Transport links across the UK will be “significantly closer to the standards of London”, with improved services, simpler fares and integrated ticketing by 2030, the Government has pledged in its new Levelling Up White Paper.

The strategy, launched today by Levelling Up secretary Michael Gove, will support the setting up of mayoral combined authorities (MCAs) across England and is offering a “simplified, long-term funding settlement”.

Negotiations are due to start with the West Midlands and Greater Manchester combined authorities to enable “deeper devolution deals”. The boundaries of the new MCAs will be “recast where necessary” to ensure “there is greater economic coherence”. The Government says it will invite nine areas to agree new County Deals and will seek to agree further MCA deals.

Central missions

The White Paper sets 12 central missions by 2030 including plans to: close gaps in transport and connectivity; close the gap between the UK’s highest and lowest performing cities; improve educational attainment among children leaving primary school; narrow the gap in healthy life expectancy between the best and worst performing areas of the UK; and provide access to 5G broadband for the “large majority” of households.

Labour said the plans contained no new money and little fresh thinking. But Gove argued that the strategy was not aimed at providing new funding but ensuring that money already pledged was spent effectively.

Chancellor Rishi Sunak had already presented a “huge cheque” in his Spending Review (in October 2021) which would now be spent, Gove told Sky News.

“We’re making sure in Wolverhampton, in Sheffield and in other areas that we put our money where our mouth is,” he said. “And that we make sure that money which in the past was spent too much in London and the south-east is now spent in the north and the Midlands where it’s needed.”

Since 2019 the Government has started the process of spreading opportunity around the country, “alongside mitigating the worst effects of the pandemic”, according to the White Paper.

It highlights: a five-year consolidated transport settlements amounting to £5.7bn in eight city regions outside London; £5bn of funding for buses and active travel over this Parliament; and £96bn for the Integrated Rail Plan “delivering faster, more frequent and more reliable journeys across the North of England and the Midlands”.

UK Shared Prosperity Fund

The strategy refers to the £2.6bn UK Shared Prosperity Fund, due to be launched in the spring. The will focus on three main areas for investment: improving communities and place; people and skills; and supporting local business.

“We will slash away the bureaucracy of the old EU regional funds,” says the White Paper. “Instead, local leaders will be empowered to direct funding towards their own, locally identified priorities, whether that be promoting new outdoor markets, reducing litter, graffiti and anti-social behaviour, reviving high streets, supporting local businesses or introducing skills provision to match local labour market need and support those furthest from the labour market.”

The UK Shared Prosperity Fund will regenerate 20 towns and cities “by assembling and remediating brownfield land and working with the private sector to bring about transformational developments combining housing, retail and business in sustainable, walkable, beautiful new neighbourhoods”. 

Michael Gove said: “The United Kingdom is an unparalleled success story with one of the world’s biggest and most dynamic economies.

“But not everyone shares equally in the UK’s success. Great cities like Glasgow, Belfast, Swansea and Manchester, and proud towns from Aberystwyth to Armagh, to Bangor and Yeovil, have huge potential but contain inequalities which hold too many back.

“Our ambitious plan to unite and level up the whole UK seeks to end that historic injustice and call time on the postcode lottery. We will only succeed if all layers of government – UK, devolved, and local – work together.”

Where missions fall in devolved policy areas, the UK Government will seek to work collaboratively with the devolved governments, he said.

Mayors react to White Paper

Andy Street, the Conservative mayor for the West Midlands, said the White Paper would “finally address the imbalance of opportunities across the UK”.

He said: “Prior to the pandemic we already had the fastest growing economy outside of London, with record homes being built, record numbers in work, and record investment in public transport.

“But with Covid knocking us for six we needed the White Paper to help get us back on track, and that is exactly what it will do.”

Street said he would be seeking talks with the Government for a fresh “devolution deal” for the region.

Tracy Brabin, Labour mayor of West Yorkshire, welcomed the White Paper but said the North would be left “struggling” if the strategy was not supported with extra funding.

She said: “The devil is going to be in the detail. It is like a love letter to Levelling Up: lots of ambition, lots of hope, but unless you actually have the money and the resources you are going to be struggling.”

The mayor of South Yorkshire, Labour’s Dan Jarvis, said the White Paper was a “step in the right direction” but added that the strategy did not “provide the investment needed to deliver the transformational change all of us in the North want to see”.

Meanwhile, Andy Burnham, Labour mayor for Greater Manchester, said the North risked being left with “second-best” trains for 200 years under the Government’s £96bn rail plan.

While Greater Manchester  would do better than most in the North, the rail plan would not “maximise the levelling-up benefits”, he warned.

The Integrated Rail Plan, published in November 2021, scrapped plans for the Birmingham to Leeds leg of the HS2 high-speed rail line and did not include a full high-speed east-west line linking Manchester to Leeds.

 “These are once-in-200-years decisions for the country and particularly for the north of England,” said Burnham. “If we get second best then the north will have second best for 200 years or more.”

The Treasury had failed to carry out a Levelling Up analysis of the economic benefits that would come from the rail plan, Burnham argued. The question about the spending, he said, should be “does it maximise the levelling-up benefits – and I don’t believe it does”.

Levelling Up White Paper: 12 missions by 2030

• Local public transport connectivity across the country will be significantly closer to the standards of London, with improved services, simpler fares and integrated ticketing.
• Pay, employment and productivity will have risen in every area of the UK, with each containing a globally competitive city, and the gap between the top performing and other areas closing.
• Domestic public investment in R&D outside the Greater South East will increase by at least 40%, and over the Spending Review period by at least one third. This additional government funding will seek to leverage at least twice as much private sector investment over the long term to stimulate innovation and productivity growth.
• UK will have nationwide gigabit-capable broadband and 4G coverage, with 5G coverage for the majority of the population.
• Number of primary school children achieving the expected standard in reading, writing and maths will have significantly increased. In England, this will mean 90% of children will achieve the expected standard, and the percentage of children meeting the expected standard in the worst performing areas will have increased by over a third.
• Number of people successfully completing high-quality skills training will have significantly increased in every area of the UK. In England, this will lead to 200,000 more people successfully completing high-quality skills training annually, driven by 80,000 more people completing courses in the lowest skilled areas.
• Gap in Healthy Life Expectancy (HLE) between local areas where it is highest and lowest will have narrowed, and by 2035 HLE will rise by five years.
• Wellbeing will have improved in every area of the UK, with the gap between top performing and other areas closing.
• Pride in place, such as people’s satisfaction with their town centre and engagement in local culture and community, will have risen in every area of the UK, with the gap between top performing and other areas closing.
• Renters will have a secure path to ownership with the number of first-time buyers increasing in all areas; and the Government aims for the number of non-decent rented homes to have fallen by 50%, with the biggest improvements in the lowest performing areas.
• Homicide, serious violence and neighbourhood crime will have fallen, focused on the worst affected areas.
• Every part of England that wants one will have a devolution deal with powers at or approaching the highest level of devolution and a simplified, long-term funding settlement.

Construction output has once again bounced back above the pre-pandemic high-water mark after a strong surge in new work during November.

A 5.7% hike in new work lifted overall construction output by 3.5%, despite a small decline in repair and maintenance workloads.

Monthly construction output recovery

The surge lifted overall activity above the February pre-pandemic high for the second time after the initial rebound recovery started to be dragged down by a slowing of workloads 12-months ago due to bad weather and then material shortages.

Total work is now running 1.3% above the February 2020 high.

The Office for National Statistics attributed the latest upbeat contractor workload returns to strong demand for work, in combination with supply chain bottlenecks for certain products easing and the unseasonal mild and dry weather.

Infrastructure new work and private housing new work were the largest contributors to the monthly rise in November, increasing by 11.4%  and 5.5% respectively.

Private housing repair and maintenance was the only sector to fall.

Trend three-month totals showed growth had taken hold across most sectors with only commercial and public housing new work lagging behind in the broad industry recovery.

Renewable energy projects along with road and rail developments are contributing significantly to the large increase in this type of work over the last 18 months.

Private housing repair and maintenance was the only sector to have fallen, decreasing by 2.4%.

Mark Robinson, group chief executive at public procurement body Scape, one of the UK’s leading public sector procurement authorities, said: “Further growth in the autumn, set against the context of the long-term inflation and labour supply challenges that characterised much of last year, clearly demonstrates the industry’s resilience.

“But, the impact of Omicron in exacerbating ongoing staff shortages means that the sector is likely to endure further disruption over the coming months.”

“Public sector construction will continue to make up a significant volume of the industry’s output.

“With the overhaul of the government’s procurement standards gathering pace, those looking to capitalise will need to invest heavily in their ability to deliver enhanced social value and meet the net-zero ambitions of clients in the sector.”

Construction buyers reported the fastest rise in output  in four months in November with commercial work leading the way.

The bellwether IHS Markit/CIPS UK Construction PMI Total Activity Index hit 55.5 in November – up from 54.6 in October.

There were also signs that the worst phase of supplier delays may have passed, with the portion of survey respondents citing longer delivery times falling to 47% in November compared with a peak of 77% in June.

A steeper rise in commercial construction (index at 56.5) helped offset a sight showdown in house building growth (54.7, down from 55.4).

Civil engineering was the weakest-performing area in November (53.9), although the latest rise in activity was the largest since August.

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, said: “UK construction enjoyed a rebound in November with the fastest level of output growth for four months as supply chain managers increased their purchasing activity to meet a strong pipeline of new building projects.

“Adding to this positivity was signs of recovery in supply chain performance with just 47% of construction firms reporting longer waiting times, which is the smallest number for eight months.

“Even with this glimmer of hope that the pressure on deliveries was easing, purchasing remained at higher level to counteract disruptions from ongoing driver shortages and port delays as supply chain managers bought more than their immediate need.

“Job hiring growth was still maintained in November but was the weakest since March. Builder optimism was somewhat flat as the costs of building still remained high
and firms struggled to stay competitive.”

Tim Moore, Director at IHS Markit, which compiles the survey said: “Input price inflation remains extremely strong by any measure, but it has started to trend downwards after hitting multi-decade peaks this summer.

“The latest rise in purchasing costs was the slowest since April, helped by a gradual turnaround in supply chain disruption and  a slight slowdown in input buying.”

80% of industries reporting record job vacancies

According to the latest labour market stats from the ONS, October saw 29.3 million employees, up by 160,000 on the revised September statistics. However, it was noted that it’s possible these figures may change while furloughed staff, who were made redundant, work out their notice period. But responses to the ONS survey suggest that redundancy numbers are likely to be a small share of those still on furlough when the scheme came to an end.

The Labour Force Survey estimates that for July to September 2021 the employment rate increased 0.4 percentage points on the quarter, to 75.4%. ONS reported that the increase in employment was because of a record high net flow from unemployment to employment. Total job-to-job moves also increased to a record high, largely driven by resignations rather than dismissals, during the same period. The rise is also driven by an increase in part-time work and an increase in the number of people on zero-hour contracts, driven by young people.

The unemployment rate decreased 0.5 percentage points to 4.3% while the inactivity rate remained unchanged at 21.1%.

But we have yet to see the full effects of the end of the furlough scheme and the relevance of zero-hour contracts in these figures. David Head, Director at TALiNT Partners commented: “Zero-hour contracts, if implemented ethically between employer and employee, are perfect because they allow flexibility in the workforce and allow businesses to expand and contract whenever necessary. However, having vast numbers of people on zero-hour contracts will inevitably mask the true numbers of the unemployed.”

The latest figures show that the number of job vacancies in August to October 2021 continued to rise to a new record of 1,172,000. This is an increase of 388,000 from pre-pandemic numbers of January to March 2020 level, with 15 of the 18 industry sectors showing record highs.

During the quarter, annual growth in average total pay (including bonuses) was 5.8% and regular pay (excluding bonuses) was 4.9%. Annual growth in average employee pay has been affected by temporary factors that have inflated the headline growth rate. These factors are now waning and will have a smaller impact on growth rates, according to the report.

James Reed, Chairman of REED commented on the continued increase of job vacancies: “This ongoing rise in job vacancies is a positive sign of the economy’s continued revival. Rapid job creation means there are plenty of opportunities to go around, and not just for those recently off furlough, but also for others who have faced long or short-term unemployment as well as those already in work who are seeking a new challenge.

“After experiencing a cautious labour market during the pandemic when job opportunities were restricted and workers were less incentivised to move, there has never been a better time to look for a new role than now.”

The Report on Jobs is unique in providing the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies and employers to provide the first indication each month of labour market trends.

The main findings for October are:

Permanent placement growth eases but remains sharp

October data signalled a further strong rise in recruitment activity across the UK, with both permanent placements and temp billings rising steeply. That said, the rates of expansion were the softest seen for six months, as a number of recruiters mentioned that candidate shortages had weighed on their ability to fill roles.

Candidate shortages remain severe

The overall availability of staff declined again at the start of
the fourth quarter. The rate of deterioration eased further from August’s all-time record, but was nonetheless the fifth-sharpest seen since the survey began in October 1997. Reduced candidate availability was often linked to a combination of high demand for staff, general labour shortages, fewer foreign workers and hesitancy among employees to switch or seek out new roles.

Growth of demand for staff softens only slightly

Although growth of demand for staff slipped to a five-month low in October, it remained substantial overall and much quicker than the series average. Slower, but still strong, increases in vacancies were signalled for both permanent and temporary roles.

Starting pay inflation accelerates again in October

A combination of candidate scarcity and robust demand for staff added further upward pressure on rates of starting pay. Notably, both starting salaries and temp wages increased at the quickest rates seen in over 24 years of data collection, as companies offered higher pay to attract and secure staff.

Local authorities have welcomed chancellor Rishi Sunak’s transport spending boost announced in the Spending Review last week. However, there was some initial confusion over how much of the £7bn Sunak said would be allocated to urban transport across England was actually new money. The DfT later confirmed that of this amount £1.5bn is new funding.  Some £4.2bn for cities was first announced in 2019, while the bus grants will be coming from the 3bn National Bus Strategy announced in March.

Greater Manchester will receive just over £1bn for Metrolink trams, bus corridors and the Bee Network active travel project.

West Midlands will get around £1bn for metro stations and bus rapid transit schemes, with West Yorkshire (£830m), South Yorkshire (£570m), Tees Valley (£310m), the West of England (£540m) and Liverpool City Region (£710m) the other beneficiaries.

However, the North East Combined Authority (NECA) missed out on transport funding as it is the only English region without an elected mayor. DfT’s spokesperson told LTT: “The last Spending Review and Budget noted that these settlements are subject to appropriate governance being in place. A mayor with transport powers that is in control of a mayoral combined authority would be an appropriate governance structure to receive this funding, and Government welcomes future devolution proposals from the North East.”  

Alongside the local transport spending pledges, the announcement for the Road Investment Strategy 2 money was revised down from the £27.4bn announced last year to £24bn. The DfT said this was due to delays to the major schemes at Stonehenge and the Lower Thames Crossing. “The A303 at Stonehenge has not been cancelled,” DfT’s spokesperson said. “The secretary of state will now redetermine the application, and as a live planning case, it would be inappropriate to comment further at this time. 

“The Government is still spending £27bn on major roads schemes, just over a slightly longer period as a result of delays to some major schemes, including Stonehenge.”

In July campaigners won a High Court case to prevent the £1.7bn scheme that includes a tunnel near Stonehenge. 

There were expectations that the chancellor would raise the prospect of new forms of road charging but this was not mentioned, and Fuel Duty was frozen for the twelfth year.

Archaeologists working on HS2 project have uncovered a set of rare Roman statues whilst excavating a Norman Church in Stoke Mandeville, Buckinghamshire.

The work has been carried out by HS2’s Enabling Works Contractor Fusion JV (Morgan Sindall Infrastructure, BAM Nuttall and Ferrovial Agroman), and its archaeological contactor, L-P Archaeology.

In the final stages of the excavation at the site of the old St Mary’s Norman church in Stoke Mandeville, archaeologists were excavating a circular ditch around what was thought to be the foundations of an Anglo-Saxon tower.

As they dug down, they uncovered three stone busts which are stylistically Roman. Two of the busts comprise of a head and torso which had been split before deposition, and the other just the head. The two complete statues appear to be one female adult and one male adult, with an additional head of a child.

You can view the video of the discoveries on the following link:

In addition to the statues, an incredibly well-preserved hexagonal glass Roman jug was also discovered. Despite being in the ground for what is thought to be over 1,000 years, the glass jug had large pieces still intact.

The team can only find one comparison for this, a completely intact vessel which is currently on display in the Metropolitan Museum of Art, New York. Other finds include large roof tiles, painted wall plaster, and Roman cremation urns.

Dr Rachel Wood of AECOM, Lead Archaeologist for Fusion JV, said: “For us to end the dig with these utterly astounding finds is beyond exciting. The statues are exceptionally well preserved, and you really get an impression of the people they depict – literally looking into the faces of the past is a unique experience.

“Of course, it leads us to wonder what else might be buried beneath England’s medieval village churches. This has truly been a once in a lifetime site and we are all looking forward to hearing what more the specialists can tell us about these incredible statues and the history of the site before the construction of the Norman church.”

Mike Court, Lead Archaeologist at HS2 said: “HS2’s unprecedented archaeology programme has given us new insights into Britain’s history, providing evidence of where and how our ancestors lived.

“These extraordinary Roman statues are just some of the incredible artefacts uncovered between London and the West Midlands. As HS2 builds for Britain’s future, we are uncovering and learning about the past, leaving a legacy of knowledge and discovery.”

The ONS’s most recently published labour market figures show that vacancy numbers have reached another record high with the number of payroll employees up by 207,000 having surpassed pre-pandemic levels. This is 122,000 higher than levels seen before the pandemic hit in February.

The UK’s employment rate increased by 0.5 percentage points last quarter to 75.3%, while the unemployment rate was down 0.4 percentage points to 4.5%.

The ONS stated that the number of job vacancies increased by 318,000, with all industry sectors above or equal to the levels seen between January to March last year, before the first lockdown.

Record vacancies may not be good news

According to analysis of job listings by Adzuna, people looking for work may not be in the right areas to fill them, with different regions facing different employment challenges. London is by far the worst place for workers to be in if looking for employment, with more people looking for work than jobs advertised. The capital city had 13.4% of over 16 unemployed or furloughed which was the highest in the country. Vacancies were 104% of what they were pre-pandemic, but this was the smallest growth nationally.

The opposite is true in Northern Ireland, where vacancies grew 154%, the second steepest in the country, but there are comparatively fewer people looking for work.

This location phenomenon could result in continuing crisis for businesses battling to find staff as the economy grows.

Pay increases on the rise but not enough to secure candidates

Growth in average total pay (including bonuses) was 7.2% and regular pay (excluding bonuses) was 6% among employees for the three months June to August 2021.

Darren Morgan, Director of Economic Statistics at the ONS commented: “The jobs market has continued to recover from the effects of the coronavirus. The latest earnings continue to show growth on the year, even after taking inflation into account. However, the figures are still being affected by special factors that make it hard to read underlying trends.”

Matthew Percival, Programme Director for Skills and Inclusion at the Confederation of British Industry, said: “Companies have found hiring difficult this autumn and the official data is beginning to tell the same story, with the number of people on payroll exceeding pre-COVID highs and record vacancies.

Responding to the ONS earnings and employment figures, Matt Weston, UK Managing Director of global recruitment firm Robert Half, said:

“We’re currently seeing demand above and beyond pre-pandemic levels, and despite the so-called ‘Great Resignation’ creating a tsunami of turnover, we are still experiencing a saturated market where the demand for skilled talent outstrips the supply. The competition is evident with the increase in median monthly pay showing the strength of candidates’ influence when agreeing terms with a new employer.”

Keltbray has agreed a deal to acquire a portfolio of infrastructure contracts and associated assets from nmcn which went into administration last week.

The latest move secures the futures of 117 former nmcn employees and Keltbray will take over existing contracts with immediate effect.

Some infrastructure contracts were not transferred as part of the deal leading to 19 redundancies

The acquired contracts will be managed within Keltbray’s existing infrastructure division reporting to Managing Director, Phill Price.

Keltbray CEO, Darren James said: “Keltbray are pleased with the ‘on strategy’ opportunities presented by the acquisition of these contracts, working with clients on some of the UK’s most important infrastructure projects.

“Today’s announcement accelerates our plans to build a resilient, growth-oriented business.  Equally important, we have also safeguarded 117 valuable jobs and livelihoods that could otherwise have been lost to our industry.

“The acquisition has required a very rapid, but collaborative approach, and Keltbray would like to thank all parties for their proactivity throughout.  I look forward to working with my new colleagues as we build a rewarding future together as one Keltbray.”

The Keltbray deal is the final sell-off of nmcn which went into administration last week.

Galliford Try bought the water business for £1m saving 900 jobs while Svella picked-up the telecoms, plant hire, transport and accommodation divisions saving 680 jobs.

Administrator Grant Thornton was unable to find a buyer for the building division leading to 80 redundancies.

Spokesperson for Grant Thornton, Rob Parker said: “We are very pleased to have secured this third sale which means that within less than a week of our appointment we have secured over 1600 jobs and helped to maintain continuity and minimise the impact for the greater majority of nmcn’s customers, many of which were involved in important infrastructure projects across the UK. It was important to ensure that transactions were completed as quickly as possible.

“Sadly it was not possible to transfer all of the Infrastructure contracts and therefore regrettably we have today announced 19 redundancies.

“Our focus as administrators now turns to assisting the purchasers of the various parts of nmcn with post completion matters and dealing with the other assets of the company.  We will be providing further updates in due course.

“The Joint Administrators would like to thank the efforts of Lee Marks, Alan Foster and the nmcn and Grant Thornton teams for their hard work in achieving these sales.”