What does the new government mean for building controls?

Since the last edition of this newsletter was published, there has been a significant update in the policy space, specifically the small matter of a General Election and a new Labour Government. Here’s what this might mean for the building controls industry and your business.

One thing that a new government always tends to bring (regardless of their political stripes) is change (which was also the name of Labour’s Manifesto incidentally), and with this change comes opportunity. For businesses in the building controls industry, this should mean greater commercial opportunity.

It is widely expected that Labour will provide more funding and policy support for decarbonisation and energy efficiency. This will bring opportunity for businesses working across the energy efficiency space, including BCIA members. Labour has also made specific commitments that may translate into commercial opportunity and increased sales for BCIA members. These include:

Reductions in energy bills for businesses

According to Labour’s Manifesto, their Green Prosperity Plan will take £53 billon off energy bills for businesses. As a low cost, highly effective way for businesses to reduce their energy bills, building controls can help the new Government to deliver on this promise. They are the “low-hanging fruit” of energy efficiency technologies, offering the chance for significant energy savings at a lower capital cost than comparable technologies.

Unfortunately, at the moment, there is very little funding available for commercial energy efficiency and decarbonisation. Hence, one of our key policy asks outlined in the policy paper developed by the BCIA and Gemserv was a dedicated funding scheme for commercial decarbonisation. In order to deliver on their £53 billion bill saving target, the new Government will need to support businesses to invest in energy saving measures. This may mean more policy support for building controls and other energy saving technologies.

Introduction of Minimum Energy Efficiency Standards

Labour have promised to proceed with the introduction of proposed Minimum Energy Efficiency Standards (MEES) for the domestic private rented sector, thus reversing the Prime Minister’s decision in September 2023 to scrap these proposals. This means that it is highly likely that they will also introduce stricter MEES in the non-domestic private rented sector.

This would mean that landlords of commercial buildings will be obligated to upgrade buildings to a minimum level of energy efficiency, as determined by a building’s Energy Performance Certificate (EPC). If implemented, this regulation should directly result in greater sales for BCIA members as building owners will be legally compelled to install energy efficiency measures like building controls.

More support for apprenticeships and technical education

In their Manifesto, Labour made several key commitments on skills policy, including pledges to:

·        Expand apprenticeships and place more focus on technical education.

·        Establish a new body, Skills England, to coordinate skills policy.

·        Reform the Apprenticeship Levy and consult on eligible courses via Skills England.

The BCIA has carried out lots of work on training and skills development, including leading on the establishment of the Building Energy Management Systems (BEMS) Controls Engineer Apprenticeship. Labour’s planned reforms should be positive for the skills landscape in the sector. Considering the work the BCIA already does in the skills space, this is a good opportunity to engage and work with the new Government to ensure that it considers the needs of the building controls industry when designing skills policy. This is crucial to ensure that your business has the skilled workers that you need.

How the BCIA are influencing policy

The BCIA and Gemserv have drafted a policy paper on your behalf outlining our key messages about the benefits of building controls and setting out a case for greater policy support. We have also been engaging with ministers, MPs and other key stakeholders like the Climate Change Committee. Those of you who attended the BCIA Members’ Conference will have heard from Lord Callanan, the then Minister for Energy Efficiency and Green Finance, who we were successful in engaging on the policy opportunities of building controls.

The BCIA and Gemserv have now shifted our focus to building strong relationships with key ministers and decision-makers in the new government. To this end, Gemserv are currently working on a policy position paper focussing on “The Retrofit Opportunity”. This will be aimed at the new Government and how building controls can help them to achieve their policy objectives in existing non-domestic buildings.

How you can influence policy

In order to shape policy and gain favourable policy change for the building control industry, raising awareness of building controls among policymakers is crucial. This is something you can help with.

Gemserv have drafted a template letter for you to send to your local MP about the benefits and policy opportunities of building controls. The aim of this letter is to utilise the BCIA’s broad membership base to raise awareness among MPs, many of whom may never have heard of building controls, and build a strong groundswell of support within Parliament for their increased deployment. This is an effective way to gain greater recognition of building controls within policy and ultimately drive increased sales for your business.

You are encouraged to send this template letter to your local MP with the help of the useful database Gemserv have created containing the name, address and contact details of your local MP. We recognise that you are very busy, therefore the BCIA and Gemserv will support with any further information requests, meetings, or any other follow up activities that may arise from this letter.

Why act now?

Over the next few months, the new Government will be deciding on its strategic policy direction and how it can achieve its key policy priorities. Therefore, now is the perfect time to influence policymakers and build awareness of building controls. In this way, we can ensure that they are at the centre of the new Government’s approach to decarbonising non-domestic buildings.

How you can get involved

The BCIA’s Policy Working Group meets on a regular basis to discuss the impact of policy developments on the industry and consider how the BCIA can influence policy to drive the best commercial outcomes for members. The BCIA also works with Gemserv, a professional services consultancy specialising in net zero policy, as our dedicated Policy and Government Affairs Consultants.

If you are interested in joining the BCIA Policy Working Group and helping to shape the BCIA’s policy activities, please email catherinew@bcia.co.uk.