Breakfast meeting | 28 January 2025
Interview with Sarah Jones MP
Minister of State for Construction and Industry, Department for Business and Trade and Department for Energy Security and Net Zero.
Background
Sarah Jones MP was appointed as Minister of State at both the Department for Energy Security and Net Zero, and the Department for Business and Trade, on 8 July 2024, having been elected as the MP for Croydon West, formerly Croydon Central, in June 2017.
Her cross-department role brings up an interesting mix of responsibilities, all of which have major implications for the construction and infrastructure sectors as the government attempts to balance public sector ambitions for economic growth, higher living standards, and better environment outcomes with the reality of constrained public finances and the need to truly engage private sector investment and innovation.
The meeting was held just before Chancellor Rachel Reeves set out her plans to cut through planning and environmental blockers and accelerate a rake of nationally significant infrastructure projects as the key to accelerating delivery of the government’s growth mission. These projects included the much-discussed Heathrow third runway, East West Rail and the Oxford Cambridge Arc, Lower Thames Crossing, a raft of new reservoirs, and a splurge of national wealth fund cash to underpin electric vehicle charging.
Breakfast meeting | 28 January 2025
Interview with Sarah Jones MP
Minister of State for Construction and Industry, Department for Business and Trade and Department for Energy Security and Net Zero.
Background
Sarah Jones MP was appointed as Minister of State at both the Department for Energy Security and Net Zero, and the Department for Business and Trade, on 8 July 2024, having been elected as the MP for Croydon West, formerly Croydon Central, in June 2017.
Her cross-department role brings up an interesting mix of responsibilities, all of which have major implications for the construction and infrastructure sectors as the government attempts to balance public sector ambitions for economic growth, higher living standards, and better environment outcomes with the reality of constrained public finances and the need to truly engage private sector investment and innovation.
The meeting was held just before Chancellor Rachel Reeves set out her plans to cut through planning and environmental blockers and accelerate a rake of nationally significant infrastructure projects as the key to accelerating delivery of the government’s growth mission. These projects included the much-discussed Heathrow third runway, East West Rail and the Oxford Cambridge Arc, Lower Thames Crossing, a raft of new reservoirs, and a splurge of national wealth fund cash to underpin electric vehicle charging.
The conversation underscored how infrastructure is closely linked to the government’s industrial policy and how long-term strategic planning, technological adoption, and a clear commitment to decarbonisation will be essential in ensuring a sustainable and prosperous future for the U.K.’s built environment.
The discussion highlighted the challenges of balancing immediate political pressures with long-term infrastructure goals, covering a range of issues facing the infrastructure sector, including:
- The on-going development of a much anticipated 10-year infrastructure strategy as part of the overall industrial strategy for the U.K.
- The ambitions and progress toward reforming the planning and regulation systems currently holding back infrastructure delivery.
- Work to tackle the skills shortages facing the infrastructure sector and the need to develop a workforce fit for the future.
- Industrial decarbonisation and the role of construction in meeting the U.K.’s net zero goals
- Post Grenfell fire impacts of the U.K.’s approach to building safety.
- Infrastructure investment strategies and the role of the private sector to underpin and drive delivery.
Industrial strategy and infrastructure development
The government’s new industrial strategy is expected in the spring and aims to drive economic growth across eight key sectors, including construction, steel, and critical minerals. A central focus is the need for a 10-year infrastructure strategy to provide stability and certainty for the private sector. Historically, a lack of proper project pipelines has hindered effective delivery, with initiatives often being announced without clear funding or execution plans.
The government intends to move beyond identifying priorities and toward structured delivery frameworks that align public and private sector efforts. Recent work by the National Infrastructure Commission has been vital in producing a raft of important advisory reports that are helping to form a strategic direction for investment. However, this guidance has lacked consistent policy implementation.
The government now seeks to shift focus towards actual infrastructure delivery, ensuring political stability to prevent delays caused by governmental churn. The newly established National Infrastructure and Service Transformation Authority (NISTA) will, when initiated in the spring, play a key role in driving this implementation and coordinating the delivery of projects efficiently.
Successful delivery of the government’s ambition will depend on cohesive government action, industry collaboration, and a focus on tangible outcomes that balance national priorities with local concerns.
"We've been in this position where we have these brilliant people being incredibly wise, giving us very useful reports. And then the policy landscape, because of the political uncertainty, has just not kept pace with the advice that it was receiving."
Sarah Jones MP
Planning reform and public engagement
One of the biggest barriers to infrastructure development is the complexity of the planning system and the delays caused by a failure to bring local communities and stakeholders on board with plans. Efforts to streamline the planning process are central to unlocking growth, particularly in housing and infrastructure.
The Planning and Infrastructure Bill aims to streamline approvals for both the need to build 1.5 million new homes during this Parliament and the nationally significant infrastructure projects needed to drive the economy. Further regulatory reforms—including embracing the recommendations from the recent Banner Review into the use of the Judicial Review process—seek to prevent unnecessary delays.
A key challenge remains public acceptance of large-scale projects, which often face local opposition despite their national significance. The government is committed to improving communication, consultation, and community benefits, such as the delivery of lower energy costs or targeted local investment, to ensure that infrastructure projects gain public support and demonstrate local benefit.
The overarching philosophy of government is that, to achieve its mission to deliver a step change in economic growth and an increase in national living standards, the answer to development plans “can’t always be no.” Instead, development must be proactive while balancing national priorities with local sensitivities.
"The answer can't always be no, but it's got to be the right thing in the right place for a purpose people understand."
Sarah Jones MP
Skills shortages and workforce development
The challenge of driving economic growth through delivery of a portfolio of infrastructure projects while also investing in 1.5 million homes over the next five years and meeting the U.K.’s net zero goals depends heavily on the availability of skilled workers and commitment from government to providing and investing in necessary training.
A major risk is that workforce shortages could delay projects. The government is working across departments to develop a coordinated skills strategy, investing in education, training, and, where necessary, migration policies. By developing a wide-ranging industrial strategy, the government is taking steps to encourage more cross-departmental collaboration on skills and planning to ensure the required infrastructure and housing aligns with economic growth objectives.
In addition, the government is committed to transforming the construction sector through the innovative use of modern methods of construction (MMC), off-site manufacturing, technology, digital twins, and the development of AI-driven project management as a way to increase productivity while reducing reliance on traditional skills.
These approaches can enhance efficiency and cost-effectiveness while reducing the environmental impacts from development. The U.K. is already home to world-leading construction expertise, and exporting these innovations presents a significant economic opportunity.
"If we don't get the skills right, we won't deliver our ambition. I don’t think we can deliver our targets unless we’re using modern methods of construction and new technology, digital twins, AI—we need to be embracing all of this."
Sarah Jones MP
Decarbonisation and the drive to net zero
The transition to a low-carbon economy is a core government priority and central to its infrastructure investment strategy. Construction and infrastructure are seen as vital components of the U.K.’s net-zero ambitions, with clean energy investment expected to drive job creation, economic growth, and long-term cost savings.
Key investments include carbon capture and storage, hydrogen technology, and energy efficiency measures, such as home insulation programmes. However, businesses need support with upfront costs, and future policies must be both ambitious and practical to deliver sustained economic benefits.
The discussion highlighted that many previous green initiatives have struggled with implementation—notably home insulation programmes—and many have questioned whether stronger regulation is needed to accelerate decarbonisation and or whether more government mandates are needed to drive decarbonisation in construction. While some sectors may require stricter targets, the government favours a collaborative approach—working with industry to set clear expectations while balancing mandates with incentives.
The conversation touched on the balance between individual responsibility and systemic change in the push for a lower-carbon future. While there is recognition that individuals should take steps to reduce their carbon footprint, the previous emphasis was on government policies and structures that enable large-scale emissions reduction. The government’s focus is on targeting major polluters and implementing strategic plans, rather than solely relying on behavioural changes at the household level.
“The industrial decarb strategy will sit alongside the industrial strategy. If you do decarbonise, you then become more efficient, you reduce your overall costs, and you reduce your energy costs. The long-term benefits are really clear."
Sarah Jones MP
U.K.’s approach to building safety
The 2017 Grenfell Tower tragedy continues to shape the U.K.’s approach to building safety. The introduction of the Fire Safety Act and Building Safety Act represent substantial progress, but challenges remain in implementation and ensuring affected leaseholders are not left in financial limbo.
The government is currently working on its response to the Grenfell Inquiry to further strengthen building safety measures and ensure that homeowners are in a position to correct past cladding and building failings. It is clear that the construction industry also has significant lessons to learn from this experience, not least given Dame Judith Hackett’s conclusion that the sector had prioritised quick and cheap over safe and good.
At the same time, there is an ongoing debate about balancing deregulation for economic growth with maintaining strict safety standards. While regulatory streamlining is seen as crucial for accelerating infrastructure and housing development, there is a firm commitment to ensuring that safety remains a priority to prevent future disasters.
"In the building safety space, we need to make sure we're regulating to never allow anything like [the Grenfell fire] to happen again."
Sarah Jones MP
Investment strategies and the role of the private sector
The public sector will continue to rely heavily on public-private partnerships to support its ambition to deliver new public infrastructure. However, while the previous Labour government of 1997 relied heavily on the Private Finance Initiative, the new approach includes vehicles such as the National Wealth Fund and Great British Energy, which aim to attract private sector investment while maintaining public benefits.
A significant political challenge is demonstrating the positive impact of infrastructure projects within a five-year electoral cycle. While major projects take decades to complete, the government must show tangible economic and quality-of-life improvements to maintain public and political support. The challenge is to strike a balance between long-term infrastructure planning and short-term political accountability.
In particular, the discussion highlighted tensions between nationally significant projects and local concerns. Infrastructure is needed to drive economic growth, but local resistance can slow progress. The government must strike a balance between national priorities and local sensitivities to avoid unnecessary project delays.
Ultimately, infrastructure improvements must deliver tangible benefits to the electorate within the five years of a political term. Failure to show real economic and quality-of-life improvements could undermine public support. The challenge lies in making long-term infrastructure projects demonstrate short-term gains to maintain political momentum.
"Simply having a pipeline is not enough; it's about actually having a strategy for delivering."
Sarah Jones MP
Points for further discussion
A number of points were raised by the discussion that warrant further debate and discussion:
- To what extent is the government prepared to embrace and perhaps even mandate an open format for data exchange to help simplify and boost the efficiency of data management across the infrastructure lifecycle?
- Would a greater focus on understanding and reducing the time spent designing and delivering infrastructure projects lead to better public sector project management?
- How can the government’s new industrial strategy help create the much-needed collaborative and non-adversarial environment that can drive a new future of industrialised construction?
- How can political powers help to accelerate the delivery of both nationally significant infrastructure and locally important community improvements?
