VIEW FROM THE LOBBY
by Carol Wrench, head of Communications
Energy matters
We have written to the Chancellor urging him to maintain the momentum and announce further action on driving prompt payment
As the construction sector takes
tentative steps towards recovery, with more orders coming through, there is already talk of an anticipated skills shortage. Being the last in any building, this will have a knock-on effect on our sector, and the skills crisis – which we have long predicted – looks set to be a reality. We hope to see the government commit more funding to advanced (level 3) and higher apprenticeships (level 4 and above) to ensure that we have the homegrown talent to ensure a full recovery.
W
Business issues Thankfully, it’s not all doom and gloom.
hile the government is keeping its cards close to its chest, there is little doubt – given the recent
furore – that energy prices will be top of the agenda in the Chancellor’s Autumn Statement, due on 5 December. The Liberal Democrats are clear that the current review of regulatory energy costs will not include cutting support for renewable energy; and it is likely that they will prevail given that the energy secretary is a Liberal Democrat and Nick Clegg is personally supportive of green energy – something which they see as a ‘USP’ as we near the next election. While we hope that they succeed in these ambitions, nothing is definite and we would urge the government to maintain support for renewable electricity (and heat) generation, particularly to ensure that the UK remains a stable place for businesses to invest in ‘green’ energy. Although energy generation dominates current debate, we should not
underestimate or neglect the power of energy efficiency. Support for this needs to be enhanced; indeed, government should look to promote current initiatives better, such as the Green Deal, which have the potential to create savings in both energy use and bills.
Construction specific Despite the recent wave of economic
optimism and the first positive figures from the construction industry in years, we need to keep it real. While we cannot see the Chancellor committing to new infrastructure spending, delivery of existing projects in the infrastructure plan – particularly those that are not politically sensitive – should be expedited to ensure that ‘shovels hit the ground’. We are also unlikely to see the
Chancellor commit any new money to housing, due to the positive effect the Help to Buy Scheme is having on the housing market, with more than 2,300 signing-up for the scheme in the first month.
We are pleased that government has responded to our calls for main contractors to pass favourable payment terms down the supply chain. While this applies to public sector contracts, there is still work to be done in the private sector. George Osborne will be keen to shine a light on ‘bread and butter’ issues – and they don’t get more ‘bread and butter’ than payment. We have written to the Chancellor ahead of the statement, urging him to maintain the momentum and announce further action on driving prompt payment. To end on a couple of positive notes,
we hope that the Chancellor will confirm the ambition declared at the Conservative Party Conference to freeze fuel duty until after the next election. Lastly, there is also the possibility that SMEs may well be rewarded in some way after Labour announced it would cancel the government’s planned corporation tax cut in favour of putting the money saved towards lowering small business rates. All will be revealed soon.
16 ECA Today December 2013
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