour’s proposed reorganisation of local government funding could create short-term delays. Regeneration, housing, and transport projects were flagged as most vulnerable to disruption.
This financial pressure is not new; local authority budgets have been strained for over a decade. Labour recently announced a shake-up of the funding formula for England’s councils, designed to redirect resources from affluent areas to more deprived ones. The government points to its latest settlement, making over £78bn available for the next financial year—an increase of over 6%.
Despite this, the survey indicates deep-seated concern, with 40% of officers not convinced their authority is well-placed to deliver its construction plans. This uncertainty threatens key initiatives like the flagship £5bn Pride in Place scheme, where councils are expected to play a pivotal role in allocating funds via new neighbourhood boards.
