The British government has announced a £600 million investment to combat a growing labor shortage in the construction sector, a key component of its economic growth strategy.
The funds will be used to train tens of thousands of workers in order to meet the ambitious goal of building 1.5 million new homes by 2029 and upgrading national infrastructure.
Workforce Gaps Threaten Growth Plans
Construction currently accounts for roughly 6% of the UK’s GDP, supporting a wide range of related industries. However, labor shortages—exacerbated by Brexit and the COVID-19 pandemic—have left the sector with 38,000 unfilled positions as of early 2025.
Compounding the issue is a rapidly aging workforce, with an estimated 500,000 skilled workers expected to retire within the next 10 to 15 years.
"We’re determined to get Britain building again," said Finance Minister Rachel Reeves in an official statement, and continued: “We’ve removed planning obstacles. Now we’re tackling the lack of skilled construction workers head-on."
Training and Upskilling Initiatives
The government’s package includes £165 million to expand vocational training courses in colleges and £100 million for upskilling both current and returning workers.
An additional £32 million will come from the Construction Industry Training Board to fund over 40,000 training placements per year for the next four years.
In total, the initiative aims to produce up to 60,000 qualified bricklayers, electricians, engineers, and carpenters by the end of the decade.
The announcement comes ahead of next week’s Spring Statement, where Reeves is expected to unveil new austerity measures to meet fiscal targets. These will be accompanied by updated economic forecasts from the UK’s fiscal watchdog.
