BUSINESS HELPDESK A BOOST HELP DESK
BUSINESSES ARE FEELING the effects of rising costs with increases in energy prices Employers’ National Insurance Contributions, the National Minimum Wage, the National Living Wage, and Capital Gains Tax coming into effect in April. Many are also having to factor in the impact of President Trump’s tariffs.
However, the news isn’t universally bad. Two areas of government policy that are likely to have a positive effect on the building materials supply chain were announced as part of the Chancellor’s Spring Statement in March: the Affordable Housing Programme (AHP) and a Construction Skills Package.
Affordable Housing Programme 2026 and beyond
The current programme of taxpayer-funded support for Affordable Housing ends in a year’s time. Ministers are due to agree and set out funding arrangements for the next AHP (from April 2026 and beyond) when the Chancellor unveils the Spending Review in June 2025. The Chancellor earmarked £2 billion of new money to the Deputy Prime Minister for the next AHP to reaffirm the Government’s commitment to social & affordable housing.
It is welcome news and a market stimulus that (among others) the National Housing Federation and BMF asked for. It provides certainty ahead of the Spending Review, and the funds will go towards 18,000 new homes. Housing associations and local councils can now bid for money for new developments around England, including sites in Thanet, Sunderland and Swindon.
However, the funding will only be used to support development on sites that will start by March 2027 and be delivered during this Parliament. Getting spades in the ground to build homes quickly is a pre-requisite.
The £2 billion investment is billed as a down payment from the Treasury ahead of more long-term investment in social and affordable housing, to be announced later this year, which will provide additional funding for 2026-27 as well as for future years.
Construction Skills Package
The Chancellor committed £625 million over four years to boost existing training programmes, attract more workers, and support employers to invest in training in England.
Ministers are aware of an urgent need to increase the overall size of the workforce and to improve skills and competency needed to deliver their plans to build 1.5 million homes in England and vital
April 2025
www.buildersmerchantsjournal.net
infrastructure projects. This money is aimed at recruiting up to 60,000 additional skilled workers. Included in this £625 million funding package: • £100m will support 35,000 construction skills bootcamp places. • £40m will pay for 10,000 extra places on new construction Foundation Apprenticeships. • £165m will boost funding for providers to deliver more training courses including qualifications that attract the High Value Course Premium and Free Courses for Jobs at level 3 qualifications. • £100m to establish 10 new Technical Excellence Colleges that specialise in construction in every region in England. • a new Teacher Industry Exchange scheme to attract industry experts to teach in further education.
Looking ahead In June we should see the Chancellor’s Spending Review for the three years 2026/2027 to 2028/2029. At that time, the Government is also due to reveal other strategies and policies that affect BMF members and other businesses in the building materials supply chain, namely: • Ten Year Infrastructure Plan • Long-Term Housing Strategy • Warm Homes Plan • Modern Industrial Strategy • National Integrated Transport Strategy • Strategic Spatial Energy Plan In addition, the New Towns Taskforce is due to publish its findings on the likely locations of the 10-12 candidates for a new settlement in England. BMJ
BMF members receive regular briefings and updates on Government strategies and investment, upcoming legislation and other external factors affecting our sector, through bulletins, face-to-face regional meetings and specialist forums. Find out more about becoming a BMF member at
www.bmf.org.uk, or email
info@bmf.org.uk
13
FOR HOUSING
Brett Amphlett, Policy & Public Affairs Manager at the BMF, outlines the latest Government plans
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