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Economic update for Kent's construction industry

January, 2025

The first Kent Construction Focus Group (KCFG) meeting of 2025 saw Maxim's Managing Director Andrew Metcalf provide more than 70 attendees with an insight into what’s going on across the county, and how it might impact on the commercial health and wellbeing of the construction industry.

Top of the agenda was how the Government’s Devolution Revolution is likely to re-draw the political landscape of Kent and Medway over the coming months and years.

With the push for a Mayoral Strategic Authority it’s going to see the likes of Kent County Council, Medway Council and the 12 borough/district councils transformed into one ‘strategic’ authority and supported by three or four unitary authorities.

The clue is in the name and the new Mayoral authority will focus on strategic matters, including:

  1. Transport and local infrastructure
  2. Skills and employment support
  3. Housing and strategic planning
  4. Economic development and regeneration
  5. Environment and climate change
  6. Health, wellbeing and public service reform
  7. Public safety

And the other big issue for discussion was the Government’s push to deliver 1.5 million new homes during this parliament, which has already seen it demand 13,648 new homes a year, an increase of 12.5% or 1,515 new homes p.a. While it’s inevitable there’ll be push back from many communities and local authorities, it’s an opportunity for the construction industry if it can sort out the small matter of access to skills, the planning system, procurement, and community engagement, etc.


National Test Case

The Highsted Park project in Swale, called in by Angela Rayner, Secretary of State, is likely to be a test case for the Government’s ambitious housing targets – putting Kent in the spotlight. While it offers the prospect of delivering 8,400 new homes, plus a new motorway junction, schools, open space, etc, it has been rejected by Swale Borough Council and there’s widespread public opposition.

There’s been a liberal spreading of positive news, with the final phase of housing approved at Shorncliffe Barracks in Folkestone, and investment in The Paddock, a new motorsport-themed centre at Buckmore Park. This has been tempered with news that Brompton Bikes’ proposed £100m investment in Ashford now looks unlikely to go ahead after the folding bike company suffered a major drop in its operating profits.

Overall, and despite the impending hit of increased National Insurance charges and higher National Minimum Wage, the audience was relatively upbeat and up for the challenges that 2025 may bring. Happy New Year.
 

Andrew Metcalf - Director

Andrew Metcalf

Maxim / Managing Director

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