Labour has firmly established Liverpool as a key venue for its annual party conference, hosting it there for the fourth consecutive year. The 2025 conference was notably busier than previous years, featuring a dense fringe agenda that explored a range of infrastructure and development issues. The Institution of Civil Engineers (ICE) was active throughout, sharing its latest research and gathering insights on Labour’s infrastructure ambitions.

A central highlight of the conference was the announcement of 12 new towns proposed by the New Towns Taskforce. This proposal underscores the importance of integrated strategies that combine housing with essential infrastructure. The Taskforce emphasised the need for development corporations and enabling infrastructure as foundational elements, alongside environmental objectives, transport connectivity, and social infrastructure to foster thriving communities. These points echo the ICE’s recommendations on how infrastructure can underpin housing growth. Housing Secretary Steve Reed injected energy into the discussions with a call to “build baby build!” pledging that construction would begin on three of the new town sites before the next general election, signalling Labour’s intent to act swiftly on their housing agenda.

Infrastructure connectivity was another major theme, with Chancellor Rachel Reeves reaffirming the government’s commitment to delivering Northern Powerhouse Rail (NPR). This came as a welcome reassurance amid earlier rumours of delays or cancellations. While Reeves’ update was light on precise timelines, the cautious approach may reflect lessons learned from the HS2 project, where a rapid greenlight led to significant challenges. Notably, the government has also introduced a £4.2 billion fund to boost local transport improvements including greener buses, trains, and cycleways, aligning with wider efforts to modernise northern infrastructure and support regional economies.

Delivery challenges surfaced repeatedly in fringe events, focusing on how the government plans to meet its ambitious infrastructure goals. There is a clear need for a compelling narrative that not only outlines the costs and disruptions involved but also engages the public on the tangible benefits infrastructure projects can bring to their communities. Moreover, the conference highlighted the pivotal role of devolution in realising these plans. Labour’s Devolution Bill aims to deepen local power, enabling Combined Authorities and other bodies to drive growth through greater control over transport, skills, housing, and employment support. Successful models, like Greater Manchester, serve as examples of how devolved governance can accelerate development, provided central government extends its trust and resources to regions.

Skills development was singled out as a critical factor in turning infrastructure ambitions into reality. The ICE has identified skills shortages as a key bottleneck, urging the creation of a comprehensive skills plan aligned with the government’s industrial and infrastructure strategies. Future infrastructure pipelines incorporating regional skills data are expected to inform such efforts, but these need to be integrated with broader sector plans, especially the UK’s target to achieve clean power by 2030. This dovetails with national initiatives, such as the government’s ‘Building Back Britain’ programme, which is investing in renewable energy, public electric vehicle chargers, and vocational training to support sustainable growth.

A prominent emerging issue is the impact of the AI revolution on infrastructure demand. AI technologies rely heavily on data centres, which currently number around 400-500 in the UK, with more pending approval. The National Grid’s CEO has warned that demand for energy from such centres could increase sixfold in the next decade. This surge raises questions about how the additional energy will be supplied—whether through renewables or fossil fuels—and the environmental implications, including significant water usage for cooling purposes. Policymakers face the challenge of balancing AI-driven growth with the country’s ambitious net zero commitments, a conundrum that will require swift and strategic decisions.

Labour’s leadership, including Sir Keir Starmer, has reinforced the message of transformative infrastructure investment. Starmer’s keynote at the conference reiterated a commitment to build 1.5 million new homes over five years, supported by new development corporations tasked with overcoming barriers from “blockers” and “land-bankers.” His assurances that the green belt would not be disregarded, but rather carefully managed, aim to strike a balance between development and environmental preservation.

Overall, while the main conference speeches refrained from unveiling major new policies, the detailed discussions and commitments around new towns, transport, devolution, skills, and emerging technologies provide a comprehensive view of Labour’s infrastructure priorities. The government’s focus on delivery, in partnership with regional devolved authorities and industry stakeholders, underscores the challenges ahead in fulfilling these ambitious goals.

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Source: Noah Wire Services