Labour Conference 2026: Key announcements for the construction and infrastructure sector

Housing, energy networks, defence infrastructure and water reform all featured prominently at the Labour Conference 2026.

Taken together and subject to further details, the announcements suggest a more interventionist approach to delivering the homes, infrastructure and public services needed to support economic growth. For businesses involved in the construction and infrastructure sectors, the proposals could create significant opportunities if translated into funded programmes and legislation.

Council housebuilding and housing reform

Prime Minister Andy Burnham committed to what he described as the biggest council housebuilding programme since the post-war era, backed by reforms aimed at accelerating delivery and increasing the stock of affordable housing.

Councils are set to receive greater support to build affordably on unused public land, whilst planned changes to Right to Buy aim to ensure that newly delivered council homes remain within the public housing stock. The announcement builds on the Government’s £39 billion Social and Affordable Home Programme, which aims to deliver roughly 300,000 new social and affordable homes across England over 10 years. This is supported by the new Council Housebuilding Support Fund, which aims to increase councils’ capacity, expertise and resources so they can develop schemes, assemble bids and bring projects forward.

The Prime Minister has also announced the ‘Your First Home’ scheme, to support those with 2.5% deposits with a 20% government-backed equity loan when buying new builds from developers. This scheme could make home ownership more accessible for first time buyers while supporting demand for new-build housing. The scheme will not be available to everyone. Full details are still to be announced, including household income limits and the maximum property values that will qualify for support. The success of the scheme may depend on whether local house prices and job markets are taken into consideration when establishing the caps.

For developers and contractors, the combined effect of these measures could be increased demand for new housing and a larger pipeline of residential development opportunities. However, important details are still to be confirmed.   

Great British Grid – Electricity infrastructure

Andy Burnham announced the creation of “Great British Grid” (GBG), a new publicly owned body within Great British Energy focused on investing in electricity network infrastructure.

The Government says that GBG will bring together public and private investment to deliver new energy infrastructure. It will work alongside existing network operators, whilst increasing competition within the industry, with the aim of bringing down energy costs throughout the UK.

Of particular interest to developers are plans to bring forward reforms to expand self-build connections, allowing developers and businesses to build their own grid connections without relying on private network companies. This aims to reduce delays and lower overall costs.

If implemented, these reforms could help address a major constraint facing many energy and development projects: securing a timely grid connection.

Defence infrastructure

The delivery of three new floating dry docks at HM Naval Base Clyde in Faslane is expected to generate contracts worth around £6 billion. The docks will form part of a wider £15 billion upgrade to the Faslane site. The bidding process for the construction will be limited to UK-only companies, with the benefits being retained domestically. Announcing the investment, Chancellor John Healey described it as part of a “new age of industrialisation”, linking the project to the Government’s wider ambitions for UK manufacturing, shipbuilding and defence infrastructure.

Water sector reform

Labour also outlined plans for significant reform of the water sector. The Prime Minister announced a strengthened Water Bill, which would remove the current limits placed on public ownership of water and sewerage companies, giving the Government greater flexibility to intervene where providers fail customers or the environment.

In addition to this, Mayors will be given new powers to hold water companies to account, with tougher consequences for those that repeatedly fall below the standard expected. Loopholes used to pay “excessive bonuses” to water company executives will also be closed. The practical implications for the sector will depend on the detail of the legislation, which is expected later this year.

What does this mean for industry?

While many of the announcements made at the Labour Conference 2026 will require further detail and legislative backing, the direction of travel is becoming clearer. Further announcements are expected in the Autumn Budget in October and in the months that follow. Burges Salmon will continue to track these developments and advise clients on the opportunities, risks and practical implications arising from the Government’s evolving agenda for housing, infrastructure, energy and utilities.