Annual Report and Accounts 2023

We are

leading

of housebuilding

the

future

Barratt Developments PLC Annual Report and Accounts 2023

Non-financial and sustainability information statement

The information below is intended to help stakeholders understand

our position on these key non-financial matters. We have

considered these non-financial matters and disclosed in the

relevant sections, when determining what information should

be included in the Annual Report and Accounts, the information

needs of different stakeholders and their relative importance as

well as the relevant time horizons in each matter. The following

complies with the non-financial reporting requirements contained

in Sections 414CA and 414CB of the Companies Act 2006.

Description of the business model

Our business summary 12

Our business model 14

Non-financial key performance indicators relevant to

the company’s business 16

Social matters

Market review 20

Our sustainability focus areas 40

Affordability 30

Employees

Development and training 36

Diversity 38

Wellbeing 38

Employee engagement 35

Gender pay gap 37

Board diversity 84

Human rights

Human rights 39

Third parties 39

Anti-bribery and corruption

Group policy 39

Working with suppliers 39

Environmental matters

Climate-related financial disclosures 78

Waste 33

Building sustainably 40

Greenhouse gas emissions disclosure 97

Policy, due diligence and outcomes

Risk management 71

Principal risks 73

Long-term viability statement 99

Audit Committee Report 124

Our fifth integrated report

We are committed to being a sustainable and responsible

business. This is demonstrated in this integrated Annual

Report. Our focus is the connection of economic, environmental,

social and governance matters to create and preserve long-

term value for all our stakeholders.

For a detailed description of our approach to integrated

reporting, go to the Appendix on page 243.

Notice regarding limitations on Directors’ liability

under English law

Under the Companies Act 2006, a safe harbour limits the

liability of Directors in respect of statements in, and omissions

from, the Strategic Report contained on pages 2 to 100 and the

Directors’ Report contained on pages 101 to 171. Under English

Law, the Directors would be liable to the Company (but not to

any third party) if the Strategic Report and/or the Directors’

Report contains errors as a result of recklessness or knowing

misstatement or dishonest concealment of a material fact, but

would not otherwise be liable.

Strategic Report and Directors’ Report

Pages 2 to 100 inclusive, and the Non-financial and

sustainability information statement here, comprise the

Strategic Report, and pages 101 to 171 inclusive comprise the

Directors’ Report, both of which have been drawn up and

presented in accordance with, and in reliance on, English

Company Law. The liabilities of the Directors in connection with

the reports shall be subject to the limitations and restrictions

provided by such law.

Cautionary statement regarding

forward-lookingstatements

The Group’s reports, including this document and written

information released, or oral statements made, to the public

infuture by or on behalf of the Group, may contain forward-looking

statements. Although the Group believes that its expectations

are based on reasonable assumptions, any statements about

future outlook may be influenced by factors that could cause

actual outcomes and results to be materially different. Nothing

contained in this Annual Report or on the Group’s website

should be construed as a profit forecast or an invitation to deal

in the securities of the Company.

Alternative performance measures

In addition to the Group using a variety of statutory performance

measures it also measures performance using alternative

performance measures (APMs). Definitions of the APMs and

reconciliations to the equivalent statutory measures are

detailed on pages 235 to 237. The definition of net cash is

included in note 18 of the Financial Statements.

Cover image 1: Orchards Rise, Swindon

Cover image 2: Victoria Chalmers, Site Manager at Hopecroft and NHBC

Pride in the Job Award winner

1Barratt Developments PLC Annual Report and Accounts 2023

www.barrattdevelopments.co.uk

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FGStrategic Report

Strategic Report

Highlights 8

Investment case 9

Chair’s Statement 10

At a glance 12

Business model 14

Key performance indicators 16

Marketplace 20

Chief Executive’s Statement 23

Our strategy 29

Building sustainably 40

Section 172 50

Stakeholder engagement 54

Chief Financial Officer’s review 66

Risk management 71

Climate-related risks and opportunities 78

Viability Statement 99

Corporate Governance

Board of Directors and Company Secretary 102

Executive Committee 106

Regional Managing Directors 107

Corporate Governance Report 108

Nomination Committee Report 116

Audit Committee Report 124

Safety, Health and Environment

Committee Report 133

Remuneration Report 137

Other statutory disclosures 169

Statement of Directors’ Responsibilities 171

Financial Statements

Independent Auditor’s Report 173

Consolidated Income Statement and

Consolidated Statement of

Comprehensive Income 182

Statement of Changes in Shareholders’

Equity – Group 183

Statement of Changes in Shareholders’

Equity – Company 184

Balance Sheets 185

Cash Flow Statements 186

Notes to the Financial Statements 188

Definitions of alternative

performance measures and

reconciliation to IFRS (unaudited) 235

Five-year record (unaudited) 238

Glossary 240

Integrated reporting approach 243

Group advisers and Company information 244

We are leading the 

future of housebuilding

for our customers

NHBC Pride in the Job Quality Awards

Sustainability

We are determined to be the leading

national sustainable housebuilder.

Wewere recognised on the CDP Climate

Change A List for Leadership, one of

fewer than 300 companies

worldwide.

We believe that fundamental

to building

quality homes is building a positive

environmental, social and

economic

legacy for future generations

. This is

reflected in our ambitious targets

andclear plans and actions.

2 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Leadi

Employees committed

to excellence

Our site managers compete every year to secure

industry-wide recognition for their management

ofexcellent site standards and build quality, through

thePride in the Job Awards. Our site managers won

96awards in 2023 – more than any other housebuilder

forthe 19th year running.

Pride in the Job Awards

Scale

We are the largest housebuilder in

the UK with our operations spanning

England, Scotland and Wales and

encompassing both greenfield

development and brownfield

regeneration activities. Through our

network of 29 divisions, we deliver

more homes than any other

housebuilder across the UK.

17,206

homes completed in FY23

Building at scale and great

customer service is at

theheart of what we do

3Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Leadi

Build quality

Build quality is monitored across our developments by the NHBC.

There are five key stages in the home building process, each

marked by NHBC inspections and the logging of reportable items,

(RIs). Barratt has delivered the lowest rate of RIs across the

major housebuilders consistently for each of the last four years,

highlighting our focus on build quality controls and high standards

across our developments.

0.16

reportable items (RIs) in FY23

See page 33

Everything was

perfect and as

we wanted it.”

Francesca and Jordan,

Barratt customers

Innovation in future

home design

Through partnerships with our supply chain and academia,

Barratt is leading innovation in both the products we use

and in our construction methods, to ensure the industry

can deliver zero carbon homes, at scale, in the future.

The eHome2, built within a climate chamber at the Energy

House 2.0 at the University of Salford, is a zero carbon home

which is testing the effects of climate change and analysing

how new homes can cope with more extreme weather

conditions, whilst reducing energy and water use.

See page 34

eHome2 Link

Scan to view more

Future Homes Hub

Our Chief Executive and other members of the senior leadership

team are playing leading roles in the Future Homes Hub. This

organisation brings together the housebuilding sector, the wider

supply chain, the infrastructure sector, finance and the

Government to ensure we, as an industry, have a long-term

delivery plan for the sector in line with the Government’s legally

binding net zero target.

See page 64

4 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

futu

the

Strategic land

Land remains the foundation of our business. Our current land

bank provides the land we require in the short to medium term

to support our development activity. Our strategic land supports

our long-term growth, securing land for future development

butwithout committing to current land values.

During the year we have expanded our strategic land bank

bymore than 10,000 plots and we held 101,784 plots of strategic

land at the year end.

Future leaders

Through our internal development programmes we are

committed to developing the potential of our employees and

developing our leaders of the future.

Our “Catalyst” programme is designed to help high potential

female employees develop their careers within the Group.

Our“Rising Stars” programme seeks to identify and support our

diverse future leaders across all aspects of the Group’s activities.

See page 35

5Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

futu

of house building

for our

Helping address cost

of living pressures

Our customers unlock significant annual

savings by moving into our new build homes.

The average new house buyer is saving more

than £180 per month or £2,200 per year on

energy bills, when compared with purchasers

ofequivalent older houses. Our customers also

benefit from lower utility costs through reduced

water usage. Beyond the compelling financial

benefits, our new homes dramatically lower

carbon emissions for our customers too.

£2,200

average savings per year on energy bills,

whencompared with purchasers of equivalent

olderhouses.

Customer

satisfaction

93% of our customers said they would

recommend Barratt to a friend in the latest

annual HBF National New Homes

Customer Satisfaction survey. As a result,

Barratt was awarded a 5 star rating for

customer satisfaction, making us the only

major housebuilder to be awarded this

accolade for 14 consecutive years.

93%

of customers said they would recommend

Barratt to a friend

See page 30

Discover some of our outstanding

developments

Scan to view more

custo

6 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

custo

This is the first time we have moved

home inover 20 years. We chose

Barratt not just because of the style,

layout and design of the development

but also the sales team. They’refriendly,

helpful, have great knowledge and

always on hand to answer questions;

wefelt absolutely at ease with them.”

Darren and Katie,

Barratt customers

Homes for everyone

Everyone deserves a safe and affordable home,

whether buying, or renting in the public or private

rental sectors. We build homes for everyone.

Duringthe year, we completed 12,456 homes for

private homebuyers and those looking to rent in

theprivate rental sector, as well as 3,922 affordable

new homes, sold at 55% below the average price

ofprivate new homes completed in the year.

55%

below the average price of private new homes

completed in the year

See page 26

mers

Strategic Report

7Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

8 Barratt Developments PLC Annual Report and Accounts 2023

Highlights

2023 highlights

Operational and sustainabilityhighlights

17,206

Total home completions

(FY22: 17,908)

4.31

Waste intensity

(FY22: 4.97)

96%

Health & safety (SHE audit compliance)

(FY22: 97%)

23.7%

Carbon reduction

(FY22: 23.2%)

367

Average active sales outlets

(FY22: 332)

4.3

Land bank years

(FY22: 4.7)

5 star

HBF 5 star customer satisfaction

(FY22: 5 star)

84.4%

Employee engagement score

(FY22: 79.4%)

Financial highlights

21.2%

Adjusted gross margin

(FY22: 24.8%)

£884.3m

Adjusted profit before tax

(FY22: £1,054.8m)

67.3p

Adjusted basic EPS

(FY22: 83.0p)

£1,069.4m

Year-end net cash

(FY22: £1,138.6m)

18.3%

Gross margin

(FY22: 17.1%)

£705.1m

Profit before tax

(FY22: £642.3m)

53.2p

Basic EPS

(FY22: 50.6p)

22.2%

ROCE

(FY22: 30.0%)

In focus

 Awarded 96 Pride in the Job

Awards for outstanding site

management in the June

2023 NHBC Awards, more

than any other housebuilder

for the 19th consecutive year

 Awarded maximum 5 star

HBF customer satisfaction

rating for the 14th consecutive

year, more than any other

major housebuilder

 Our sustainability

performance recognised with

the Group joining the CDP’s

Climate Change A List for

Leadership, one of just 300

companies worldwide and the

top-rated UK housebuilder

 Sales rate of 0.55 net private

reservations per active outlet

per week during the year

(FY22: 0.81)

 Total forward order book

(including JVs) at 30 June

2023 of 8,995 homes at a

value of £2,223.4m (30 June

2022: 13,579 homes at

£3,622.3m)

 Strong balance sheet with net

cash of £1,069.4m, after

dividend payments of

£360.0m and the completion

of the £200m share buyback,

reflecting strong working

capital discipline

1 Total home completions, including JVs, were 17,206 (FY22: 17,908) for the year. Privately, wholly

owned completions were 12,456 (FY22: 13,327), affordable home completions were 3,922

(FY22:3,835) and JV home completions in which the Group had an interest were 828 (FY22: 746).

2 Including JV active sales outlets.

3 Waste intensity is measured in tonnes relative to 100m

of legally completed build area in the

financial year.

4 Scope 1 and 2 GHG emissions reduction from an FY18 baseline. Our science-based target is to

achieve 29% reduction by FY2025.

5 In monitoring its performance, the Group uses a number of alternative performance measures.

These measures are defined on pages 235 to 237.

Strategic Report

9Barratt Developments PLC Annual Report and Accounts 2023

Investment case

Reasons to invest

The backdrop

The housebuilding industry is in a period of adjustment, reflecting the impact of inflation and the

subsequent changes in the cost of living and mortgage interest rates. These dynamics remain

significant in the near term but the long-term need for additional housing is clear.

We will manage these near-term challenges and ensure we emerge a stronger business,

capable and ready to deliver the high quality, energy efficient, sustainable homes the

country so desperately needs.

Shorter owned land bank

We operate an efficient “build and sell”

model. We seek to run one of the shortest

but most developable land banks in the

industry. As soon as land is acquired, we

look to begin development at the earliest

opportunity, to drive our build efficiency and

home completions. This minimises capital

employed and brings forward returns,

resulting in greater value for investors.

Strong balance sheet

and cash generation

We maintain strong financial discipline,

recognising the cyclicality of the industry

in which we operate. We maintain a

strong balance sheet with a focus on

cash generation and a clearly defined

operating framework.

Highly experienced build

and sales teams

We have an experienced management team

and workforce as well as long-standing

and committed sub-contractors who

schedule, manage and deliver our high

quality, sustainable homes to exacting

standards. Our experienced teams also

leverage our reputation around build

quality, customer service, national scale

and financial strength to unlock additional

sales channels with our significant

expansion in the private rental sector.

Quality and service

Build quality and customer service are

fundamental to our business and customer

trust. Our build quality is recognised as

industry-leading through the external

checks on our homes during the build

process, as well as a 19-year unbroken

record in the industry’s Pride in the Job

Awards. We are the only major housebuilder

to be awarded a 5 star rating for customer

satisfaction for 14 consecutive years.

Nationally diversified

We operate throughout England, Scotland

and Wales. We design and build homes

that meet local market demand, from

one-bedroom apartments to five and

six-bedroom homes. We deliver homes

for private homebuyers, social landlords

and the private rental sector, supplying

the desperately needed high quality,

sustainable new homes across this

variety of tenures.

Leading in sustainability

We are the leading national sustainable

housebuilder. Our ambitious targets are

supported by clear plans and action.

Welead the industry in developing and

testing the step-change in future home

designs, which will allow the industry

deliver net zero at scale. We believe that

fundamental to building quality homes is

building a positive environmental, social

and economic legacy for future generations.

Putting customers

at the heart of

everything we do

Highly

experienced

build and sales

teams

Strong

balance sheet and

cash generation

Shorter owned

land bank

Quality and

service

Nationally

diversified

Leading in

sustainability

10 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Committed to leading the future of housebuilding

forourcustomers

I am pleased to present my first Annual Report as Chair, having

taken over from John Allan on 30 June 2023. I joined the Group

at the end of a financial year in which we delivered a strong

operational and financial performance whilst maintaining our

industry-leading quality, customer service and sustainability

credentials, against a backdrop of both political and economic

instability. Our balance sheet, with net cash of £1,069m, is

robust and provides the financial strength and flexibility to

ensure we can manage through this period of uncertainty and

emerge well positioned for the future.

As part of my induction, I have met with our senior leadership

team, employees and external stakeholders, which has helped

me to gain a good understanding of the business and how it

operates. It is evident that there is a strong internal culture of

‘doing the right thing’, as well as a desire throughout the

organisation to ensure everyone has the opportunity to develop

to their full potential within a diverse and inclusive workplace. I

have been very impressed with the dedication andcommitment

of our senior leadership team, and with the passion and purpose

of all our colleagues across the business.

Our focus on leading the industry in terms of customer service,

quality and sustainability is evidenced through the achievement

of the HBF 5 star rating for the 14th consecutive year, 96 NHBC

Pride in the Job Awards for our site managers and by the Group

joining the CDP Climate Change A List for Leadership, one of

fewer than 300 companies worldwide. The industry’s

contribution to climate change makes it imperative that we

continually scrutinise and challenge the ways in which we

operate, as well as the environmental and social impact of

ourbusiness. I am delighted to have joined a Group with both

asuccessful history and a clear focus on its leading role in

developing the sustainable homes of the future. (For more

information on the HBF customer satisfaction survey see

pages30, on Pride in the Job Awards see page 33 and on

ourapproach to sustainability see pages 40 to 49.)

The Board recognises that we must manage the Group through

what is likely to be a more challenging period of trading, but we

will remain focused on managing these risks and challenges

whilst ensuring the Group is in the best possible position to

create long-term value for all our stakeholders.

Chair’s Statement

Strong and resilient

The Group is well placed to navigate the challenging market

backdrop, continuing to deliver the high-quality, sustainable

homes that are needed across the country.

Caroline Silver

Chair

Strategic Report

11Barratt Developments PLC Annual Report and Accounts 2023

Board changes

There have been several changes in the composition

oftheBoard during FY23.

Jasi Halai joined the Board as an Independent Non-Executive

Director on 1 January 2023 and, as announced later in January,

I joined as a Non-Executive Director and Chair designate on

1June 2023. Full biographical details and membership of

Committees can be found on pages 102 to 105 and details of the

recruitment processes can be found on page 119.

John Allan stepped down from the Board on 30 June 2023. John

played a key role in the Group’s development since joining the

Board in August 2014 and taking up the role of Chair in

November 2014. His experience and dedication were invaluable

and the Board wishes John well for the future.

As announced in January this year, Dame Sharon White decided

to step down early from her position as a Non-Executive Director

on 30 June 2023, after more than five years of service on the

Board, due to her other commitments. The Board would like to

express thanks to Sharon for her dedication and service.

Finally, I am pleased that Nigel Webb has agreed to join the Board

as a Non-Executive Director with effect from 1 October 2023.

Nigel brings a wealth of property, construction and land

experience to the Board, which complements the skills of the

existing Board members. Further details can be found on page 117.

We will continue to assess our composition and that of our

committees, considering the recommendations of the FTSE

Women Leaders Review, the Parker reviews and the McGregor-

Smith review. For information on the diversity oftheBoard

please see page 117.

Shareholder returns

The Board declared an interim dividend for FY23 of 10.2 pence

per share (FY22: interim dividend of 11.2 pence per share) and is

pleased to recommend a final FY23 dividend of 23.5 pence per

share (FY22: final dividend of 25.7 pence per share) in line with

our dividend policy of maintaining cover at two times.

Subject to shareholder approval, the final dividend will be paid

on 3 November 2023 to shareholders on the register at the

close of business on 29 September 2023. Shareholders who

elect for the Dividend Reinvestment Plan should do so by

13October 2023.

The total proposed dividend for FY23, including the interim

dividend paid in May, is 33.7 pence per share (FY22: 36.9 pence

per share) lower than last year, reflecting the reduction in

adjusted earnings per share, offset by the reduction of dividend

cover to two times. We also returned surplus capital during the

financial year witha £200m share buyback programme.

The Board has reviewed our capital allocation policy in light of

current market conditions. In principle, the Board continues to

believe that excess capital should be returned to shareholders

when it is appropriate to do so. Whilst the Company remains

inastrong financial position, the UK housing market remains

difficult and the outlook remains uncertain. We have therefore

agreed that whilst our reduction in dividend cover to 1.75 times

will apply from FY24 as planned, there will be no further share

buybacks at this stage. The Board will continue to review the

capital allocation policy as market conditions develop.

The future

Looking ahead, we recognise that there are significant

macro-economic headwinds, most notably the continuing

inflationary pressures and the resulting interest rate

environment which isimpacting mortgage affordability and

availability in the UK aswell as economic growth, employment

and consumer confidence and spending.

We are in a strong position to deal with these challenges with a

proven operational team, a prudent net cash balance and a solid

forward sales position. The experienced senior management

team are responding to market conditions by driving revenue

through the efforts of our sales teams across the country

withthe focused use of incentives, as well as diversification

tosecure sales into the private rental sector.

The Board will continue to monitor changes in both the housing

and land markets, as well as the wider economy, but our

operating disciplines, forward order book and strong financial

position provide us with resilience and flexibility to adjust to

changes in the operating environment in the year ahead,

andasthe market evolves thereafter.

Finally, on behalf of the Board, I would like to express our

thanks to our colleagues and our supply chain for their

commitment to the Group, both over the last year, and as we

look forward to the yearahead. On a personal note, I also look

forward to meeting many more colleagues as I get around more

of the Group’s operations in the coming year.

Caroline Silver

Chair

5 September 2023

12 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

At a glance

Strategic Report

Our business at a glance

Our purpose

Our strategic priorities

To lead the future of housebuilding by putting customers at the heart of

everything we do.

We will achieve our purpose by continually innovating and applying best

practice across our four strategic priorities.

Customer first

We put customers at the heart

of everything we do.

We deliver customer

satisfaction through building

high quality, energy efficient

and sustainable homes.

Great places

We build long-term

relationships to secure

attractive land opportunities

where people aspire to live.

Through great design and

planning expertise, we

createpositive legacies

forcommunities.

Leading construction

We seek to deliver the highest

quality homes by focusing on

excellence across each stage

ofconstruction.

We work with our supply chain

partners to ensure security of

supply, minimise waste and

promote the use of MMC and

development of new technologies.

Investing in our people

People are at the heart of our

business and we aim to attract

and retain the best by investing

intheir development and success.

We have established apprenticeship

and degree apprenticeship

schemes to attract the next

generation to our industry.

Building sustainably

Nature

We preserve and enhance the natural

world by using resources responsibly

andcreating places where people and

nature can thrive together.

Places

We design and build great places that

meet the highest standards, and that

promote sustainable, healthy and

happyliving for our customers.

People

We believe everyone has the right to be

respected and treated fairly at work.

Wedo the right thing, nurturing diverse

talent and prioritising the wellbeing

ofour people and partners.

Our principles

See page 40

See page 29

Keeping people safe

Putting health and safety

first by committing to the

highest industry

standards. Embedding

health and safety as a

corevalue for which we

are all responsible.

Being a trusted

partner

Building meaningful,

long-term relationships

that make us the

developer of choice for

our partners. Innovating

with our supply chain

todrive efficiency

andsustainability,

whilstmeeting our

customers’ needs.

Building strong

community

relationships

Engaging fully with local

communities and

customerswhen creating

our developments.

Ensuringwe create

places where our

customers aspire to

liveand local

communities thrive.

Safeguarding

theenvironment

Minimising the

environmental impact

ofouroperations and

supplychain while

increasing the energy

andresource efficiency

ofour homes. Seeking

toenhance habitats,

biodiversity and local

environments across all

of our developments.

Ensuring the

financial health

ofthebusiness

We maintain financial

discipline across all

aspects of our

operations. This

enables us to deliver

our operational targets

whilst maintaining our

industry-leading

standards of customer

service and build quality.

Strategic Report

13Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Our homes

We are committed to building high-

quality energy efficient homes and

have been awarded 96 NHBC Pride in

the Job Awards – more than any other

housebuilder – for 19 consecutive years.

Our customers

We put our customers, at the heart

of everything we do, throughout their

home-buying journey, with our long-

standing commitment to exceptional

customer service.





1 and 2-bedroom homes 15%

3-bedroom homes 35%

4-bedroom homes 30%

5 and 6-bedroom homes 2%

Flats London 8%

Flats Non-London 10%

Help to Buy 9%

Part-exchange 6%

Traditional private 53%

Investor 8%

Affordable 24%

Completions by unit type

Completions by deal type

Housebuilding

Land promotion

Commercial development

Our brands

Scotland

1,951

2022: 1,938

Central

3,189

2022: 3,546*

West

2,091

2022: 2,413*

London and Southern

3,754

2022: 3,979

East

3,400

2022: 3,281*

Northern

2,821

2022: 2,751

* Comparatives for 2022 have been restated to reflect the movement of divisions between regions.

Strategic Report

14 Barratt Developments PLC Annual Report and Accounts 2023

Business model

How we build value

Our resources

People

Barratt recruits, trains and retains an

experienced and committed workforce.

Our people’s experience supports

delivery of a high quality product.

Land and planning

Barratt’s owned land bank is short

bydesign, but is complemented by

investment into strategic land and

promotional agreements. Through its

acquisition of Gladman in 2022, the Group

has sought to increase its level of

in-house land expertise to drive margin

and deliver a better return on capital.

Expertise

The Group, established in 1958, has deep

knowledge and expertise in the design

and construction of housing in the UK,

both in conventional brick built properties

and through the use of timber frame.

Barratt continues to advance its

capabilities through investments such as

in the Zed House and Energy House 2.0.

Finances

The Group’s financial position and

balance sheet are robust, giving the

Group confidence, irrespective of market

conditions, to deliver homes into the

market at the right price and to engage

inthe land market with value-accretive

bids. The Group held c. £1.1bn ofcash

asat 30 June 2023.

Stakeholder relationships

Barratt builds great places to live

through partnerships in the supply chain,

with JV partners in our build programmes,

and with local communities as part of our

site planning and development.

Wedevelop innovative products to

support home ownership inconjunction

with mortgage lenders. Ourstrong

relationships with our stakeholders are

critical in developing the products that

our customers want.

15Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Competitive edge Value for our stakeholders

We have the financial resources, in-house

expertise and stakeholder network to allow

us to tender for land in desirable locations

around the UK. We use our knowhow and

the experience of our people, supported by

our three complementary brands, to design

and build developments which delight our

customers, support local communities and

deliver competitive returns for our investors.

Total home completions

17,206

Our customers tell us that our homes are

the best in the market. For 14 years in a

row, we have been 5 star rated by the Home

Builders Federation, meaning over 90% of

our customers would recommend us to a

friend. In addition, in 2023, our site managers

won 96 Pride in the Job Quality awards, the

19th year in a row that Barratt has won more

awards than any other housebuilder.

HBF customer satisfaction rating

5 star

We are the UK’s biggest housebuilder by

volume and we operate with a national

footprint. This allows us to leverage

economies of scale across our supply chain,

deploy our capital into attractive development

opportunities across the country and more

easily navigate an increasingly complex

regulatory environment.

Average active sales outlets

367

We seek to lead the industry to a more

sustainable future, both as a responsible

home builder, and to develop better, more

affordable products for our customers which

are easier to finance. We are investing in

projects such as the Energy Home 2.0 to

understand how this can be done, both to

see how such housing can be built and to

understand how our customers can benefit

from the change.

Scope 1 & 2 carbon intensity

23.7% reduction

vs. FY18

We build

homes in which

customers want

to live, in locations

where people

want to live

We do this with an

experienced team

which delivers the

best homes on

themarket

We operate

nationally and

at scale, rapidly

converting our land

bank to cash

We see

sustainability

as a differentiator,

and a way to

createvalue

Customers

We deliver high quality, energy efficient

homes, with 99% of our homes being

EPC A or B-rated. This means our homes

should have running costs that are lower

than average.

Employees

We offer a great place to work which is

focused on performance and personal

development and invest in our people both

through training and longer-term career

development. We support our people through

economic challenges with help such as our

£1,000 cost of living payment and invest in

their health and wellbeing.

Shareholders

We deliver capital returns, having declared

dividends each year since 2013, and in 2023

we completed a £200m share buy-back

programme. With our operating framework,

we aim to balance business growth with cash

returns and seek to develop markets for our

products, whether through private sales, bulk

deals or the private rental sector.

Suppliers

We nurture our supplier relationships by

being honest and transparent, giving forward

visibility on both demand and workload. We

work with our suppliers to help develop the

next generation of housing.

Communities

We seek to create a positive legacy in our

developments, incorporating affordable

housing alongside private sales. We increase

biodiversity on our sites, creating a space for

nature and for communities to thrive, and

invest to improve community infrastructure

as part of our planning gain contributions.

Wider society

In 2023 we paid £186.0m in direct taxation

and a further £251.7m in indirect taxes,

driven by the sale of 17,206 homes, and

employed 6,728 people at the year end.

Asthe largest housebuilder in the UK, we

take our responsibility to support the industry

and our supply chain in our journey to a

net zero future seriously. We are investing

to understand how to get to a zero carbon

future and are committed to reaching

thatdestination.

16 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Key performance indicators

Non-financial

19,089

25,074

5 Star

18,067

29,265

5 Star

9,441

18,448

21,963

30,582

5 Star5 Star

2022

2022 2022

2021

2021 2021

2020

20202019 2019 2019 2020

(812)

24,909

5 Star

2023

2023 2023

(812)

2022: 19,089

5 star

2022: 5 star

24,909

2022: 25,074

Target

HBF 5 Star customer satisfaction.

Definition

The percentage of homebuyers

whowould recommend us to family

andfriends taken from the HBF

HomebuilderSurvey.

Why it’s a KPI

Customer satisfaction is a strategic

priority and fundamental to our business.

HBF Homebuilder Survey is an industry

recognised independently measured

indicator of our customer service and

build quality.

Key metric for assessing performance

forExecutive Directors’ remuneration.

Link to strategy

Target

Replace plots utilised in year.

Definition

The number of plots approved

forpurchase, less the number

ofapprovalswithdrawn.

Why it’s a KPI

Monitors whether the Group is

approvingthe appropriate amount of

landfor purchase to support future

business activity.

Ensures land is approved at minimum

hurdle rates.

Link to strategy

Target

Reduce absolute scope 1 and 2

greenhouse gas emissions by 29%

by2025 from 2018 levels.

Definition

Tonnes of greenhouse gas emissions

associated with our scope 1 and market

based scope 2 emissions, which includes

energy and fuel use on our sites, in our

offices and in our company vehicles.

Why it’s a KPI

Monitors the environmental impact of

ourbusiness activities and our exposure

to climate-related transition risk.

Scope 1 and 2 carbon emissions intensity

is a key metric for assessing performance

for Executive Directors’ remuneration.

Toachieve net zero by 2040, we must

reduce absolute emissions, therefore

wehave revised our KPI to be in line

withour approved science-based target.

Link to strategy

HBF 5 star customer

satisfaction

Land approvals Scope 1 and 2

carbon emissions (tCO

1 2 3

How we measure progress

for the future

Strategic Report

17Barratt Developments PLC Annual Report and Accounts 2023

4.97

97%

79.4%

5.89

97%

N/A

7.70

6.53

96%96%

84.2%84.5%

2022 2022 20222021 2021 2021

2019 2019 20192020 2020 2020

4.31

96%

84.4%

2023 2023 2023

4.31

2022: 4.97

96%

2022: 97%

84.4%

2022: 79.4%

Target

Reduce construction waste intensity

(tonnes per 100m

of legally completed

build area) to 5.67 by 2025.

Definition

Tonnes of waste generated from above

ground construction for every 100m

oflegally completed build area.

Why it’s a KPI

Monitors the efficiency of operations

andthe use of materials in the

construction process.

Key metric for assessing performance

forExecutive Directors’ remuneration.

Link to strategy

Target

Over 94% SHE audit compliance.

Definition

The percentage of internal inspections

which are compliant with SHE guidelines.

Why it’s a KPI

Demonstrates compliance with safety

standards on our sites. Lead indicator

highlighting areas of SHE focus.

Key metric for assessing performance

forExecutive Directors’ remuneration.

Link to strategy

Target

Exceed 75th percentile score in the

engagement survey.

Definition

The percentage level of satisfaction of

our people measured using an annual

independently conducted survey.

Why it’s a KPI

Monitors employee engagement and

satisfaction, whilst also providing a

forum for view-sharing, to ensure we

retain and invest in the best people and

focus on their development and success.

Link to strategy

Waste intensity SHE audit compliance Employee

engagement score

4 5 6

Link to strategy See page 29

Great places

Leading construction

Investing in our people

Customer first

On track

Achieved

Monitor

Below target

Target not met

18 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Key performance indicators continued

Financial

2 3

Target

Growth to 21,500 in the medium term.

Definition

Legally completed homes during the year

including JV homes legally completed

inwhich the Group has an interest.

Why it’s a KPI

Reflects activity and growth.

Monitors business capacity.

2023 performance

See page 26

Target

Achieve minimum 23% gross margin.

Definition

Gross profit divided by total revenue,

expressed as a percentage.

Why it’s a KPI

Key internal metric for assessing

siteprofitability.

Enables consistent comparison

oflandacquisitions.

2023 performance

See page 67

Target

Informed by consensus at the start

ofthefinancial year.

Definition

Profit before tax including the applicable

share of profits from JVs and associates.

Why it’s a KPI

Shows the profitability of the Group

relative to market expectations.

Key metric for assessing performance

forExecutive Directors’ remuneration.

2023 performance

See page 68

17,908

17,234

12,604

17,856

22.8%

17,206

18.0%

21.0%

17.1%

18.3%

491.8

909.8

812.2

642.3

884.3

18.5%

23.2%

24.8%

21.2%

505.7

920.0

919.7

1,054.8

705.1

17,206

2022: 17,908

21.2%

18.3%

2022: 24.8%/17.1%

884.3

705.1

2022: 1,054.8/642.3

Total home completions Adjusted gross margin

Gross margin

Adjusted PBT (£m)

Profit before tax (£m)

2022 2022 20222021 2021 2021

2020 2020 20202019 2019 2019

2023 2023 2023

Strategic Report

19Barratt Developments PLC Annual Report and Accounts 2023

4 5 76

Target

Minimum 25%.

Definition

Earnings before amortisation,

interest, tax, operating

charges relating to the defined

benefit pension scheme and

operating adjusting items for

the year, divided by average net

assets adjusted for goodwill

and intangibles, tax, net cash,

derivative financial instruments

and provisions in relation to

legacy properties.

Why it’s a KPI

Ensures efficient and effective

use of capital.

Key metric for assessing

performance for Executive

Directors’ remuneration.

2023 performance

See page 167

Target

Year-end net cash.

Definition

Cash and cash equivalents,

bank overdrafts, interest-

bearing borrowings and

prepaid fees.

Why it’s a KPI

Monitors business liquidity,

resilience to risk and ability

totake advantage of

opportunities, including

investments and land

acquisition. Allows for

distributions to shareholders.

Net cash is key to understanding

the strength of the business

and has been added as a new

KPI this year.

2023 performance

See page 68

Target

To grow total shareholder

return against FTSE

companies (those within 50

above and 50 below the

Company in the index) and the

Housebuilding sector.

Definition

Measure of the performance of

the Group’s share price over a

period of three financial years.

It combines share price

appreciation and dividends

paid to show the total return

tothe shareholders expressed

as a percentage.

Why it’s a KPI

Shows the appreciation and

income a shareholder receives

from holding each share.

Key metric for assessing

performance for Executive

Directors’ remuneration.

2023 performance

See page 234

Target

Informed by consensus at the

start of the financial year.

Definition

Profit for the year attributable

to ordinary shareholders

divided by the weighted

average number of ordinary

shares in issue during the

year, excluding those held by

the EBT on which no dividend

is paid.

Why it’s a KPI

Shows profit attributable

toeach share.

Key metric for assessing

performance for Executive

Directors’ remuneration.

2023 performance

See page 68

30.0% 1,138.6

(4.9)%

27.8%

317.4

59.8%

15.5%

29.9%

308.2

765.7

6.1%

36.8%

22.2%

1,069.4

10.6%

64.9

39.4

73.2

50.6

53.2

73.5

40.5

74.1

83.0

67.3

22.2%

2022: 30.0%

1,069.4

2022: 1,138.6

10.6%

2022: (4.9)%

67.3

53.2

2022: 83.0/50.6

Return on Capital

employed

Net cash (£m) Total shareholder

return

Adjusted basic EPS (p)

Basic EPS (p)

2022 2022 202220222021 2021 20212021

2020 2020 202020202019 2019 20192019

2023 2023 20232023

On track

Achieved

Monitor

Below target

Target not met

20 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Marketplace

Trends in ourmarkets

The UK economy

UK economic output has grown by 1%

during the 12 months to 30

June 2023 with the last quarter to June 2023 registering 0.2%

growth on the previous quarter from January 2023 through

March2023. UK monthly GDP at the end of June was 0.8% ahead

of that prior to the onset of the pandemic in February 2020. The

outlook for the UK economy in the remainder of 2023 and into2024

is uncertain. Stubborn inflationary pressures being experienced

across the whole economy are being exacerbated by limited labour

availability and resulting labour cost inflation. Government

economic policies and the Bank of England’s decisions around

interest rates, to further dampen inflation, willbe critical in the

months ahead, most notably with the Autumn Statement.

In its March 2023 “Economic and fiscal outlook”, the Office for

Budget Responsibility forecast a GDP decline of 0.2% in 2023 and

growth of 1.8% in 2024. HM Treasury‘s August collated consensus

economic forecasts suggested limited GDP growth of just 0.3%

in 2023 and 0.6%

in 2024.

Housing supply and demand

There remains a fundamental shortage of homes in the UK.

Thisis evidenced both by the long-term growth in home prices

relative to incomes and the significant inflationary pressures

being seen in the rental market, as an ever increasing number

of households are being failed by inadequate housing supply.

New build housing additions in England were 210,070

in the

last reported 12-month period to 31 March 2022, growth of 9.5%

on the 191,820 in the year to 31 March 2021. This recovery

reflected strong home-buying demand following the pandemic,

along with the industry’s drive to recover build activity following

the national lockdown, although labour and building material

supply chain constraints moderated the pace of this recovery.

Asa result, new home additions recovered but remained some 4%

below the 219,120 homes completed in the year to 31 March 2020.

Net new build additions may register growth when data is released

in the winter of 2023, with respect to the year to 31March 2023

but new build additions look set to fall in the current year. This

decline reflects the end of Help to Buy, higher mortgage interest

rates and the consequent change inmortgage affordability. The

participation of first time buyers in the market has sharply

reduced in 2023.

Whilst house prices peaked in August 2022, affordability

constraints have seen house prices move lower in the tenmonths

through to June 2023. The average UK house price had reduced

by 3.5%

in nominal terms according to the Nationwide Building

Society over the 12 months to 30 June 2023, which equates to a

real terms decline, after adjusting forCPI, of10.1%.

The shortage of new homes for sale has created additional

demand in the rental sector, increasing the average household

rent by 10.4%

over the year to 30 June 2023, with every region

of the UK experiencing significant rent cost increases,

according to the HomeLet Rental Index. Based on the HomeLet

Rental Index data, rents have increased by 22.0% over the past

two years to June 2023 and absent a significant reduction in

mortgage interest rates, rental demand will continue to grow

aspotential homebuyers remain unable to buy.

The housing shortage is increasingly evident across all tenures

and is a critical issue for the UK economy and the economic

health and wellbeing of itspopulation.

120

100

360

300

240

180

120

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

English planning consents and net new build home additions

and Savills UK Greenfield Land Price Index

Savills UK Greenfield Development Land Index

(100 = 2007 peak)

England moving annual planning consents and

net new build home additions (‘000s)

100.0

99.6

339.5

291.2

237.1

158.7

270.6

95.7

53.3

England - new build home

additions (RHS)

England - planning consents (‘000s)

– revised series (RHS)

Savills UK Greenfield Development

Land Price Index (LHS)

Strategic Report

21Barratt Developments PLC Annual Report and Accounts 2023

Land supply and the planning system

The steady and consistent supply of land within a predictable

planning system is critical to the housebuilding industry. There are

a number of risks and uncertainties being managed by developers:

 the typical size of development sites, which is growing,

andrequiring additional time and resources;

 the uncertainty as to the timing of when construction

activitycan commence on a site given pre-development

clearances required;

 the speed with which labour and building materials

canbeprocured for build activity;

 the scheduling and consistency of workload for the sub-contract

labour required to sustain the industry over the medium

tolong term; whilst also,

 ensuring build activity is delivered to required quality

standards, whilst ensuring the health and safety of the

workforce, as well as customers and homeowners, on

newhousing development sites.

Following the pandemic, planning consents reached a peak of

339,473

in the 12 months to 30 June 2021, a level consistent

with the Government’s target to deliver 300,000 homes annually

by the mid-2020s. However, this level has not been maintained,

falling by 20% to 270,559

in the year to 31 March 2023.

The political backdrop has not been conducive to delivering the

number of planning consents needed by the industry, including

five changes in Housing Minister in the last 18 months. There has

been a noticeable shift in delivery since the announcement in

December 2022 that local housing targets were “advisory” rather

than “mandatory”, as well as to end the obligation on local

authorities to maintain a rolling five-year land supply where they

have a local plan in place. This has allowed 58 local authorities

tostall, delay or withdraw their local housing delivery plans,

with28 doing so following the December announcement

In addition to this, Natural England, a non-departmental public

body sponsored by the Department for Environment, Food and

Rural Affairs, intervened in the planning process in March 2022

and advised 74 local authorities that developments should not

proceed if they increased the level of nutrients in water courses

and failed to deliver “nutrient neutrality”. It is estimated that

more than 145,000

planning consents have been blocked

across the 74 local authority areas, with new housebuilding

effectively under a moratorium in these areas and many smaller

housebuilders facing business closure.

The Government announced plans to amend the Levelling Up

and Regeneration Bill on 29 August 2023 in order to unblock

homes currently held up by nutrient neutrality mitigation

measures. The details around these measures, their successful

passage into legislation, as well as the speed with which the

changes come into force, remain uncertain.

Finally, despite the growing complexity of planning applications,

the resourcing of local authority planning departments has

failed to match growing planning demands. National Audit

Office analysis has shown that between 2010/2011 and 2019/2020

funding for planning services reduced by £1.3bn or 55%

All of these factors are conspiring to create a continuing and

accelerating decline in planning consents which, in the first

quarter of calendar 2023, declined by 24.7% to 63,013, when

compared to 2022

The mortgage market and housingaffordability

The step-change in mortgage interest rates is charted below

and highlights the challenge now faced by homebuyers requiring

mortgage finance. Based on Bank of England data

, mortgage

borrowing costs for new mortgages steadily declined for more

than 12 years to a low of 1.51% in November 2021. This has

though seen a sharp reversal in less than 18 months, with the

average cost of new mortgages advances in June 2023

increasing to 4.64%, a threefold increase from the low point,

with mortgage interest rates back at levels last seen in2009.

The Halifax Mortgage Affordability Index combines the

prevailing mortgage interest rate on new advances with

currenthome prices, and as can be seen in the chart opposite,

the purchase of a new home now equates to 40.8% of after tax

income, materially ahead of the long-term average at 32.9%.

Inthe coming months, this affordability measure looks set to be

impacted positively by the rate of nominal wage growth but will

then ultimately be dependent on the future movements in both

mortgage rates and house prices.

We are continuing to work with banks and building societies and

other financial institutions to introduce additional lenders to the

new build sector and increase lender understanding as to the

advantages of new build lending. The development of green

mortgages remains an important initiative in this regard. We

are also playing an active role in increasing the understanding

amongst residential valuers through the Future Homes Hub,

aswell as developing and promoting advantageous mortgage

products, which reflect the energy efficiency and lower running

costs, as well as the environmental credentials and the absence

of future retrofit spending on the insulation of our homes.

Halifax Mortgage Affordability Index

60%

55%

50%

45%

40%

35%

30%

25%

20%

1985

1987

1989

1990

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023 Q1

2007 Q3, 46.4%

2023 Q2, 40.8%

2020 Q2, 27.7%

32.9%

1990 Q2, 56.4% Halifax Affordability Index

Average (1985 - Q1 23)

22 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Marketplace continued

Building materials and labour

We experienced an elevated rate of build cost inflation

atbetween 9% and 10% throughout FY23. This reflected:

 the relatively positive outlook for continued housing growth,

in the second and third quarters of calendar 2022, which, against

a backdrop of relatively constrained supply, created upward

pressure on forward building materials supply agreements; and

 the underlying inflationary pressures on labour costs experienced

across the wider UK economy during the year; and the lagged

impact of the dramatic increase in energy costs, which began

in the autumn of 2021 and was further compounded by the

conflict in Ukraine. These increases took time to feed through

supply chains, given production timeframes and suppliers’

energy hedging arrangements.

Through our centralised procurement team, careful scheduling

of our building materials demands and the support of our

long-standing supply chain partners, we are focused on ensuring

security of supply as well as sustainable but competitive pricing.

As a result of the combination of weaker forecast activity, falling

energy costs and increased competition in the supply chain for

future orders, we expect total build cost inflation will slow

toaround 5% in FY24.

Future regulatory changes

The industry faces future regulatory changes with respect to

biodiversity net gain, as well as the Future Homes Standard

over the coming three years.

Biodiversity net gain

Under legislation which will come into force in November 2023,

allof our developments will be required to identify and deliver a

minimum biodiversity net gain of 10%. This requires our developments

to create plans to deliver at least a 10% measurable improvement

in the biodiversity of the site developed, relative to the site had

development notoccurred.

How we are prepared

From January 2023 we have identified a minimum biodiversity

net gain of 10% across all new development designs submitted

for planning – more than nine months ahead of legislation.

Wehave also embedded a comprehensive operational framework

to deliver this change across our divisions, including colleague

training, calculation tools, automated data collection,

workshops with external consultants, a review of external

consultant capacity and capability, and a network of divisional

representatives championingBNG.

Future Homes Standard

From 2025 the FHS will require new homes to produce 75-80%

less carbon emissions than standards applicable through to

June 2022. The detailed requirements and performance

measurement around this new Standard are not yet finalised

with the timing and transition arrangements for this new

Standard, along with industry consultation, yet to be initiated.

How we are prepared

We are evolving our house types and trialling new technologies,

with the eHome2 project at the University of Salford, in

particular, testing evolving solutions which will be adopted

tomeet this new standard.

1 GDP monthly estimate, UK: June 2023

https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/

gdpmonthlyestimateuk/june2023

2 HM Treasury: forecasts for the UK economy August 2023

https://assets.publishing.service.gov.uk/government/uploads/system/

uploads/attachment_data/file/1180276/forecomp_Aug1.pdf

3 DLUHC: Housing supply: net additional dwellings

https://www.gov.uk/government/statistics/housing-supply-net-

additional-dwellings-england-2021-to-2022/housing-supply-net-

additional-dwellings-england-2021-to-2022

4 Nationwide House Price Index – June 2023

https://www.nationwidehousepriceindex.co.uk/reports/house-prices-

relatively-stable-in-june-but-annual-growth-remains-in-negative-territory

5 HomeLet Rental Index June 2023

https://homelet.co.uk/homelet-rental-index

6 HBF Pipeline Report 1Q 2023 – Published July 2023

https://www.hbf.co.uk/documents/11892/HPL_REPORT_2022_Q1_final.pdf

7 HBF Report – 30 June 2023

https://www.hbf.co.uk/news/nutrient-neutrality-four-years-of-

government-failure/#:~:text=New%20estimates%20published%20

today%20suggest,year%20until%20solutions%20are%20found.

8 Levelling Up, Housing and Communities Committee – Reforms to

national planning policy – 10 July 2023

https://publications.parliament.uk/pa/cm5803/cmselect/cmcomloc/1122/

report.html#

9 Bank of England Mortgage lending data:

https://edu.bankofengland.co.uk/boeapps/database/fromshowcolumns.

asp?Travel=NIxAZxSUx&FromSeries=1&ToSeries=50&DAT=RNG&FD=1&F

M=Jan&F Y=2010&TD=11&TM=May&TY=2025&FNY=Y&CSVF=TT&html.

x=66&html.y=26&SeriesCodes=CFMBJ95&UsingCodes=Y&Filter=N&title=

CFMBJ95&VPD=Y

Bank of England – average mortgage interest rate on new advances (%)

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Average mortgage interest rate

Long-term trend

Strategic Report

23Barratt Developments PLC Annual Report and Accounts 2023

Chief Executive’s Statement

Strong performance

in a challenging year

Introduction

During what has been a year of economic and political

uncertainty, we have delivered a strong operational and a good

financial performance, given the market backdrop. I would like

to thank our employees, sub-contractors and supply chain

partners for theirhard work and commitment which enabled us

to manage our site-based construction activity effectively,

delivering high-quality efficient homes and great service to

ourcustomers.

Our purpose remains clear: to lead the future of housebuilding

by putting customers at the heart of everything we do.

Reflecting our position as Britain’s largest and leading national

sustainable housebuilder, we are committed to playing a key

role in addressing the housing shortage and delivering the

sustainable, high-quality and energy-efficient homes and

developments needed across England, Scotland and Wales.

We will continue to operate the business in a flexible way, with

ashort land bank aimed at maximising our delivery of housing

from our efficient and resilient balance sheet.

Performance overview

We delivered a strong performance against a challenging

backdrop this year, while maintaining or focus on both build

quality and customer service.

Our performance is a testament to the disciplines embedded

byour operating framework as well as the commitment of

ouremployees, sub-contractors and supply chain partners.

David Thomas

Group Chief Executive

24 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Performance overview continued

 Total home completions were 17,206 (FY22: 17,908).

 We achieved a 21.2% adjusted gross margin (FY22: 24.8%), with

adjusted gross profit of £1,130.4m (FY22: £1,308.1m), with reduced

profitability reflecting the fall in customer demand, overall house

price inflation running below build cost inflation and the

operational gearing impact as the market has slowed down.

 The impact of adjusting items, which reflected legacy property

costs associated with building safety related remediation

activities, resulted in reported gross profit of £974.9m (FY22:

£899.9m) and a reported gross margin of 18.3% (FY22: 17.1%).

 We generated an adjusted profit before tax of £884.3m

(FY22:£1,054.8m) in line with market expectations. Reported

profit before tax, after deducting adjusting items, was £705.1m

(FY22: £642.3m).

 Our balance sheet strength has been maintained with year-end

net cash of £1,069.4m (FY22: £1,138.6m) after dividend payments

of £360m and completion of the £200m share buyback.

 ROCE has reduced by 780 bps to 22.2% (FY22: 30.0%), largely due

to reduced profitability.

Our priorities for the year ahead

Against the backdrop of the current more challenging market,

our strategy is centred on four key areas.

Driving revenue

Firstly, driving reservations and home completions. This centres

on using our industry leading quality and customer service to

attract our core private homebuyers and then helping them to

access affordable mortgages, thereby enabling them to buy.

As evidenced in FY23, we are also focused on securing

reservations from other channels, building on our strategic

partnership with Citra Living, as well as our long-standing

relationships with registered providers of social housing, public

sector bodies and other investors, all of which will support our

build activity and completions in FY24.

Controlling costs

We will manage build activity and build costs and control our

indirect cost base to be as efficient as possible, whilst ensuring

we have in place the operational capacity to deliver growth

when market conditions improve. When the market slowdown

accelerated following the mini budget in late September 2022,

weimplemented a recruitment freeze which has already

reduced our headcount by 6% from 1 October 2022 through to

30June 2023.

Maintaining land investment discipline

We will maintain our highly selective approach to land buying,

particularly as prevailing land prices have not yet adjusted to

the changed market conditions. We will continue to apply our

long-standing hurdle requirements for land investment, which

require a minimum gross margin of 23% and ROCE of 25%.

Leading sustainability

Finally, we will continue to lead the industry on sustainability,

with a particular focus on reducing our environmental impact

and increasing the future resilience of the business through our

continued drive to reduce construction waste, our development

of zero carbon homes and our targeted reduction of carbon

emissions from our own operations. We have clear action plans,

and targets, as we look to the future to build the energy-efficient,

sustainable homes thecountry needs.

Keeping people safe

Our fundamental priority is always to provide a safe

environment for all our employees, sub-contractors and

customers, and we are committed to achieving and maintaining

the highest health and safety standards. We are continually

developing our processes, challenging unsafe behaviours, and

looking at ways we can further improve our procedures.

During FY23 we were disappointed that our Injury Incidence

Rate (IIR) increased to 289 per 100,000 workers (FY22: 262),

reflecting increased levels of slips and trips. OurSHE audit

compliance was broadly maintained at 96% (FY22: 97%).

To drive improvement, we engaged with our employees,

sub-contractors and our supply chain, seeking their viewson

how we can further enhance our safety, health and environmental

performance. We continue to refine our working practices in

line with the latest guidance from Government, Public Health

Authorities and the Construction Leadership Council.

Responsible development

Fire safety and external wall systems

On 13 March 2023 the Group signed the Self-Remediation Terms

and Contract with the UK Government. This incorporated into

contractual arrangements the commitments made by the Group

under the Building Safety Pledge, signed in April 2022.

On 31 May 2023 the Group also signed the Scottish Safer Building

Accord, an industry commitment supporting the remediation

and/or mitigation of external wall cladding systems on buildings

of 11 metres and above. We are working with Homes for

Scotland and the Scottish Government to agree a legally binding,

long-form contract to give effect to the principles of the Accord.

There remains uncertainty around the extent of remediation

which will be required in Scotland. Our existing provisions for

Scottish buildings have been made on a consistent basis with

England and Wales.

During the year, through the changes in inspection parameters and

testing, we identified a further 55 buildings on 20 developments

requiring potential remedial works. This change, in combination

with an update to cost estimates across the portfolio, offset by an

increase in the discount rate applied to the provision, resulted in an

additional charge of £117.7m (FY22: £377.7m), recognised as an

adjusted item.

Leading the future

Going the extra mile

forourcustomers

See page 30

Chief Executive’s Statement continued

Strategic Report

25Barratt Developments PLC Annual Report and Accounts 2023

Reinforced concrete frames

Our remediation activities with respect to concrete frame

design and construction continued during the year with the

majority of developments proceeding in line with plan, but

against a backdrop of inflationary build cost pressures. During

the second half wealso finalised remediation plans for the one

remaining development from the Citiscape review, where work

is required across fivebuildings. Finalisation of this remediation

plan as well as ongoing remediation activities resulted in

anadditional charge of £51.5m, of which £21.3m related to JV

legacy developments.

In addition, we identified two further developments where

remediation work might be required. At the year end £2.4m had

been spent on one JV development and £7.6m has been provided

in relation to future remediation costs. The sum provided is

below the initial estimate, detailed in our July trading update,

but remains subject to further detailed analysis, which is

ongoing and is expected to conclude over the next six months.

Our dedicated Building Safety Unit is managing our overall

ongoing building safety remediation programme, which we

anticipate will be delivered over the next five years, with

building safety considerations informing the prioritisation and

scheduling of works.

More details around the adjusted item charges with respect to

building safety can be found in the Chief Financial Officer’s

review on page 66.

Further details on our approach to building safety can be viewed

on our website at: www.barrattdevelopments.co.uk/about-us/

our-approach-to-building-safety.

Competition and Markets Authority (CMA)

The CMA announced on 16August 2022 that, after more than

three years of investigation, it had closed its investigation into

the Group in relation to the sale of leasehold homes with no

action being taken.

On 28 February 2023 the CMA launched a market study into

housebuilding in England, Scotland and Wales. We welcome

thestudy, which will provide an opportunity for the industry to

explain in detail the current challenges it is facing. We have

taken a proactive and constructive approach in engaging with

the CMA to assist with their study. The CMA reported on 25

August 2023 that its review was continuing and we will continue

to work constructively with the CMA through this process.

The Barratt Foundation

Now in its third year of operation, the Barratt Foundation is

fulfilling our commitments to charitable giving and social

responsibility. We believe it is important to bring together both

our financial resources and the commitment and enthusiasm of

our employees to support charitable causes locally and at a

national level.

In FY23, we raised £6.3m (FY22: £5.1m) for charitable causes

through the Barratt Foundation, including the Group donation of

£4m. Notable grants during the year included £900,000 in grants

to five new national charity partners. The fivecharities receiving

grants were: Whizz-Kidz (£350,000), Place2Be (£300,000), Refuge

(£100,000), Bookmark (£100,000) and the Lighthouse Club

(£50,000). Each of these charities was carefully selected by the

Barratt Foundation Trustees, reflecting their alignment with the

Foundation’s key priorities centred around promoting social

inclusion, mental health and education.

Barratt and David Wilson Community Fund

The Barratt Foundation also continued to support the Barratt

and David Wilson Community Fund throughout the year. This

enables each of our divisions and Group offices to support local

charities that really matter to them by donating £1,500 to a

different local charity each month. Building on this, and

reflecting the challenges faced by many over the Christmas

period in 2022, the Barratt Foundation also provided an

additional £5,000 to each of the Group’s divisions and two Group

offices with donations going to 48 small local charities such as

hospices, food banks and homelessness charities.

Employee engagement in our charitable activities

To encourage our employees to raise funds for local causes,

theBarratt Foundation matches funds up to £15,000 per division

and up to £2,000 per employee for employee fundraising. The

Group also partners with Payroll Giving in Action to enable

employees to make regular, tax-free donations to their

chosencharities.

In FY23, Barratt employees and divisions raised a record £1.3m

(FY22: £0.7m) for charities and good causes, with an additional

£0.8m (FY22: £0.3m) provided by the Barratt Foundation in

matched funding, after doubling the available match funding for

employee fundraising at the start of the year.

More details around the Barratt Foundation and its activities

can be found at: www.barrattfoundation.org.uk.

Operational review

Reservation activity

Our net private reservation rate in FY23 was 0.55 (FY22: 0.81).

The decline across FY23 reflected a significant deterioration in

trading following the fiscal event in September 2022, which

continued to the end of the calendar year and was also impacted

by the closure of the Help to Buy scheme, which closed to new

reservations on 30 October 2022.

Relative political stability, a modest recovery in consumer

confidence and an easing in mortgage interest rates helped

improve the reservation rate from the start of January 2023

through to early May 2023, before it reduced again, reflecting

growing uncertainty around inflation and mortgage interest

rates for our potential customers.

26 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Operational review continued

Reservation activity continued

Net private

reservationrate H1 H2 FY

FY23 0.44 0.65 0.55

FY22 0.79 0.84 0.81

FY23 vs FY22 (%) (44.3%) (22.6%) (32.1%)

Reservation activity in the year also reflected the more

challenging backdrop for first time buyers finding it harder to

raise deposits following the end of the Help toBuy scheme in

October 2022 and the sharp increase in mortgage interest rates

and reduced availability of 95% mortgages following the fiscal

event in September 2022. There was more resilient demand

from existing homeowners who tend to have access to larger

deposits, where limited numbers of homes for sale in the

widermarket, the energy efficiency of our new homes and

thebackdrop of significant rental cost growth helped to

supportdemand.

Our reservation rate in FY23 was augmented by increased

multi-unit sales into the private rented sector along with

additional private unit sales to registered providers of social

housing (“RPs”). This has partly mitigated sales risk during the

period, supported our construction activity and ensured more of

our homes will be made available for both the private rental and

affordable homes market. The net private reservation rate

intothe private rented sector, along with additional private

unitsto RPs, contributed 0.10 (FY22: 0.03) in the year.

During the year, we operated from an average of 367 active

sales outlets (FY22: 332) including eight active JV sales outlets

(FY22: seven). Growth in active outlets reflected two factors.

Firstly, we made solid progress on new site openings, despite

both ongoing planning delays and our step back from the land

market, launching a total of 104 new sales outlets (including JVs)

in the year (FY22: 118). Secondly, the significantly lower private

reservation rate on existing sites extended the sales activity of

several outlets.

At the end of the year we were operating from 389 active

salesoutlets (30 June 2022: 352), including nine JV outlets

(30June 2022: nine).

In FY24, we expect to see average active sales outlets reduce

byaround 6% reflecting both reduced outlet openings given our

step back from the land market and the impact of sites ending

where sales activity was extended by lower reservation rates.

Construction activity adjusted to slower demand

Reductions in demand from late September 2022 required

adjustments to construction activity across our operations.

Theresult was on average 322 (FY22: 352) equivalent homes

(including JVs) built per week in the year.

During FY24 our construction activity will reduce further as

wealign it with sales reservation activity and ensure efficient

deployment of working capital across our sites.

Home completions

Total home completions reduced by 3.9% in FY23. The strength

of our order book and demand in the first quarter of the year

supported growth of 6.9% in total home completions in the first

half. However, the significant change in reservation activity

during the second quarter, the closure of the Help to Buy

scheme to new reservations from 31 October 2022, and the

slower rate of reservations from the start of the new calendar

year created a 12.8% decline in total home completions in the

second half. As a result, the affordable housing share of wholly

owned home completions increased to 23.9% (FY22: 22.3%) and

the Help to Buy share of completions declined to 9% (FY22:

19%).

Completions

(homes) FY23 FY22 Change

Private

completions 12,456 13,327 (6.5%)

Of which: PRS 258 36 616.7%

Affordable

completions 3,922 3,835 2.3%

Wholly owned

completions 16,378 17,162 (4.6%)

JV completions 828 746 11.0%

Total (including

JVs) 17,206 17,908 (3.9%)

The average selling price (ASP) of wholly-owned completions

increased by 6.5% to £319.6k (FY22: £300.2k). The private ASP

increased by 7.9% to £367.6k (FY22: £340.8k), up 13.6% in the

first half, benefitting from the strong private order book position

carried into FY23, as well as steady pricing during the first

quarter. Following the turbulence in mortgage markets, the

private ASP in the second half only grew by 3.2% reflecting the

softening in demand seen following the September fiscal event

and increased sales incentives.

Within our private completions, we completed 258 homes

(FY22:36) for Citra Living. The ASP of these PRS completions

was £280.9k (FY22: £172.3k) with the significant step up in

thePRS ASP reflecting a more typical mix of the 2 and 3-bed

homesbeing sought and acquired by Citra Living to the limited,

and apartment dominated, completions in FY22.

Affordable ASP increased by 4.9% to £167.2k (FY22: £159.4k),

reflecting an increased proportion of completions from our

outer London operations. We anticipate that the affordable ASP

in FY24 will be at a similar level to that reported in FY23.

Land and planning

As market conditions changed, we stepped back from the land

market in September 2022. We have adopted a highly selective

approach to buying land, particularly as prevailing land prices

have not yet adjusted to the changed market conditions. As a

result, gross site approvals increased by 31 new sites during

the year, including two sites through planning amendments.

These were offset by 33 previously approved sites which are no

longer economically viable, resulting in a net decrease of two

sites in the year (FY22: net approval of 102 sites). Given our

current view of the market, land prices and our existing

development pipeline, wedo not expect our approach to land

acquisition to change forthe foreseeable future.

Chief Executive’s Statement continued

Strategic Report

27Barratt Developments PLC Annual Report and Accounts 2023

The approved sites along with planning amendments added

4,821 plots, at a cost of £345.2m, with 5,633 plots removed with

respect to the sites no longer proceeding, at a previously

agreed cost of £360.1m. The result was a net reduction of 812

plots in the year (FY22: net addition of 19,089 plots) and a net

decrease in our land approval commitments of £14.9m (FY22:

net increase of £1,396.1m).

We invested £822.8m (FY22: £1,036.0m) on land acquisitions

and the settlement of land creditors during the year and we now

expect to spend between c. £500m and £700m on land in FY24,

largely settling existing commitments.

We continue to target a geographically balanced land portfolio

in the medium term with a supply of owned land of c. 3.5 years

and a further c. 1.0 year of controlled land. We are broadly in

line with this target with the land bank comprising 3.6 years of

owned land (30 June 2022: 3.9 years) and 0.7 years of controlled

land at 30 June 2023 (30 June 2022: 0.8 years).

More than 81% (30 June 2022: 75%) of our owned and

unconditional land bank plots have detailed planning consent,

supporting our sales outlets position and future home completions.

Our land bank at 30 June comprised:

Our land bank 30 June 2023 30 June 2022

Plots with detailed planning

consent 48,270 51,009

Plots with outline planning

consent 9,658 15,957

Plots with resolution to grant and

other 1,320 721

Owned and unconditional land

bank (plots) 59,248 67,687

Conditionally contracted land

bank (plots) 11,142 13,239

Total owned and controlled land

bank (plots) 70,390 80,926

Number of years’ supply 4.3 4.7

JVs owned and controlled land

bank (plots) 4,356 4,548

Strategic land bank (acres) 16,431 15,537

Strategic land bank (plots) 101,784 91,440

Promotional land bank (plots) 96,844 93,696

Land bank carrying value (£m) 3,139.9 3,339.9

At 30 June 2023, the estimated ASP of plots in our owned land

bank was £331k (30 June 2022: £322k) and the estimated gross

margin in our land bank, based on current estimated sales prices

and build costs, is 19.7% (30 June 2022: 25.8%).

Strategic land activity

During the year, we delivered 3,938 (FY22: 4,530) or 24% (FY22:

26%) of our wholly owned home completions from strategically

sourced land, We converted 777 plots (FY22: 1,663) of strategic

land into our owned and controlled land bank during the year.

Our strategic land teams placed increased focus on securing

additional strategic land to support future growth and 21,802

plots across 70 strategic sites were approved during the year

(FY22: 14,620 plots and 61 sites).

At 30 June 2023, around 23% (30 June 2022: around 25%) of our

strategic land is allocated or included in draft local plans. We

are also benefiting from the additional expertise brought by

Gladman Developments’ planning teams who, working with our

strategic land teams, are identifying ways to accelerate delivery

from our strategic land bank.

We continue to target around 30% of wholly owned completions

from strategic and promotional land in the medium term. We

believe this is both appropriate for our business model, and

reflects the development and planning prospects held within

our strategic land portfolio as well as our targeted land bank

length and focus on ROCE.

Notwithstanding that, along with the rest of the industry, we

have experienced problems with the ineffective planning system

over the past year, we are well positioned, with all expected

FY24 completions (FY23: all FY23 completions) having outline or

detailed planning consent.

Land promotion activity

Through the acquisition of Gladman we now hold a significant

promotional land portfolio of 96,844 plots (30 June 2022: 93,696

plots), with Gladman continuing to operate as a standalone

business within the Group.

During FY23, Gladman secured an estimated 9,453 plots,

(fivemonths in FY22: 1,882 plots) through new promotional

agreements with landowners. Following several planning

successes, the business received planning consents on 2,437

plots during the year (five months in FY22: 807 plots). Whilst

wider market demand for land weakened from the end of the

first quarter, continued demand for land with planning consent

from smaller developers saw Gladman secure land sales

equating to 1,813 plots, (five months in FY22: 1,332 plots).

Gladman generated revenue of £20.4m and an operating profit,

before amortisation of intangible assets, of £3.8m during FY23,

(five months in FY22: sales of £23.3m and operating profit,

before amortisation of intangible assets, of £12.4m). The

reduction in revenue and profitability reflects the slowdown in

the land market as many housebuilders reduced their land

buying activity.

With access to the Group’s financial resources, Gladman

continues to engage with new and existing land promotion

partners around alternative routes to unlocking value from

their respective land positions. Reflecting the changing needs

and aspirations of land promotion partners, Gladman offers the

ability to convert promotional agreements into option, hybrid or

freehold sale arrangements for all, or part, of their land

promotion partners’ holdings.

28 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Operational review continued

Maintaining efficiency and controlling costs

Maintaining the efficiency of our operations and controlling

costs remain key focus areas for the Group. Our supply chain

isrobust and carefully managed, with approximately 95% of our

building materials sourced by our centralised procurement

function, and around 90% of our building materials are

manufactured or assembled in the UK.

We remain committed to working with our supply chain

partners to secure sustainable, competitive pricing, while

maintaining security of supply to support oursite-based

operations and we have supply agreements in place for 73% of

our material requirements to 31 December 2023 (FY23: 73% to

31 December 2022), and 14% of our requirements until 30 June

2024 (FY23:12% to 30 June 2023).

We are starting to see some of the inflationary pressure on

thecost of skilled labour abating, reflecting the slowdown in

housebuilding activity across the country and the desire of

sub-contractors and skilled trades to secure future workload.

We are looking to drive further construction efficiency through

standardisation in our house types and increased use of timber

frame to reduce our labour requirements and reducing waste.

During FY23, total build cost inflation (including infrastructure

costs, materials and labour) was between 9% and 10%, with the

rate of inflation moderating towards the end of the year.

Reflecting the slowdown in the market, and assuming no further

material changes in the costs of energy or key commodities, we

expect total build cost inflation to abate through FY24, with

average total build cost inflation at around 5%.

We are also pro-actively managing our overhead base. As the

slowdown in the market became apparent in late September

2022, we began a headcount freeze which has reduced our

number of employees by 6% since the end of the first quarter.

We have continued to invest in priority areas including

sustainability, building safety and in our IT infrastructure but

are only hiring where additional skills are required by the

business. We have also scaled back discretionary spend in

other areas.

Current trading and outlook

Long-term housing market fundamentals reflect a continued

and deteriorating imbalance between housing supply and

demand. Despite this imbalance, the market is currently

impacted by significant macro-economic headwinds, most

notably persistent inflation and a higher interest rate

environment. This backdrop has had a negative impact on UK

economic growth, employment, mortgage affordability and

consumer confidence and spending.

We entered FY24 with a solid forward sales position and at

27August 2023 we are 49% forward sold with respect to private

wholly owned home completions for FY24 (28 August 2022 for

FY23: 62%) with 51% of the private order book exchanged

(28August 2022: 59%).

Since the start of the new financial year our net private

reservation rate per active outlet per average week for the

period to 27 August 2023 was0.42 (FY23: 0.60). This reflects

both traditional seasonality but also thecontinued affordability

challenges faced by potential homebuyers. During the period

there was minimal impact from sales to the private rental

sector and registered providers of social housing, which

contributed 0.02 (FY23: 0.05) to the reservation rate.

Based on current market conditions, we are targeting total

home completions of between 13,250 and 14,250 in FY24,

including c. 650 home completions from our JVs and c. 750

completions for the private rental sector, whilst ensuring we

maintain our industry-leading standards of build quality and

customer service. We currently estimate that around 45% of our

completions will be delivered in the first half of the financial

year.

27 August 2023 28 August 2022 Variance %

Forward order book £m Homes £m Homes £m Homes

Private 1,527.6 4,440 2,421.5 6,467 (36.9%) (31.3%)

Affordable 752.0 4,691 1,079.6 6,658 (30.3%) (29.5%)

Wholly owned 2,279.6 9,131 3,501.1 13,125 (34.9%) (30.4%)

JVs 157.7 477 307.8 933 (48.8%) (48.9%)

Total 2,437.3 9,608 3,808.9 14,058 (36.0%) (31.7%)

Chief Executive’s Statement continued

29Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Our strategy

Our purpose

To lead the future of

housebuilding by putting

customers at the heart

of everything we do

Building Britain

better homes

Barratt Developments is well-placed to navigate

throughthe current headwinds anddeliver on

itslong-term growth strategy.

Guiding all our actions

areourprinciples

Keeping people safe

Being a trusted partner

Building strong community

relationships

Safeguarding the environment

Ensuring the financial health

of the business

Non-financial KPIs

Key

Sustainability commitments

Strategic priorities

HBF 5 star customer

satisfaction

Scope 1 and 2 carbon

emissions

Land approvals

Waste intensity

Employee

engagement score

SHE audit

compliance

30 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Our strategy continued

Leading the industry in consistent

customerservice

Our customers are at the heart of everything we do. We believe

our industry leadership in customer service is fundamental to

our success and we are the only major housebuilder to have

now been awarded the maximum 5 star rating by our customers

in the HBF Customer Satisfaction Survey for 14 consecutive

years, with a customer satisfaction rating at 92.8%.

New Homes Quality Code

Building on investment and training during 2022, we

successfully adopted the New Homes Quality Code and

activated our registered developer status with the New Homes

Quality Board in the year. We welcome the Quality Code, which

is centred on fairness throughout the customer journey. The

Quality Code covers the period from initial enquiry through

to completion and then two years post-occupation of the new

home. We are pleased that since activating the Quality Code,

there havebeen no adjudications required by the New Homes

Ombudsman Service with respect to our homes and customers.

Delivering service beyond home completion

forourcustomers

As we seek to ensure our customers receive the best possible

service throughout their home buying journey and in the

period post-completion, we have invested in additional training

and workshops to enhance our service and our customers’

experience beyond the handover of their new home.

We have continued to drive improvements to the customer

journey and have adapted our processes to help our customers

through the volatility in the mortgage market during the year.

We will continue to work with lenders to ensure our customers

have access to the most attractive and suitable mortgage

products available.

Addressing mortgage access and the affordability

challenges faced

Given the affordability challenges now faced by potential

homebuyers, we are continually looking at how we can help

withnumerous offers, which include:

 the housebuilding industry’s “Deposit Unlock” scheme

whichis available to our customers who only have access

toa5%deposit;

 our “Key Worker Deposit Contribution” scheme, where we

offer a 5% contribution, as well as flooring included in their

new home;

 our “Deposit Boost” scheme for customers with a 10% deposit

where we can boost it with a further 5% contribution of the

purchase price allowing access to 85% LTV lending rates;

 our “Parent Power” scheme where first time buyers with

parental support can access a matching deposit contribution

up to 5% of the purchase price of their new home; and

 our “Armed Forces Deposit Contribution” scheme where

military service personnel will be offered a 5% contribution,

up to£15,000.

We also continue to promote our part-exchange offers to customers.

We were the first housebuilder to introduce part-exchange and

we have a long record of helping existing homeowners in their

purchase of a Barratt or David Wilson home using one of our

five tailored part exchange schemes.

“ This is one of the most helpful

companies I've ever dealt with;

thestaff are absolutely lovely and

are really thorough and invested

ingetting you the best deal.”

Jasmine and Kim,

Barratt customers

Customer first

Trustpilot score

4.4

31Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Growing the private rental opportunity

Finally, recognising the ongoing demand for housing of all

tenures, we have developed our relationship in the private

rental sector, with Citra Living, on our developments across the

country.

New build advantages for our customers

We are continually seeking to improve the energy and water

efficiency of our homes and adapting our home designs to

respond to changing homebuyer demands, the Future Homes

Standard and other changes to Building Regulations. We aim to

build high quality homes that optimise internal space, deliver

excellent energy and water efficiency and, as a result, unlock

lower lifetime costs for our customers.

We actively promote the lower energy cost and environmental

advantages of our homes across all our communication

channels and in our sales centres. This is an increasingly

important purchasing consideration for our customers.

Atypical Barratt or David Wilson home can unlock energy

savings of up to £2,200 annually when compared to an average

existing home. In FY23 99.2% of our home completions were

EPC rated “B” or above, a level of energy efficiency shared by

just 3.2% of the existing housing stock. In addition, all of our

homes are built to a water use standard of 105 litres per person

per day, creating the potential to reduce consumption by 26%

when compared to the national average and creating further

cost savings for our homeowners.

Green mortgages: leading valuation and mortgage

developments across the sector

Mortgage lenders, driven by their own sustainability initiatives,

the growing recognition of future retrofit costs in relation to

energy efficiency for existing homes, and the scale of annual

savings for customers buying a new home, are increasingly

engaging with the housebuilding industry around green mortgages.

As the leading national sustainable housebuilder we have

adopted a dual approach to green mortgage development.

Firstly, we are continuing to work directly with lenders to

develop enhanced products that recognise the advantages

of our new build homes. During FY23, we collaborated with

The Leeds Building Society to support the launch of a new

green mortgage product. This product, which recognises the

advantages inherent in our new homes and has the potential

to unlock up to a 10% uplift in lending available for our

energyefficienthomes.

Secondly, through Government engagement, notably through

the Future Homes Hub, Barratt’s Head of Mortgage Lender

Relations chairs the “Valuation Oversight Group”, which is

considering how the value of sustainable benefits of new

homescan be recognised in the mortgage valuation process.

The financial and environmental advantages of new build homes

have never been as significant as they are today, and we are

committed to enhancing both the access and affordability of

ournew homes in partnership with both lenders and surveyors.

Customer First Objectives

0–1 year: We will target our continued 5 star customer

service and drive improvement in our nine-month survey

score. Wewill also launch a single portal covering our

customers throughout their journey with the Group,

encompassing the marketing and sale process through to

customer care post-occupation.

1–3 years: We will develop new technology-based solutions

to improve the planning, scheduling and efficiency of

our customer care teams, internal technicians and

external sub-contractors. We will continue engagement

on green mortgage development with lenders, surveyors

andGovernment.

3+ years: We will be developing immersive augmented and

virtual reality tools to improve and further personalise each

customer journey.

32 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Our strategy continued

Great places

Land supply

We build homes in locations where our customers want to live, with

good access to open space and amenities, transport connections,

schools and workplaces. Our specialised divisional land teams,

including the Gladman team, possess extensive local knowledge

and strong relationships with landowners. This, combined with

detailed research into local market conditions, means we can

secure land in locations of strong customer demand.

Built For Life

Placemaking principles are fundamental to our business: our

customers want to live in great places that create a positive

legacy and for land owners too, the future legacy created by

asite can be critical to successful land acquisition.

Our internal Great Places design principles are aligned to

the Government-endorsed “Building for Life 12” criteria and

the updated “Building for a Healthy Life” standard, which

incorporates additional health and wellbeing criteria. As a

result, Great Places puts greater emphasis on development

design to support good physical and mental health and

wellbeing. We deliberately shape our developments around

existing ecology, green spaces, walkways and cycle paths to

encourage social interaction and a sense of community and

appreciation of the surroundings created.

During FY23, 19 developments achieved Gold awards under

Great Places with a further 46 developments receiving Silver

awards and 4 developments achieved commendations under

the“Building for a Healthy Life” standard, with Phase 4 of our

West Hendon development achieving an “Outstanding” rating

from the judges.

We also launched our new “Green Spaces” awards in FY23 to

recognise and encourage developments with integrated and

accessible green spaces.

Biodiversity net gain adoption ahead of legislation

With our national rollout programme embedding biodiversity

best practice across all regions completed in the year, all our

development designs submitted for planning from January 2023

identified a minimum biodiversity net gain (BNG) of 10% and we

remain ahead of the legislation.

An important ingredient in delivering BNG is landscaping.

To drive our leadership in this area, we launched a new

“Landscaping Handbook” which sets out best practice for the

design and delivery of landscaping across our developments.

Alongside the launch, we appointed divisional “BNG Champions”,

ensuring landscaping best practice is both adopted and

reported looking to the future.

BNG also relies on the long-term stewardship of our

developments, as such, measures have been put in place to

ensure landscaping and BNG performance are also incorporated

in the terms of operation for the management companies

responsible for our developments post-completion.

Water resilience for our customers

Water resilience is becoming increasingly important and

we have a responsibility to mitigate against future risks

of geographical water scarcity and flooding. We do this

by increasing the water efficiency of both our homes, as

highlighted earlier, but also by increasing the resilience of our

sites to water scarcity and flooding through careful design and

development landscaping.

In FY23, 83% (FY22: 72%) of our developments used above-

ground, landscape-led Sustainable Urban Drainage Systems,

which manage surface water volumes and flow rates, reducing

the impact of urbanisation and flood risk. We are committed

to further sustainable drainage adoption to address water

management on our developments.

Warren Grove Storrington Upton Gardens

Objectives

0–1 year: We will embed BNG best practice and ensure our

sites are delivering accurate reporting on BNG performance

and progress.

We will work with Government and other interested parties

to seek to overcome the challenges faced around nutrient

neutrality to unlock future housing development.

1–3 years: We will further improve the layout and landscaping

of our developments with a particular focus on inclusivity for

all, including improvements to play areas and green spaces

on our developments.

3+ years: Our focus will remain on leading the development

of sustainable places that satisfy the country’s need for

more housing whilst creating a positive economic, social

andenvironmental legacy.

33Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Industry leading build quality

Our absolute commitment to excellent build quality is embedded

throughout our business. We believe a key measure of build

quality is delivered through the NHBC’s five-stage inspection

of our homes throughout their build. Issues relating to build

are identified as “Reportable Items” (RIs) at each inspection.

Throughout FY23, and for the fourth consecutive year, we have

maintained our industry leading position amongst the major

housebuilders, with the Group once again registering the

lowest RIs per NHBC inspection. The Group achieved an average

0.16 RIs per NHBC inspection (FY22: 0.13 RIs), the lowest of all

major housebuilders. The strength of our site management, the

standards we set for our long-standing sub-contractors, their

familiarity with our housetypes, the photographic records taken

of each home at key stages and our use of high-quality building

materials all contribute to this result.

Site management excellence for a record 19th year

Our build quality also continues to be recognised through the

NHBC Pride in the Job Awards for site management. At the

2022 Regional NHBC Pride in the Job Awards, 34 site managers

won “Seals of Excellence” and our site managers secured

five out of the nine Regional Awards where we operate in the

“Large Builder” category. Finally, at the NHBC Pride in the Job

Supreme Awards in January 2023, Kirk Raine, Site Manager

at Doseley Park in our Mercia Division, was named Supreme

Winner in the Large Builder category.

In June 2023 at the 2023 National NHBC Pride in the Job

Awards 96 site managers secured awards, more than any

other housebuilder for the 19th consecutive year. No other

major housebuilder has achieved this level of success and

consistency, in terms of the recognition for the management

of site standards and build quality. All of our sites also

operate under the Group’s certification to the Environmental

Management System standard ISO 14001, and Health and Safety

standard OHSAS 18001.

Innovation through modern methods of construction (MMC)

We delivered 5,578 homes using MMC equating to 32% of our

total home completions (FY21: 4,846 homes and 27% of total

home completions). MMC creates opportunities to build with

greater speed and efficiency, mitigate the impact of the skills

shortage facing the industry, reduce on-site waste, reduce

embodied carbon and diversify the types of materials we use.

The various MMC used across our total home completions are

detailed below.

MMC FY23 FY22

Timber frame 4,564 3,736

Roof cassettes 224 194

Offsite ground floors 560 614

Large format block 230 226

Light gauge steel frame — 76

Total

5,578 4,846

Percentage of completions

32% 27%

A Total and percentage of completions include JVs and have been adjusted

for homes where more than one technology has been used.

New timber frame facility moving into operation

Underpinning our growth in the use of MMC is the more

widespread use of timber frame construction across our

developments. Supporting this growth, we completed

construction of the Group’s new Oregon timber frame facility

atInfinity Park, near Derby.

The new 186,000 square feet facility has been constructed to

exacting requirements around its sustainability performance

and has achieved a BREEAM “Very Good” rating and an EPC “A”

rating. The facility also incorporates a wide range of energy-

efficient features including photovoltaics, air source heat pumps

and LED lighting, as well as electric vehicle (EV) charging points

across 10% of the parking spaces. This £45m investment has

been commissioned and will increase production through FY24.

Waste reduction

Waste reduction and resource efficiency remain clear

priorities for the Group, notwithstanding our industry leading

performance. Reflecting our workforce’s ability to drive waste

reduction, bonus arrangements across the Group in FY23 once

again included waste reduction targets and this will continue

inFY24.

Supported by our dedicated Group Waste Project Manager,

detailed action plans and incentives, and monthly waste

monitoring, we have delivered a further improvement in our

waste intensity with a 13.3% reduction to 4.31 tonnes per 100m

of legally completed build area (FY22: 4.97 tonnes per 100m

legally completed build area. In the year, our absolute waste

tonnage decreased by 17.1% (FY22: decreased by 15.5%).

We continue to promote the segregation of waste and the

efficient use of skips across our business; our diversion of

waste from landfill remained at 96% during the year (FY22:

96%). In FY23, more than 36,000 paint tins across our sites

were recycled (FY22: more than 30,000), and 392,363 pallets,

used in the supply of building materials to site, were recycled

(FY22:366,408 pallets).

Lightweight compactible materials continue to represent the

largest portion of our remaining waste, particularly plastic and

packaging materials. Several waste reduction initiatives were

trialled in FY23 seeking to reduce packaging waste through

specific supplier arrangement, to minimise damage to building

materials in transit, combined with site best practice around

building material storage on site. Future waste reduction

initiatives will also involve revisions to our housetypes, with

increasing standardisation of key components e.g. staircases

and the introduction of a specific kit of parts reducing

wastematerials.

Leading construction

34 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Our strategy continued

Leading construction continued

Water efficiency on site

We are committed to reducing operational water use on

our sites and throughout our estate. Currently 80% of our

operational sites have provided water consumption data (FY22:

61%) andthrough our metering rollout plan we are targeting

that allof our sites will have water metering by the end of FY24.

Thiswill provide data on our baseline water use against which

we can plan actions to reduce water consumption and measure

ourperformance.

New building regulations

During FY23 our Group Design and Technical team, following

the release of the Government’s SAP calculator in autumn

2022, fine-tuned our solutions to ensure all our housetypes

metthe requirements of new 2021 Building Regulations.

Thenew standards became effective on new development

sites on 15June 2022 and applied to all development sites from

15June2023.

The Zed House and the Future Homes Standard

The Zed House completed extended periods of occupation,

monitoring and testing during FY23. This has yielded invaluable

performance information which is being used to inform the

Group in determining the most effective changes to our

housetypes to meet the Future Homes Standard in 2025 and

the different legislative requirements in England, Scotland and

Wales, while also ensuring we create the best possible homes

for our customers.

Future homes for our customers – eHome2

To achieve the Government’s carbon reduction targets, the

UK will require a step-change in the design of new homes.

As the leading sustainable housebuilder we are committed to

developing homes that will meet the future challenges of both

carbon emissions reduction and adaptation to climate change.

A further milestone on this journey for the Group has been

the construction of eHome2 where we have collaborated with

Saint-Gobain to build a concept home within the “Energy House

2.0” on the University of Salford campus. Built within one of

two environmental chambers inside the “Energy House 2.0”, the

largest facility of its type in the world, the eHome2 can test the

effects of climate change and look at ways new houses can cope

with more extreme weather conditions, whilst cutting energy

and water usage.

The three-bedroom family home will test both innovative

building products and new technologies designed to meet

theFuture Homes Standard and builds on our knowledge and

understanding gained from the Zed House. The eHome2 has

been constructed using an advanced closed panel timber frame

solution with an offsite pre-insulated ground floor system and

both lightweight alternative brickslip and render systems to

the external façade. The eHome2 was also built in less than

14weeks – half the time it takes to build a traditional home.

TheeHome2 will also test zero carbon performance in different

temperatures and weather conditions to replicate extreme

changes in the climate and the long-term expected increase in

temperatures faced here in the UK.

With Saint-Gobain and the University of Salford, we are working

together to create a blueprint that will enable the industry to

design and build the low carbon homes of the future that will

not only be attractive to our customers, but also future proofed

for climate change and less expensive to run through their

dramatically improved energy efficiency.

Objectives

0–1 year: Develop the design of our new house type portfolio

supporting the FHS and our growth in MMC.

Working with Government and the Future Homes Hub

onrealising the FHS.

1–3 years: Delivering our new house types encompassing

changes in infrastructure connectivity, alternative building

materials and new home technologies.

Further development of our MMC strategy, notably around

further expansion of timber frame adoption across our

housetype range.

3+ years: Further development of our zero carbon strategy

for homes in use from 2030 and from our own operations

in2040.

Development of our embodied carbon strategy to drive

emissions reduction through alternative building materials

use and supply chain collaboration.

Zed House project Energy House 2.0

35Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Our continued success is ultimately achieved through the

hard work and dedication of our employees. We aim to attract

and retain the best people by engaging with our employees,

investing in their development to maximise their potential,

supporting their wellbeing and recognising their commitment by

ensuring our employee packages are effective and competitive.

We are also committed to becoming more diverse and inclusive

organisation, as we believe this will create a stronger, more

dynamic business for our customers, and also make us a more

attractive employer.

The volatility and uncertainty in the market in the last year

necessitated a pause in Group-wide recruitment, other than

recruitment for a small number of critical roles, since the end

of the first quarter. Recognising the need to develop young

talent, our graduate and apprenticeship programmes have

continued, albeit at reduced intake levels.

This pause to recruitment has created opportunities to increase

our attention on our existing employees, ensuring we are

engaging and developing our employees to their full potential

and that they feel recognised andvalued.

Engaging with our employees and recognising their

commitment

Our 2022 employee engagement survey was completed in

October 2022. This year’s survey delivered an engagement

score of 84.4% (2021 survey: 79.4%). The improvement in the

2022 engagement score was welcomed and highlighted:

 The benefits of the Group’s proactive policy changes in FY22

around the provision of private medical insurance for all

employees, an additional day’s holiday for all employees to

celebrate a special day, and increased time for employee

volunteering.

 The positive impact on our employees of the Group’s decision

to award a cost of living salary supplement of £1,000 to all

employees below senior management for the period from

1July 2022 through 31 December 2022.

 The introduction of enhanced family friendly policies including

extended maternity, paternity and carer leave, effective from

October 2022.

Following the 2022 engagement survey and reflecting our

desire to positively respond and engage with our workforce,

anumber of new initiatives were introduced though the balance

of FY23. These included:

 A Group-wide survey on health and safety seeking employee

views on how we can further improve our safety, health and

environmental performance with future targeted actions.

 A further cost of living salary supplement of £1,000 to all

employees below senior management for the period

1January 2023 through 30 June 2023.

 Tiered salary increases effective from 1 July 2023, designed

toensure our lower paid employees were cushioned from the

withdrawal of the cost of living salary supplements, which

drew to a closeon 30 June 2023.

Investing in our people











2023 2022

Male 63% 67%

Total 5 6

Female 38% 33%

Total 3 3

2023 2022

Male 68% 68%

Total 4,345 4,401

Female 32% 32%

Total 2,044 2,099

2023 2022

Male 69% 66%

Total 27 21

Female 31% 34%

Total 12 11

2023 2022

Male 82% 83%

Total 272 271

Female 18% 17%

Total 59 57

2023 2022

Male 71% 83%

Total 5 5

Female 29% 17%

Total 2 1

PLC Directors

Male and female employees

Employees

Reports to Executive Committee

Senior Managers

Executive Committee

36 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Our strategy continued

Investing in the development and training of

ouremployees

We continue to play a leading role to address the industry’s

skills shortage.

In total, we have developed, or are developing, 136 delegates

through our Armed Forces transition programme. Skills developed

in the Armed Forces transfer well to site management, and

the programme has brought a large number of high-calibre

individuals into our business.

Our ASPIRE graduate development programme takes between 15

and 30 graduates annually. The programme goes from strength

to strength, attracting candidates from all degree backgrounds.

ASPIRE is designed to provide a broad understanding of

our business, coupled with both personal and professional

development opportunities through a two-year programme,

with the aim of creating leaders of the future.

During FY23, we completed recruitment for our fourth degree

apprenticeship with Sheffield Hallam University, in real estate.

Sitting alongside existing programmes in construction, quantity

surveying and technical design and management this makes us

the first housebuilder to deliver degree apprenticeships across

the three main build functions and real estate.

Apprenticeships remain a vital route to develop skilled

tradespeople for our industry

Our programmes for bricklaying and carpentry apprentices

enable participants to achieve apprenticeship level within a

shorter timeframe while maintaining the same high standards.

Our schemes focus on bringing new talent to the industry and

on retaining it for the future. To date, within the bricklaying

andcarpentry apprenticeship programmes, 374 apprentices

(FY22: 256) have attended, and 147 apprentices (FY22: 102)

aredue to complete the course in FY24, with a further 54

(FY22:160) recruited in FY23 for our FY24 intake.

We currently employ 483 apprentices, graduates and trainees

(FY22: 391), around 7% (FY22: 6%) of our workforce, reflecting

our ongoing commitment to developing future talent.

With respect to apprentice recruitment in the year, 13% (FY22:

29%) of our apprentices were recruited from the most deprived

areas according to the Index for Multiple Deprivation.

We engage with our future workforce through our work with

schools, national apprenticeship bodies, universities and

ArmedForces resettlement organisations. This includes getting

involved with campus activities, attendance at careers fairs and

employer-led events. For a second year we also engaged with

more than 1,200 schools and colleges to promote careers in

construction and housebuilding and, in collaboration with the

HBF, the School Outreach programme now engages with over

3,100 schools across the UK.

Investing in our people continued

ASPIRE Degree Apprenticeships Intermediate & Advanced

Apprenticeships

37Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Retaining the best talent

It is vital for us to develop talent within our business to ensure

we have the necessary skills for continued operational delivery

and growth into the future.

As part of our response to engagement survey feedback and the

pause in recruitment, we are working to improve the visibility

of career paths in all functions, with individual development

plans, line manager development and the proactive prioritising

and tracking of internal promotions. Remuneration and benefits

are an important element of employee retention. We continue

toreview our employee packages to ensure they are effective

and competitive.

Identifying and supporting our leaders of the future, along with

effective succession planning, are important elements in our

long-term success. In FY23, 344 (FY22: 269) high-potential

employees have attended or are attending our

“RisingStars”programme.

Our Construction and Sales Academy programmes develop

talent within our business and we continue to work with the

Home Building Skills Partnership around employee training,

learning and development. We also seek to address skills

shortages and prepare for the future by developing our people

through access to continuous learning. Our MyLearning mobile

app provides colleagues with flexibility and choice in how they

access and consume learning content.

Growing our employee networks

Our employee networks have also become an increasingly

important way for us to create a more open and inclusive

business, and enable us to listen directly to the needs of our

people. Our networks include our gender network to support

female colleagues and groups which connect parents, LGBTQ+

colleagues and allies, ethnic minority communities and “Barratt

Connect”, a group for anyone who has felt isolated or misses the

social interaction created by reduced office-based working. We

are delighted to have launched “Scaffold”, a new network set

up to raise awareness of disability in the workplace, influence

policy decisions and connect disabled people and their allies

across all divisions and functions.

Real Living Wage accreditation

During the year, we maintained our Living Wage Foundation

accreditation, reflecting the Group’s commitment to paying

our employees and supply chain employees an independently

calculated rate of pay, based on the actual cost of living. The

real Living Wage exceeds the national Living Wage (set by the

Government) and covers all employees aged 18+, as well as

incorporating a London weighting. Holding this accreditation

demonstrates our clear and continuing commitment to our

employees, suppliers and sub-contractors.

Our standard sub-contractor terms and conditions also

mandate the payment of the real Living Wage within our supply

chain. To support this, we implement spot checks by divisions

on higher risk trades and operate internal remediation feedback

systems. Where we find instances of non-compliance, we

require this to be rectified, with follow-up audits conducted

to ensure full compliance. For those working in jurisdictions

other than the UK, our expectation, included within our contract

requirements, is that local statutory minimum wages are paid.

Gender and ethnicity pay gap reporting

In December 2022, we published our annual Gender Pay Gap

Report and, for the first time, we also included our Ethnicity Pay

Gap Report, as part of our commitment to transparency and to

enhance our work through our Diversity & Inclusion Strategy to

improve the representation of all groups across the business.

Our mean gender pay gap increased from 6.2% to 8.8%, and

the median pay gap increased from (0.4%) to 6.3%. Although

our mean gender pay gap is smaller than the average for UK

businesses in 2022 at 13.9%, we remain committed to further

action in this area and delivering against our 2025 Diversity

&Inclusion Strategy.

Our mean ethnicity pay gap reduced from 11.0% to 7.7%,

andthemedian ethnicity pay gap reduced from 7.1% to 5.9%.

In order to deliver change in both of these areas, we will

continue to build on the work already in place to support

ourteams through talent programmes, employee networks,

succession planning and early careers. We will continue to

workto close our gender and ethnicity pay gaps and ensure

thatwe build an open and inclusive working environment.

Expanding employee participation in share ownership

for our business

In April 2023, we invited all eligible employees to participate

in the 15th grant under the Group’s Sharesave scheme, which

allows eligible employees to contribute a maximum of £500 per

month in one or more Sharesave schemes. As at 30 June 2023,

51.4% of our employees participated in one or more of the active

schemes, compared to 51.2% as at 30 June 2022.

In recognition of the continued dedication, commitment and

loyalty of our employees, in FY23 the Board agreed that an

annual share award would be made to all employees below

Managing Director level. Accordingly, in July 2023, an award

ofshares equating to £1,250 (July 2022: £1,250) was made

toallqualifying employees. This award will vest in July 2025.

Reflecting the challenges faced by our industry as well as our

recruitment freeze implemented at the end of September 2022,

our total Group employee turnover reduced to 15% for the year

to 30 June 2023 (FY22: 17%). Our target over the medium term

remains at 15%.

Gender and Ethnicity Pay Gap Report

38 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Our strategy continued

Diversity and inclusion

We aim to create a working environment that provides equal

opportunities for all and we are a signatory to the Business

inthe Community Race at Work Charter.

Selection for employment and promotion within Barratt is

based on merit, following an objective assessment of ability

and experience, and after giving full and fair consideration

to all applicants. We are also committed to ensuring that our

workplaces are free from discrimination and that everyone is

treated with dignity and respect. We strive to ensure that our

policies and practices provide equal opportunities in respect

of training, career development and promotion for existing and

potential employees, at all levels throughout the business,

irrespective of age, disability, gender, gender reassignment,

marriage and civil partnership, pregnancy and maternity, race

and ethnicity, nationality, religion or belief, sex, and sexual

orientation. We also remain signatories to the Social Mobility

Pledge, committing us to providing opportunities to people

fromall different backgrounds.

A detailed review of our employee representation across all

protected characteristics, by both function and level within

theorganisation, was completed during the year. This identified

both our strengths and where there are clear opportunities

toimprove and a new three-year strategy has been put in place

to drive measurable improvement through to FY25 and ensure

everyone who works within the Group feels they belong and

arecomfortable to be themselves.

Investing in our people continued

Promoting both physical and mental wellbeing

ofemployees

A key objective for the Group during FY23 has remained the

physical, mental and financial health and wellbeing of our

employees. During the year, we continued to progress our

health and wellbeing programmes, including the development

of a health and wellbeing strategy. We have continued to deliver

“manage the conversation” training to our manager population,

grow our network of mental health first aiders and enhance,

through additional investment, the support available to our

mental health first aiders.

We have continued to strive to reduce stigma and encourage

openness around mental health across our employee and sub-

contractor population, with suicide awareness training made

available to all employees and promoted to both our employees

and well as our sub-contractors and allied trades. Continuing

this theme, in June, in conjunction with the Barratt Foundation,

we launched a collaboration with the Lighthouse Club

Construction Industry Charity, which has seen a series of site

tours being supported by the charity bringing wellbeing advice,

help and support to our site-based teams and sub-contractors.

In order to support the financial wellbeing of our people, we

have extended our partnership with our benefits providers to

offer access to enhanced financial wellbeing support through

innovative platforms and webinars. We continue to support our

people’s physical health through investment in private medical

support and annual health assessments, which are made

available to all employees.

Anti-bribery and corruption policy

39Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Human rights and anti-bribery

Our respect for human rights is embedded within our strategic

priorities. We have policies and procedures in place that

support the core values of the UN Universal Declaration of

Human Rights and the UN Guiding Principles of Business and

Human Rights, and we act in accordance with our principles

regarding diversity and the Modern Slavery Act 2015. Concerns

can also be raised anonymously via our whistleblowing process.

We are currently undertaking a thorough review of our approach

with the aim of developing a more consistent, leading practice

approach to managing material human rights risk across

our value chain. In line with this, this year, we conducted

an assessment to identify our most salient risks and key

opportunities, and have also put in place measures to build on

our existing due diligence systems. These have included:

 Updating signposting on our sites to encourage potential

victims of modern slavery to seek help and, recognising

that language barriers that may exist, our signposting

hasincluded QR coding for multiple languages.

 Recognising that the transition to net zero has the potential

to increase human rights risks, particularly in relation to

new technologies and new suppliers operating outside

of our traditional supplier base and in more distant and

less regulated markets. In one particular product area,

photovoltaic panels, we are co-sponsoring the development

of a procurement guide for responsible sourcing addressing

the sourcing of materials and labour and the supply chain.

Our non-financial KPIs regarding health and safety and

employee engagement reflect our belief that it is a fundamental

human right to work in a safe and supportive environment.

Employees undertake training on modern slavery and site

managers are given additional training in helping identify

risksaround modern slavery.

We have a strict anti-bribery and corruption policy and

conductour business in a fair, open and transparent manner.

All employees are required to undertake regular training on

ouranti-bribery and corruption policy.

We also work closely with our partners to ensure our standards

are applied to our extended workforce. We are signatories to

the Gangmaster and Labour Abuse Authority Construction

Protocol, helping us to share and receive information and

training materials to identify and prevent modern slavery. It

is a condition of all our supplier and sub-contractor contracts

that they comply with the Bribery Act and our anti-bribery and

corruption policy.

Objectives

0–1 year: Increase leadership capability in key people

management skills, developing inclusive leadership.

Focusedpeople planning including diverse hiring.

1–3 years: Embed the Company’s new purpose and values

andemployee value proposition across all areas of the

employee experience.

3+ years: Enhance the employee experience through technology.

David Thomas

Chief Executive

Gender diversity

Improving our gender diversity has been recognised as an

initial priority with a support programme, a particular focus

on graduate recruitment and early career intake and through

carefully considered succession planning.

To drive improvement the Group:

 Is now measuring gender representation in each function

andlevel within the Group on a quarterly tracking basis;

 Has refreshed our recruitment processes, to ensure have

balanced and diverse shortlists; and

 Has increased the female cohort on our Accelerated

Leadership Programme, which is designed to identify

ourfuture Managing Directors.

Catalyst, our existing development and support programme,

designed to help high-potential female employees develop

their careers within the Group, is a key part of our gender

diversity strategy. This programme is showing positive results

with 48%of participants being either promoted or having their

rolesextended.

As well as Catalyst, we also worked with the Home Builders

Federation and Women in Construction during the year

to launch a nationwide employment programme for

women, helping to address the gender imbalance in the

construction workforce, which currently sees just 16% female

representation.

As at 30 June 2023, women held 18% (FY22: 17%)

ofseniormanager roles within the Group.

The gender diversity statistics for our employees as a whole,

our senior managers, the direct reports to the Executive Committee,

Executive Committee and PLC Directors are shown on page 35.

Further information regarding the diversity (including ethnicity

of our PLC directors and Executive Committee members can be

found in the Nomination report on page 120.

Ethnic diversity

Increasing the ethnic diversity of our organisation is also a clear

target over the coming years. In October 2022 we launched our

ethnic minority community support programme, “Spotlight”.

This is an eight-month externally facilitated programme, which

includes feedback from the participants on actions needed,

as well as a Group-wide EMC employee network. We were

also delighted to have been part of the 30% Club’s “Leaders

for Race Equity” inaugural programme, alongside nine other

organisations seeking to share best practice and establish

tangible actions for change.

As at 30 June 2023, 7% (FY22: 7%) of employees were from

ethnic minority backgrounds and 3.0% (FY22: 2.1%) of senior

leadership positions were held by ethnic minority employees.

Disability

Every effort is also being made to retain and support employees

who become disabled during their time working within the

Group and we continue to remove physical barriers for disabled

colleagues or applicants. Our “Scaffold” network, detailed

earlier, is an important forum to ensure we understand the

issues faced and are supporting our disabled employees.

40 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Building sustainably

Leading sustainability

We are determined to be the leading national sustainable housebuilder.

We believe that fundamental to building quality homes is building

a positive environmental, social and economic legacy for future

generations. To us, that means putting our customers at the heart

of everything we do to create great homes and great places that are

designed and built for better living and to meet the challenges of

the future.

Building Sustainably Framework

See page 44

See page 45

Building

Sustainably

We preserve and enhance the natural world

by using resources responsibly, building

resilient, low-carbon homes, and by creating

places where people and nature can thrive.

We design and build

great places that meet

the highest standards,

and that promote

sustainable, healthy

and happy living for

our customers.

We believe everyone

has the right to be

respected and treated

fairly at work. We

do the right thing,

nurturing diverse

talent and prioritising

the health and safety

and wellbeing of our

people and partners.

See page 45

Link to the SDGs

Good health and wellbeing

Gender equality

Clean water and sanitisation

Affordable and clean energy

Decent work and economic growth

Sustainable cities and communities

Responsible consumption and production

Climate action

Life on land



Suppliers

41Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Our Building Sustainably Framework

The last year has been one of extraordinary economic, social

and environmental shifts, and this is expected to continue.

Global conflicts amplified what was an emerging energy

and cost of living crisis. This has had consequences across

our entire value chain – from the sourcing of raw materials

through to consumer sentiment. Political upheavals in the UK

have also challenged the ability of business to respond and

adapt. Against this, a backdrop of increasingly urgent warnings

about climate change and nature depletion.

At Barratt, our response to this is simple, yet focused. Weare

responding to the most urgent issues by ensuring we are driving

the delivery of our Building Sustainably Framework, in line

with our targets and commitments. We view the progress on

our environmental and social ambitions as essential to future

proofing our business in the long term. The framework is

built around three pillars: Nature, Places and People. These

cover the material issues for our business and are informed by

industry understanding, as well as the opinions and challenges

offered by our stakeholders.

This focus is reflected in all that we have achieved. We are

building resilient, low-impact homes that will make our

customers and our country future-ready. We are creating

places where people, nature and local economies thrive

together, whilst also addressing the skills gap and supporting

under-represented and disadvantaged groups. We are

unlocking affordability for more people and rewarding

customers who make sustainable choices.

At a global level, our framework aligns with nine of the UN’s

2030 Sustainable Development Goals (UN SDGs), which are

detailed within the framework wheel. We became a signatory to

the UN Global Compact in July 2021, a voluntary initiative based

on CEO commitments to implement universal sustainability

principles, and to take steps to support UN goals. Our

Communication On Progress qualifies for the Global Compact

Advanced level. Nationally, our framework aligns with the

UK Government’s 2050 net zero greenhouse gas emissions

commitment and its 2025 Future Homes Standard.

Creating value

It is crucial that, through our sustainability activities, we realise

these benefits for all stakeholders. This means ensuring our

sustainability programmes address societal challenges, drive

greater financial productivity, and aid effective management of

climate and socio-political risks and opportunities. Within each

area of our framework, we seek to innovate, create genuine

impact and support long-term value creation.

What matters most?

Our Building Sustainably Framework has been created as a

“living blueprint”, one that will evolve according to emerging

sustainability risks and opportunities. This is why, periodically,

we undertake a materiality review to understand which sustainability

issues matter most to our stakeholders. Using the Future

Fit Business Benchmark as a guiding framework, we have

completed an extensive engagement programme of interviews

and surveys. The next stage is to examine the findings, identify

the issues that matter the most, and use these to advance our

strategy, using an approach that considers business needs and

potential for social and environmental value creation. These will

be reported in 2024.

Stakeholders

consulted

2,462

63%

Say the cost of living and

affordable energy is one

ofthetop 3 issues facing

theUKat this time*

62%

Say net zero commitments

arean important factor when

choosing a housebuilder**

80%

State “sense of community” is very or quite important

whenpurchasing a home***

What do our customers think?

We are well positioned as the industry leader to inform and educate those in the market to buy a home. Sustainability forms

part of our annual customer research and insight programme, which has allowed for over 25,500 interactions, reaching over

2,700 of our customers and an additional 22,600 UK residents in the past three years. This further helps us understand their

attitudes towards sustainability in the home and sustainable lifestyles.

There is a clear appetite and expectation for sustainable homes. The majority of customers care about the environment and

want to reduce their carbon emissions, andplace value on homes that provide lower running costs.

* Online survey of 780 recent purchasers or those in market to buyinthe next two years, April 2023.

** Online survey of 1,800 BDW customers, recent purchasers, or thosein market to buy in the next two years and those in market, April 2023.

*** Online survey of 2,000 BDW recent purchasers, or those in market tobuy in the next two years and those in market, April 2023.

Creating value

Leading sustainability

Customers

1,802

External industry bodies

and stakeholders

Employees

576

42 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

How we manage sustainability

An established and robust governance structure underpins the framework. Wehave a clear process – from identifying our

most material issues to the operational delivery of action plans – across each of the framework pillars and their corresponding

priorities. This allows us to create supporting work streams, which drive our implementation plans and create clear accountability

around each issue. The Board delegates day-to-day delivery of our framework to the Executive Committee, which is supported

byoperational cross-business working groups. Regular monitoring of targets enables us to continually identify and re-prioritise

areasforimprovement.

This year, we improved our internal reporting mechanisms – in particular enabling divisional management teams to benchmark

and monitor carbon and energy performance to a site level to put performance improvements in place where they are most

needed. We will include new management metrics in FY24. See page 91 for further detail on our transition pathway.

Our governance framework

Building sustainably continued

Board

Executive

Management Working Groups

Group Board

Chief Executive accountable for sustainability

Nomination

Committee

Risk Committee

Biodiversity Net Gain

Sustainable Operations

Sustainability

Committee

SHE Operations Committee

Stakeholder Engagement

ESG Data and Controls

Waste

Audit

Committee

Land Committee

Sustainable Homes

Sustainability and People

SHE

Committee

Remuneration

Committee

Scrutiny, oversight and approval of sustainability strategy

Sustainability Committee

Our Sustainability Committee, chaired by our CEO, debates,

reviews and scrutinises the sustainability strategy and

implementation plan, and approves plans to mitigate risks and

leverage opportunities. At least one member of the Committee

must have sustainable development-related skills.

External experts are also invited to sessions to share deeper

insights on specific topics. This year external experts provided

input on the subject of environmental economics, the potential

impact of carbon pricing and the transition to net zero in hard to

abate sectors.

The Committee’s full terms of reference can be found here: https://

www.barrattdevelopments.co.uk/investors/corporate-governance

In this financial year, the Committee reviewed and approved

updated sustainability policies, and agreed the outcomes of

aHuman Rights saliency assessment.

Furthermore, progress against our strategy and objectives

around waste, carbon, biodiversity and water were reviewed,

with focus areas and future opportunities identified.

Climate related issues are a standard agenda item at meetings

– this year, the Committee reviewed our net zero transition

pathway, international approaches to decarbonisation, carbon

pricing and embodied carbon assessments. See page 91 for

further detail.

The Committee also reviewed future reporting requirements,

including likely nature related requirements. It provided input

into the approach for the measurement and monitoring of

biodiversity net gain and offsetting requirements and also

considered requirements for nature positive business.

Meeting attendance

There were three meetings held during the year ended 30 June 2023.

The table below shows the attendance of each member of

theCommittee.

David Thomas

Steven Boyes

Katie Bickerstaffe

Jasi Halai

Jock Lennox

Tina Bains

Bukky Bird

Jeremy Hipkiss

1 David Thomas did not attend the March meeting due to a previous

commitment. Prior to the meeting, David provided his views on the

meeting agenda which were shared with the other Committee members

during the meeting. Following the meeting, he was briefed on the

business of the meeting and any decisions taken.

2 Jasi Halai was appointed on 1 January 2023.

Attended

Did not attend

43Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Collaboration

We can’t achieve all that we do in isolation and we acknowledge

the opportunity to be a catalyst for change across the sector,

as well as develop shared solutions to shared challenges.

We take an active role in a number of industry groups and

engage with government bodies to implement policies and

action for a sustainable future. See page 54 for further detail.

Transparency

Transparency underpins our Building Sustainably Framework.

Our disclosures are critical for providing insight into and

challenging our progress on meaningful industry-wide

improvement around sustainability. We are committed to

continuously enhancing our disclosure to meet evolving

stakeholder needs. This means that as well as celebrating

success, we share where we fall short of our own expectations,

and flag areas for improvement. As a result, all information

on our strategy, targets, and performance is publicly available

through our website and otherpublications.

By completing the most material benchmarks and indices

throughout the year, we allow our stakeholders to track our

progress consistently, and to assess our performance in

accordance withglobaland national standards.

Our performance

Performance is monitored throughout the year and reported to the Sustainability Committee biannually, and to the Board

annually. Performance against our sustainability metrics is set out on page 48 and https://www.barrattdevelopments.co.uk/

building-sustainably. To drive progress against our priorities, we have included a carbon reduction target in our LTPP since 2021

and a waste intensity target in our annual bonus scheme since 2022. New bonus-related incentives at a divisional level have been

introduced to encourage the reduction of waste across the business.

Joined CDP’s Climate Change A List for Leadership, one of just

300 companies worldwide. The top-rated UK housebuilder and in

the top 23% of global construction companies.

Climate: A

Water: B

Forests: B

Included in top-rated ESG Companies List.

Listed as an ESG Regional (Europe) top-rated company,

andanESGIndustry (Homebuilders).

Top-rated company (second out of 86 global

homebuildingcompanies).

Leading national housebuilder.

Gold Award for seventh consecutive year

Crystal award for Transparency for the

third time.

Innovation Award for the Zed House.

out of 232 in the global

construction industry.

Advanced.

We are the only UK company

in the “Household Goods and

Home Construction” sector to

achieve this (andonlyachieved by

around c.10% of all participating

companiesworldwide).

Our performance

44 Barratt Developments PLC Annual Report and Accounts 2023

Strategic ReportStrategic Report

Nature

Sustainability highlights

Advancing modern methods ofconstruction

Modern Methods of Construction (MMC) creates opportunities to build

with greater speed and efficiency, mitigate the impact of the skills

shortage facing the industry, reduce on-site waste, reduce embodied

carbon and diversify the types of materials we use.

32%

homes built using MMC

See page 33

Alternative fuels powering our transition

Hydrotreated vegetable oil (HVO) is a critical transition fuel, whilst we

await innovation in electric site plant. We have invested significantly in

responsibly sourced HVO to reduce site-based emissions associated

with diesel, which account for 65% of our footprint.

2,791

tonnes of carbon abated

See page 94

Fleet electrification

The uptake of electric company cars has been faster than forecast,

enabling us to move our target for fleet decarbonisation forward

from2030 to 2028.

66%

of company car fleet are electric or hybrid

See page 91

Reduced waste intensity significantly

We continue to promote the segregation of waste and the efficient

use of skips across our sites supported by bonus arrangements

toincentivise performance.

14,000

tonnes less waste generated in 2023

See page 17

Enhanced timber sourcing transparency

We are committed to purchasing all timber and timber products from

well-managed forestry sources, and have enhanced our timber survey

to improve visibility of sustainability risks.

99.8%

certified sustainable

See page 48

Supplier emissions data visibility

Collaboration with our suppliers and sector-wide groups is a critical

part of delivering on our decarbonisation plan. We engaged our top

suppliers and subcontractors (representing 20% of our supply chain

emissions) to understand with more accuracy how much carbon is

emitted by our supply chain.

of our top suppliers and subcontractors engaged on their

carbonplans

See page 94

Zero carbon home collaborative research

We launched eHome2, our sector-leading research collaboration to

enable us to test a range of technologies and build techniques within

climate controlled extremes. This is a key element of our roadmap

tozero carbon homes, and decarbonising our value chain.

Over

partners collaborating oneHome2

See page 34

Building sustainably continued



Electric 45%

Diesel 23%

Hybrid 21%

Petrol 11%

Fleet composition

45Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Places

Leading the industry

People

Achieving biodiversity net gains

We have embedded a comprehensive operational framework to deliver this change

including training, calculation tools, automated data collection and a network

of divisional representatives championing it. In achieving this, we drive progress

towards creating great places where people and nature can thrive.

100%

sites submitted for full or outline planning with 10% minimum BNG since January

2023, excluding joint ventures

See page 32

Greenspace focus inplacemaking

We have integrated greenspace awards into ourGreat Places design principles.

96 4

of our schemes achieve Builtfor of our developments were

Life accreditation. awarded Building for a

Healthy Life Commendations.

See page 32

Championing green mortgages

We have played an instrumental role in encouraging mortgage lenders to develop

affordability calculations which incentivise homeowners to invest in energy efficient homes.

Leeds Building Society offers

Up to 10%

uplift in lending for an energy efficient new home.

See page 61

Leading sector-wide

sustainable change

We have taken a leadership

role to ensure the whole

sector can deliver

sustainable outcomes,

industry initiatives and

policy development.

1st

Our CEO, David Thomas

has been appointed as

the first chair of the

Future Homes Hub

See page 64

Leading in

sustainability

benchmarks and

indices

Our performance in

benchmarks and indices

has been strong, retaining

either a global or national

leadership position.

One of fewer than

300

companies globally to be

CDPClimate Change “A

List” forLeadership

See page 63

Refreshed diversity

and inclusion

targets

A detailed review of our

employee representation

across all protected

characteristics, by both

function and level within

the organisation, was

completed during the year.

31%

female appointments

of employees from

ethnicminorities

See page 39

13%

of our apprentices were

recruited from the most

deprived areas

according to the Index

for Multiple Deprivation

Our commitment to

developing future talent

continues recognising

the industry’s skills

shortages and we

promote opportunities

topeople from all

different backgrounds.

7.2%

workforce in a graduate,

apprenticeship or

trainee role

Leading on the

customer voice

We continue to gather

extensive insights from

customers and those in

market on sustainability

topics including: Future

Homes Standard

technologies, appetite

for energy efficient

homes, green mortgages,

nature and greenspace,

water, placemaking,

and the materiality of

sustainability issues.

70%

see cheaper household

bills asabenefit of living

in a low carbon home^

See page 31

Linking

performance to

asustainability-

linked facility

Our existing revolving

credit facility has

been amended to a

sustainability-linked

facility which includes

sustainability linked

performance measures.

£700m

Sustainability-

linkedfacility

See page 61

Carbon and

energy efficiency

dashboard launched

Improving visibility

of key sustainability

performance data across

our divisions and regions

is critical to delivery of

our framework ambitions.

See page 98

^ Online survey of 1,300 of recent purchasers or those who

intend to buy in next three years, May 2022.

46 Barratt Developments PLC Annual Report and Accounts 2023

Strategic ReportStrategic Report

Building sustainably continued

Building sustainable

homes for the future

With 40% of the UK’s carbon emissions coming from households, the

residential sector has a critical role to play in meeting the nation’s

climate goals. New build homes are already demonstrating their worth

with 84% in England rated with an EPC of A or B compared to only 4% of

existing housing stock.

Designing for nature

Most of our homes have their own

private gardens. We have worked

with the RSPB to maximise the

potential of the gardens we create

byinstalling gardens into our show

homes that are packed with features

such as “hedgehog highways”,

wildlife-friendly planting and bee and

bug houses to inspire our customers

to recreate these in their ownhomes.

Materials

The majority of carbon emissions

released during the lifecycle of a

home occur before construction

phase through materials, including

extraction, manufacturing and

transport. Wearethe only major

housebuilder to sign up to support

the proposed Building Regulations

for limiting embodied carbon (“Part Z”).

Seeour transition pathway on page

91 for further detail on our roadmap

to netzero across the value chain.

Adaptive homes

We want to ensure the home can

be more agile to the customer’s

needs over time. Our homes are

incorporating smart technology

that simplifies how customers

interact with them in order tolive

comfortably and save money. In

addition we are trialling technology

to support an ageing population –

see page 34.

Zero carbon ready homes require fundamentally rethinking the

design as well as the way we build. Solutions must meet the

challenge practically, and the risks associated with innovating

quickly and at scale across the country must be managed.

Barratt has a clear roadmap to zero carbon in the homes we

build, working with our supply chain and partners, to ensure we

deliver high quality, sustainable homes that our customerslove.

Our “fabric-first” approach means making sure the building

envelope maximises its insulation performance and is as

airtight as possible whilst maintaining good indoor air quality

which saves carbon an energy without the need for upgrading

technology. Focusing efforts on the comparatively long-lived

building fabric helps to “future proof” homes meaning they will

be less likely to require difficult and expensive refurbishment

upgrades at a later date.

Our roadmap is phased and we are currently trialling new

technologies as part of our ongoing research and development

programmes – more recently through eHome2 and the Zed

House – to help refine our design and technology decisions.

Seepage 34 for further detail. We have begun to incorporate

some “zero carbon ready” technologies, for example at

Delamere Park, ourfirst gas-freedevelopment.

1 https://assets.publishing.service.gov.uk/government/uploads/system/

uploads/attachment_data/file/1050357/EPB_Cert_Statistics_Release_-_

Q4_2021.pdf

47Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

FHS 2025

“Zero carbon ready”. We are now taking

steps to prepare for the introduction of

the Government’s full Future Homes

Standard in 2025 which will enhance

the specification of our homes further,

to achieve a 75-80% carbon reduction

against current regulations. Further

features should include:

 Enhanced fabric efficiency in external walls

and enhanced double glazing

 Air source heat pumps

 Underfloor heating

 Hot water cylinder in every home

 Smart technology

 Further reduced airtightness from 4 to 3

 Mechanical ventilation with heat recovery

 Electric vehicle charging point in every home

Net zero and beyond 2030+

All new housetypes to be zero carbon

(regulated energy) in use. Features being

considered include:

 Batteries

 Smart energy tariffs

 Vehicle to home energy storage

 Smarter homes through automation solutions

Current build

Our homes are designed to achieve a 31%

carbon reduction

in line with the update

to Part L of the Building Regulations

(2022). We are achieving this through:

 Enhanced fabric efficiency in walls, floors,

roofs and windows

 Reduce airtightness from 5 to 4

 Photovoltaics

 Efficient gas boilers

 Waste Water Heat Recovery

 Flue Gas Heat Recovery integrated in

combination boilers

 Smart cylinders

 Introduction of decentralised mechanical

extract ventilation

 Larger radiator and pipes to future proof

forlow carbon heating such as air source

heatpumps

 Electric vehicle charging points

* When compared to 2013 standards.

31%

carbon reduction

75-80%

carbon reduction

Zero

carbon

Strategic Report

Building regulations 2021 Future homes standard

Beyond Future homes standard

48 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Building sustainably continued

Nature

Sustainability goals

Biodiversity and nature

Target

Demonstrate a minimum

biodiversity net gain (BNG) of

10% across all development

designs submitted for planning

from 2023.

FY23 performance

100%

of sites delivering an average

BNG of 36% for area habitats,

76% for hedgerow habitats and

13% forriver habitats.*

* Excluding joint ventures

See page 32

Carbon reduction

Target

Reduce absolute scope 1 & 2

(operational) carbon emissions

by 29% by 2025 (from 2018

levels) and to net zero by 2040.

FY23 performance

23.7%

See page 16

Target

Reduce scope 3 (indirect)

emissions intensity by 24%

by2030 (from 2018 levels).

FY23 performance

242.13

tCOe/100m

See page 97

Zero carbon homes

Target

All new housetypes to be

zero carbon from2030

(regulated energy).

See page 47

Renewable energy

Target

Ensure 100% of own electricity

ison renewable tariffs by 2025.

FY23 performance

87%

See page 91

Sustainable travel

Target

100% of company car fleet free

of diesel and petrol cars by 2030.

FY23 performance

66%

of fleet are electric

vehicles or hybrid

See page 91

Waste and

circulareconomy

Target

Reduce construction waste

intensity by 20% by 2025 vs.2015.

FY23 performance

39%

See page 17

Target

Maintain 95% diversion of

construction waste from

landfill annually.

FY23 performance

96%

Deforestation

Target

100% of timber certified for net

zero deforestation annually (for

all timber procured via Group

agreements, BDLiving, Oregon

and sub-contractor fencing).

FY23 performance

99.8%

Modern Methods of

Construction (MMC)

Target

Use offsite based products

and systems in 30% of

homes by 2025.

FY23 performance

32%

See page 33

49Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Places People

People

Great Places

Target

All completed developments

designed to achieve our

minimum Great Places

standard on an annual basis.

FY23 performance

90%

Development

Target

Maintain an average

offour training days

peremployee per year.

FY23 performance

Achieved

Reward and benefits

Target

Gender & Ethnicity pay gap reporting.

FY23 performance

Gender:

Mean

8.8%

Median

6.3%

Diversity and inclusion

Target

35% of all employees to be female

by the end of FY26 vs. FY23.

FY23 performance

31%

of all employees are female

Target

Overall 10% increase in ethnic

minority employees by the end

ofFY26 vs. FY23.

FY23 performance

of all employees are

from ethnic minorities

Attraction

Target

Maintain 7% of workforce

inagraduate, apprenticeship

ortrainee role.

FY23 performance

7.2%

Achieved

Target

Increase in apprenticeships

with a minimum of one

lowersocioeconomic

backgroundindicator*.

New target

Employee engagement

Target

Exceed 75th percentile score

inthe engagement survey.

FY23 performance

84.4%

Achieved

Ethnicity:

Mean

7.7%

Median

5.9%

On track

Achieved

Monitor

Below target

Target not met

* Target to be finalised in FY24.

Performance versus target

50 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Section 172

Section 172 statement

The Board recognises the importance of working and engaging

with a number of key stakeholders in order to promote the

long-term success of our business. Such engagement helps us

to gain a better understanding of what areas our stakeholders

are interested in or concerned about and how our decisions

impact them. Healthy engagement with our stakeholders

underpins our governance framework, which is embedded

throughout our business and helps to ensure we maintain

high standards of business conduct. Engagement with

our stakeholders supports the Board’s regard to the likely

consequences of any decision in the long term. In accordance

with the requirements of the Companies Act 2006, the following

pages set out how the Board acts in a way that promotes the

long-term success of the Company, whilst considering various

matters including those set out in s.172(1) of the Act:

Key matter of which the Board must have regard

Key matter of which the Board must

have regard How the Board takes each of the matters into consideration

The likely consequences of

any decision inthe long term

Our business is cyclical in nature and it is therefore imperative that the Board takes a long-term

approach to its decision making. This supports our ability to deliver our purpose and strategic

priorities and create long-term sustainable value for our stakeholders. It also helps prepare

the business for changes in Government and regulatory policies that impact our industry. For

example, the introduction of the Future Homes Standard that becomes mandatory in 2025, will

require all of our homes to produce 75-80% less carbon emissions than they do now. To meet

these types of requirements within the prescribed timescales we have to act now, details of

which can be found on page 47.

In addition, the Board regularly assesses emerging risks that may impact the business and the

way in which it operates in the future. It also reviews its Principal Risks annually to ensure that

they remain appropriate and that the correct internal controls and mitigations are in place. For

more information on our approach to risk management see pages 71 to 77. Our approach towards

climate-related risks and opportunities can be found on pages 78 to 98.

Taking a longer-term view helps the Board to assess the viability of the business over a

three-year period on an annual basis. Our Viability Statement can be found on page 99.

The interests of the

Group’semployees

Details of how we have regard to each of these and our engagement with them can be found

onpages 35 to 39 and 55 to 56.

The need to foster

the Group’s business

relationships with suppliers,

customers andothers

Details of how we have regard to each of these and our engagement with them can be found

onpages 54, 55 and 59 to 61.

The impact of the Group’s

operations on the community

and theenvironment

Details of how we have regard to each of these and our engagement with them can be found

onpages 62 to 63.

The desirability of the Group

maintaining areputation

forhigh standards of

business conduct

The Board sets the culture of the business from the top. This culture seeks to promote the right

behaviours throughout the organisation in line with our values. In addition, all employees are

required to understand all policies and procedures including those that look to ensure high

standards of conduct. These include our policies and procedures around Health, Safety and

Environment; Whistleblowing; Anti-Bribery and Corruption; Human Rights; and Modern Slavery.

All of our employees participate in training sessions around diversity and inclusion and dignity

and respect to better understand the behaviours that are acceptable and those that are not.

We have reviewed our purpose and values during the year to further promote high standards of

business conduct. The new purpose and values will be launched internally later this year and

will be reported on in next year’s Annual Report and Accounts. For further information on our

culture and values see page 112. Copies of our conduct policies can be found on our website at

www.barrattdevelopments.co.uk/building-sustainably/our-publications-and-policies/policies.

The need to act fairly as

between members of

theCompany

The Board is cognisant of the need to act fairly between members of the Company. Regular

engagement with shareholders takes place throughout the financial year to understand their

views and act in their best interests. Details can be found on pages 57 to 58. All shareholders

have equal voting rights with one vote per share. We ensure that information is shared to all

of our shareholders at the same time via a variety of communication channels such as our

dedicated investor section on our website, postal mailings, emails and RNS announcements. In

addition, all shareholders are invited to attend the Company’s AGM, either physically or virtually,

where they can meet with Board members and ask questions. For those shareholders who are

unable to attend the AGM, we have set up a dedicated shareholder email address barrattagm@

barrattplc.co.uk for them to submit their questions ahead of the meeting. These are answered via

a Q&A document that is added to our website after the meeting.

51Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

The Board considers each of these factors, amongst others,

when setting and implementing our strategy. In addition, as

part of its decision making process it considers the current and

emerging risks (both financial and non-financial) and the impact

that they may have on the long-term success of the Company

and the Group’s Principal Risks. The Company’s approach to

Risk Management can be found on pages 71 to 77, with climate-

related risks and opportunities set out on pages 78 to 98.

Our stakeholders

The following pages set out the engagement that has taken

place with the following key stakeholders:

 Customers (see page 54)

 Employees (see page 55)

 Shareholders (see page 57)

 Sub-contractors and supply chain (see page 59)

 Banks (see page 61)

 Local communities and the environment (see page 62)

 Government, opposition parties and regulators (see page 64)

The Board has identified each of these as a key stakeholder

due to their influence on the success of our business model

and our strategy and because they represent the key resources

and relationships that support the generation and preservation

of value in the Group. Each financial year, the Board reviews

the stakeholders that it considers to be key to ensure that

they remain appropriate and to ensure that they have a good

understanding of their interests and how these may have

evolved. The Board also looks to identify any new stakeholders

whose interests may impact the long-term success of the

Company and therefore need to be taken into account as part of

the decision making process. For each key stakeholder we have

set out:

 Why we engage;

 How we engage;

 Metrics – how we measure effectiveness;

 Interests and concerns;

 Outcomes of engagement; and

 The impact on Board decisions.

How the Board makes decisions

Throughout the year, the Board remained mindful of the

implications that its decisions may have on our stakeholders

and the potential reputational risk for the Group. Thishas

highlighted the continual need for regular, clear and comprehensive

engagement with our workforce, suppliers, shareholders and

customers throughout various decision making processes

to ensure that we continue to do the right thing and mitigate

against matters that may potentially harm the reputation of

the Group. Regular updates on the engagement undertaken

and the outcomes are provided to the Board by the Executive

Directors and there is an annual agenda that includes deep

dive discussions on topics such as Diversity and Inclusion,

ESG, Customers, and Investor Relations. Whenever possible,

the Board (or members of the Board) will engage directly

with our stakeholder groups. For example, the Chair of the

Remuneration Committee annually engages with shareholders

on Executive Directors’ remuneration in person, via video

calls or through written correspondence. Feedback from this

engagement is discussed by the Remuneration Committee.

Any decisions or changes made as a result, are communicated

to shareholders via this Annual Report and Accounts for them

to vote on at the AGM (details of this year’s engagement and

outcomes can be found on page 57). Inaddition, the Designated

NED for Workforce Engagement will report back to the Board

the topics discussed and issues raised at the Workforce Forum

meetings and how these are going to be addressed. Actions

taken as a result of these discussions are communicated back

to the Workforce Forum and via the Group’s intranet in the form

of a “You said, we did” notification.

The Board appreciates that there may be situations where

conflicts will arise between different stakeholder groups.

In such circumstances, the Board will seek to understand

the needs and priorities of each stakeholder group during

its discussions and as part of its decision making process.

It manages such conflicts by assessing shareholder and

stakeholder interests from the perspective of the long-term

sustainable success of the business, as is illustrated in the

significant decisions examples set out on pages 52 to 53. Such

actions and decisions by the Board also seek to align with the

Group’s culture of customer focus, resilience and adaptability.

Inaddition, the Board ensures that our culture encourages our

wider workforce to take pride in what we do, and to do the right

thing when in contact with customers, members of the local

communities in which we operate, and other stakeholders.

Significant decisions

The main activities and decisions of the Board are set out

on page 111. The following are just a couple of examples

of significant decisions made by the Board, how they were

made and, where applicable, how conflicts between different

stakeholders were managed. Other significant decisions

made by the Board are set out in the main activities section

onpage111.

52 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Section 172 continued

New purpose and values

At its meeting in March 2023, the Board considered a new

purpose and values for the Group together with a potential

launch plan. The aim of this process is to deliver a fresh,

memorable, distinctive and forward-looking purpose, together

with a set of core values and associated behaviours that will

help us deliver against it. When embedded and activated

through decision making, thepurpose and values will help

position the Group for the next decade and will:

(i) Support the Company’s ambition to continue to be

recognised and understood as a leader, differentiated from

others within the sector;

(ii) Enable leaders and employees to articulate with consistency

what we stand for, and be clear about the behaviours

required toenable delivery against the purpose; and

(iii) Help to build trust, engagement and reappraisal across our

internal and external stakeholder groups.

Stakeholders considered:

 Customers;

 Employees;

 Shareholders;

 Sub-contractors and supply chain; and

 Local communities.

How the Board made its decision:

Management undertook a number of conversations with a variety

of stakeholders ranging from employees to local authorities and

the supply chain. This highlighted the importance of environmental

and social sustainability to our key stakeholder groups. Five

possible territories focusing on sustainability and the environment

were presented to the Executive Committee for consideration,

who reduced them to three. These were presented to a sub-group

comprising of representatives from the Executive Committee,

Group Communications and Group HR who proposed three

definitions for a new purpose and values to the Chief Executive.

The agreed purpose and values were then presented to the Board

together with the narrative that will accompany each, in terms of

the importance of each element for the Group and the alignment

with shareholder expectations of the business. The Board also

considered the proposed plan to launch and embed the new

purpose and values throughout the business. The key risk identified

by the Board was ensuring buy-in from the business to the new

purpose and values. The Board suggested ways of supporting this

for example using real live examples to better illustrate the values

and including the purpose and values in the induction process for

all employees to ensure clarity as to what is expected.

The Board was mindful of the work and cost that the launch

andembedding of a new purpose and values would incur on

employees but was confident that Management would monitor

the level of resource required and adjust as required. In addition,

it was noted that the cost of this would utilise cash that could

potentially be used to increase the returns to shareholders. The

Board was however satisfied that the new purpose and values

would promote the long-term success of the Company as it will

help drive positive behaviours and result in a more inclusive and

engaged workforce who are able to fully articulate what the

business stands for. Accordingly, the Board approved the

purposeand values and the proposed launch plan.

53Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Protecting the Group’s resilience

In August 2022, the Board considered various levers it could

pull to protect the Group’s resilience and to mitigate against

thechallenging market conditions that the business was facing

as it moved into the final quarter of 2022.

Stakeholders considered:

 Customers;

 Employees;

 Shareholders;

 Sub-contractors and supply chain;

 Local communities; and

 Government, opposition parties and regulators.

How the Board made its decision:

At its meeting in August 2022, the Board received a trading

update from Management which signalled a possible slowdown

in the market. Given the cyclicality of the business, the Board

were cautious about taking any immediate action and agreed to

monitor activity on a month by month basis. During this period,

the Board considered actions taken during previous downturns

to see if any were relevant to the current circumstances,

compared our recruitment headcount plans against our target

operating model to ensure that we continued to have the right

organisational structure and levels of resource in place and

assessed our business plan against developments in

themarket.

As the uncertainty in market conditions continued, Management

recommended the following actions to the Board:

 to restrict the acquisition of land to those divisions without a

sufficient land bank, where there was a commitment

tobuytheland and paused new investments;

 to introduce a recruitment freeze other than for critical roles;

 to reviewed both overhead and non-overhead costs to identify

potential savings;

 to increase focus on driving leads and appointments through

higher incentive levels and more specific marketing activity; and

 to slow down the build rate to align it with the sales rate to

avoid having too much work-in progress.

The Board were at all times aware of the potential impact that

their decisions would have on various stakeholders. For example

existing employees would need to undertake roles for colleagues

who were not being replaced; sub-contractors and the supply

chain would be losing out on work and orders respectively. The

Board was however satisfied that the actions they were taking

would promote the long-term success of the Company. Less

expenditure on land would help preserve the Group’s cash

balance and the increased marketing activity and incentives

would hopefully appeal to more customers and drive sales.

Accordingly, theBoard agreed to implement each of the actions

recommended by Management.

Share Buyback Programme

During the financial year the Board kept under review

opportunities for further investment in the business and

prevailing equity market conditions with a view to returning

excess capital to its shareholders at the appropriate time.

Stakeholders considered:

 Employees; and

 Shareholders.

How the Board made its decision:

Management updated the Board on the Group’s capital

structure to enable the Board to assess the balance between

the capital requirements of the business and returning excess

capital to shareholders, and continuing to maintain balance

sheet strength and flexibility. In line with its Dividend Policy, the

Board agreed to make a final dividend payment to shareholders

for FY23, but recognised that it had the ability to return

additional surplus capital to its shareholders.

The Board considered the capital requirements of the business,

the market backdrop, balance sheet position and shareholder

expectations as part of its deliberations. The Board also took

into account the advice from the Group’s corporate brokers,

Credit Suisse and UBS, who confirmed that in the context of

historical trading and the Group’s valuation at the time, it was

economically sensible to participate in a Share Buyback

programme. Other methods, such as a special dividend, were

also considered by theBoard, who concluded that a share

buyback programme would benefit shareholders, specifically

through the opportunity forincreased future dividends per

share on the remaining shares and would also result in an

increase in earnings per share. Inaddition, given that many of

our employees are also shareholders, they too would benefit

from future dividends opportunity.

Accordingly, the Board approved a share buyback programme

to return up to £200m of surplus cash to shareholders during

thecourse of FY23.

54 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Stakeholder engagement

Engaging with our stakeholders

Stakeholder engagement is an important part of our operations.

TheBoard is appraised of the feedback received and takes this into

account when making decisions that may impact ourstakeholders

eithercollectively or individually.

Customers

Why we engage

Customers are at the heart of everything we do. Without them

there is no business for us to operate. It is imperative that we

understand their needs and adapt our business processes and

product accordingly.

For value for our customers see page 30.

How we engage

We utilise different channels of engagement with our customers

depending on the information that we are trying to gain or provide.

Company engagement

We ask for regular feedback from our customers directly

through Trustpilot, and both the 8 week and 9 month National

New Homes Customer Satisfaction surveys to help us make

improvements to our service and their home buying journey.

We have continued to engage with our customers on cladding

and fire-safety to address any of their issues and concerns.

Wecontinuously update our website with up-to-date information

about Barratt: where we are building, our key credentials (such

as sustainability and energy efficiency) and ways in which

we support our customers in their search for one of our high

quality homes. We also provide customers with guidance on

home and garden maintenance.

Social media community management and social listening

provides two-way engagement across a range of channels.

Wemonitor key social media platforms and review sites to

identify comments of both positive and negative sentiment.

We engage where appropriate to develop a positive social

community, address customer issues and advocate our brands.

We have an established customer and insight programme

that helps us stay engaged with our customers and deliver

action led insights. We involve our customers and those in the

market to buy a new home in research to understand their

perceptions and preferences on matters such as the cost of

living crisis, how they search for their new home, our brand

positioning, our product, and their living preferences. We also

review the specification of future homes to aid decision making

and future business planning. We collect insight to understand

customer awareness of sustainability within housebuilding,

specifically around energy and water efficiency and changing

legislation, and how this impacts their buying decisions. This is

done through the use of quantitative and qualitative research

methods reaching thousands of customers in any one year.

We know from our research that expectation from low carbon

homes is high. Three quarters of those in market expect

new build properties to include features that make them as

energy efficient as possible, and the desire for this technology

remains high. For example, we are collecting insights on

our our first gas-free site, Delamare Park, to gain direct

feedback from customers living with the technology required

to meet The Future Homes Standard, as well as detailed

technical monitoring, which will continue to feed into our

design and planning decisions. Through engagement with our

customers we have determined new ways of helping them

better understand the cost savings they can achieve through

purchasing a new build home (see page 31 for further details)

and introduced new incentives and selling schemes to help them

with affordability challenges (see page 30).

Board level engagement

The Group Customer and Change Director, Jeremy Hipkiss,

updates the Board annually on actions taken to engage with

customers and the outcomes of such engagement, as well as

providing insight on what else could or should be done. During

the year, Katie Bickerstaffe, one of our Non-Executive Directors,

continued to support the review and enhancement of the

customer journey by bringing insight from her Executive role.

Metrics – How we measure effectiveness

The following metrics are reported to the Board by the Chief

Executive and/or the Group Customer and Change Director

toenable it to consider and agree what, if any, changes to make

in how and when we engage with our customers:

 8-week HBF National New Homes Customer Satisfaction

rating – we achieved, 5 Star rating for the 14th consecutive

year, meaning that 90% or more of our customers are willing

to recommend us to a friend.

 9-month NHBC National New Homes Survey rating measures

the satisfaction of our customers after being in their new

home for a period of nine months. This is included as a metric

inthe annual bonus scheme.

 Defect resolution – measures the number of open defects

and time taken to resolve.

 Complaint resolution – looks at the formal complaint volumes

and resolution timescales.

 Trustpilot scores – provides genuine feedback from

customers about their buying and service experiences –

forFY23 we were 4.4 for Barratt and 4.3 for David Wilson

Homes (FY22: 4.3 for both brands).

 Open rate for our seasonal newsletter emails to customers

was 29.9% with click through rate at 7.65%.

 Customer research and insight.

55Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Employees

Why we engage

Without our employees we would not be able to build the high

quality sustainable homes that our customers need. It is due

to their hard work and commitment that we are strong, both

operationally and financially. We must therefore attract, recruit

and retain the best people. To do this we need to understand

what matters most to them and ensure we have the right

policies, processes and procedures, remuneration, as well as

progression, training and development opportunities in place

to support them. Engagement with our employees enables

the Board to better understand the issues that are important

to them and helps nurture a mutual understanding between

senior management and their teams.

For the value to our employees see page 35.

How we engage

We use a variety of channels of engagement which enable

two-way interaction with employees and allow them to voice

their concerns or thoughts either directly or anonymously.

Company engagement

Our Workforce Forum is developing into an important tool for

providing insight to the thoughts and opinions of our employees

and what matters most to them. In FY23 the Workforce Forum

met three times, twice virtually and once in-person. We also

arranged a site visit for the workforce to see the Insight House

and understand the role it plays in supporting local schools to

see the sustainable elements we build into our current homes.

Topics discussed included hybrid working, sustainability

(renewable energy and waste), the cost of living, training,

development and progression, the results of our engagement

survey, health and wellbeing and Executive Director and employee

remuneration strategies. An overview of our Diversity and

Inclusion strategy was also shared with the forum and feedback

was taken on how to better reach the differing office and site

teams on this topic.

Employees can directly contact the Designated NED for Workforce

Engagement on any matters relating to the workplace, on a

confidential basis through a dedicated email address.

We regularly send out emails (to Barratt or personal email

addresses), newsletters, webinars and video messages to

update our employees on issues that may be of interest to them,

such as benefits, training, health and safety, hybrid working,

sustainability and charitable giving. We have begun a programme

of site visits by the HR team, to support those who spend less

of their role online to ensure they are able to sign up to and

receive the range of benefits available. We have established five

employee networks (see page 37 for more details) and collectively

they deliver an annual plan of key events and religious festivals,

from webinars, book clubs and lead discussions, allowing our

people to develop a wider insight and understanding of the

business as well as develop a network that they can rely on.

Our annual engagement survey provided great insight into the

issues that matter most to our employees. Local action plans

were put in place with individual functions and teams to either

improve or enhance the engagement that they undertake with

their teams. The Executive Committee received an analysis

of the verbatim comments received to consider and address

as appropriate. In 2023 we also ran a dignity and respect

survey, to understand the specific issues, the results of which

were shared with the leadership teams and action plans are

indevelopment.

Interests and concerns

During FY23, the key interests and concerns of our customers

remained focused on the cost of living, particularly running

costs, energy efficiency and removing financial barriers to

entering the market. Access to green open space remained

apriority, as well as an appetite for sustainable homes.

Outcomes from engagement

We constantly look to improve in response to any feedback or

information from our customers. During FY23 our marketing

plans focused on communicating the benefits of our homes to

our customers, focusing on the cost savings associated with

our energy efficient homes, how we are designing homes to

support flexible living and the changes being made due to the

requirements of the Future Homes Standard.

We continued to engage with lenders to encourage mortgage

product innovation to support affordability challenges and improve

mortgage products, process and criteria for our customers.

Effect of engagement with customers on Board decisions

The Executive Committee continued to drive defect and

complaint resolution across the divisions and issued revised

policies and procedures to ensure compliance following our

activation with the New Homes Quality Board for reservations

from November 2022. They also closely monitored build stage

movements to ensure customers received handover of their

newhome within agreed timescales and agreed action plans

tosupport those sites not selling in line with build.

With interest rates rising sharply and inflation continuing to

outstrip wages, affordability is a challenge for many prospective

customers. In order to support customers with the challenge of

affordability, particularly after the closure of Help to Buy to new

business on 31st October, we have, for example:

 Continued to support Deposit Unlock which allows 95%

lending on new build homes.

 Worked with lenders to promote the launch of Green

Mortgages which take into account the savings from energy

efficiency in affordability assessments.

 Reviewed the digital options available to us to engage with our

customers at the earliest opportunity to establish affordability

and support them on their home ownership journey.

See page 30

Link to strategy

Great places

Leading construction

Investing in our people

Customer first

Strategy key

56 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Stakeholder engagement continued

Employees continued

How we engage continued

Company engagement continued

We also surveyed all employees as part of our materiality

assessment to understand which issues are of most importance

to them. The findings will be critical to the advance of our

sustainability strategy during FY24.

Board level engagement

During FY23, the Board received regular updates from Sharon

White, the Designated NED of Workforce Engagement on the

activities and discussions of the Workforce Forum, the Chief

Executive on the topics discussed and decisions made by the

Sustainability Committee, the SHE and Construction Director on

health and safety matters, the HR Director on people strategy

and diversity and inclusion, and from the Trustees of the Barratt

Foundation. These updates include what engagement has taken

place with our employees, the outcomes and the actions to be taken.

The Board has this year reinstated its physical site visits, visiting

the London and Central regions in March and May respectively.

Board members received a regional update from the senior

management team and met site and sales employees.

Following the success of the Town Hall event in 2022, the Chief

Executive, David Thomas, the Chief Operating Officer, Steven

Boyes and the Chief Financial Officer, Mike Scott, held our

second one in January 2023. Colleagues across the Group were

able to hear directly from them and on behalf of the Board on

topics such as current market conditions, the cost of living

crisis, and progression and development. Employees had the

opportunity to suggest, in advance, any topics they wanted to

hear about and to ask questions on the day. These included

hybrid working, bonuses, our plans for the future, incentives

for our customers to the importance of our employee networks,

our plans for offices and the performance of our share price.

Afull Q&A document was issued afterwards and the event was

recorded for those who were not able to join on the day.

Health and safety remains a fundamental priority for the

business. The Chair of the SHE Committee, Chris Weston, now

attends all SHE Operations Committee meetings and can make

suggestions for improvement and hear first-hand the issues

and challenges being faced by the teams. The membership of

the SHE Operations Committee has been extended to include

representatives from site. For more information on the SHE

Committee see pages 133 to 136.

The Board entered into a rolling three-year funding agreement

with the Barratt Foundation to further engage employees

with charitable giving and enable the Foundation to enter into

multi-year partnerships, which employees can support and

takeadvantage of the volunteering opportunities available.

Metrics – How we measure effectiveness

The following information is reported to the Board by the Chief

Executive to enable it to consider and agree what, if any changes

to make in how and when we engage with our employees:

 Employee engagement scores – provides a quantified

measurement of engagement.

 The amount of fundraising by employees – provides an insight

into the level of engagement with Barratt Foundation initiatives.

 Employee turnover – provides insight into the number of

colleagues leaving the business and enables benchmarking

across the industry.

 IIR – measures the Company’s safety performance against

the national average for the same industry and provides

an insight into areas of improvement to lower the rate

toincrease the level of safety of our employees.

 Diversity – helps us monitor the diversity of our workforce

and inclusivity of our working environment.

 Gender and ethnicity pay gap – helps us ensure equality

inremuneration across the organisation.

 Reports to the whistleblowing line – helps us ensure that we

continue to do the right thing and tackle any issues in a timely

and efficient manner.

Interests and concerns

Throughout FY23, the key interests and concerns of our

employees related to remuneration, resource, training,

development and progression, health and wellbeing, flexible

working, the cost of living, and their own and the Group’s carbon

footprint and it’s impact on the environment.

Outcomes from engagement

The engagement with our employees has seen significant

positive movement on employee wellbeing, open

communication, and reward and recognition, reflected in

higher scores in these areas. We have also been able to better

understand our employees areas of focus; collaboration and

communication, equal and fair treatment, and customer focus.

Supporting collaboration and communication has seen changes

to the way we share Group information, with a number of

webinars and videos to link teams throughout the business.

We have extended our family policies, to ensure both parents

and carers feel supported at key life stages, and reviewed our

mental health first aider’s support following feedback from the

Workforce forum.

As part of our Diversity and Inclusion strategy we have

established a network for our ethnic minority colleagues,

to better understand different perspectives and created a

programme of informative sessions to increase understanding

of different cultures and religious beliefs.

We have also updated our Diversity and Inclusion policy and

established a zero tolerance approach, supported by dignity

andrespect training for our existing and new employees.

We launched an energy efficiency campaign on our intranet site,

sharing easy ways to save energy at home and in the office. The

blog posts advice and tips from the Energy Saving Trust on how to

improve energy efficiency, reduce carbon emissions and save money.

Effect of engagement with employees on Board decisions

The cost of living crisis has had a significant impact on our

employees. Accordingly, the Board agreed to extend salary

supplement payment of £1,000 for a further six months

to June2023. The payment was made in equal monthly

instalments to each employee below our senior leadership team

(95% of our employees) (see page 138).

Other benefit improvements included the extension of our

maternity and paternity leave and paid leave for carers.

57Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

TheBoard continue to provide funding to the Barratt Foundation

to support the work that it is undertaking with the divisions

across the business and charitable partners to further

engage employees to participate in charitable giving and

volunteeringopportunities.

See page 35

Link to strategy

Shareholders

Why we engage

Shareholders own the Company. It is therefore imperative that

we listen to what they have to say and operate the business in

away that delivers long-term value growth and sustainable

returns. The Company’s reputation could be damaged and it

could be prevented from attracting new investments without

thefull understanding and support of its shareholders.

For value for our shareholders see page 11.

How we engage

Investors and retail shareholders appreciate contact, and whilst

virtual meetings dominated during the year, we increased in-person

meetings with a number of shareholders. We intend to offer

both virtual and in-person meetings in the future.

Company engagement:

The Executive Directors and the Group Investor Relations Director

follow a comprehensive programme of investor meetings and

calls to discuss investors’ questions and areas of concern,

particularly following the release of annual and half year results

and trading updates. These included a combination of in person

and virtual investor roadshows with shareholders in the UK,

Europe and North America, following the Group’s final FY22 and

interim FY23 results, and ad-hoc one-to-one meetings (including

in-person and virtual conferences and fireside chat events) and

Group investor meetings at a number of conferences during the

year. The use of virtual meetings has again helped to improve

our engagement with smaller institutions, regional pension

funds and private wealth managers on results and non-results

cycle roadshows.

We continue to engage actively on our sustainability strategy.

The Group Investor Relations Director and the Group Sustainability

Director attended various ESG conferences and meetings and

responded to incoming queries from analysts to provide insight

into the Group’s activities. Key areas of shareholder focus

included the Future Homes Standard and the changes this will

require in the homes we build; our value chain carbon footprint

and our response to the impacts of climate change; our

approach to expanding our use of timber frame construction

and modern methods of construction; diversity and inclusion,

andmodern slavery benchmarking studies.

During the year two visits were arranged to see the Group’s future

home development activities at the University of Salford. These

visits involved presentations and tours of the Zed House and

eHome2 by members of the Group Design & Technical team and

were attended by more than 60 analysts, investors and advisers.

We issue regular trading updates via the London Stock Exchange

Regulatory News Service. These are normally published in May,

July and October with our half and full year announcements

in February and September respectively. Reflecting the

challenging trading conditions in the final quarter of calendar

2022, we issued an additional trading update in early January,

ahead of our interim results announcement, to update our

investors and the analysts in a timely manner. During the year

we also issued specific announcements with respect to the

progress of the share buyback programme (see page 53), the

signing of the Self-Remediation Terms and Contract, as well

as, the Scottish Safer Building Accord, addressing necessary

fire-safety issues on all our buildings of 11 metres and above,

built in the last 30 years (see page 24). Finally, at the end of

June, we also announced a portfolio sale of 604 future homes

toCitra Living (see page 26).

Our website is a valuable engagement tool and is continuously

updated to reflect current information on matters such as

sustainability, governance and building safety.

The Company Secretarial team, together with the Company’s

Registrars, have engaged with various retail shareholders and

dealt with enquiries relating to their shareholdings or other

information requests. The Company Secretary normally notifies

the Chairman and the Chief Executive of any areas of concern or

importance raised by retail shareholders. No such queries were

raised during the year.

We continue to encourage retail shareholders to request

digital communications, in support of our work to enhance our

sustainability credentials and reduce our carbon footprint as

well as setting up dividend mandates, to enable them to receive

their dividends faster and more securely.

Board level engagement:

The Chief Financial Officer, the Company’s brokers and the

Group Investor Relations Director update the Board on a regular

basis on the Company’s investor relations activities and shareholder

and analyst feedback on the Group’s trading updates and

interim and full year results as well as ad hoc announcements,

to ensure that all Directors are aware of, and have a clear

understanding of, the views of our major shareholders.

All Board members are available at the AGM to answer questions

submitted in advance (by post or via email to agmquestions@

barrattplc.co.uk) or on the day. Shareholders can attend in

person or via a live webcast. The Chief Executive also updates

shareholders on the Group’s performance and activities during

the year. The Notice of AGM is circulated to allshareholders at

least 20 business days prior to the meeting. Allresolutions are

voted on by way of a poll.

In May 2023, the Remuneration Committee Chair consulted with

major shareholders and proxy voting agencies on the Group’s

FY23 remuneration outcomes, the Remuneration Policy and

its implementation in FY24 (see page 138). The Chairman, the

Senior Independent Director and other Non-Executive Directors

are available to attend meetings with major shareholders to

gain anunderstanding of any issues andconcerns.

Following her appointment on 1 June 2023, Caroline Silver, our

newly appointed Chair, met with a number of our shareholders

to gain a better understanding of their interests and concerns.

Great places

Leading construction

Investing in our people

Customer first

Strategy key

58 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Stakeholder engagement continued

Shareholders continued

Metrics – How we measure effectiveness

The following information is reported to the Board by the Chief

Executive and the Group Investor Relations Director to enable it

to consider and agree what, if any, changes to make in how and

when we engage with our shareholders:

 Share register movements – provides insight into the number

of shareholders buying or selling shares in the Company.

 Results of qualitative investor feedback – helps to improve

engagement and understanding of key interests and concerns.

 The number of meetings attended – shows the level of

engagement led by the Company. In FY23 the Executive

Directors, supported by Senior Management, attended

169investor meetings (FY22: 155), 131 one-to-one

meetings (FY22: 137) and 38 Group meetings (FY22: 18)

engaging witharound 46.6% (FY21: 45.6%) of shareholders

(byshareholding value).

Interests and concerns

The key areas of interest and concern for our

shareholdersincluded:

The impact of significant changes in homebuyer demand due to

inward migration, the war in Ukraine and the cost of living and

mortgage rates on the private reservation rate during the year.

On capital allocation, shareholders have sought to understand

more, both with respect to the Group’s future dividend policy in

combination with the potential, over the short but also medium

term, to return additional surplus capital.

Sustainability matters, notably, the potential impact of the

Future Homes Standard, the Zed House and eHome2 projects

and details around our value chain emissions and our strategy

to mitigate the impacts of climate change.

Our approach to human rights and Modern Slavery, our developing

diversity and inclusion strategy, the gender and ethnicity pay

gaps, and our commitment to paying the real Living Wage.

Increased understanding as to the speed with which we can

deliver new product innovation into the homes we build; the

ability for customers to pay a premium for such improvements;

and the lessons being learnt on the incremental costs looking

tothe Future Homes Standard changes in 2025.

The impact of signing the remediation terms in England on

legacy properties on the financial position of the Group.

Outcomes from engagement

Shareholders have been kept informed through timely and clear

disclosure of the private reservation rate, as well as the transparent

detailing of the contribution from alternative sales channels.

Our engagement also gave investors the opportunity to share

their views on the relative merits of ordinary dividends and

potential returns of surplus capital either by way of special

dividends or through buybacks.

The visits to the Zed House and eHome2 projects allowed

investors and analysts to see the prototypes and the new

technologies being tested as well as ask questions of the

GroupDesign & Technical team.

The Group enhanced its regular investor presentation materials

to include additional details around our sustainability actions

and targets and the various issues on which shareholders and

wider stakeholders wished to increase their understanding.

Effect of engagement with shareholders on

Boarddecisions

The Board gained further understanding of shareholder

expectations in respect of ESG matters, particularly climate

change risks and opportunities, following our publication of

TCFD disclosures in the FY22 Annual Report.

Reflecting additional shareholder feedback, the Board has

included further development around our TCFD disclosures in

this Annual Report and Accounts (see pages 78 to 98 inclusive),

as well as reaffirming its commitment to developing future

investor communications which increasingly integrate ESG

related issues with financial and operational performance.

The Board periodically reviewed the Group’s ordinary dividend

policy in combination with potential returns of surplus capital,

following on from the £200m buyback effected during FY23.

In principle, the Board continues to believe that excess capital

should be returned to shareholders when it is appropriate to do

so. Whilst the Company remains in a strong financial position,

the UK housing market remains difficult and the outlook

remains uncertain. We have therefore agreed that whilst our

reduction in dividend cover to 1.75 times will apply from FY24 as

planned, there will be no further share buybacks at this stage.

See page 11

Link to strategy

59Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Great places

Leading construction

Investing in our people

Customer first

Strategy key

Sub-contractors and supply chain

Why we engage

Without our sub-contractors and supply chain we would not be

able to build high quality, sustainable products at the volume

expected by the market. It is therefore important for us to build

relationships with them to secure continuity of supply of materials,

support our productivity levels, manage costs of materials

and sourcing alternative suppliers and avoid undue delays in

construction. Wemust have a good understanding of what they

expect from the Company in return for their continued support.

For value for our sub-contractors and supply chain see page 46.

How we engage

The following methods of engagement give us the opportunity

to speak to sub-contractors and our supply chain as a group

which ensures consistency in the messaging and opportunity

for networking and sharing ideas and best practice. Individual

meetings allow us to focus on specific areas or issues relevant

to that stakeholder.

Company engagement:

We held our annual Supply Chain conference in person in

March2023. It was attended by 120 of our key Group suppliers.

We shared our immediate and medium-term plans and thoughts

on the role our suppliers can play in helping us to achieve our

objectives, including the reduction of Scope 3 carbon emissions,

and gained an understanding of the issues they were facing and

how we could support them.

We shared relevant demand forecasting information with all

key material suppliers to enable them to ensure appropriate

manufacturing capacity is available to meet our requirements.

We continue to support suppliers in the completion of our

Supplier Sustainability Maturity Matrix to drive progress and

develop shared solutions in the priority areas of carbon, waste,

modern slavery, and governance. This was created with the

Supply Chain Sustainability School, of which we are a Gold

member, to inform and shape the provision of targeted learning

and training resources.

In support of this, we have built on the waste reduction workshop

we held with a cross section of suppliers in 2022 and continue

with one-to-one meetings to discuss the use of alternative

packaging and fuels such as electricity, HVO and hydrogen.

A key area of focus is working with our highest emitting

suppliers and sub-contractors to better understand our Scope

3 emissions and how we might be able to help to reduce them.

More information was requested from an expanded pool of

suppliers, including an understanding of their carbon reduction

strategies. Further information can be found on page 92.

Our divisions held sub-contractor and supplier days to discuss

local business plans and “Thank you” events to show our

appreciation for their continued support.

We have had some engagement with our brick suppliers to

reduce plastic packaging, with initiatives leading to significant

reductions in waste generated, with longer term strategies now

being implemented by suppliers. We have also started working

with a packaging design consultant (Valpak), who will be engaging

with our supply chain to advise on potential alternatives that

may reduce waste or improve recyclability.

Board level engagement:

Members of the Board attend the Supplier Conference

(the Chief Executive, the Chief Operating Officer, and the

Group Sustainability Director all presented). The Chief

Operating Officer provided an update on the supply chain and

sub-contractor performance at each Board meeting The Group

Procurement Director is invited to attend the Board or the Audit

Committee to directly answer any queries members may have.

60 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

have helped to ensure delivery and performance standards

are mutually understood and have also enabled us to secure

materials to support build requirements during a period of

shortage of certain components. It has also helped us gain a

better understanding on the availability of carbon emission

data, and the challenges associated with reporting this data.

The majority of our suppliers have now completed the Supplier

Sustainability Maturity matrix with 87% of suppliers completing

the assessment and 52% of target badges having been met.

Effect of engagement with the supply chain on

Boarddecisions

Engagement with sub-contractors and the supply has given

the Board a better understanding of the challenges they are

facing in respect of collating the emissions data to enable

our business to better measure our scope 3 emissions. The

Board therefore agreed with the Remuneration Committee

that to allow our sub-contractors and the supply chain more

time to implement and embed their processes to collect the

relevant data, scope 3 emissions should not be included in the

sustainability metric for the 2023 LTPP. The Board, guided by

the Remuneration Committee, will reconsider this for the 2024

LTPP. In addition, hearing that the uncertain market conditions

were causing a number of sub-contractor and supply chain

firms to cease trading, the Board requested Management

toensure that those that support us are paid promptly.

See page 46

Link to strategy

Stakeholder engagement continued

Suppliers completed the Supplier

Sustainability Maturity Matrix

87%

Sub-contractors and supply

chain continued

Metrics – How we measure effectiveness

The following information is reported to the Board by the Chief

Operating Officer and/or the Group Procurement Director to

enable it to consider and agree what, if any, changes with our

sub-contractors and supply chain:

 Feedback received from a survey following the annual

conference to help improve the conference in the following year.

 Availability of materials and services to support our build

delivery programme despite shortages and/or challenges

inthe industry.

 Supplier performance data, captured via our Supplier

Relationship Management Portal and Quarterly Divisional

supplier performance feedback process.

 We maintain a dynamic supplier risk management

assessment matrix to identify potential future issues and plan

mitigating action.

 Supply Chain Sustainability School Membership – assesses

the number of our sub-contractors and suppliers signing

up as members to show their commitment to upskilling

their employees in areas such as sustainability and diversity

andinclusion.

Interests and concerns

The key interests and concerns of our sub-contractors and

supply chain related to the health and safety of their employees

whilst working on our sites, modern slavery, living wage and

our actions and progress in respect of our sustainability and

carbon reduction strategies and initiatives. Given the current

cost of living crisis, it is not surprising that our sub-contractors

and supply chain are concerned with being paid in a timely

manner. Details of our prompt payment practices can be found

on our website. In addition, our sub-contractors are concerned

with the availability of materials given the rise in build cost

inflation. No materials will mean no work for them on our sites.

Outcomes from engagement

We have received positive feedback regarding our leadership

on sustainability issues ranging from carbon and waste to

ourcommitments on modern slavery and the real Living Wage.

We closely monitor our prompt payment performance to ensure

we are supporting our partners. We have established long-term

relationships with our sub-contractors and suppliers which

61Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Great places

Leading construction

Investing in our people

Customer first

Strategy key

Banks

Why we engage

We need sufficient finance and working capital to settle liabilities,

manage working capital, respond to changes in the economic

environment, and take advantage of appropriate land buying and

operational opportunities to deliver strategic priorities. In addition,

it is important to understand the banks’ views on the market and

their risk appetite for lending as well as identifying ways in which

the parties can collaborate to support mutual customers.

How we engage

The following methods of engagement are effective in ensuring

continued mutual understanding of our respective businesses and

of the services the banks can provide to us and to our customers.

Company engagement:

The Chief Financial Officer and Group Treasurer regularly

engage with each of the banks in the RCF and USPP investors,

including calls after each trading update and two site visits each

year. Additional calls and meetings were held as appropriate

throughout the year. We worked closely with the Banks to

amend our existing RCF to a Sustainability Linked Loan which

includes sustainability linked performance measures, aligned

with our Building Sustainably strategy. The Head of Treasury

has a schedule of regular diarised calls on a one to one

basis with the Relationship Director of each of the banks who

participate in the RCF.

Our Head of Mortgage Lender Relations held regular meetings

with the top 10 mortgage lenders, some of which are supported

by the Executive Directors.

In order to support customers with the challenge of

affordability, particularly after the closure of Help to Buy to

newbusiness on 31 October, we have, amongst other things:

 continued to support Deposit Unlock which supports 95%

lending on new Build homes;

 worked with lenders to promote the launch of Green

Mortgages which take into account the savings from energy

efficiency in affordability assessments – reviewed the digital

options available to us to engage with our customers at the

earliest opportunity to establish affordability and support

them on their home ownership journey; and

 convened an industry forum for the top five surveying firms,

supported by the HBF and the Future Homes Hub, to collaborate

regarding changes required by the Future Homes Standard.

Board level engagement:

During the year, key meetings with members of the RCF and

USPP investors were supported by the Executive Directors

and members of the Executive Committee and have included

site visits and other face to face meetings. The Chief Financial

Officer and the Chief Executive provide regular updates to

the Board on engagement activities with the RCF banks and

mortgage lenders and on any actions being taken as a result

ofthe information received.

Metrics – How we measure effectiveness

The banks’ willingness to engage with us and discuss new

opportunities to support us and our customers is the key metric

that is reported to the Board by the Chief Financial Officer to

enable it to consider and agree what, if any, changes to make

inhow and when we engage with our banks.

Interests and concerns

The key interests and concerns of our banks identified related

to our progress with our sustainability strategy in particular

energy efficient homes, the potential for a sustainability linked

RCF, and the viability for green mortgage products and new

high loan to value lending products for our customers.

Outcomes from engagement

Engagement with our banks has given us the opportunity to

discuss the market environment and recent trends as well as

our latest results. It has also enabled the banks to broaden

their understanding of our business and how we operate,

as well as the sustainability and environmental challenges,

particularly around climate risk and carbon mitigation, facing

the business, what we are doing to address these and what

they can do to support us and our customers. This engagement

enabled us to agree the sustainability linked performance

measures in the RCF with the banks. We have engaged with

a broader range of mortgage lenders, allowing customers

to access mortgage products that are most suitable for their

needs. Both parties have gained a greater understanding of

each other’s priorities and agreed overlapping objectives, with a

view to evolving improved lending terms for energy efficient homes.

The strong engagement with Lloyds Bank has enabled strategic

partnership to be created with Citra Living, a subsidiary of

Lloyds, with Barratt selling a portfolio of homes to Citra, where

they will retain ownership of the homes and rent them out

acting as a corporate landlord.

Effect of engagement with banks on Board decisions

The Board was mindful that with the impending end of Help to

Buy, large numbers of our customers may struggle to gain the

financial support that they need to purchase their new home.

The Board therefore agreed to support the launch of Deposit

Unlock (see page 30) and explore alternatives to Help to Buy.

See page 31

Link to strategy

62 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Stakeholder engagement continued

Local communities

andenvironment

Why we engage

It is important for us to engage with the local communities in

which we build to ensure that we are responding to local needs

and are able to create value whilst considering the impact

that our business has on the local environment and the use

of natural resources in our build process. We need to protect

habitats and resources as we focus on creating sustainable

homes. Regular and open engagement helps ease the whole

build process, in particular planning, as it mitigates against

objections from members of the community which could lead

toundue delay and increased costs.

How we engage

We use a range of engagement methods to enable the local

communities to better understand how we can benefit them

and how we will protect the local environment around them.

Details of how we engage with each of our key stakeholders on

the environment and other sustainability matters can be found

inthe respective sections on pages 54 to 65.

Company engagement:

To ensure that community needs and considerations, including

impact on the local environment, are taken into account at the

earliest stage of the development process, we hold meetings

and site specific consultations which all local residents are

welcome to attend. We also hold in-person and virtual public

exhibitions as well as regular meetings with other national and

local organisations who are key to enhancing our environmental

impact. These include parish/town councils, local planning

authorities, environmental regulators, Local Water Authorities

and Natural England. At these meetings we consult and seek

views on our plans and look to incorporate the feedback we

receive. We pay particular attention to residents’ concerns

about how our activities might impact the natural environment.

We frequently share the contact details of site managers with

relevant figures at the local parish council, to allow them to be

contacted quickly and any issues with construction to be rectified.

We work closely with local schools, to emphasise the

importance of site safety and to keep everyone safe. This also

teaches children about the construction process, the careers

available, and the initiatives that we have implemented to create

sustainable homes and places to live, such as through the

interactive Insight House on our Heritage Grange development

in Warwickshire (see page 55).

Those that we engaged with can provide feedback through

a multitude of channels both online and offline. A dedicated

project website is often set up to provide information and

updates for local residents and interested parties.

We write to inform the local community of upcoming works

thathave the potential to cause disruption, such as highway

andinfrastructure works. On many sites we distribute

aquarterly newsletter update on development progress

sothelocal community can see what is happening in more

detail and have forewarning about any disruptions.

We use signage in and around our sites to demonstrate our

credentials and the value that our activities bring to local

communities. We highlight the number of jobs and businesses

supported, amount of green space created and retained, and

section 106 contributions to local infrastructure and services.

New developments are publicised in the local press, as are

positive news stories about our beneficial activities and impacts

of our developments. We have a network of seven PR agencies

promoting the business to national, regional and local media.

We promote the resilience and sustainability credentials of

ourhomes to the wider community to demonstrate the reduced

impact they have on the natural environment at a local and a

global level.

The Barratt Foundation continues to grow, increasing its

charitable activity by entering into a number of partnership

agreements (see page 25 for more details). The Barratt

Foundation team have been engaging with our divisions to

support them with their charitable giving and creating volunteering

opportunities with its national partners for our employees.

Board level engagement:

The Chief Executive and the Chief Operating Officer keep the

Board appraised of any local issues that have been identified

and have the potential to escalate into a wider matter that may

impact the business as a whole. There are also two updates a

year from the Group Construction and SHE Director as well as

regular updates from the Sustainability Committee. The Board

also receives an update from the Barratt Foundation twice

a year including the impact our donations are having on our

localcommunities and the protection of the environment.

Metrics – How we measure effectiveness

The following information is reported to the Board by the Chief

Executive and/or Chief Operating Officer to enable it to consider

Continued support for Deposit Unlock,

supporting 95% lending on new homes

95%

63Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

and agree what, if any, changes to make in how and when we

engage with our local communities:

 The extent of local opposition to our developments.

 The level of planning appeals – 95% of the units we build are

approved at a local level and do not require a planning appeal.

 The amount donated to, and the feedback from, charities that

we have supported and the impact we had.

Interests and concerns

The key interests and concerns of our communities relate to

our local, regional and national socio-economic footprints, our

impact on the environment and the availability of green spaces,

disruption during construction of our developments including

noise and air pollution, the safety and protection of members

of the community around our developments, the impact of

development on the local population, and the potential for

knock-on pressures on the supporting infrastructure and the

impact of the development on the environmental resilience of

the landscape, including on biodiversity, public green space

andflood resistance.

Outcomes from engagement

Our engagement with the local communities in which we

operate has enabled us to better understand their needs and

to develop a positive legacy from building great places to live,

with the facilities that will help the local community thrive. It

has allowed us to connect with local schools and families to

share key messages such as how we keep people safe and how

they can protect themselves. We evaluated the actions that our

supply chain undertakes on environmental matters and how

we can positively partner with them to drive improvements.

Wehave set internal targets to reduce waste from our construction

process and are considering alternative fuels to diesel for plant

and other equipment with our supply chain.

The protection of the environment is a key area of concern for

the local communities in which we operate. We therefore aim

to be mindful of our impact on the environment in everything

that we do and have put in place steps to support this. We are

accredited to ISO 14001 which demonstrates that we have

robust policies and procedures for environmental management.

We are also externally audited across all our business units.

Our comprehensive Impacts and Aspects Register enables

us to consider any areas where improvements can be made.

All our Safety, Health and Environmental team are individual

members of the Institution of Environmental Management and

Assessment and provide support and guidance to our Divisional

teams in managing site based environmental aspects and

impacts. We have a team of sustainability practitioners who

assist with considering our wider business environmental and

carbon impacts and drive improvements across our business.

We have put in place environmental and surface water

management plans for all our developments which are

monitored by our Divisional Management teams and SHE

Managers. We expect our construction teams to continually

assess the controls and ensure that we focus on these and the

use of resource. Our SHE Managers record levels of compliance

as part of their regular reviews. We have a specific monthly

monitoring process which focuses on the environmental

impacts on site and, in particular, controls to prevent

contamination of any adjacent watercourse.

We have set stringent science-based targets for carbon

emissions and have a target in place for all homes to be

zero carbon in use (regulated energy) by 2030. We are also

committed to enhancing biodiversity on every site and have a

target in place to demonstrate a minimum biodiversity net gain

of 10% across all development designs submitted for planning

from 2023.

During FY23, each of our divisions donated £1,500 per month

to a different charity that supports the local community

within the areas in which we operate. In addition, divisions are

encouraged to raise funding for local charities and utilise the

match funding available from the Barratt Foundation. During

FY23, our colleagues and divisions raised over £1.3m for good

causes, the most raised in any one financial year. The number

of volunteering days utilised also increased in FY23, with 892

employees supporting local charities through various activities

ranging from painting schools to tidying up gardens and

cleaning beaches.

Effect of engagement with local communities and

theenvironment on Board decisions

We monitor and report our impact publicly across a range

of environmental indicators, including carbon emissions,

water usage, waste generation, environmental incidents and

prosecutions. The Board, through its Remuneration Committee,

utilises this information to determine appropriate non-financial

metrics for both our short- and long-term incentive schemes.

The Board are keen to ensure that the Group continues to

support and enhance the local communities in which it operates

(and that we support them as much as we can). The Board

entered into a three-year rolling funding agreement with

the Barratt Foundation enabling it to engage in multi-year

charitable partnerships and have a real positive impact on

thecommunities in which we operate.

See page 25

Link to strategy

“ This is one of the most helpful

companies I've ever dealt with, the

staff are absolutely lovely and are

really thorough and invested at

getting you the best deal.”

Jasmine and Kim,

Barratt customers

Great places

Leading construction

Investing in our people

Customer first

Strategy key

64 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Stakeholder engagement continued

Government, opposition parties

andregulators

Why we engage

The government is responsible for creating the legislative

environment in which we operate, which is enforced by

regulators. Opposition parties can influence this environment

through their scrutiny of government and by proposing

alternative approaches. They may also form the next

government. We engage with these stakeholders so that they

understand the challenges facing the business, and the likely

implications of any current or proposed policies, and so that

we understand what future policy is likely to be and how it will

be implemented. We also emphasise our positive credentials and

build positive relationships to ensure we are well-regarded by

these stakeholders and are able to contribute constructively to

policy development.

How we engage

We engage with ministers, MPs and regulators through a range

of channels.

Company engagement:

Meetings

Senior representatives from the business regularly meet with

political stakeholders. During the year David Thomas met with

the Chancellor to discuss the economy, the Secretary of State

for the Department of Levelling Up, Housing and Communities

(DLUHC) to discuss the impact of planning reform, and a

number of Housing Ministers. We also hold regular meetings

with key representatives from DLUHC and other government

departments like the Treasury, Department for Environment,

Food and Rural Affairs, Department for Energy Security and Net

Zero and the Department for Business and Trade. We have also

engaged in ongoing discussion with policy representatives from

the Labour party, with the Chair and Chief Executive attending

meetings with the Leader of the Opposition, Shadow Chancellor

and other relevant Shadow Ministers. We have also provided

evidence to the House of Lords Built Environment Committee.

We continue to raise concerns with Government and opposition

parties on the disproportionate impact of nutrient neutrality

policies on new housebuilding. The housebuilding industry is

engaging positively with Government to find a solution, including

credit schemes and other approaches to mitigation, to unlock

housebuilding in areas where water treatment works may not

be upgraded until 2030.

Memberships

Many of these meetings are organised by various organisations

of which we are a member, or workstreams to which we

contribute. We were invited to join the Government’s Energy

Efficiency Taskforce, Net Zero Council and Green Jobs Delivery

Group, were members of Climate Change Committee’s

Business Advisory Board and contributed to the Rt Hon Chris

Skidmore MP’s review of net zero. The Group supports the

Energy Efficiency Taskforce on policy development, including

the creation of a long-term cross sector roadmap to net zero

with clarity on targets and standards, growing consumer

confidence, a green finance framework and net zero skills.

We also continue to inform Government on sustainability issues

as well as providing leadership and expertise to the Future

Homes Hub, a joint industry and Government initiative, designed

to deliver a whole industry transition to net zero. David Thomas,

our Chief Executive, was appointed as chairman of the Future

Homes Hub and our Group Head of Biodiversity is Chair of the

Future Homes Hub’s Biodiversity Net Gain working group.

Our Group Sustainability Director sits on the Climate Change

Committee’s Advisory Group on Business – a group convened to

share the different ways in which UK businesses can accelerate

progress towards net zero. The group has published a new

report which looks at how we successfully transition to a net

zero economy. At the centrepiece of this is a recommendation

that a partnership with Government is urgently needed to meet

the UK’s commitment to be net zero by 2050.

Housebuilding is suffering from a severe skills shortage. The

CITB estimates that almost 200,000 extra workers

are required

to build the homes the country needs between now and 2027.

Many EU workers have left the UK in the wake of Brexit and the

pandemic. As part of our role on the Green Skills Taskforce

and through our membership of the Future Homes Hub, we

are working with Government to ensure that the necessary

skills and workforce are available as we scale up to building

zero carbon homes at scale. A key area is to provide support

to those currently working in high carbon industries, enabling

them to retrain into a high quality, long-term green career, as

a key component of a just transition. We are also working with

manufacturers and our trades to ensure that specialist training

is in place so that we are in a position to scale-up delivery of

new technologies such as solar panels.

Conferences

Key to our engagement is the party conference seasons in the

autumn. This year, David Thomas attended panel events hosted

by the RSPB and the NHBC, alongside the then-Housing

Minister Lee Rowley. At the Labour Conference, Bukky Bird,

Group Sustainability Director, attended a series of meetings,

including the Labour Business Forum events. At both

conferences representatives from the Corporate Affairs team

and other business functions held further meetings with party

representatives.

Site visits

Site visits are an important strand of our stakeholder

engagement, as they enable us to demonstrate the quality of

our developments first-hand. During the year we welcomed the

Leader and Deputy Leader of the Labour party to our Centurion

Village development near Preston. We also hosted a number of

stakeholders to the Zed House and Energy House 2.0 projects,

including the Mayor of Greater Manchester Andy Burnham, and

the author of the independent review of net zero, Chris Skidmore.

1 Construction Skills Network Outlook 2023 – 2027.

65Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Letters

We also regularly write to our political stakeholders, to showcase

our positive credentials and to directly explain our positions

on certain issues. We wrote to 81 MPs who had one of our 98

Pride in the Job-winning site managers in their constituencies,

resulting in nine site visits. We also wrote introductory letters to

each of the four new housing ministers and three Secretaries of

State we saw during the year, as well as other newministers.

Complaints

On the rare occasion that customer complaints are elevated to

the point that they feel the need to contact their MP, the relevant

Regional Managing Director will investigate the issue and prepare

a response with the assistance of the Corporate Affairs team.

Oversight of any such issues is maintained by the Group and used

to inform the ongoing stakeholder engagement strategy.

Consultations

Much of our contribution to policy development comes in the

form of responses to government consultations, which are

prepared by the relevant Group functions with assistance

from the Corporate Affairs team. This year Government

consultations responded to by the Group included those on

the forthcoming Building Safety Levy, changes to the National

Planning Policy Framework, the requirement for two staircases

in new high-rise buildings, increases in planning fees, and the

Infrastructure Levy.

CMA

We continue to co-operate with the Competition and Markets

Authority’s study into the housebuilding market.

Board level engagement:

At each Board meeting the Chief Executive provides an update

on engagement with policymakers and regulators, covering

knowledge gained and any potential impact on the business.

This information is also regularly provided by the Group

Corporate Affairs team.

Metrics – How we measure effectiveness

The following information is reported to the Board by the

Chief Executive to enable it to consider how we engage with

government and regulators and what, if any, changes to make:

 The business’s political engagement strategy – to ensure

we are engaging with the right people to fully understand

any policy changes and effectively communicate our key

messages in line with our broader strategic aims.

 A comprehensive overview of our engagement with key

political stakeholders, including meetings, site visits, mutual

attendance at events, correspondence and public statements,

so that we can track our relationships with our key stakeholders

and assess the progress of our engagement strategy.

 Our responses to Government consultations and emerging

legislation on relevant policy areas, such as the Building

Safety Levy, Infrastructure Levy, and draft changes to the

National Planning Policy Framework. We assess the extent

to which policy and legislative outcomes accord with our

representations to policymakers.

Interests and concerns

Some of the key areas of interest and concern to Government

and regulators are:

Supply and planning – how to reconcile the desire to build

300,000 homes a year with political opposition and the wider

levelling up agenda.

Sustainability – how to reduce carbon emissions and protect

the natural environment while achieving energy security and

growing the economy.

Inflation – the impact of increases in the cost of living and their

knock-on impacts on interest rates, mortgage costs, house

prices, employment and GDP growth.

Quality – making sure new homes are built to the highest quality

and consumers are protected should things go wrong.

Building safety – addressing defects in historic buildings,

making sure the costs of doing so are borne by parties across

the industry, and promoting trust in the new regulatory regime.

Skills – ensuring there are enough workers to build the homes

the country needs, and that people have access to training to

build the energy efficient homes of the future.

Outcomes from engagement

Our engagement with government, opposition parties and

regulators has helped us build positive relationships with

keyfigures, so that we can continue to be involved and inform

conversations about the future of housing policy. Our continued

positive engagement has meant we are frequently the housebuilder

of choice for officials seeking a representative of the sector.

It has helped us to understand upcoming policies and the

broader operating environment, and to influence any proposed

changes through meetings with key figures and responses to

government consultations. Meetings with Ministers and MPs

helped us understand the drivers behind proposed changes

to government planning policy, while meetings with senior

opposition ministers saw us emphasise the value of housebuilding

sector for the economy and the country’s social fabric.

We have also improved our reputation with those key

stakeholders by showcasing the good work we do, which

helps ensure our perspective and the impact on the industry

is understood and taken into account when developing future

policy. This enables us to explain the challenges facing the

sector, and the opportunities it can provide, so that future policy

can support new housebuilding and avoid adverse outcomes.

Visits by MPs to Pride in the Job award-winning sites enable

usto demonstrate first-hand the positives of our activities.

Effect of engagement with Government, opposition

parties and regulators on Board decisions

Engagement with key political stakeholders assists the Board

in understanding the risks and opportunities presented to the

business by changes to the operating environment, allowing them

tomake decisions in line with the strategic interests of the business.

The Board signed the Developer Remediation Contract

following extensive engagement with Government.

The Board has also gained knowledge of how evolving housing

policy can impact the housing market at a local and national level,

and therefore affect land bids which enables it to consider if the

process and policies in place remain appropriate.

See page 24

Link to strategy

Great places

Leading construction

Investing in our people

Customer first

Strategy key

66 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Chief Financial Officer’s review

Robust performance

The Group is in a very strong position with substantial net cash,

and an excellent forward sales position andland bank.

Mike Scott

Chief Financial Officer

Our financial results have reflected the change in market

demand, triggered by the Fiscal Event in September 2022 and

subsequent higher interest rate environment. FY23 saw a sharp

contrast between our first half performance, which reflected

the strength of our forward order book and robust house prices

coming into the financial year and the second half, which

reflected reduced reservation activity, an adjustment in

achieved home prices and slower construction activity against a

background of mortgage interest rate uncertainty.

Our performance reflects the flexibility and resilience ofour

operating model which is supported by a strong balance sheet

and the commitment and dedication of our employees, sub-

contractors and supply chain partners in what has been

achallenging year.

“ Our performance also reflects

theflexibility and resilience of our

operating model which is supported

by a strong balance sheet and the

commitment and dedication of our

employees, sub-contractors and

supply chain partners in what

hasbeen achallenging year.”

67Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Results to 30June 2023

Income Statement

Group revenue was £5,321.4m in FY23 (FY22: £5,267.9m)

withGroup wholly owned completions 4.6% lower at 16,378

(FY22:17,162), reflecting weaker completions in the second half

following the decline in reservation activity seen from September

through December 2022 and the slower rate of reservations

from the start of the new calendar year.

Our private average selling prices increased by 7.9% to £367.6k

(FY22: £340.8k), reflecting underlying house price inflation and

minor changes in product and geographic mix, as well as the

dilutive impact of PRS growth. The increase in the average

selling price of our wholly owned completions was 6.5% to

£319.6k (FY22: £300.2k). The lower increase reflected a greater

proportion of affordable homes which accounted for 23.9%

(FY22: 22.3%) of completions.

Adjusted gross profit reduced by 13.6% to £1,130.4m

(FY22:£1,308.1m), with the adjusted gross margin reducing

by360 bps to 21.2% (FY22: 24.8%). The reduction in adjusted

gross margin reflected the impact of build cost inflation during

the financial year and the dilutive effect of completion volume

decline, which reduced incremental fixed cost efficiency. In

FY23 our contribution margin was c.32%(FY22: c. 34%) after

land and direct build costs.

After operating adjusted items, totalling £155.5m (FY22: £408.2m)

relating to legacy property costs, reported gross profit was

£974.9m (FY22: £899.9m), and reported gross margin was

18.3% (FY22:17.1%).

Administrative expenses in the year were £270.8m (FY22:

£256.4m). This increase included:

 the impact of salary increases, as well as additional salary

supplements of £2,000 for employees below senior

management levels;

 incremental costs reflecting expansion in the Group’s Building

Safety Unit;

 the full year impact of Gladman Developments’ administrative

expenses; and

 a further reduction of £4.5m in sundry income.

After deducting administrative expenses and a modestnet gain

of £3.3m on part exchange activities (FY22: £3.1m), theGroup

delivered an adjusted profit from operations of £862.9m (FY22:

£1,054.8m), with an adjusted operating margin of 16.2% (FY22:

20.0%). The 380 bps decline in the adjusted operating margin is

analysed further below.

Completion

volumes

The decline in our wholly

owned completion

volumes, with a 4.6%

or784 homes decrease,

created a 30 bps negative

impact (FY22: 10 bps

positive impact).

Net inflation

Sales price inflation

relative to higher

underlying build cost

inflation produced

a 170 bps negative

impact (FY22: 140 bps

positive impact).

London

A significant increase in

the share of completions

from our London

operations, 8% in FY23

(FY22: 6%), where

margins are lower than

in the regional business,

resulted in a 20 bps

negative margin impact.

Completed

developments

provision

Reflecting the

increasingly extended

time periods being

experienced in relation

to the adoption of roads

and public space by local

authorities on completed

developments, an

increase in this provision

created at 60 bps

negative margin impact.

Mix and

otheritems

Changes in sales mix,

increased selling costs,

abortive costs in relation

to land transactions no

longer proceeding and

other smaller items

created a 70 bps negative

impact (FY22: 40 bps

negative impact).

Net

administrative

expenses

As detailed above, offset

by the small increase

in part-exchange

income, increased net

administrative expenses

deducted 30bps (FY22:

deducted 100 bps)

from the adjusted

operating margin.

Movements in operating margin in FY23

FY22 Reverse

adjusted

items

FY22

Adjusted

Volume

impact

Net

inflation

London

mix increase

Completed

developments

provision

Mix/

other

Admin

expenses

FY23

Adjusted

items

FY23

20%

15%

10%

Increase

Decrease

Total

12.3%

7.7% 20.0%

(0.3%)

(1.7%)

(0.2%)

(0.7%)

(0.6%)

(0.3%)

16.2%

(2.9%)

13.3%

68 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Results to 30June 2023 continued

Income Statement continued

After deducting adjusted items, on a reported basis we delivered

an increase in profit from operations to £707.4m (FY22: £646.6m)

and a reported operating margin of 13.3% (FY22: 12.3%).

Net finance charges were £11.1m (FY22: £27.6m) reflecting

increased interest income on cash balances held throughout

FY23. The cash component of the finance charge was a credit

of £13.4m (FY22:£8.3m cost) with non-cash charges of £24.5m

(FY22:£19.3m). In FY24, finance costs are expected to increase

to c. £20m reflecting a cash component credit of c. £20m and

non-cash charges of £40m. The anticipated increase in non-

cash finance charges reflects the impacts of the increase in

legacy property provisions and the higher discount rate applied

to these provisions arising from the increase in the gilt rate.

Our JVs delivered adjusted profit for the year of £32.5m

(FY22:£27.6m). The JV results included adjusted charges for

JVlegacy properties of £23.7m (FY22: £4.3m) with JV reported

profits being £8.8m (FY22: £23.3m) as a result.

Consequently, reported profit before tax for the year increased

to £705.1m (FY22: £642.3m).

The Group’s tax charge for the year increased to £174.8m

(FY22:£127.1m), which included the final quarter impact of the

600 bps increase in the rate of corporation tax increasing from

19% to 25% from 1 April 2023. The tax charge comprised:

 A corporation tax charge on adjusted profit before tax of

£188.1m (FY22: £200.8m);

 A full year impact of the Residential Property Developer

Tax(RPDT) which equated to a FY23 charge of £26.0m

(FY22:£8.8m); and

 Tax credits with respect to adjusted items, which totalled

£39.3m in FY23 (FY22: £82.5m credit).

Adjusted earnings per share decreased by 18.9% to 67.3 pence

per share (FY22: 83.0 pence per share). The decline in adjusted

earnings per share consisted of a 16.2% decline in adjusted

pre-tax profitability, a further 5.4% impact from increased

taxation, which was only partially offset by a 2.2% benefit from

the reduced average count, reflecting the initial FY23 impact

ofthe buyback.

Basic earnings per share increased by 5.1% to 53.2 pence per

share (FY22: 50.6 pence per share).

Reflecting the decline in adjusted profitability but disciplined

management of capital employed throughout the year, ROCE

declined to 22.2% (FY22: 30.0%).

Adjusted items

Adjusted items recognised in the year related to costs

associated with legacy properties and totalled £179.2m

(FY22:£412.5m). Of this total charge £117.7m (FY22: £377.7m)

related to future commitments in relation to fire safety and

external wall systems with £51.5m (FY22: £34.8m) relating to

remedial works arising from the review of reinforced concrete

frames we announced in July 2020, following the issues we

discovered at Citiscape. A further c. £10.0m was expensed in

thesecond half of the year in relation to two other developments

where investigations are ongoing.

Chief Financial Officer’s review continued

Fire safety and external wall systems

In relation to fire safety and external wall systems, theadditional

costs relate to:

 an increase in the number of buildings within scope, from 223

at 30 June 2022 and 228 at 1 January 2023, to 278 at year end,

following the signing of the Self-Remediation Terms and

Contract in March 2023; and

 an update to cost estimates across the portfolio, reflecting

thelatest building material and labour cost information.

This resulted in an additional provision of £172.3m prior to

discounting to present value. The enlarged provision, as well as

the discount rate applied to the provision, reflecting the

increase inthe UK gilt rate applied at 30 June 2023, resulted in

a credit of£51.9m and the recognised net charge of £117.7m.

In addition, we signed the Scottish Safer Buildings Accord on

31May 2023. Industry negotiations over the legal agreement

between the Scottish Government and Homes for Scotland are

ongoing and there remains uncertainty around the extent of

remediation required in Scotland. Existing provisions for

Scotland have been made on a consistent basis with England

&Wales.

Reinforced concrete frames

In relation to the Citiscape associated review our remediation

activities continued during the year with the majority of

developments proceeding in line with plan. During the second

half of the year we also finalised remediation plans for the one

remaining development in that review, where work is required

across five buildings. Finalisation of this remediation plan, as well

as ongoing remediation activities, resulted in an additional charge

of £51.5m of which £21.3m related to JV legacy developments.

In addition to this review, we identified two further developments

where remediation work may be required. In FY23 £10.0m was

charged to the Income Statement for remediation works at these

developments, including a JV charge of £2.4m. Of the £10.0m

charge, £2.4m was spent in the second half with £7.6m in the

provision at 30 June 2023.

Whilst the charges in respect of legacy properties reflect our

current best estimates of the extent and future costs of work

required, as assessments and work progress, estimates may

have to be updated.

Cash flow

Net cash decreased to £1,069.4m at 30 June 2023 (30 June 2022:

£1,138.6m). The main components of the change in net cash

position were:

 a £465.5m net cash inflow from operating activities

(FY22:£417.6m cash inflow);

 a £55.4m net cash inflow from investing activities

(FY22:outflow of £222.4m), with the reversal reflecting

increased cash received from joint ventures and the cash

outflow impact of the Gladman acquisition in FY22; and

 a net financing cash outflow of £590.6m (FY22: outflow of

£378.4m), principally reflecting dividends paid of £360.0m

(FY22: £337.0m), as well as the £201.3m outflow in respect

ofthe £200m share buyback including Stamp Duty and fees

of£1.3m.

69Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

The major drivers of the £465.5 net cash inflow from operating

activities in the year was our profit from operations, which

increased to £707.4m (FY22:£646.6m), offset by a net cash

outflow from working capital and provisions of £64.9m (FY22:£118.2m

cash outflow) and net interest and tax payments, which

increased to £196.3m (FY22:£140.2m).

The net £64.9m outflow (FY22: £118.2m outflow) with respect

toworking capital and provisions was largely related to a

significant decrease of £337.6m (FY22: £10.7m decrease) in

payables, driven by the reduction in land creditor balances

aswe settled existing commitments, alongside a significant

reduction in land acquisition and construction activity. This was

offset by other net inflows in working capital including a £48.9m

decrease in inventories (FY22: £543.4m increase) which also

arose from reduced land activity and tighter control of work

inprogress, and a £163.4m net increase in provisions

(FY22:£415.1m increase) which resulted from additional

building safety charges during FY23. During FY23 £32.9m was

spent on the remediation of legacy properties

Balance sheet

The Group’s net assets at 30 June 2023 totalled £5,596.4m

(30June 2022: £5,631.3m) after the payment of dividends totalling

£360.0m (30 June 2022: £337.0m) and the return of surplus

capital through the buyback totalling £201.3m. The Group bought

back 48m shares at an average share price of 415 pence during

the year, with all shares being cancelled.

Net tangible assets were £4,548.6m (467 pence per share) at

30June 2023 (30 June 2022: £4,573.0m; 447 pence per share).

Land, net of land creditors, and work in progress totalled £4,540.3m

(466 pence per share) at 30 June 2023 (30 June 2022: £4,444.1m;

435 pence per share).

Goodwill and intangible assets reduced to £1,047.8m (30June2022:

£1,058.3m) reflecting amortisation charges inthe year.

At 30 June 2023, the Group held net cash balances of £1,069.4m

(30June 2022: £1,138.6m). Whilst we continue to defer payment

for some land purchases to optimise ROCE, the pause in land

buying has seen land creditors reduce, whilst remaining within

our operating framework range. At 30 June 2023, land creditors

were £506.7m (30 June 2022: £733.6m) and equated to 16.1%

(30June2022: 22.0%) of the owned land bank.

Our minimal year-end total net indebtedness target was

achieved with a net surplus of £562.7m at 30 June 2023

(30June2022: £405.0m net surplus).

During FY24, £321.5m of land creditors will fall due for

payment(30 June 2022, during FY23: £498.2m). Land creditors

due beyond 30 June 2024 totalled £185.2m at 30 June 2023

(30June2022: £235.4m due beyond 30 June 2023).

Capital returns

The Board has reviewed our capital allocation policy in light of

current market conditions. In principle, the Board continues to

believe that excess capital should be returned to shareholders

when it is appropriate to do so. Whilst the Company remains in

a strong financial position, the UK housing market remains

difficult and the outlook remains uncertain. We have therefore

agreed that whilst our reduction in dividend cover to 1.75 times

will apply from FY24 as planned, there will be no further share

buybacks at this stage. The Board will continue to review the

capital allocation policy as market conditions develop.

Operating framework and capitalstructure

Our operating framework and appropriate capital structure

continue to serve us well. We continue to target an appropriate

capital structure as part of our disciplined operating framework

with shareholders’ funds and land creditors funding the

longer-term land requirements of our business, and term loans

and bank debt funding the shorter-term requirements for

working capital.

Our operating framework remains unchanged, and our performance against targets at 30 June 2023 and 2022

aresummarisedbelow:

Operating framework Positions at 30 June 2023 Positions at 30 June 2022

Land bank

c. 3.5 years owned and c.

1.0yearcontrolled

3.6 years owned and

0.7yearscontrolled

3.9 years owned and

0.8yearscontrolled

Land creditors

Maintain at 15 - 25% of the land

bank over medium term

16.1% 22.0%

Net cash

Modest average net cash over

thefinancial year

FY23: average net cash of £759.1m FY22: average net cash of £957.4m

Year-end net cash £1,069.4m £1,138.6m

Total

indebtedness

Minimal year-end total

indebtedness in the mediumterm

Total net surplus of £562.7m Total net surplus of£405.0m.

Treasury

Appropriate financing facilities £700m Revolving Credit Facility

extended to November 2027;

£200m US Private Placement

Notes maturing August 2027

£700m Revolving Credit Facility

extended to November 2025;

£200m US Private Placement

Notes maturing August 2027

Dividend policy

Dividend cover of 1.75x adjusted

earnings per share in FY24

FY23: Total ordinary dividend of

33.7ppershare

FY22: Total ordinary dividend of

36.9p

70 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Results to 30June 2023 continued

Treasur y

The Board sets and approves the Treasury Policy and senior

management control day-to-day operations. The Group’s

Treasury Policy seeks to maintain an appropriate capital

structure and provide the right platform for the business

tomanage its operating risks.

Cash management and relationships with our banking partners

are coordinated centrally by the Group Head of Treasury.

During the year, we extended our £700m revolving credit facility

to November 2027 with two further one-year extension periods

through to November 2029, if agreed between the Group and

itslenders.

Looking to the future and aligning our credit facilities with our

Building Sustainably Framework, our revolving credit facility

has also been amended to include three sustainability linked

performance measures to be assessed and verified annually.

The three performance measures are: (1) science-based target

aligned scope 1 & 2 emissions reductions; (2) waste intensity

reduction; and (3) improving the sustainability of our homes.

Tax

The Group does not enter into business transactions that are

forthe sole purpose of reducing potential tax liabilities. The

Group’s tax strategy is to only utilise any available reliefs

andexemptions, which have been set out in any current tax

legislation, to minimise the Group’s tax liabilities.

The rate of corporation tax for the year ended 30 June 2023 was

24.8% (FY22: 19.8%), which was marginally above the standard

effective rate of tax of 24.5% (inclusive of RPDT) (FY22: 20.0%).

Chief Financial Officer’s review continued

Looking ahead, the Group’s tax charge and effective rate

oftaxis expected to increase, reflecting changes in the rate

ofcorporation tax, which increased from 19% to 25% from

1April 2023. With the full year impact of the increase in

corporation tax, the Group’s effective tax rate is expected

toincrease to approximately 29.0% in FY24.

Pensions

Defined contribution pension arrangements are in place for

current employees. Defined contribution scheme charges with

respect to qualifying employees totalled £19.1m (FY22: £14.9m).

Pension contributions are based upon a fixed percentage of

each qualifying employee’s pay and, once paid, the Group

hasnofurther obligations under these schemes.

Guidance for FY24

Looking to FY24, our guidance is summarised in the table below:

Completions

c. 13,250 - 14.250 total home

completions including c. 750 PRS and

c. 650 fromJVs

Affordable mix broadly in line with

FY23

Average sales outlet

movement (inc. JVs)

c. 6% decline

Build cost inflation

c. 5%

Administrative

expenses

c. £290m - £300m (including

amortisation of intangible asset

charges of c. £10m)

Interest cost

c. £20m charge

(c. £20m cash credit,

c. £40m non-cash charge)

Land approvals

Maintain our highly selective

approach to land buying

Land cash spend

c. £0.5bn - £0.7bn

Year-end net cash

c. £0.7bn-£0.8bn

Taxation

Effective tax rate of 29% reflecting

current corporation tax rate at 25%

and 4% RPDT

Ordinary

dividendcover

1.75x ordinary dividend cover based

onadjusted EPS

Well positioned for an uncertain outlook in FY24

Despite significant economic headwinds and persistent

challenges to affordability for our customers, the Group is in

astrong position. We entered FY24 with substantial net cash,

asolid forward sales position and an excellent land bank. Our

operating framework and our strong financial position create

the platform to focus on delivering high quality, sustainable

homes and developments throughout the country, as well as

theflexibility to react to changing market conditions and

opportunities as they evolve.

Mike Scott

Chief Financial Officer

5 September 2023

71Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Risk management

Board

Board Committees

Executive Committees

Risk Committee

In pursuing our strategic priorities to create value for stakeholders,

we are exposed to risk. The Board is responsible for risk

management and ensuring the Group maintains theappropriate

level of risk exposure to achieve its objectives.

The risks which the Group face could have a material adverse

effect on the implementation of the Group’s strategy, business,

financial performance, shareholder value and returns, and

reputation. Changes in the economic or trading environment

can affect the likelihood and potential impact of risks, and may

create new and emerging risks.

Risk management controls are integrated into all levels of our

business and across all operations, including at site, divisional,

regional and Group level, and are monitored to ensure controls

are in line with risks as they evolve. Our risk management

framework and the roles and responsibilities of the Board, its

Committees and levels of management in the identification and

management of risk are summarised below.

Responsibilities

Board and Board Committees

 Responsible for corporate strategy, governance,

performance, internal controls and risk management.

 Monitor the effectiveness of the Group’s risk management

and internal control systems.

 Promotes an appropriate culture to support effective and

embedded risk management throughout the Group.

 Set risk appetite, considering the expectations of

stakeholders, and the macroeconomic context.

 Monitor principal and emerging risks.

 Assess risks against the Group’s strategy and the interests

ofstakeholders, and gain assurance on their management.

Executive Committee and Risk Committee

 Monitors business and operational performance and changes

to key risks.

 Through the Risk Committee, assess and monitor identifies

risks using a scoring system based on the likelihood of the

risk materialising and the potential impact of the risk on

thebusiness.

 Implements mitigation strategies to effectively manage

keyrisks within the Group’s risk appetite.

 Responsible for ensuring that risk management is embedded

within the business and appropriate actions are taken to

manage risk.

 Delegate risk oversight to appropriate management committees.

Group, Regional and DivisionalManagement

 Apply specialist knowledge to identify new risks and monitor

changes to existing operational and strategic risks at a

divisional, regional and functional level.

 Responsible for risk management and control within relevant

divisions, regions or Group disciplines.

Key sources

of assurance

How are risks

assessed?

Where are

risks and

controls

captured?

Risk type

Enterprise risk management (ERM) framework

Risk and internalcontrol framework

Fraud risk framework

Internal Controls over Financial Reporting (ICoFR) framework

Group-

levelrisks

Process risks

Fraud risk

Financial

reporting

risk

Top-down risk

assessment

Control-self

assessment

Fraud risk

assessment

Financial

reporting risk

assessment

Group

riskregister

Policies and

procedures

documentation

and internal

control matrices

Fraud risk

Internal control

matrices

Risk Assurance

mapping

2nd line

monitoring and

3rd line internal

audit programme

3rd line

internal

audit programme

3rd line

internalaudit

Key

controls (ICoFR)

testing

External audit

Regionaland

functionalrisks

Bottom-uprisk

assessments

Regional

andfunctional

risk register

2nd line

monitoring

MRR

/DBM

* Management Regional Reviews

** Divisional Board Meetings

Policies and

procedures

documentation

and riskand

control

matrices

72 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Risk velocity

Due to the changing internal and external environment in the

year and the need to be mindful of the speed at which risks can

materialise, the Board has this year assessed the velocity of the

Group’s risks. This will assist the Board in assessing the

mitigating actions to ensure that responses are sufficiently

timely. Velocity is categorised as follows:

Rapid: Risk can materialise immediately, or, impact felt within

one month of occurring.

Moderate: Risk can materialise quickly, or, impact felt between

1and 12 months of occurring.

Slow: Risk can materialise slowly, or, impact felt after 12 months

of occurring.

Principal risks

The Group has identified 11 principal risks that it considers

tobe of material impact and likelihood:

Economic environment

Land and planning

Government regulation and politicalrisk

Construction quality and innovation

Supply chain resilience

Legacy properties

Safety, health and environment

Attracting and retaining high-calibre employees

Information technology

Environmental, social and governance

Business resilience and continuity

The principal risks are detailed on pages 73 to 77, categorised

by the strategic priorities to which they relate. Risk levels are

presented net of any mitigation that is in place and the risk appetite

defines the level of risk that the Board is comfortable with.

Responsibilities continued

Site management, assessments andvaluations

 Identify and assess operational risks affecting housebuilding

activity at site level, including construction, sub-contractor

and SHE risk.

 Maintain an effective system of site-level risk management

and internal control.

Risk activities conducted during the year

As part of the Group’s risk management framework all regions

and key Group functions conducted risk workshops to review and

identify their current risks and any potential emerging risks.

These workshops presented a robust challenge to the principal

risks identified at an executive level. During this process,

management have reviewed the policies and methodologies

behind our risk management framework to ensure that our

procedures suitably allow key risks and the specific events that

may cause them to materialise are identified, so that the Group

can focus on mitigating these areas.

The Group continues to assess the potential impact of both the

physical impact of climate change and the regulatory and social

measures that may be adopted to mitigate against it. In line with

the recommendations of the Taskforce on Climate-related

Financial Disclosures (TCFD), the Group has disclosed its

response on pages 78 to 98. Climate-related risk is one of

several challenges arising from the environment in which the

Group operates and the Board recognises the business’

responsibility to be a sustainable partner and comply with

environmental, social and governance (ESG) regulation. The

Board has therefore broadened its principal climate risk to

cover all ESG issues.

The Board no longer considers the availability of finance and

working capital to be a principal risk. We continue to have a

strong balance sheet, with minimum debt financing and a

strong cash position, and have recently refinanced our

Revolving Credit Facility to November 2027. In our Viability

Statement and going concern conclusions, we set out our

liquidity and viability in the short, medium and long term,

identifying limited risk. See page 99.

Reputational risk could potentially arise from a number of

sources including external and internal influences relating to

the housebuilding sector that, when combined or over a period

of time, could create a new principal risk. The Group actively

manages the impact of reputational risk by carefully assessing

the potential impact of all the principal risks and implementing

mitigation actions to minimise those risks. Reputational risk is

therefore covered by the management of each of our individual

risks and is not presented as a principal risk in its own right.

Overall assessment

The Board has completed its assessment of the Group’s

principal and emerging risks, including those that could threaten

its business model, future performance, solvency orliquidity.

The current risk profile is within our tolerance range as the

Group is willing to accept a moderate level of operational risk

todeliver financial returns.

There may be instances where these risks could have a

moderate adverse impact on the Group – either financially or

operationally. To ensure the Group’s business model remains

resilient over the medium and long term, the Group has

modelled these scenarios alongside achievable mitigating

actions. The results are presented in the Viability Statement

onpages 99 to 100.

Risk management continued

Heat map of principal risks net ofmitigation

J E

Impact

Likelihood

Very

unlikely

High risk Medium risk Low risk

Low

<£1m

Substantial

>£50m

Low

Minor

£1m–£5m

Moderate

£5m–£10m

Major

£10m–£50m

Likely High

Very

likely

73Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Customer first

Economic environment

Risk level:

Velocity: Moderate

Risk appetite:

Responsibility:

Executive Committee

Risk description

Changes in the UK macroeconomic

environment may lead to falling

demand, tightened mortgage

availability, or reduced purchaser

liquidity especially in the first time

buyer market. This could reduce the

affordability of our homes, resulting in

reduced sales volumes and our ability

to provide profitable growth.

Response/mitigation

 Continual monitoring of the market at Board,

Executive Committee, regional and divisional levels,

leading to amendments in the Group’s forecasts and

planning as necessary.

 Comprehensive sales policies, regular reviews of

pricing in local markets and development of good

relationships with mortgage lenders.

 Disciplined operating framework with an appropriate

capital structure and strong balance sheet.

Key risk indicators

Internal: Gross and operating

margins, PBT, ROCE, EPS,

TSR, total home completions.

External: GDP growth, CPI

inflation, mortgage approvals,

mortgage affordability, new

housebuilding site starts.

Great places

Land and planning

Risk level:

Velocity: Moderate

Risk appetite:

Responsibility:

Land Committee

Risk description

Lack of developable land due to delays

in planning approval, failure of a clear

and consistent government policy or

insufficient consented land and

strategic land options at appropriate

cost and quality could affect our ability

to grow sales volumes and/or meet our

margin and site ROCE hurdle rates.

Response/mitigation

 All land acquisitions are subject to formal appraisal

and approval by the Land Committee.

 Group, regional and divisional review of land

currently owned, committed and identified

againstrequirements.

 Regular meetings with external stakeholders

including land agents, promoters and land owners.

 Review by Land Committee and management

onstrategic land and sites.

 Robust review of land appeals before resubmission.

Key risk indicators

Land approvals (plots), UK

quantum of consented housing

units per year, UK quantum of

applications decided within

statutory periods.

Government regulation and political risk

Risk level:

Velocity: Moderate

Risk appetite:

Responsibility:

Operations Committee

Risk description

The housebuilding industry is subject

toincreasingly complex regulations,

government intervention and policy

changes, for example building

regulation, legal, NHQC, CMA and

environmental regulation. Deviation

from regulations or failure to

implement the changes effectively

within our processes could lead to

financial penalties, damage to the

Group’s reputation or increased costs

due to inefficient processes.

Response/mitigation

 Robust and rigorous design standards for the homes

and places we develop that exceed current and

expected statutory requirements.

 Policies and technical guidance for employees on

regulatory compliance and the standards of business

conduct expected.

 Legal and compliance risks monitored by the

RiskCommittee.

 Consultation with government agencies and

membership of industry groups to help monitor,

understand and plan for proposed regulation change.

Key risk indicators

Gross and operating margin,

PBT, ROCE, EPS, TSR, total

home completions.

Change from previous year

Increase Decrease

Risk level/appetite

High risk

Medium risk

Low risk

No change

New

74 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Leading construction

Construction quality and innovation

Risk level:

Velocity: Moderate

Risk appetite:

Responsibility:

Operations Committee

Risk description

Failure to achieve excellence in

construction, through an inability

todevelop and implement new and

innovative construction methods or

tobe a market leader with changes

intechnology advancement in line with

the Future Homes Standard, could

increase costs, expose the Group

tofuture remediation liabilities,

andresultin poor product quality

andreputationaldamage.

Response/mitigation

 Continuous review of design and materials, which

areevaluated by technical experts including the NHBC,

toensure compliance with all regulations.

 Monitoring and improving the environmental and

sustainability impact of construction methods

andmaterials.

 Implementation of modern methods of construction

bydesign and technical teams.

 Detailed build programmes supported by robust

quality assurance.

 Use of qualified engineers through an approved panel.

 Group Construction and Group Technical reviews

oflocal divisions in key risk areas.

Key risk indicators

Customer service, total home

completions, gross margin,

operating margin, PBT, ROCE,

EPS, construction waste

intensity and carbon intensity.

Supply chain resilience

Risk level:

Velocity: Rapid

Risk appetite:

Responsibility:

Operations Committee

Risk description

Not adequately responding to shortages

or increased costs of materials and

skilled labour, or the failure of a key

supplier in the current economic

environment, may lead to increased

costs and delays in construction.

Response/mitigation

 Centralised team procures most materials from

within the UK, ensuring consistent quality and cost.

 Development of long-term supplier and sub-contractor

partnerships with all significant supply agreements

fixed in advance, usually for 12 months.

 Development of multiple supplier relationships for

labour and material supplies, with contingency plans

should any key supplier fail.

 Build and material cost controls throughout

buildprogrammes.

 Adherence to the Prompt Payment Code to support

ourpartners.

Key risk indicators

Customer service, gross and

operating margin, PBT, ROCE,

EPS, TSR, total home

completions.

Risk management continued

Principal risks continued

75Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Legacy properties

Risk level:

Velocity: Moderate

Risk appetite:

Responsibility:

Operations Committee

Risk description

In March 2023 we signed the Self

Remediation Terms and Contract with

the UK Government to support

leaseholders by funding or remediating

life-critical fire safety works in buildings

of over 11 metres which we have played a

role in developing over the last 30 years.

The amounts provided in the Financial

Statements reflect the best estimate of

the extent and costs of work required;

however, these will be updated as work

progresses or as government legislation

or regulations develop.

Response/mitigation

 A dedicated Building Safety Unit (BSU) has been

setup to manage the remediation work.

 BSU undertakes independent reviews and

investigations of legacy buildings.

 BSU Steering Committee meets fortnightly to

reviewongoing remedial work, investigations

andcurrent valuations.

 Assumptions on the estimated financial costs

havebeen tested and challenged robustly.

Key risk indicators

Gross and operating margin,

PBT, ROCE, EPS.

Investing in our people

Safety, health and environment

Risk level:

Velocity: Moderate

Risk appetite:

Responsibility:

Safety, Health and Environment

Operations Committee

Risk description

Health and safety or environmental

incidents or compliance breaches can

impact employees, sub-contractors,

customers and site visitors, and

undermine the creation of a great place

to work and visit.

Response/mitigation

 Dedicated internal health and safety team.

 Regular health and safety monitoring, internal and

external audits of all operational units, and regular

senior management reviews of developments.

 SHE management system that continually reinforces

Group SHE policies and procedures.

 Dedicated SHE Board and SHE Operations Committee

that review key performance indicators and

improvement plans.

 Quarterly performance reviews by divisional

management in all operating units.

 Independent external reviews of our SHE processes.

Key risk indicators

Health and safety (SHE)

auditcompliance.

Change from previous year

Increase Decrease

Risk level/appetite

High risk

Medium risk

Low risk

No change

New

76 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Investing in our people continued

Attracting and retaining high-calibre employees

Risk level:

Velocity: Slow

Risk appetite:

Responsibility:

Executive Committee

Risk description

Increasing competition for skills may

mean we are unable to recruit and/or

retain the best people. Having sufficient

skilled employees is critical to delivery

of the Group’s strategy of volume

growth whilst maintaining excellence

inall of our other strategic priorities.

Response/mitigation

 Comprehensive HR programmes covering

apprenticeships, graduate development, succession

planning and training academies.

 Personal development plans for all employees.

 Development of a hybrid working model.

 Monitoring of employee turnover, absence statistics

and independent feedback from exit interviews.

 Annual employee engagement survey to measure

employee satisfaction.

 Remuneration benchmarking against competitors.

 Diversity and Inclusion Strategy and policy.

Key risk indicators

Employee engagement score.

Underlying all priorities

Information technology

Risk level:

Velocity: Rapid

Risk appetite:

Responsibility:

Risk Committee

Risk description

Failure of any of the Group’s key

systems, particularly those for financial

and customer information, surveying

and valuation, through a successful

cyber attack or lack of investment

leading to outdated systems, could

restrict operations and disrupt progress

in delivering strategic priorities.

Response/mitigation

 Regular external reviews to reduce the risk of

successful cyber attacks, including vulnerability and

penetration tests by third parties.

 Group-wide compliance and policies on passwords

and transferring data to third parties.

 Mandatory information security training programme

for all employees.

 Adoption of the recognised NIST control framework.

 Cyber security insurance policy.

 Continued investment in IT infrastructure.

 IT disaster recovery plan.

 Development of critical process business

continuityplans.

Key risk indicators

Customer service, gross

andoperating margin, PBT,

ROCE,EPS.

Risk management continued

Principal risks continued

77Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Environmental, social and governance

Risk level:

Velocity: Moderate

Risk appetite: Responsibility:

Sustainability Committee

Risk description

In the short to medium term, if the

Group does not further enhance its

sustainable business practices to

respond to loss of biodiversity, water

usage reduction and climate change

regulations, as well as meeting its

social and governance responsibilities

relating to modern slavery and human

rights, this will result in a failure to meet

customer and investor expectations.

Response/mitigation

 Board Sustainability Committee to oversee the

business’ response to climate risks.

 Committed to reducing the Group’s carbon

emissions, including those from its completed homes

and supplychain.

 Review of Future Homes Standard, effective in 2025,

to adapt and plan for compliance.

 Climate risk and opportunities continually being

embedded within everyday business operations.

 Progressed scenario analysis to determine the

resilience of the Group’s business model under

different climate-related scenarios.

Key risk indicators

Carbon intensity, waste

intensity, health and safety

audits. In line with our

sustainability goals on

page48 and 49.

Business resilience and continuity

Risk level:

Velocity: Rapid

Risk appetite:

Responsibility:

Executive Committee

Risk description

Inability to continue the business due

toa major unexpected incident or event

out of our control, such as a natural

disaster, global pandemic or UK

epidemic, or disruption to national

infrastructure, could cause significant

disruption to the Group’s business

operations, employees, customers,

supply chain, or other third party.

Response/mitigation

 Development of business continuity plans for critical

business processes.

 Stress-testing of the Group’s available financing facilities

to ensure resilience to a sudden economic shock.

 Formation of the Business Resilience Steering Group.

Key risk indicators

Total indebtedness/surplus,

ITtesting, KPS’s.

Risk level/appetite

Change from previous year

High risk

Increase

Medium risk

Decrease

Low risk

No change

New

Strategic Report

78 Barratt Developments PLC Annual Report and Accounts 2023

Leading the industry in

response to climate change

Climate-related risks and opportunities

Guiding

ourbusiness

Our climate is changing, and so is the

world in response. We want to be at the

forefront of the UK’s climate strategy and

make sure our business is well

positioned for the future.

Page 80 shows how the response to climate

change is governed in our business

Pages 82 to 87 detail how we assess the risks

and opportunities that may arise as society

and the environment evolve

Understanding

the future

To plan for how the business will operate

in a future climate, we must first

understand what that future may be. The

outcomes from climate change, both the

physical impacts and the regulatory

response, are uncertain, so we have

updated our scenario analysis to

understand how each possible outcome

will affect our industry, the homes we

build and our customers.

See page 88 for our scenario analysis

See page 83 for the most significant risks

andopportunities that will arise from

thesescenarios

This analysis guides our strategy to ensure

wecontinue to provide value to all of our

stakeholders in the new trading environment

Aligning our operations

tonetzero carbon

Our analysis shows that reducing our greenhouse gas

emissions is not only important for the planet, but also for

protecting the profitability of our business. First, we must

lead by example. We are working to better understand our

carbon footprint (through the data monitoring improvements

highlighted on page 94) and working towards our science-based

targets (see page 98).

Our greatest impact, and our greatest opportunity to affect

change, is within our supply chain. We are working with our

partners to understand and reduce their emissions.

Strategic Report

79Barratt Developments PLC Annual Report and Accounts 2023

Homes for

thefuture

As detailed on page 47, the provision of

new homes is essential for the nation to

achieve its net zero targets and our

customers are increasingly conscious of

their energy efficiency and the resilience

of the homes they buy to changes in

climate. We are meeting these challenges

by leading the industry in researching

technologies and developing house

designs with thefuture in mind.

Building regulations, Energy House

andZedHouse – see page 34

Overheating adjustments – see page 47

Local weather adaptation – see page 82

Helping our

customers

Families are already feeling the effect of

rising energy costs and higher interest

rates on mortgages. Energy efficient

homes can reduce costs and unlock

access to green mortgages for

ourcustomers.

Our work with lenders on green mortgage

opportunities is discussed on page 31

Our home energy efficiency targets, and

progress against them, are on page 47

A sustainable business

model

The business has a duty to its stakeholders to ensure that it can

operate sustainably over the long- term. Our scenario analysis

allows us to stress-test the resilience of our businessmodel to

climate change.

Page 89 shows the financial effect on thebusiness and on page 90 we

conclude that our planning has made us resilient toall outcomes

However, we want to do more and our pathway to transition to a more

sustainable business is shown on page 91

80 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

CLIMATE GOVERNANCE

Leading the business in its climate response

The Board has ultimate responsibility for overseeing our

response to climate change. The Chief Executive is the Board

member who holds individual responsibility.

The Sustainability Committee, chaired by the Chief Executive,

isthe Board sub-committee responsible for debating, reviewing

and scrutinising our sustainability and climate change strategy,

monitoring its implementation and the approval of plans to mitigate

risks and leverage opportunities.

Implementing strategy

The Sustainability Committee approves and oversees initiatives

to react to the climate-related risks and opportunities and

assists the wider Board in integrating climate thinking into

theGroup’s wider strategy. Actions taken in the year included:

 approval of the net zero transition pathway (page 91);

 oversight of improvements to climate data collection

andmonitoring (page 98);

 review by the Chief Financial Officer of the climate-related

scenario (pages 88 to 89) analysis;

 advising on the appropriate metrics and targets to monitor

anddrive the achievement of our climate goals; and

 monitoring performance in those metrics (pages 96 to 98).

Other climate-related responsibilities delegated to sub-

committees of the Board include:

 design of incentives to achieve our climate targets

(Remuneration Committee, page 137);

 SHE-related risk and compliance (SHE Committee, page 133); and

 integrity of disclosure (Audit Committee, page 124).

Climate-related risks and opportunities continued

Remuneration Committee

(page 137)

Designs the Group’s remuneration

policy to incentivise performance

against climate-related targets,

asdetailed on page 96.

Monitors performance against

targets and approves

remunerationaccordingly.

Audit Committee

(page 124)

Monitors the integrity of climate-

related disclosures and data

reporting through internal and

external assurance of the reporting of

climate-related metrics and ensures

compliance with external climate-

related reporting requirements.

SHE Committee

(page 133)

Monitors the effect of climate-related

SHE risks, such as the impact of

weather patterns on our workforce,

and compliance with certain site-

based environmental initiatives, such

as waste reduction.

Risk Committee

Evaluates the Group’s internal control policies and procedures over

the identification, assessment, andreporting of climate-related risks.

Reviews the Group’s overall risk profile, examining climate-related risks in the context

of the Group’s other principal risks and its significance to strategy.

The structure of the Group’s governance is shown in detail onpage 114.

Staying informed

Climate understanding and the world’s response to it continue

toevolve. To ensure that the Group’s short-, medium-, and

long-term strategies are responsive to climate change risks,

the sub-committee aims to stay up to date with evolving

climatechange developments. During the year, the

Sustainability Committee received the following updates

relating to climate change:

 The Chair of the Energy Transitions Commission delivered

apresentation on environmental economics, the potential

impact of carbon pricing, and the difficulties in transition

tonet zero for hard to abate sectors.

 The Group Sustainability team took the committee through

anumber of working sessions advising on the available

approaches to managing the Group’s emissions. This included

analyses of various elements of the net zero transition pathway,

international best practice examples, internal carbon pricing

and carbon offsetting.

The Committee also continues to be attended by an independent

expert. During the climate risk assessment process, and on

anongoing basis through the Sustainable Operations Group,

senior management also receive updates on the current and

emerging climate understanding to ensure the organisation is

well briefed when developing responses to climate challenges.

81Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Taskforce for Climate-related Financial

Disclosures(TCFD)

The Group aims to be the leading national sustainable

housebuilder and our TCFD programme is a reflection

ofthatintent.

Our strategy and approach to risk management includes

scenario analyses and assessing the potential financial impacts

of climate change risks and opportunities on the business.

Aswe have worked through our assessment, the Group has

used internal subject matter experts, as well as external

advisers to support robust and thorough analysis. Our

established targets and metrics are shown in this report,

though we expect these to continue to develop over time as

ourunderstanding of climate change risk evolves.

TCFD area Page reference to content

Governance 42

Strategy 90

Risk management 82

Metrics and targets 96

The Company can state that in accordance with Listing Rule

9.8.6 R, these Annual Report and Accounts include climate-

related financial disclosures consistent with 11 out of 11 TCFD

recommendations and recommended disclosures.

Assurance

Deloitte has provided independent third-party limited

assurance in accordance with the International Standard for

Assurance Engagements 3000 (ISAE 3000) and Assurance

Engagements on Greenhouse Gas Statements (ISAE 3410)

issued by the International Auditing and Assurance Standards

Board (IAASB) over the TCFD on pages 80 to 98 and selected

metrics on page 96. Deloitte’s full unqualified assurance

opinion, which includes details of the selected metrics assured,

can be found at www.barrattdevelopments.co.uk/building-

sustainably/our-publications-and-policies/publications.

82 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Climate-related risks and opportunities continued

CLIMATE RISK MANAGEMENT

The outcome of climate change is uncertain and will depend on

the world’s success in limiting the rise in global temperatures,

aswell as the specific regulatory responses where we and our

supply chain operate. The effects will be wide ranging, including

the physical impacts of new weather patterns (physical risks) and

the regulatory, social, and economic effects of transitioning to a

low carbon economy (transition risks). Opportunities may also

arise as the country looks to industry leaders to drive sustainable

developments and provide homes fit for the future.

As the climate changes, Barratt will need to adapt to ensure we

can continue to deliver the homes our customers need within the

changing environment. These changes offer both opportunities

and risks to Barratt, which overall the Group identifies as a

principal risk built into its risk management process detailed on

page 83.

Climate-related risks relevant to each region or function are

considered in individual bottom-up risk assessments. These

include climate-related legislation or regulations that are

applicable to their field, for example the Future Homes Standard

for building regulations.

In addition, all climate risks and opportunities are considered

together as part of the assessment of Group-level risks. A review

of all the potential effects of climate outcomes on our business

requires an understanding of the climate predictions and the

collective knowledge of our business experts. We therefore

undertake a thorough annual risk and opportunities assessment

in addition to our risk management process, as detailed here:

Climate risk and opportunities assessment process

Identify

We identify the possible outcomes of climate change by consideringvarying

levels of global response and resultant change in weather patterns.

Thescenarios considered are shown on page 83.

Consider Impact

The possible climate outcomes are shared with business leaders and local

management, who are asked to consider the impact of these circumstances

on the business. All risks are included in a climate risk register.

Review

The risks and opportunities identified are discussed in workshops of internal

subject matter experts, local and Group senior management and external

climate experts, using the benefit of our housebuilding experience to

determine which risks and opportunities are most likely to manifest and have

the highest potential impact. In FY23 we were able to call upon the strategic

land expertise of Gladman for the first time.

The most relevant risks and opportunities are listed on pages 84 to 87. These

are reported to the Risk Committee.

Highest potential impact

risks and opportunities

Emerging risks and

opportunities

After further consultation with

business experts, we identify the

underlying data and assumptions

required to estimate the financial

impact of the risks and opportunities.

Low impact

risks and

opportunities

are subject to

a high-level

assessment to

consider those

that should be

subject to future

monitoring.

External

experts are

also engaged

to highlight any

emerging risks

that have not

been identified,

including any

new or potential

regulations.

We consider

whether

any should

be subject

to detailed

modelling in

thenext cycle.

We estimate the unmitigated financial

impact under each climate outcome

in the short, medium and long term.

The financial effects are considered

individually and in aggregate

through our climate-related risk &

opportunities register and scenario

analysis on pages 84 to 87 and 89

respectively.

The results of the risk assessment are reviewed by senior management

andthe Sustainability Committee to inform Group strategy going forward,

asdetailed on page 90.

Risk assessment criteria

The likelihood and potential impact of each risk are rated in line

with the Group’s risk assessment process, shown in the Risk

assessment criteria table on pages 84 to 87.

The impact assessment reflects the estimated profit impact of a

risk/opportunity within the financial year and climate scenario in

which the financial impact is likely to be most severe. Where the

profit impact of a long-term obligation would be recognised up

front, the financial impact is spread over the period that it will be

realised for this purpose. Our definition of a substantial financial

impact of over £50m is within the range set by our statutory

auditor over recent years for Group financial materiality.

This assessment considers short-term (2025), medium-term

(2030), and long-term (2040-2050) time horizons. This range of

time horizons considers a longer period than our usual

operational cycle and has been selected to align to our existing

science-based emissions reduction targets, whilst capturing

transitional and physical risks that manifest over the longer

term. The short-term timeframe aligns with our owned land

bank, while the medium- to long-term encompasses our

strategic land options and promotion agreements.

Short term

Medium term

Long term

2023

2025

Scope 1&2 SBTi

Future Homes Standard

2030

Scope 3 SBTi

Barratt zero carbon home targets

Barratt target to achieve

net zero by 2040

2050

Paris Agreement and UK target for net zero

Risk assessment timeframes

83Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Low

Proactive

Significant

Velocity of regulatory environment

Customer engagement with climate action

Climate outcome scenarios

The potential climate outcomes considered this year when reviewing climate risks and opportunities ranged from a sustainable

transition scenario that limits global warming to 1.5°C, to an adaptation scenario where emissions continue on the current pathway,

which leads to around 4°C warming, such that they cover both high physical and high transition risks. Qualitative assessments for each of

these climate scenarios are outlined below. Together with the quantitative analyses summarised on page 89, these narratives provide a

holistic view on the potential impacts to Barratt in each of these climate outcomes.

1.5°C

Sustainable transition

We have used the IEA’s “Net Zero Emissions by

2050” (NZE2050) to model a long-term orderly

transition to a low carbon economy occurring

over the long term as sufficient regulatory

action is taken to limit the global temperature

rise to the Paris goal of 1.5°C by 2100, resulting

in significant transition risks, while minimising

physical risks.

2.0°C

Disorderly transition

We have developed a bespoke scenario,

adjusting IEA’s “Net Zero Emissions by

2050” model such that it reflects a disorderly

transition, whereby limited regulation is in place

until 2030, requiring extreme policies to be

introduced from this date to limit warming to

2°C by 2100. This sudden, disorderly transition

to a low carbon economy, occurring over the

medium term, results in maximum transition

risk, while limiting physical risks to a low level.

4.0°C

Adaptation

Global policy shifts away from prevention and

towards adapting to a new climate, leading to a

global temperature rise of 4°C by 2100, giving

rise to maximum physical risks.

Increasingly stringent building regulations go

beyond the Future Homes Standard, placing

greater emphasis on reducing embodied

carbon and resource intensity within the

home. Additionally, local planning authorities

increasingly require developments to exceed

building regulations, placing greater emphasis

on sustainable communities.

There is increased customer demand for green

homes, which issupported by the availability of

green mortgage products, enabling customers

to benefit from the improved affordability

ofenergy efficient new homes.

The transition to net zero is supported by supply

chains, which offerinnovative low carbon

solutions, encouraged by high carbon prices

associated with carbon intensive materials/

processes. Technological progress is fast,

though may require additional upskilling for

employees and sub-contractors.

The impacts of physical risks such as

overheating and flooding continue at

manageable levels, with existing/planned

regulation and planning requirements sufficient

to manage these impacts.

The impacts of physical risks such as

overheating and flooding continue at

manageable levels, with existing/planned

regulation and planning requirements sufficient

to manage these impacts.

Increased frequency of severe weather leads to

increased disruption on site, giving rise to risk

of damage as well as delays. Increased risks of

flooding and water scarcity drive up demand for

land in relatively less affected areas of the UK,

raising land prices in these areas. Additional

cooling solutions are required in homes at risk

ofoverheating in the worst affected areas.

To discourage the use of high carbon materials,

significant increases in carbon prices are

implemented from 2030 onwards. Similarly, the

increased demand for sustainable materials

and technologies also drive steep increases in

costs from 2030.

Supply chain action to reduce emissions is

minimal, with limited innovation in low carbon

alternatives to existing materials. Global supply

chains are also susceptible to severe weather

resulting in risk of delays, as well as indirectly

driving up prices as demand for raw materials

increases from less affected areas.

Until 2030 customer demand and the availability

of green finance for low carbon homes remain

at current levels, but these also increase

sharply from 2030 onwards.

Consumers typically continue to lead energy

intensive lifestyles with little demand for

resource efficiency measures in new homes.

The Future Homes Standard is introduced as

planned, but building and planning regulations

steeply increase sustainability requirements

from 2030.

While regulations such as the Future Homes

Standard still come in as planned, the demand

for sustainable developments from planning

authorities eases and carbon pricing reduces.

Supply chain engagement with climate

Physical impact

Delayed then significant Low

InactiveReactive

Reactive Inactive

HighLow

84 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Climate-related risks and opportunities continued

Risk rating

Maximum unmitigated

Financial Statements impact

Timeframe

Scenario sensitivity Our ongoing responseShort Medium Long

Transition risks

Housing regulations

Changes to house specifications

required due to Government legislation

designed to reduce home emissions,

forexample theFuture Homes Standard,

including varying standards across

theUK.

Increased build cost of sales

by £5m-£205m

Sustainable transition

Disorderly transition

Adaptation

We continue to engage Government at ministerial level on a range of critical

sustainability issues, as well as directly with relevant senior officials, via the UK Net

Zero Buildings Council. We also support the Net Zero All Party Parliamentary Group

and input into conversations around supply chain challenges to meet future energy

demand for energy efficiency measures.

Carbon pricing

Increasing material and sub-contractor

costs due to Government legislation

designed to reduce emissions, for example

carbon taxation on suppliers/increased

demand for low-carbon materials.

Increased build cost of sales

by £50m-£620m

Sustainable transition

Disorderly transition

Adaptation

We were the first national housebuilder to implement science-based targets for our

scope 1 and 2 and scope 3 emissions, allowing us to take a leadership role in driving

down emissions. We have commissioned a carbon price exposure analysis to establish

its potential impact and have identified opportunities for mitigation through our net

zero transitionpathway on page 91.

New technologies

Implementation of new technologies

inhomes and new methods of

construction, requiring high capital

investment and upskilling of labour.

Increased build cost of sales

by £10m-£30m

Sustainable transition

Disorderly transition

Adaptation

Through market research, product testing, university and research partnership,

prototype test houses, and grant endorsed trials, we examine low carbon products,

systems and processes for our housing types. We have accelerated these

programmes through the Zed House and Energy House 2.0 to ensure a full view of

available technology.

Planning requirements

Increasing planning or site

infrastructure requirements from

Government and local authorities

resultin reduced viability of land

incertainregions.

Increased build cost of sales

by £25m-£75m

Sustainable transition

Disorderly transition

Adaptation

Our specialised divisional land teams, as well as the Gladman team, possess extensive

local knowledge and strong relationships with landowners which are vital to ensure

we remain the developer of choice. To support further engagement and ensure our

sustainability credentials are recognised when we bid for land, we have developed a

sustainability toolkit for use by our land and planning teams. This includes detailed

information on our approach to the Future Homes Standard, zero carbon homes,

biodiversity and socio-economic outcomes.

Water scarcity

Increased water scarcity in areas of

proposed developments leading to a

lack of consistent water supply for

newhomes.

Increased build cost of sales

by up to £5m

Sustainable transition

Disorderly transition

Adaptation

We are aware of the growing significance of water scarcity in the UK, which has

resulted in a new climate-related risk. We are constantly communicating internally

withour innovation, utilities and infrastructure teams performing water scarcity scenario

analysis on land and regions that will be affected across the UK. Water recovery systems

and net water consumption are important mitigating variables in ourresponse.

CLIMATE-RELATED RISKS AND OPPORTUNITIES

Risk level /appetite

High risk

Medium risk

Low risk

85Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

Risk rating

Maximum unmitigated

Financial Statements impact

Timeframe

Scenario sensitivity Our ongoing responseShort Medium Long

Transition risks

Housing regulations

Changes to house specifications

required due to Government legislation

designed to reduce home emissions,

forexample theFuture Homes Standard,

including varying standards across

theUK.

Increased build cost of sales

by £5m-£205m

Sustainable transition

Disorderly transition

Adaptation

We continue to engage Government at ministerial level on a range of critical

sustainability issues, as well as directly with relevant senior officials, via the UK Net

Zero Buildings Council. We also support the Net Zero All Party Parliamentary Group

and input into conversations around supply chain challenges to meet future energy

demand for energy efficiency measures.

Carbon pricing

Increasing material and sub-contractor

costs due to Government legislation

designed to reduce emissions, for example

carbon taxation on suppliers/increased

demand for low-carbon materials.

Increased build cost of sales

by £50m-£620m

Sustainable transition

Disorderly transition

Adaptation

We were the first national housebuilder to implement science-based targets for our

scope 1 and 2 and scope 3 emissions, allowing us to take a leadership role in driving

down emissions. We have commissioned a carbon price exposure analysis to establish

its potential impact and have identified opportunities for mitigation through our net

zero transitionpathway on page 91.

New technologies

Implementation of new technologies

inhomes and new methods of

construction, requiring high capital

investment and upskilling of labour.

Increased build cost of sales

by £10m-£30m

Sustainable transition

Disorderly transition

Adaptation

Through market research, product testing, university and research partnership,

prototype test houses, and grant endorsed trials, we examine low carbon products,

systems and processes for our housing types. We have accelerated these

programmes through the Zed House and Energy House 2.0 to ensure a full view of

available technology.

Planning requirements

Increasing planning or site

infrastructure requirements from

Government and local authorities

resultin reduced viability of land

incertainregions.

Increased build cost of sales

by £25m-£75m

Sustainable transition

Disorderly transition

Adaptation

Our specialised divisional land teams, as well as the Gladman team, possess extensive

local knowledge and strong relationships with landowners which are vital to ensure

we remain the developer of choice. To support further engagement and ensure our

sustainability credentials are recognised when we bid for land, we have developed a

sustainability toolkit for use by our land and planning teams. This includes detailed

information on our approach to the Future Homes Standard, zero carbon homes,

biodiversity and socio-economic outcomes.

Water scarcity

Increased water scarcity in areas of

proposed developments leading to a

lack of consistent water supply for

newhomes.

Increased build cost of sales

by up to £5m

Sustainable transition

Disorderly transition

Adaptation

We are aware of the growing significance of water scarcity in the UK, which has

resulted in a new climate-related risk. We are constantly communicating internally

withour innovation, utilities and infrastructure teams performing water scarcity scenario

analysis on land and regions that will be affected across the UK. Water recovery systems

and net water consumption are important mitigating variables in ourresponse.

Low

High

Scenario sensitivity key

86 Barratt Developments PLC Annual Report and Accounts 2023

Strategic Report

CLIMATE-RELATED RISKS AND OPPORTUNITIES continued

Climate-related risks and opportunities continued

Risk rating

Maximum unmitigated

Financial Statements impact

Timeframe

Scenario sensitivity Our ongoing responseShort Medium Long

Physical risks

Overheating in homes

Changes to house specifications

required to mitigate long-term shift in

climate patterns, such as prolonged

increased temperatures insummer.

Increased build cost of sales by

up to £35m

Sustainable transition

Disorderly transition

Adaptation

Barratt has created an industry-leading project that will test the effects of climate

change and look at ways that the homes of the future can withstand more extreme

weather conditions. Known as Energy House 2.0, the specially-built climate chamber

recreates temperatures ranging from -20˚C to +40˚C, as well as simulating wind, rain,

snow and solar radiation. This research will inform us of how various overheating

adaptation technologies perform.

Flood mitigation

New site infrastructure required

tomitigate extreme weather events,

forexample flood barriers and

balancingponds.

Increased build cost of sales by

up to £5m

Sustainable transition

Disorderly transition

Adaptation

Flood risk assessments are a key part of our land appraisals. We are proactively

mitigating this risk through ongoing programmes of work, continual horizon scanning

and engaging with key stakeholders to conduct extensive research through highly

skilled internal and external experts.

Weather disruption

Disruption to build activity due to

increased frequency of severe weather,

being heat, cold or precipitation, or

damage to construction sites from

extreme weather events.

Increased build cost of sales

and decreased revenue by up to

£5m

Sustainable transition

Disorderly transition

Adaptation

We closely monitor weather forecasts to ensure worker safety and prepare or adjust

build schedules as appropriate. A crisis management plan is in place for extreme

weather events. Modern Methods of Construction (MMC), such as timber frame, allow

for parts of the construction process to occur offsite, increasing build speed and

reducing exposure to the elements before it is sealed. Mitigation is largely through

MMC, building efficiency and supply chain engagement.

Supply availability

Reduced supply availability (for instance

timber) as a consequence of long-term

shift in climate patterns and extreme

weather events (e.g. wildfires, flooding)

where the supply issourced.

Increased build cost of sales by

up to £5m

Sustainable transition

Disorderly transition

Adaptation

We regularly engage with our suppliers on availability of materials and sustainable

sourcing both directly and through our Supply Chain Sustainability School. We purchase

99.84% of our timber from FSC or PEFC certified sources and consider supply

sustainability at tender and contract renewal stage. The management of sustainability and

climate change risks and opportunities in the supply chain is intrinsic to our operations and

procurement framework.

Opportunities

Demand for and affordability

of green homes

Eligibility for green mortgages and cost

savings from energy efficiency allow for

a premium to be charged on new homes.

Increased revenues by

£30m-£320m

Sustainable transition

Disorderly transition

Adaptation

We are working directly with mortgage lenders to develop enhanced mortgage

products that recognise the advantages of our new build homes. During FY23, we

collaborated with The Leeds Building Society to support the launch of a new green

mortgage product which recognised the advantages inherent in our new homes and

has the potential to unlock up to a 10% uplift in lending. Moreover, through Government

engagement and notably through the Future Homes Hub, Barratt’s Head of Mortgage

Lender Relations chairs the “Valuation Group”, which is considering how the value of

sustainable benefits of new homes can be recognised in the mortgage

valuationprocess.

Green developments

Increased land buying and local

partnership opportunities through

strong low-carbon credentials and

offerof low-carbon developments,

forinstance partnering with councils

todeliver low carbon homes.

Decreased land cost of sales by

£30m-£70m

Sustainable transition

Disorderly transition

Adaptation

We engage with landowners regularly via our land and planning and dedicated public

land function. In the past year, we have seen increased direct engagement with

landowners on sustainability, with the Group Sustainability Director attending three

presentations with national and regional landowners to spotlight on sustainability.

Cost of capital

Barratt’s sustainability performance

opens green financing opportunities,

providing access to lower interest rates.

Decreased finance costs by up

to £2m

Sustainable transition

Disorderly transition

Adaptation

Within our Building Sustainably Framework, we outline our commitment to “unlocking

green lending and finance”, including “exploring the potential of new green finance

products for our business”. We have linked our Revolving Credit Facility (RCF) to

sustainability performance through a sustainability-linked loan mechanism – see page 45.

Sustainable practices

Proactive adoption of low-emission

materials and processes, ahead of

regulation, provides a cost advantage

and improves reputation.

Decreased build cost of sales by

up to £10m

Sustainable transition

Disorderly transition

Adaptation

We previously conducted detailed comparative studies of timber waste in partnership

with our timber frame company, Oregon Timber Frame and other key suppliers. This

involved a close examination of the origin of the waste created in thebuilding lifecycle,

the type of waste and wood type.

Risk level /appetite

High risk

Medium risk

Low risk

87Barratt Developments PLC Annual Report and Accounts 2023