An £85 million national challenge to modernise how the UK delivers social housing and public infrastructure, starting with the first regional pilot in Liverpool.
A new £85 million Industrialising and Digitalising Construction Challenge is set to overhaul how the country designs and delivers sustainable social housing, schools, hospitals and public infrastructure. The aim is to lift productivity across a sector worth more than £250 billion a year while strengthening supply chains and improving energy efficiency.
Construction productivity remains around 23% below the national average and closing that gap could unlock up to £27 billion in additional economic output over time, while creating up to 380,000 new jobs.
The programme aims to grow domestic manufacturing capability and transform how the UK builds.
Through coordinated, digitally enabled manufacturing approaches.
Helping publicly funded schemes achieve more reliable outcomes.
Delivering better‑performing public buildings.
Providing demand certainty that enables industry investment.
Supporting the UK’s economic growth mission.
We are beginning our mission to transform the UK’s construction industry in Liverpool – a city which has long been at the forefront of innovation and creativity. The digital technologies and manufacturing methods developed here will help us speed up how we can build more homes, schools, and hospitals right across the UK. This work will help us set the benchmark for how we deliver high-quality infrastructure more efficiently, directly benefitting communities. By supporting this initiative, we are backing more high-skilled jobs for Liverpool while also bringing our construction industry into the digital age.
Lord Vallance, UK Science Minister
Having started my own career as a bricklayer, I understand first-hand the pressures facing the construction sector. But to deliver on the government’s mission to get Britain building again, it needs to adapt with the times. I’m incredibly proud that our area has been chosen as the first national pilot to modernise construction… If we get this right, we won’t just build the next generation of affordable social housing, schools and hospitals we’ll strengthen UK supply chains, boost productivity, and give manufacturers the confidence to invest in skills and capacity.
Steve Rotheram, Mayor of the Liverpool City Region
national programme
value of UK construction sector
productivity gap vs UK average
The High Value Manufacturing Catapult is supporting the delivery of the Challenge by bringing together manufacturers, digital specialists, housing providers and public-sector clients. By aligning standards, digital tools and commercial frameworks, the programme aims to give UK industry the confidence to invest in skills, technology and capacity, building a more resilient and productive construction sector.