As the debate over devolution gathers pace, NLA chief executive Nick McKeogh argues that the built environment deserves a new place in Britain's economic story. In this open letter, he makes the case for treating the sector as a single strategic force – one with the capacity to unlock investment, drive growth and bridge the divide between regional ambition and national priorities.
Dear Prime Minister,
Your government's commitment to greater devolution, stronger cities and locally led growth presents an opportunity not only to change what Britain delivers, but how it delivers it. Yet if that ambition is to succeed, Britain must first change how it thinks about one of its greatest economic strengths.
For too long, government has treated the built environment as a collection of policy problems rather than a strategic national industry. Housing, planning, transport, infrastructure and regeneration have been approached as separate challenges when, in reality, they are all part of the same economic engine.
I am writing to urge you to recognise the built environment as a strategic national industry and to invite you to work with the people, professions and organisations that shape Britain's towns, cities and neighbourhoods in delivering that ambition.
The built environment as a national strategic industry
Few sectors have a greater influence on the country's future than the built environment. NLA research conducted with the Greater London Authority and the London School of Economics found that the built environment generates 25% of the UK’s GVA: £568 billion, making it 2.7 times larger than finance and insurance. It supports one in eight UK jobs and contributes £168 billion in exports of goods and services.
These figures reveal the extraordinary scale of a sector whose strategic importance is still too often overlooked. They also demonstrate that investment in the built environment is not a cost to the wider economy. It is one of the most powerful means available to government to generate growth, employment, exports and long-term public value.
The built environment is also unique in another respect. It is one of the very few industries that operates in every postcode in Britain. Unlike sectors concentrated in particular regions or innovation clusters, it’s workforce, supply chains and investment reach nearly every city, town and community. That makes it uniquely placed to support growth across the whole country.
The sector’s economic contribution is matched by its social reach. Built environment jobs are distributed across every region, city and town and encompass an exceptionally broad range of skills and qualifications. Many are rooted in practical delivery, professional judgement, creativity and human relationships. These are qualities that mean they may be less exposed to displacement by AI than jobs in many other industries. With the right skills and employment strategy, the sector can provide secure and rewarding careers while creating clearer pathways for young people and underrepresented groups.
More importantly, the built environment provides the homes, transport, energy, water, digital connections and social infrastructure on which every community and every part of the economy depend.
A Built Environment Industrial and Investment Strategy
Your government could unlock this potential through a long-term Built Environment Industrial and Investment Strategy. Developed jointly with cities, communities and industry, it would bring together infrastructure, housing, skills, innovation, investment and exports behind a shared programme of national renewal.
No single government department, city, profession or business can deliver this agenda alone. Successful places begin with relationships: between policy and practice, investment and community, public and private sectors, established expertise and emerging talent. The strategy should therefore do more than coordinate projects and funding. It should create the conditions for long-term collaboration, shared learning and the trust on which confident investment and effective delivery depend.
A global opportunity for UK leadership
The international opportunity is equally significant. The built environment is the world’s largest economic sector, and demand for its expertise will grow as cities expand, populations urbanise and governments respond to climate change. Across the world, cities must provide new homes and infrastructure while decarbonising existing buildings, strengthening climate resilience and improving quality of life.
The UK is already a global centre of excellence in planning, architecture, engineering, urban design, construction, finance and the professional services that bring complex projects to life. A coordinated industrial strategy could turn this established strength into a much greater export opportunity. It could help British firms enter new markets, attract international investment and position the UK as the leading global partner for sustainable urban growth.
This is an opportunity not only to build more at home, but to export the knowledge, technology and delivery models needed to help cities around the world grow sustainably and tackle climate change.
Devolution and empowered city regions
Devolution must be central to this approach. London and other city regions need the powers and long-term financial certainty to plan infrastructure, deliver regeneration and respond to local housing needs. This should include a serious examination of fiscal devolution, property tax reform, land-value capture and stronger local investment powers. The precise mechanisms require careful development, but the principle is clear: places should be better able to retain and reinvest a share of the value their growth creates.
Greater Manchester has demonstrated the value of consistent leadership, integrated governance and long-term partnership. London and other city regions should learn from that experience, just as Manchester and cities across the country can benefit from the capital’s scale, global connections and concentration of built environment expertise.
This should not become a competition between places. Growth in the built environment is not a zero-sum game. Investment attracted to London strengthens supply chains, skills and professional expertise across the UK, just as successful city regions create opportunities for business and talent nationwide. The objective should be to grow the national market, not simply redistribute it.
A lasting legacy
Your government has the opportunity to establish the stability, confidence and shared purpose required for long-term investment. This is ultimately an act of stewardship. Every generation inherits the places created by those before it, reshapes them and passes them on.
By holding people, place and partnership at the heart of its approach – and by recognising the built environment as a strategic national industry – your government can create lasting prosperity, better everyday lives and a more resilient inheritance for the generations to come.