Introduction
Investment in infrastructure, from building new homes to clean energy and digital infrastructure, is a key component for achieving local and national government ambitions in delivering economic growth and prosperity. However, these ambitions can only be realised if there is the skilled workforce available to meet sector-specific labour needs. This project intends to highlight the policy challenges that exist to overcome shortages of qualified skilled labour, as well as some of the innovative practice local government and their partners are introducing in the attempt to develop the workforce needs
For the purpose of this project, we have taken a broad definition of ‘infrastructure’ to reflect similar workforce pressures. While this project does not reflect every type of infrastructure project, it does contain lessons for local authorities who have multiple infrastructure demands. The definition includes the following sectors:
- house building and construction sectors
- digital infrastructure
- green infrastructure
- any other Nationally Significant Infrastructure Project like highways, rail freight infrastructure and power lines. They are treated separately from normal local authority planning because of their size and importance to wider communities.
The skills for infrastructure challenge
The extent of the national challenge is vast, with the following sectors identifying specific challenges:
- The UK will require an additional 250,000 construction workers by 2028. However, despite this clear workforce demand, almost a third (31 percent) of construction employers cite the availability of suitably skilled staff as being their key challenge, particularly as older workers retire and are not being replaced.
- It is estimated that one in five jobs will experience a shift in demand for skills through the transition to net zero, with around three million workers requiring some form of reskilling. In addition, the Climate Change Committee have found that between 135,000 to 725,000 net new jobs could be created in low-carbon sectors by 2030.
The Government have published high level analysis of some of the housing and infrastructure workforce needs. This includes:
- Skills England: Driving Growth and Widening Opportunity report.
- Office of Clean Energy Jobs assessment of the clean energy skills challenge.
- Department for Education Local Skills Dashboard for the specific labour workforce demands in different areas.
The government has taken a sector based approach to try and tackle these skills challenges, such as the Construction Industry Training Board development of Sector Skills Plans, as well as the Homebuilding Skills Hub, funding for construction workers and funding for clean energy growth areas. In addition to this, there have been reforms to the apprenticeship system to encourage young people into construction apprenticeships.
Local government role in the skills for infrastructure challenge
While businesses and industry should be at the forefront of tackling sector workforce challenges, this can only be achieved if local government is enabled to deliver an important place leadership role. An enabled local government sector, in partnership with local and national partners, can provide coordination and plan activity to strengthen the supply chains for different local and national infrastructure investments, reducing competition between sectors and supporting the viability of different infrastructure projects. Without local coordination between different sectors, there is the possibility some infrastructure projects will become unviable as they compete for the available qualified workforce.
The LGA has previously published the Green Jobs Framework which puts forward a new relationship model, through a national strategic framework and local delivery partnerships model. This model can enable local government and strategic authorities to bring together skills providers, businesses, industries and other organisations to collectively develop the workforce needed to deliver net zero. Using the principles of Work Local, the framework sets out how this relationship could operate, bringing together net zero and the skills system to align and collectively develop the green skills and jobs that are needed.
In addition to coordinating activity, local government has a leading role in supporting those furthest away from the jobs market into stable employment. With the publication of the ‘Get Britain Working White Paper’, the development of local Get Britain Working plans and Connect to Work, local government and strategic authorities will have a pivotal role in bringing together local work, health and skills support to meet the infrastructure needs of local areas, with an opportunity to use house building and infrastructure investment as an opportunity to support people into employment.
Skills for infrastructure challenge: Policy challenges
This piece of research is intended to support both Work Local and the Green Jobs Framework, looking at wider skills for infrastructure demands. Using four case studies, it identifies some of the policy challenges that national government will need to address to deliver national and local growth ambitions. It will also support the local government sector as they seek to deliver Get Britain Working plans and Local Growth Plans, by providing inspiration on the types of schemes that could be introduced to tackle local workforce challenges.
The case studies that were interviewed have told us some of the high-level challenges that exist, which include:
- Ageing construction workforce: The average age of workers in the UK construction industry is rising, with many approaching retirement. There's a lack of younger workers entering the sector to replace them, creating a looming workforce shortfall. As the CITB have found, the challenge for construction employers has been older workers retiring and not being replaced, with 31 per cent of employers reporting they cannot find suitably qualified staff.
- Shortage of training in Modern Methods of Construction (MMC): MMC - including modular housing, off-site manufacturing, and digital design - requires a different skillset from traditional building methods. Training provision has not kept pace with industry demand, limiting uptake and innovation.
- Severe shortage of retrofit and green construction skills: Delivering energy efficiency upgrades and low-carbon homes (e.g. heat pumps, insulation, solar panels) requires specific technical skills that are in very short supply, which the Office of Clean Energy Jobs reflect in their Assessment for Clean Energy Jobs research. This undermines net zero targets and retrofit programmes.
- Low awareness and attractiveness of green career pathways: Despite over half of 18 to 35 year olds, wanting a career to help protect the environment, there are challenges in encouraging young people into green careers. Green construction careers are not well understood or promoted, particularly among younger people and career changers. As a result, there is low uptake of relevant training courses and apprenticeships.
Skills for infrastructure challenge: Local innovation
The four case studies have adopted different approaches, based upon local infrastructure demands and demographic profiles.
The types of approaches include:
- strong partnership working
- maximising the flexibility in qualifications and training
- introduction of Modern Methods of Construction (MMC) and automation to maximise the efficiency of the use of the current skilled workforce
- support those furthest away from the job market into sustainable employment.
It will be challenging to fully address the skill gaps needed to deliver local and national growth ambitions, such as the 250,000 additional construction workers by 2028, therefore it is essential for there to be a mixture of maximising skilled workforce, while also utilising technology, automation and Modern Methods of Construction.
Case studies
Sunderland City Council: Housing Innovation and Construction Skills Academy
Introduction
The Housing Innovation and Construction Skills Academy (HICSA) is led by Sunderland City Council and managed by Sunderland College. It is a partnership between the City Council, Education Partnership North-East (a college group made up of Sunderland College, Northumberland College, and Hartlepool Sixth Form College), the Ministry of Building Innovation and Education (MOBIE) and Northumbria University. The project successfully secured £20 million in Levelling Up funding in 2021, with construction beginning shortly afterwards. The facility is due to accept its first intake of trainees in 2025.
HICSA aims to address the pressing demand for skilled professionals in housing construction and innovative building technologies and bridge the gap between the growing need for housing, the drive for sustainability in construction, and the regional skills shortage. It will also support meeting local priorities of making Sunderland a Smart City.
Its key objective is to provide specialised training in:
- Modern Methods of Construction (MMC)
- sustainable building practices
- the latest innovations in housing development.
The Academy seeks to build a future-ready workforce equipped to support both local and national ambitions for housing delivery and decarbonisation targets, focusing on energy-efficient homes and green construction solutions.
Lessons for national government:
- Flexibility in training programmes: Offering adaptable and modular training pathways ensures that workers can quickly develop the skills needed to meet the evolving demands of the housing sector.
- Long-term investment in skills development: By providing sustainable funding for training programmes, local government and training providers can move away from isolated projects towards a longer-term strategic capacity building approach to ensure the development of a workforce that is equipped with the skills necessary to support the delivery of high-quality, energy-efficient homes.
- Scalable framework: While the initiative has its roots in Sunderland, it was never intended to remain a standalone effort. It was envisioned as a replicable, adaptable model that could evolve into a regional blueprint for construction innovation, skills development, and housing delivery. Providing the conditions to enable the scalability of provision would help to address some of the workforce challenges.
- Industry collaboration: Strong partnerships between training providers, local authorities, and housing developers are essential to creating a responsive and effective skills training system.
- Adoption of innovative construction methods: Embracing off-site and modular construction methods not only reduces workforce demand but also speeds up the delivery of housing projects while maintaining high sustainability standards.
Lessons for local government:
- The ambition of the HICSA in Sunderland provides a model for other regions looking to address the skills shortage in housing and construction, particularly in areas related to sustainability and innovative building practices.
Devon County Council and Torbay Council: Meeting the demand for strategic skills for infrastructure
Introduction
Devon County Council and Torbay Council are working at the forefront of local skills planning to meet the evolving demands of infrastructure development in South-West England. Both authorities are facing overlapping challenges: a rapidly aging workforce, significant skills shortages in technical sectors, and ambitious targets for housing, regeneration, and net-zero transition. Their approach is rooted in strategic alignment between economic development goals and workforce planning. An approach which has been aided by the new powers and responsibilities transferred to the region via the Devon and Torbay Combined County Authority devolution deal (the CCA being formally vested in February 2025), therefore informing local growth plans and Get Britain Working Plans.
Lessons for national government:
- Locally led delivery works best: Devon and Torbay’s success stems from local insight and leadership. Programmes are designed around real employer demand, and delivery is responsive to community needs.
- Flexibility in qualifications is critical: Short, intensive courses and work-based learning provide faster, more accessible routes into skilled employment than traditional qualifications alone.
- Sustainable skills strategies need secure funding: The success of bootcamps, employment hubs, and local schemes depends on long-term, stable funding. Fragmented or short-term funding undermines workforce planning.
Lessons for local government:
- Workforce demand can be managed through innovation: Embracing MMC and digital tools not only enhances productivity but also relieves pressure on traditional labour markets.
- Regional skills training partnerships: Strategic partnerships with regional institutions: like the South-West Institute of Technology can amplify local efforts by delivering high-quality, employer-aligned technical education at scale.
- Inclusive access must be embedded from the start: Both councils have actively designed programmes that include NEETs, low-skilled adults, and SEND learners, making workforce development more equitable.
Blackburn with Darwen Council: From an industrial past to a digital future
Introduction
Blackburn with Darwen is undergoing a significant economic transformation, transitioning from its industrial roots to a modern, digital economy with major employment growth forecast. Central to this evolution are plans to develop a £60 million Skills and Education Campus, a cornerstone of the £250 million Blackburn Town Centre Masterplan. This partnership between the council and the University of Central Lancashire (UCLan) aims to expand and align skills delivery with significant employment growth opportunities, infrastructure investment, regional regeneration, and cyber-digital sector growth.
Through a coordinated, multi-agency model involving local authorities, educational institutions, and industry stakeholders, Blackburn is fostering employer-led technical education to support strategic economic growth and workforce resilience.
Lessons for national government:
- Strengthen collaborative, multi-tiered governance structures: Shared stewardship among local authorities, education providers, and employers is essential to fostering sustained alignment and adaptive responsiveness across the system.
- The need for adaptive and modular funding frameworks: National funding mechanisms should be designed to accommodate flexible learning pathways, including short-form qualifications, inter-sectoral reskilling, and employer-integrated training models.
- Recognise skills hubs as system enablers: Institutions like the Skills and Education Campus are central to achieving digital transformation and regeneration and need long-term capital and revenue funding to scale impact.
Lessons for local government:
- Place-Leadership of the strategic workforce agenda: Local councils are uniquely positioned to serve as pivotal connectors between residents, employers, and infrastructure stakeholders, fostering a coherent and integrated local development framework.
- Institutionalise skills planning within infrastructure and regeneration initiatives: The development of workforce capabilities must be systematically incorporated into the early stages of transport, energy, and housing investments, rather than addressed retrospectively.
Conclusion
There has been a definite shift in national policy-direction over the past five years. A new consensus has been gradually emerging in which there is far greater recognition of the value and importance of local government and Mayors as a vehicle for the delivery of national ambitions across a broad range of policy areas.
This shift can be viewed as an acknowledgement that the mere ‘administration’ of centrally designed programmes and initiatives are simply failing to yield the full potential in terms of outputs and outcomes when applied without due regard to place-context.
It is in this evolving context that the current government have brought forward the English Devolution White Paper, have promoted the creation of local growth plans and introduced the Get Britain Working White Paper reforms. While the greater focus on local decision making and leadership is welcome, there is still more that can be done at both the national and the local level to move this agenda forward.
Summary of policy recommendations
Lessons for national government:
- Place-led leadership of the strategic infrastructure workforce agenda: Empower local government to act as central conveners—linking residents, employers, and infrastructure - to foster integrated, place-based skills ecosystems that align with local economic development and net zero goals.
- Enable locally led delivery models: Recognise that local insight and leadership are critical to successful programme design and implementation. Tailoring delivery to real-time employer demand and community needs enhances both effectiveness and responsiveness.
- Design adaptive and modular funding systems: Reform national funding mechanisms to support flexible learning models, including short-form and work-based qualifications, cross-sector retraining, and modular upskilling—particularly in response to rapidly evolving sectoral demands such as in housing and net zero.
- Secure sustainable, long-term investment in skills: Move beyond short-term or fragmented funding cycles. Stable, multi-year funding is vital to scaling successful initiatives such as bootcamps, employment hubs, and local training schemes, while enabling providers to invest in capacity building and long-term workforce development.
- Recognise and fund Institutes of Technology as strategic system enablers: Institutes of Technology (e.g., SYIoT) play a central role in delivering technical education aligned with national priorities such as net zero and urban regeneration. They require secure, long-term capital and revenue funding to expand reach and sustain impact.
- Prioritise flexible and responsive training provision: Emphasise the importance of short, intensive, and employer-linked courses that offer more accessible and accelerated pathways into skilled employment than traditional qualification routes—especially within construction and housing.
- Support the development of scalable, transferable skills frameworks: Initiatives piloted in local areas—such as Sunderland—should be designed from the outset to serve as replicable models. These blueprints can inform regional strategies for integrated construction innovation, workforce development, and housing delivery.
Lessons for local government:
- Institutionalise skills planning within infrastructure and regeneration: Embed workforce development into the earliest stages of transport, energy, and housing projects. Skills pipelines must be treated as core components of infrastructure planning, not added post hoc.
- Strengthen regional skills partnerships: Build strategic alliances with regional institutions such as the South-West Institute of Technology to deliver high-quality, employer-aligned technical education at scale and reinforce local capacity.
- Foster cross-sector industry collaboration: Promote coordinated partnerships among training providers, housing developers, and local authorities to design and deliver responsive training systems that address sector-specific skills gaps.
- Embed inclusion from programme design onward: Ensure that skills initiatives are intentionally inclusive, actively engaging NEETs, low-skilled adults, and SEND learners. Equitable workforce development must be built into the foundation of programme design, integrated with local Get Britain Working plans.
- Integrate innovative construction methods into skills strategies: Support the adoption of Modern Methods of Construction (MMC), including off-site and modular building, to increase productivity, reduce reliance on traditional labour, and accelerate project delivery without compromising quality.
- Harness technology to address workforce pressures: Encourage the use of digital tools and construction innovation to relieve labour market strain, upskill the existing workforce, and ensure future workforce readiness in the context of evolving industry.