Breedon Group CEO Rob Wood warns Labour’s 1.5m homes target will fail due to lack of government support for construction industry, cement supply threats and falling housing stock additions

Labour’s ambitious housebuilding pledge was destined to fail from the moment it was unveiled, according to the head of a prominent construction materials company.

Rob Wood, chief executive of materials specialist Breedon Group, told City AM that the government’s commitment to deliver 1.5m homes before the next general election is doomed because Labour has failed to adequately support its construction sector.

Mr Wood is urging ministers to safeguard the UK’s domestic cement supply, which he argues faces significant threats from inconsistent carbon regulations, elevated energy costs, climbing labour expenses and a growing influx of imported cement.

He argued that Labour’s failure to properly value the broader construction industry represents a key factor in why it will fall short of its housing ambitions.

Mr Wood said: “The day they announced it, it was already impossible. I can’t believe they still talk about it.

“They haven’t got that long left, and if you look at the current run rates they’re not going to get anywhere near it.”

According to the Office for Budget Responsibility’s most recent projections, net additions to Britain’s housing stock are set to decline from an average of 260,000 annually to a low of 220,000 in 2026-27.

Labour’s relaxation of planning regulations has yet to “meaningfully materialise” in accelerated housebuilding rates, the watchdog noted.

Whilst the next election – Labour’s deadline for meeting its housing target – is anticipated in 2029, the OBR indicated that construction activity will not see a substantial upturn until 2030.

Mr Wood is urging the government to tackle the cost of electricity in the UK and champion domestically produced cement in public procurement, to counter the “serious risks” confronting the cement industry.

“If there isn’t a robust and healthy domestic cement industry, everything will have to be imported, […] and ultimately it will all depend on the availability of products from overseas,” the boss of Derbyshire-based Breedon said.

Demand for essential construction materials such as concrete (-9.9 per cent), aggregates (-1.6 per cent) and asphalt (-1.1 per cent) declined for a fourth successive year in 2025, according to a Mineral Products Association (MPA) report.

Mr Wood argued the inflationary risks stemming from the Iran conflict – and the strain it places on mortgage rates and consumer confidence – demonstrate that the government should be able to depend on its domestic construction sector.

The costs confronting British construction firms threaten their capacity to deliver Labour’s industrial strategy and could jeopardise jobs, he warned.

Earlier this month, the head of a leading construction industry body revealed inheritance tax pressures on material and machinery suppliers, which are frequently family-run, are placing companies at risk.

Productivity levels are a crucial indicator of the UK’s economic health and the government celebrated improvements to these forecasts at last year’s Budget, but Breedon Group cautioned crumbling infrastructure is hindering productivity growth. Mr Wood said: “We don’t have enough schools, we don’t have enough hospitals, our road network is in a terrible state of repair, and the government keeps talking about productivity. “.

“If we don’t have the distribution networks, if we don’t have rail or road networks that are operating efficiently, no wonder productivity can’t improve.”

The FTSE 250 company unveiled its annual results for the year ending December 2025 on Wednesday, revealing a nine per cent revenue increase to £1.7bn.

However, pre-tax profit dipped by 16 per cent to £105m, whilst Breedon posted a record post-pandemic free cash flow generation of £133m, a rise of 17 per cent from 2024.

The firm’s results statement highlighted a “subdued” construction sector, with a “dynamic” economic environment overshadowing indications that growth might be on the upswing.

The Ministry for Housing, Communities and Local Government was approached for comment by City AM.

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RICS has published its latest residential market survey for Wales

The number of new homes coming onto the housing market in Wales rose during February, according to the latest Royal Institution of Chartered Surveyors (RICS). However, its latest residential market survey shows chartered surveyors in Wales remain cautious about the short-term outlook.

A net balance of 15% of respondents reported that new instructions to sell were up through the month of February, indicating that more sellers were putting their houses on the market. However, whilst supply is stronger, demand seems to have dipped. A net balance of -37% of Welsh surveyors reported that new buyer enquiries fell through, which is further into negative territory than the -21% that was seen the month previous.

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Subdued demand is leading to fewer sales. A net balance of -36% of respondents in Wales reported that sales declined in the most recent survey, which is the lowest this balance has been since July 2025. And surveyors are cautious on the sales outlook with a net balance of -6% of respondents in Wales anticipating sales will fall over the next three months.

When it comes to pricing, a net balance of 14% of Welsh respondents reported that house prices have risen over the past three months, which is up from the 5% seen in the January survey. However, there is a hesitation when it comes to the short-term outlook, with a net balance of -6% of surveyors in Wales expecting prices to fall over the next three months.

Commenting on the sales market, Anthony Filice of Kelvin Francis in Cardiff, said: “Increasing levels of new instructions and serious interest is bringing about early sales, several at the full price or near. There are no effects of the Middle East conflict noted yet, although it is anticipated that interest rates are unlikely to continue their downward trend.”

Commenting on the UK picture, RICS head of market Research and analytics, Tarrant Parsons, said: “February’s survey highlights renewed volatility in the market. While activity indicators at the start of the year suggested a tentative improvement, the deterioration in the geopolitical backdrop has clearly weighed on confidence.

“The recent rise in oil and energy prices has also increased the likelihood that mortgage rates will remain higher for longer. As a result, near-term expectations have softened. Although the twelve-month outlook remains positive overall, maintaining that trajectory will depend on the recent spike in inflationary pressures easing in the months ahead.”

Former Starbucks CEO Howard Schultz and his wife announced they’ve moved to Florida for their “retirement phase,” leaving Washington state after nearly half a century.

Schultz shared the news in a post on LinkedIn, recounting how he, his wife Sheri, and their golden retriever Jonas, made the move from New York City to Seattle 44 years ago.

“We were starting a new life,” Shultz wrote, recalling how Sheri would be their primary income earner as he started a new job “at a place called Starbucks” in September 1982.

Schultz would later become the coffee company’s CEO, serving in the position from 1986 to 2000, from 2008 to 2017, and as its interim CEO from 2022 to 2023.

STARBUCKS TO OPEN NEW OFFICE IN NASHVILLE, MOVE SOME JOBS FROM SEATTLE

Howard Schultz, CEO of Starbucks, speaks during the company’s annual shareholders meeting in Seattle, Washington March 19, 2014. (David Ryder / Reuters Photos)

“The spirit of continuing forward has long underpinned our approach to life—in business, in philanthropy and most importantly, as a family,” Schultz wrote. “For those of you who know us well, we have entered the ‘retirement’ phase of our lives. (A term we are both just getting used to.)”

Former Starbucks CEO Howard Schultz testifies about the company’s labor and union practices during a Senate Committee on Health, Education, Labor and Pensions hearing on Capitol Hill in Washington, D.C., March 29, 2023.  (SAUL LOEB/AFP via Getty Images)

Schultz added that he and Sheri moved to Miami, where they were enjoying the sunshine and being close to their kids on the East Coast as they raised their own families.

“We will be forever grateful for the memories made in Seattle and the relationships built along the way,” Schultz wrote. “To the family, friends and partners who made Seattle our home for so many years, thank you.”

STARBUCKS’ TURNAROUND PLAN SHOWS PROMISE IN US AS SALES GROWTH RETURNS FOR FIRST TIME IN 2 YEARS

Schultz has an estimated net worth of $3.5 billion, according to Forbes.

The news of Schultz’s move to Florida comes a week after Starbucks said it will be opening a new corporate office in Nashville.

People pass by a Starbucks coffee shop in Manhattan, New York, on Jan. 15, 2025.  (Mostafa Bassim/Anadolu via Getty Images)

Both announcements come as Washington state has been working to pass what has been dubbed the “millionaires tax,” which would impose a 9.9% income tax on households earning more than $1 million annually.

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The Washington State House of Representatives passed the controversial bill in a 51-46 vote. The bill must now be confirmed by the State Senate before Democratic Gov. Bob Ferguson can sign it into law.

Small Business Administrator (SBA) Kelly Loeffler unveiled a sweeping fraud crackdown on Wednesday, announcing an audit of a decades-old $50 billion program she said has “never been looked at” and barring 112,000 borrowers from future aid over COVID-era loan fraud.

“There are dozens of programs across this government that need to be reviewed,” Loeffler said on “Mornings with Maria.”

“I found a program that we had in our agency about 50 years old, [that has] never been looked at, $50 billion, so what we’re doing is auditing each participant in the program, and we’re looking back at COVID-era loans.”

GOP SENATORS LAUNCH TASK FORCE TO CRACK DOWN ON FRAUD TIED TO MINNESOTA SCANDAL

U.S. Administrator of the Small Business Administration Kelly Loeffler speaks ahead of U.S. Vice President JD Vance at Pointe Precision on Feb. 26 in Plover, Wis. (Matt Rourke-Pool/Getty Images / Getty Images)

The SBA chief said 112,000 borrowers in California are banned from ever getting SBA assistance again for allegedly defrauding COVID-era loan programs and expressed gratitude to Vice President JD Vance for leading the charge in the fight against fraud.

President Donald Trump tapped Vance to spearhead the administration’s “war on fraud” during his State of the Union address last month, a task the vice president accepted with a promise to root out “stolen” taxpayer money on a systematic level.

PHILADELPHIA MEN REPEATEDLY TRAVELED TO MINNEAPOLIS TO CARRY OUT $3.5M HOUSING FRAUD SCHEME: DOJ

Vice President JD Vance delivers remarks at Hatch Stamping on Sept. 17, 2025 in Howell, Mich. President Trump tapped Vance to spearhead the administration’s “war on fraud.” (Bill Pugliano/Getty Images / Getty Images)

“The American people want accountability. They want to make sure their hard-earned tax dollars are not going to fraudsters,” Loeffler said.

“People that have come here and built businesses on defrauding the government… we’re going to see results on that and make sure that we change it for good. These changes need to be durable and sustainable for the American taxpayer.”

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Loeffler has already paused some SBA loans to Minnesota amid a widespread fraud investigation in the state.

She vowed to go “state by state” to weed out offenders, telling the New York Post that the push is part of a greater effort to “contribute meaningfully” to Vance’s fraud task force.

Peter Grom
UBS Investment Bank, Research Division

All right. Good morning, everyone. Welcome to the UBS Global Consumer and Retail Conference here in New York City. My name is Peter Grom, I’m the U.S. Consumer Staples Analyst here at UBS, and we are very excited to have joining us Rahul Goyal, President and Chief Executive Officer; and Tracey Joubert, Chief Financial Officer from Molson Beverage or Molson Coors Beverage Company this morning. So clearly, beverage alcohol has been under pressure from the top and bottom line perspective over the last several years. And several weeks ago, both Rahul and Tracey outlined the Horizon 2030 strategy as the company looks to navigate this challenging backdrop and return to more consistent growth.

In terms of format for today, I have a series of questions that I plan to run through with Rahul and Tracey during the 45 minutes we have here. But before we start, I’m required to read a legal disclaimer. As a research analyst, I’m required to provide certain disclosures relating to the nature of my own relationship and that of UBS with any company on which I express a view on this call today. These disclosures are available at www.ubs.com disclosures. Alternatively, please reach out to me. I can provide them to you after this webcast.

So with that, why don’t we get started? Rahul, Tracey, thank you so much for joining us.

Rahul Goyal
President, CEO and Director

Thanks for having us, Peter.

Digital banking giant Revolut has officially launched its UK bank after receiving regulatory approval from the Prudential Regulation Authority (PRA), marking a major milestone in the fintech company’s long-running push to establish itself as a fully licensed bank in its home market.

The new entity, Revolut Bank UK Ltd, will gradually begin rolling out current accounts to customers, starting with a limited group before expanding to the company’s 13 million UK users over the coming weeks.

The approval allows Revolut to move out of the “mobilisation” phase of its banking licence, the period during which a company prepares operational systems and governance before offering full banking services.

For the first time, Revolut customers in the UK will be able to hold deposits protected by the Financial Services Compensation Scheme (FSCS), which safeguards eligible deposits of up to £85,000 per person.

The launch of the UK bank enables Revolut to begin offering deposit accounts with FSCS protection, bringing it into closer competition with established high-street lenders and digital challenger banks.

While Revolut has operated in the UK since 2015 and built one of the country’s largest fintech customer bases, it previously operated using an e-money licence, meaning deposits were safeguarded but not covered by the FSCS guarantee.

The transition to a licensed bank also opens the door to a broader range of services, including lending products, credit offerings and expanded financial services for both retail and business customers.

However, Revolut has emphasised that the rollout will be gradual to ensure a smooth transition.

Initially, new customers will be offered the bank’s current accounts, while existing users will continue using the app and payment services as normal until their accounts are migrated.

The company expects the migration of existing customers to take several months, with notifications being sent through the Revolut app during the transition period.

Revolut’s co-founder and chief executive Nik Storonsky described the launch as a pivotal moment for the company’s global ambitions.

“Launching our UK bank has been a long-term strategic priority for Revolut and marks a significant moment in our journey,” he said.

“The UK is our home market and central to our growth. We look forward to introducing a full suite of banking services to our millions of UK customers, bringing the same innovative experience we already provide across the rest of Europe.”

Storonsky added that the development represents a major step toward the company’s long-term goal of creating “the world’s first truly global bank.”

The banking licence approval comes shortly after Revolut announced plans to invest £3 billion ($4 billion) in the UK economy and create around 1,000 high-skilled jobs as part of its expansion strategy.

The company has also unveiled an ambitious global investment programme worth £10 billion ($13 billion) over five years, which will support international growth and the launch of banking services in additional markets.

As part of that strategy, Revolut plans to enter 30 new markets by 2030, with licensing progress already underway in parts of the Americas and other regions.

The fintech group has become one of Europe’s fastest-growing financial technology firms, offering services including international payments, investment tools, cryptocurrency trading and budgeting features through its mobile app.

Francesca Carlesi, chief executive of Revolut UK, said the regulatory approval represents a defining stage in the company’s development.

“Becoming a bank in our home market marks a defining moment in our journey — a milestone achieved through relentless focus, discipline and belief in what we’re building,” she said.

“Securing this licence lays the foundation for our next chapter: expanding into a broader suite of products, including credit, to sit alongside the innovative services our customers already rely on every day.”

Carlesi added that the launch will help Revolut continue its mission of delivering “the most seamless, secure and customer-centric banking experience for consumers across the UK.”

Revolut’s transition into a fully licensed UK bank is likely to intensify competition across Britain’s financial services sector, particularly among digital challenger banks such as Monzo and Starling.

With millions of existing customers already using its app for payments and financial services, Revolut enters the banking market with a substantial user base that could rapidly adopt its new FSCS-protected accounts and future lending products.

The company’s move also reflects a broader shift within the fintech industry, as many technology-driven financial firms seek full banking licences in order to expand their services and strengthen customer trust.

For Revolut, securing approval in its largest market represents both a regulatory breakthrough and a crucial step in its ambition to become a global digital banking powerhouse.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Scheme includes refit of landmark Kendal Milne store in Deansgate

Gary Neville’s development company has announced a new city-centre neighbourhood with the historic Kendals building at its heart.

Relentless Developments, owned by the Man United legend, has dubbed the proposed neighbourhood off Deansgate ‘Kendals District’, which will be spearheaded by the redevelopment of the department store.

Top quality workspace; hospitality and leisure facilities; a luxury hotel; and branded residences are all earmarked to be set within new public realm and cultural space.

At the heart of this redevelopment will be the ambitious retrofit of the iconic Kendal Milne building on Deansgate.

This will be driven by a partnership between Relentless, Investec and supported by the Greater Manchester Combined Authority (GMCA). It will create 230k sq ft of modern, prime office space, along with an extensive F&B and retail provision.

The art deco department store, last home to House of Fraser, enticed shoppers for generations after opening in 1939. The massive building has been largely empty since its closure in 2019, but there was planning approval to convert the nine-storey Deansgate block into offices, cafes, and shops in 2021.

After years of relative quiet on the project, at the end of last year Greater Manchester mayor Andy Burnham confirmed £44m of his new £1bn ‘Good Growth Fund’ would be spent to help get the conversion off-the-ground.

Anthony Kilbride, CEO of Relentless Developments, said: “Kendals is a complex heritage retrofit that has demanded real conviction, not just in the building itself, but in the wider vision for this part of the city. As one of Manchester’s most recognisable landmarks, this high-impact site is perfectly positioned to anchor district-scale regeneration and act as a true gateway to a new neighbourhood.

“What we are bringing forward with the Kendals District is not piecemeal development; it is a coherent, carefully planned quarter that brings together workspace, hospitality, culture and public realm in a way that creates long-term value for the city. It demonstrates how effective public-private collaboration can unlock growth, accelerate delivery and create places of genuine economic and social impact.

“The retrofit of the former Kendal Milne building will set the tone for what follows: thoughtfully designed, highly sustainable space that prioritises wellbeing and flexibility, meeting the evolving needs of modern occupiers while respecting the heritage of the site.

“Relentless is proud to be leading five of the six transformational sites within the district and looking forward to playing a central role in shaping what will become one of Manchester’s most dynamic and recognisable new quarters.”

Relentless’ role in the Kendals District follows the success of its St Michael’s development on Jackson’s Row where the developer is partnering with Marriott International to play host to a 162-room W Hotel and 217 W Residences within a 43-storey tower.

Coun Bev Craig, leader of Manchester City Council, added: “Good Growth is about creating investment opportunities that create a lasting impact to the fabric of our city. While this is often about supporting new development to create growth, it is as much about using the incredible assets we already have in Manchester.

“Kendals is a prime example of this approach – breathing new life into an iconic heritage building to not only ensure its long-term future, but to create a platform for a new city centre district to deliver growth at scale and with ambition.”

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