Labour’s 1.5 Million-Home Target Jeopardised by Soaring Brick Costs

Labour’s pledge to deliver 1.5 million new homes by the 2029 election is now in danger because the Iran conflict has driven up energy prices, sharply raising brick production costs – a material essential for housebuilding.

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The war in Iran, including the closure of the Strait of Hormuz, has pushed industrial gas prices to three times their 2023 level. Higher energy costs have made brick and ceramics production more expensive, prompting developers to hold land idle.

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The government’s annual target of 300,000 homes far exceeds the 208,600 built in 2024-25. Housing starts rose 24% year-on-year, and 342,100 additional homes were delivered in England between 9 July 2024 and 15 March 2026. The BIC scheme subsidises up to 25% of energy bills for mortar producers, but bricks are excluded. £39 billion has been invested in social and affordable housing and electricity bills for brick and mortar producers are being cut.

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GMB union leaders Gary Smith and Charlotte Brumpton-Childs have urged Prime Minister Keir Starmer and Chancellor Rachel Reeves to back brick manufacturers. Labour MP Adam Jogee, whose constituency hosts Ibstock – the UK’s largest brick producer – also called for action. Energy Minister Chris McDonald oversees the “supercharger” scheme, which backs mortar but not bricks.

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A government spokesperson said the administration will build the homes the country needs, citing planning reforms, the £39 billion housing investment and electricity-bill cuts for brick and mortar producers, and added that effects of planning and house-building reforms should raise completions in later parliamentary years.

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The GMB union urges extending subsidies to brick manufacturers, warning the industry’s energy intensity threatens thousands of skilled jobs. MP Jogee called support for bricks “a no-brainer” to protect employment and showcase British bricks abroad.

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Government data shows a 24 % rise in starts and over 340 000 additional homes delivered, but union leaders say the exclusion of bricks from the BIC scheme makes Labour’s 1.5 million-home pledge “out of reach.” No timetable for extending “supercharger” scheme to bricks has been given.

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• “Your government is now at a crossroads, and you must be honest with working class voters in cities, towns and villages about where you are prepared to act – and where you are not.” — Gary Smith, General Secretary, GMB

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• “The Iran conflict has been the final straw.” — Charlotte Brumpton-Childs, National Secretary, GMB

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• “It is a no-brainer to protect jobs and support a really important industry and make sure that we showcase British bricks on the world stage.” — Adam Jogee, Labour MP for Newcastle-under-Lyme

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• “We’ve overhauled the planning system and invested a record £39 billion in social and affordable housing to help developers weather any geopolitical pressure.” — Government spokesperson

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Labour is expected to consider extending the “supercharger” subsidies to brick producers as pressure from unions and MPs intensifies.

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