The NHP team also has to manage a number of commercial risks to the programme which could impact affordability and deliverability. These include a lack of capacity in the UK construction industry, and the significant investment needed in new factory capacity for modular, offsite construction. High inflation in the construction sector (around 14% a year from May to December 2022) might also result in companies being increasingly unwilling to bear the risk of inflation in contracts.77

The NHP team also has to manage a number of commercial risks to the programme which could impact affordability and deliverability. These include a lack of capacity in the UK construction industry, and the significant investment needed in new factory capacity for modular, offsite construction. High inflation in the construction sector (around 14% a year from May to December 2022) might also result in companies being increasingly unwilling to bear the risk of inflation in contracts.77 Type: conclusion | Number: 35 | Response status: accepted Government response: 6.1 The government agrees with the Committee’s recommendation. Target implementation date: May 2024 6.2 The government agrees that the NHP’s programme plan and costs should be realistic and deliverable. In May 2023, the government gave greater clarity on programme scope and funding in its announceme