Autumn Budget 2024

The 2024 Autumn Budget provided insights about the Government’s plans to address the UK’s housing crisis, promising a boost for affordable housing and smaller developers. But as Labour’s focus on growth ramps up, where does the construction industry, specifically the trussed rafter sector, fit in?

Understanding these shifts is crucial for TRA members supplying essential trussed rafters, as it allows them to stay ahead and align with new market demands.

Support for affordable housing

During the budget announcement, Rachel Reeves announced continued support for the Affordable Homes Programme (AHP), maintaining its funding to accelerate the development of low-cost housing. This is a positive sign, as affordable housing remains a cornerstone of Labour’s housing strategy, aligning with their ambitious target of delivering 1.5 million homes by 2030.

This commitment means more construction activity in the affordable housing sector, which historically relies on efficient and economical building solutions—key areas where trussed rafters play a pivotal role. TRA members can position themselves as valuable partners with affordable housing developers working to meet these ambitious targets.

Boosting small house builders

A highlight of the budget is the government’s £3 billion guarantee scheme for small and medium-sized house builders, aimed at overcoming financial barriers that have slowed development pipelines.

For TRA members, this scheme has the potential to revitalise smaller developers who might not have previously been able to scale up. By expanding outreach to smaller housebuilders, TRA members can develop partnerships which can lead to strong, lasting business relationships with growing businesses.

With the chance of an increase in smaller projects, TRA members might consider diversifying their product offerings or exploring new service lines, such as custom truss designs,  streamlined logistics for smaller builds or offering a full roof design service where there may be no architect or Building Designer.

Leveraging these capabilities can help truss suppliers meet the needs of a growing segment of house builders under Labour’s housing plan.

Investment into the UK’s existing housing stock

The announced investments in the UK’s housing stock to improve energy efficiency, enhance local authority planning, build schools and infrastructure, plant trees, and reform right to buy,  are positive steps from the new Government.

Over half of the UK’s housing stock has an Energy Performance Certificate (EPC) rating of D or below. These measures could signal the start of a new era of growth in areas such as retrofit and are crucial for helping the UK address both the housing and climate challenges.

Addressing labour shortages and policy gaps

While the Government has set a target of delivering 370,000 homes per year, the success of this ambition depends on effective implementation. Meeting this goal means more than doubling the current rate of house building within five years—despite ongoing skills shortages, capacity issues, and the need to lower embodied carbon in construction.

The budget has left certain structural industry challenges unaddressed such as labour shortages; material inflation; and other supply chain pressures which all remain significant barriers to achieving Labour’s housing goals.

The TRA has a series of training courses for members on which to enrol their teams, to strengthen existing skills, especially in the trussed rafter sector, which could help mitigate the impact of these shortages and ensure that suppliers can meet growing demand without compromising quality.

Nick Boulton, chief executive of the TRA said:

“The 2024 Autumn Budget presents an opportunity for TRA members to play an essential role in achieving the UK’s ambitious housing targets, especially with smaller housebuilders.

“Although it was disappointing that the Chancellor did not link housing funding to low-carbon materials or outcomes, such as timber construction systems, which could further support sustainability goals, by aligning with Labour’s focus on affordable housing and smaller developers, TRA members can expand their market reach, build new partnerships, and drive sustainable growth by continuing to build relationships with housebuilders.

“The TRA offers a series of training courses for members’ teams, especially for designers, to  allow them to remain competitive and ready to meet the demands of an evolving housing landscape.”