.svg)
Nearly two-thirds of senior council officials say construction projects in their areas are facing delays, raising concerns about the government’s ability to deliver its ambitious housing and infrastructure agenda.
The findings come ahead of Chancellor Rachel Reeves’s upcoming spring forecast, as local authorities remain central to Labour’s pledge to accelerate development across England. Despite the government’s promise to be “the builders, not the blockers,” many councils report significant obstacles in moving projects forward.
Funding Pressures and Financial Uncertainty
A recent survey found that 64% of senior council officers are experiencing delays in construction schemes. Around 40% said they do not believe their local authority is currently well positioned to successfully carry out its building plans.
When asked to identify the primary cause of delays, many respondents cited a single issue: funding. An overwhelming 94% called for greater certainty over long-term financing arrangements, including multi-year funding settlements that would allow councils to plan and invest with confidence.
Local authority budgets have been under strain for more than a decade. Although Labour has introduced reforms to the funding formula—shifting resources from wealthier regions to more deprived communities—concerns remain about short-term stability.
Reorganisation and Skills Shortages Add Pressure
Beyond financial challenges, 34% of respondents warned that Labour’s proposed restructuring of local government could cause temporary disruption. Meanwhile, 40% pointed to skills shortages as another major hurdle.
Regeneration schemes, housing developments, and transport infrastructure projects were identified as the areas most vulnerable to delays. Officials noted that setbacks frequently occur during early stages such as scoping, planning approvals, and procurement processes.
The survey was conducted by the Local Government Information Unit (LGIU) in partnership with public sector procurement body Scape.
Caroline Compton-James, deputy chief executive of Scape, said councils are eager to deliver but constrained by uncertainty.
“Local authorities across the country are motivated and ambitious to serve their communities,” she said. “However, long-term funding clarity is essential so they can invest confidently in sustainable pipelines of work.”
Government Response and Reform Plans
Labour has committed to enabling the construction of 1.5 million homes in England during this parliament, though some industry experts question whether that target is realistic.
In her first budget, Chancellor Reeves adjusted fiscal rules to permit higher borrowing for capital investment, including funding for transport infrastructure and social housing. Additional planning reforms are expected later this month.
The Ministry of Housing, Communities and Local Government defended the government’s approach, highlighting what it described as landmark planning reforms aimed at unlocking development and removing bureaucratic barriers.
A spokesperson said recent financial settlements represent the most significant step yet toward improving stability for English councils, with more than £78 billion allocated for council finances next year—an increase of over 6% compared with the previous year.
Pride in Place Initiative
Councils are also set to play a leading role in Labour’s £5 billion “Pride in Place” initiative, which will channel funding into local neighbourhoods. Newly formed local boards will determine how funds are allocated within communities.
Despite the government’s growth-focused agenda, rising costs, policy uncertainty, and workforce challenges continue to slow progress on the ground—leaving questions over whether Labour’s building ambitions can be fully realised in the years ahead.
