Elevate construction on the national agenda to give public sector a fighting chance, SCAPE tells incoming government

Elevate construction on the national agenda to give public sector a fighting chance, SCAPE tells incoming government

SCAPE — the leading public sector procurement specialist owned by six local authorities — recently published its policy paper, ‘Building for Public Good: A Charter for Change’, which calls on the incoming government to commit to a considered revaluation of the role of construction to accelerate the pace of public sector estate recovery.

In the context of the financial, social, environmental, and economic pressures facing the UK’s public sector, SCAPE’s charter recommends the next government utilise construction to drive forward efficiency, productivity, climate resilience and economic growth.

The paper sets out a range of recommendations for changes to policy and legislation across several key areas including: devolution of power and financial responsibilities, public-private partnerships, the construction skills gap, strategic asset management and achieving net zero.

Some of the key asks include to:

  • Spearhead a national recruitment campaign to elevate the construction skills agenda
  • Set strict national targets and commercial incentives for reducing construction waste
  • Ensure public sector strategic asset management functions are set up for success and creating an asset management leadership role within local authorities.
  • Encourage public-private secondments that attract and retain talent.
  • Fix profit margins for contractors to create certainty in the market.
  • Reinstate the Chief Construction Advisor (CCA) role within Central Government to provide leadership and accountability.

A common thread running through the recommendations is that in many cases the public sector has a clear understanding of what it needs to succeed — be it skills, strategy, or resource — but lacks the capacity to implement it. With these asks, SCAPE recommends that key decision makers foster a more balanced division of power and responsibility between central and local governments, recognising that a one-size-fits-all national approach will not drive long-lasting change.

The charter also calls for the incoming government to tackle construction’s waste problems — magnified in the public sector by the challenging economic climate — through initiatives like green upskilling, strict targets and updates to legislation.

The charter’s recommendations are informed by SCAPE’s expertise working with local authorities and are designed to support the incoming government’s approach to stimulating economic growth and enhancing communities. Through smarter procurement and early contractor involvement, SCAPE has saved its public sector client more than £118m on construction projects in the last five years.

Mark Robinson, Group Chief Executive of SCAPE, said: “As an organisation owned by, and working for, the benefit of the public sector, SCAPE has long advocated for a smarter approach to construction and the built environment. Facilitating the efficient procurement, delivery, and management of the public estate is at the heart of what we do. We know how valuable this is for local authorities in ever more challenging economic circumstances — not least as it frees up time, resources, and funding, allowing them to prioritise other vital services.

“However, without adequate clarification, devolution, and funding from central government, the public sector will not be able to harness this potential. Successive policy and funding announcements over recent years have missed opportunities to leverage construction to alleviate some of the pressures felt by the public and private sector alike. It is critical that the incoming government commits to recognising it as a key driver of economic growth, innovation and community enrichment and delivers the reforms to policy and legislation that would raise standards and drive improvement.

“We hope that all parties take note of the recommendations in our Charter for Change, as they consider how they will reinforce the UK’s position as a leading socio-economic force ahead of the election.”

The full set of recommendations in SCAPE’s Building for Public Good policy paper are as follows:

RECOMMENDATION 1 — BUILDING A BRIGHTER FUTURE

A. Spearhead a national recruitment campaign to elevate the construction skills agenda

Attract new industry talent and reinforce construction’s key role as a driver of UK economic growth, productivity, and investment. Ensure that it is repositioned as a diverse, vibrant industry underpinned by digital technology and innovation.

B. Encourage public-private secondments that attract and retain talent

Protect the transference of skills and knowledge through secondments and work placement schemes that support long-term career development and protect the future workforce.

 C. Give local authorities more devolution of powers and fair funding.

Address local construction skills gaps and accelerate the development of smarter, greener technology by incentivising vertical partnerships between industry, schools, higher education, and vocational skills providers.

 

RECOMMENDATION 2 — ENABLING EFFICIENT BUILDING

A. Reinstate the Chief Construction Advisor (CCA) role within central government to provide leadership and accountability

Appoint a senior level figure responsible for overseeing the government’s construction strategy, providing clear direction and a coordinated approach at a national and local level.

B. Fix profit margins for contractors to create certainty in the market

Improve profitability by setting higher margins so that clients know exactly how much profit is going to made on projects. This not only delivers best value for the taxpayer, but enables contractors to operate sustainably, contribute to local economic growth and invest in new technology, equipment and resources.

C. Invest in a digital estate portfolio to improve asset management

Maximise the efficiency of assets and create a more productive, cost-effective public estate by leveraging digital technologies and empowering local authorities to use data to support long-term asset management strategies.

RECOMMENDATION 3 — ENABLING LOCAL GOVERNMENT

A. Set public sector asset management functions up for success

Improve long-term portfolio management with strategic functions in local government that are well-resourced and have autonomy over budgets.

Facilitate a more holistic approach by creating an asset management leadership role within local and combined authorities.

B. Mandate the development and commissioning of local social value delivery strategies

Refresh the Social Value Act to create a more targeted approach that prioritises investment based on need.

Consider appointing regional commissioners who are empowered to design and deliver local strategies in line with local priorities.

C. Give local authorities more devolution of powers and fair funding

Ensure local authorities can direct and prioritise funding so that it has the maximum impact, without the need to sell off their assets to alleviate financial pressures.

RECOMMENDATION 4 — SUPPORTING SUSTAINABLE CONSTRUCTION

A. Set strict national targets and commercial incentives for reducing construction waste

Maximise resource and cost efficiency by introducing strict targets for waste as part of the Environment Act, with penalties used to finance circular economy startups and drive innovation.

Establish the UK equivalent of the EU False Claims Directive to protect against greenwashing and embed standards like PAS 402 to mandate the responsible management of waste and resources.

B. Update and enforce Building Regulations to make sustainability non-negotiable

Implement secondary legislation on the management of embodied carbon in public sector buildings and introduce the proposed Part Z of the Building Regulations to raise standards across all projects.

Embed sustainable practice across the wider built environment by ensuring equivalent policy reform for utilities sector procurement and infrastructure projects by mandating the PAS 2080 standard for managing carbon.

C. Strengthen funding initiatives to keep decarbonisation on the local agenda

Build on the success of existing initiatives with further long-term incentives which reward cost-effective, carbon-conscious buildings that save money through lower operational and maintenance costs.

The report is available for public download here.

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