Designing Buildings – the construction sector’s knowledge base as well as host and partner to the IHBC’s Conservation Wiki – has posted a summary of some industry responses to the 2023 Spring Budget, with more select links on offer to NewsBlog readers from the IHBC.
image: Open Government Licence v3.0
For more details see:
- Government: https://www.gov.uk/government/publications/spring-budget-2023/spring-budget-2023-html
- Designing Buildings: https://www.designingbuildings.co.uk/wiki/2023_Spring_Budget_summary_and_industry_response
- RTPI: https://www.rtpi.org.uk/news/2023/march/chief-executive-of-the-rtpi-responds-to-the-spring-budget-2023/
- RIBA: https://www.architecture.com/knowledge-and-resources/knowledge-landing-page/what-does-the-2023-spring-budget-mean-for-architects
- RICS: https://www.rics.org/news-insights/RICSbudget2023
- ICE: https://www.ice.org.uk/news-insight/news-and-blogs/ice-blogs/the-infrastructure-blog/uk-budget-2023-infrastructure-takeaways/
- FMB: https://www.fmb.org.uk/resource/budget-boost-to-tackle-construction-skills-shortages-says-fmb.html
DB writes:
…Early in the afternoon of the 15th of March 2023, Chancellor Jeremy Hunt unveiled what he described as a ‘Budget for growth’. He did so against the back drop of strikes amongst junior doctors, London Underground, civil servants, teachers, lecturers and BBC journalists. A copy of the full budget is available on the Government website, whilst as summary of key points and responses from industry are given below.
Summary in brief
As part of his announcement he stated that ‘Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year.’ He informed British MPs that the British economy was ‘proving the doubters wrong’ in the face of ‘enormous challenges’ and a number of measures would boost efforts to get people back to work such as;
Energy
The energy price guarantee rise has been axed with the cap remaining at £2,500 for an additional three months to help ‘bridge’ the gap as companies wait for wholesale prices to fall. Whilst for homes he said ‘High energy bills are one of the biggest worries for families, which is why we’re maintaining the energy price guarantee at its current level.’
Development
12 new investment zones were announced, that will provide access to £80 million of support for raising skills and infrastructure. Meanwhile, over £200 million will be invested in local regeneration projects, including in Scotland, Wales, Northern Ireland, the North East, East and West Midlands, Manchester, Liverpool, Teeside, as well as South and West Yorkshire.
Business tax
A £1.8 billion package of support for SMEs who spend more than 40% of their total expenditure on R&D, who will be able to claim a credit worth £27 for every £100 they spend. An expenditure credit rate of 34% for the film and television industry and for theatres, orchestras and museums. The current 45% and 50% reliefs will be extended for two years.
Public funding
£100 million to support charity work that helps struggling families, £63 million to keep public pools and leisure centres open, and £10 million in extra funding over the next two years to help the voluntary sector…
… Chartered Institute of Building response
Eddie Tuttle, Director of policy, external affairs and research at CIOB said: ‘A number of the proposals in the budget statement will rely heavily on the construction sector, including the creation of new investment zones, growing renewable energy generation and local schemes to improve roads. The prospect of investment in local infrastructure will be welcome news to construction companies across the country.
‘Our concern however is that construction is already battling a huge skills gap, and this has to be addressed if the industry can play its vital part in delivering the Government’s growth plans. Schemes to get retired and disabled people back into work are unlikely to help fill many of the more physically demanding vacant roles, however we’re keen to hear more about the proposed ‘Returnerships’ which could be a good opportunity for older workers to retrain for less physical roles of which there are a growing number in the sector.
‘At a time when we’re looking to dramatically improve the diversity of the built environment workforce we were also pleased to hear the Chancellor’s plans on childcare costs which could help more women get into work. It’s important the construction sector now seizes this opportunity and works together with Government to promote the vast range of roles available and the value women can bring to what is typically a male dominated working environment.’…
Association for Project Management response
Association for Project Management (APM) has welcomed measures in the UK Government’s new Budget aimed at addressing issues affecting project delivery, but has called for more to be done to help projects fulfil their intended economic and social benefits.
Research outcomes ahead of announcement
Research by APM has shown that the UK’s project management sector employs 2.13 million full-time equivalent workers and adds £156.5bn of value to the UK economy each year. Ahead of the Budget, APM polled 100 senior project professionals about their concerns on issues that might impact the delivery of projects and programmes they’re working on. Nearly 9 out of 10 respondents (88%) said their main project was aligned to at least one government policy, highlighting the important role projects play in supporting government initiatives; both economic and social…
Barbour ABI response
Tom Hall, chief economist, Barbour ABI: ‘The twelve low-tax investment zones announced in the budget could provide a boost for the construction industry in areas which have not rebounded as strongly post-Covid.
‘In particular, our research suggests that contract values in the East Midlands have fallen 6% in 2021 and 2022 compared to figures before 2020, even with rising construction costs.
‘Meanwhile, other listed areas such as Manchester, Liverpool, West Midlands, Yorkshire and Scotland are currently some of the weaker areas in terms of contract awards value growth, though the Northeast is an outlier, having already experienced 70% growth in the past two years.
‘Subcontractors and suppliers would do well to explore these regions in the coming years to take advantage of any opportunities. However, there is a real danger that this will just be a case of moving money around and leaving other areas underinvested in. It’s also unlikely to make any difference to the significant imbalance between London and other regions.’..
