Truss can win economic battle, and general election, if she works with industry

Now that we know that Liz Truss will be the next occupant of No 10 and with  Parliament having returned from its summer break, it is time now for the government to focus on what it is meant to be doing: to govern. In a spirit of goodwill, I should like to offer the new prime minister some advice from the construction sector.

Dear Prime Minister,

Congratulations on your appointment. I am sure you will have no shortage of people bringing their demands to you, but the construction sector would like you to know that we are not just making demands; we are offering solutions.

One of the reasons why we can be helpful is that construction is an economic multiplier. Past studies have shown that construction represents about 10% of GDP and delivers nearly £3 in economic value for every £1 invested. If you want to leave a long-term legacy, invest in quality infrastructure and buildings – both new and retrofitted – that will make our whole economy ever more efficient.

It has been reassuring to hear of your commitment to big infrastructure projects such as HS2 and Northern Powerhouse Rail during your leadership campaign. However, the whole public sector pipeline needs more certainty. If you provide more detail on the pipeline for the next five to 10 years, the sector will be able to invest in the facilities for modern methods of construction and in recruitment and training appropriate to the skills that we will need.

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The Construction Industry Training Board has estimated that over a quarter of a million additional construction workers may be needed by 2026. The government can help this to become reality by making sure that the vocational and education system has clear routes into careers in construction for young people.

The UK needs a high-quality vocational educational system – one that is inspirational and attracts the best and the brightest – and you need to be personally promoting it

The creation of a T-level in construction was a good start, notwithstanding the challenges in providing site experience. Taking it a step further and introducing a built environment GCSE should help to attract young people into construction at an even earlier stage.

More broadly, investing your own time as prime minister in supporting modern, relevant vocational education will help to eliminate the “esteem gap” that currently encourages young people to take the university route. To ensure the economy is firing on all cylinders and takes advantage of any Brexit-related opportunities, the UK needs a high-quality vocational educational system – one that is inspirational and attracts the best and the brightest – and you need to be personally promoting it.

As we approach the next general election, you will likely be pressured to demonstrate that you are committed to attaining the net zero targets set by your predecessor. Here again, construction can help you.

Nearly 40% of all carbon emissions are attributable to the built environment, and the construction sector is essential to create the new net zero world –- from retrofitting millions of houses, through to constructing new nuclear power stations.

If you work closely with us, we will bring together the technology with the implementation capacity to upgrade the energy efficiency of the existing built environment, which accounts for about 28% of operational emissions – energy needed to heat, cool and power our buildings.

The planning system continues to be a hindrance to regeneration efforts

About 28 million housing units need to be upgraded. Putting full political backing – complete with funding and a long-term policy framework – behind a national retrofit strategy such as that proposed by the Construction Leadership Council should enable us to partner with you on the execution.

Of course, the UK continues to need more housing, and construction is essential to delivering on this. However, the planning system continues to be a hindrance to regeneration efforts.

It is a perpetually tough nut to crack – particularly for a Conservative government – but no problem ever got solved by ignoring it. Your willingness to confront the difficult would make a big difference.

You are well aware that to win the next general election, you will need to start delivering on levelling up. The good news is that levelling up and net zero are two sides of the same coin.

The economy of the future will be oriented towards systems or processes that reduce the carbon we put into the atmosphere, so when the government invests in levelling up, it needs to focus on the skills that workers will need 10 or 20 years from now. For construction, this means focusing the levelling up money on creating training and development opportunities in off-site design and construction, energy-efficient retrofitting, and in low-carbon materials production. These investments should include greater financial incentives for employers to provide the future-economy training and development themselves.

Create a new role for a senior minister who drives a joined-up approach to construction and infrastructure across all of government. Incentivise that person to stay in post for the long term, to see your investments through to fruition

At the same time, the Treasury needs to encourage capital decisions that promote off-site methods and net zero buildings, even though they may be more expensive than old-style techniques in the short term. Make sure that all of the public sector bodies that procure construction (central government, arms-length bodies and local government) know of this priority, and fund them appropriately. This will pay off for you in progress towards meeting the very challenging net zero commitments.

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Given that the construction sector is such an essential, long-term partner for the government, you need to address the fact that we have had seven different construction ministers in the past four years, and 21 since 2001! Create a new role for a senior minister who drives a joined-up approach to construction and infrastructure across all of government. Incentivise that person to stay in post for the long term, to see your investments through to fruition.

If you make working with the construction sector a true partner for you in tackling the challenges that await the new government – and in particular levelling up and attaining net zero targets –- you will deliver employment and a more efficient economy, benefiting the whole country. That might just get you re-elected!

Sir James Wates CBE is chairman of Wates Group