NEWS EXTRA
private landlords to invest in home improvements. “According to the National Association of Estate Agents (NAEA), each UK homeowner spends an average of £1,875 on their home; a total of £8 billion. Assuming that materials constitute at least 35%, a reduction of 5% in value added tax on the purchase of building materials by VAT registered companies until March 2022 would create significant uplift in demand as well as improving the existing housing stock.” Leonard adds. “35% of £8 billion means £2.8 billion on materials. A 5% reduction in the VAT levied on this would cost £140 million.” Support for local house builders: In 1988 small builders were responsible for four in ten new build homes compared with just 12% today, he says. “Small companies tend to be highly efficient in delivery of new homes to local markets. This is an historical tradition that, in the period between 1945 and 1985 was very common but has now all but disappeared. A £2 billion Business Bank fund should be established to offer up to 85% loan to value loans at less than 5% interest fixed for 2 years and secured against the land asset. Supported by a dedicated team of experts to advise on viability of schemes and recovery of projects in case of bad debt, this would represent a vital underpinning of a part of the sector that once represented a key element of speculative housing provision. Fuel Poverty and Climate Change: The report suggests that at least than one in ten households in the UK is living in fuel poverty with more than
two-and-a-half million families in 2016 unable to heat their homes without falling below the point at which they are considered ‘in poverty’. “Given the current crisis, this will have risen significantly ahead of the winter 2020. Fuel poverty blights lives and communities. It contributes to the viscous circle of poor health, continuing inequality and a pervading sense of hopelessness undermining confidence and aspiration. The government should devolve £500 million to regions and local authorities for direct intervention, using delivery mechanisms involving local companies.
Boiler Scrappage Scheme: “A simple scheme funded by Government could see 1 million owner occupiers offered a £500
“
We’ve had the job retention scheme, now it’s time for the job creation scheme.
”
scrappage offer on all boilers over 10 years old. The scheme would run up to the 5th April 2022. Assuming there are one million inefficient boilers replaced, such a scheme would cost £500 million.” Other recommendations that the report makes include a delay to the proposed changes to Building Regulations. “The next year should be focused on achieving uninterrupted growth
Recommendations and observations in the plan include:
• A phased return to work following specific guidelines can ensure the protection of construction sites during pandemic • Small house builders, often highly efficient and providers of local employment and procurement, must be given encouragement • Address fuel poverty through direct intervention by local authorities using local companies • Construction can offer long term skilled employment opportunities that can act as a catalyst in achieving inclusive economic growth • Provide incentives and highlight environmental benefits for consumers to replace inefficient and outdated gas boilers • 30,000 new social houses built per year for the next three years will address living standards, mobility and some shortfall • Proposed Building Regulation changes should be delayed in light of exceptional circumstances posed by pandemic • Construction must be made more attractive as a career choice to young people through regional marketing campaigns
helped by the postponement of the proposed changes to Part L and F of the Building Regulations until 2022. Home builders should be encouraged to build above and beyond current requirements and ensure that all new homes are built to Part L 2013 standards from April 2021. It would be a cost-effective and progressive solution, as it avoids any additional regulatory burden. The cost to the taxpayer would be zero.”
Recruitment and training of future talent: “Making construction more attractive to young people seeking a fulfilling and challenging career is crucial to long-term success. There should be greater connectivity between the students, educators and potential employers. Pathways to learning should be expanded and explicitly based on the needs that exist among employers,” Leonard says. A £5 million fund should be
made available to fund regional campaigns to market careers in the construction sector.
“Apprenticeships are the key to the long-term success of the wider construction industry. The current apprentice levy funding does not provide assistance to employment costs for SMEs who constitute 99.6% of potential employers. The Apprentice Levy should be partly used to fund 50% of the first-year employment costs for apprentices. This would give confidence to employers, opportunities for new entrants to develop their skills and offset risk in the initial period during which apprentices make limited contribution to a business trading performance.” “History tells us that the construction industry is the tried and tested solution to drive economic recovery, not least due to the fact we manufacture the vast majority of building materials in the UK which provides resilience, skilled jobs and fast returns on investment,” Leonard points out. The upstream and downstream jobs in manufacturing, architecture, planning, engineering, distribution and construction, creates an unrivalled multiplier that can achieve inclusive growth, building back better and helping to rebalance the economy. “We must now “Get Britain Building” and “Get Britain Working” delivering the scale of economic multiplier the UK economy needs to bounce back stronger.” BMJ
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www.buildersmerchantsjournal.net June 2020
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