NEWS EXTRA DISAPPOINTING BUDGET
THE BUILDERS MERCHANTS Federation has expressed its disappointment that the Chancellor’s speech did not include financial support needed to kick start the upgrade and decarbonisation of the UK’s housing stock.
However, it did welcomed the announcement of more investment in further education, which will help promote a low-carbon skills revolution.
BMF CEO John Newcomb said: “With the UNCOP26 Climate Conference less than a week away, we believe a National Retrofit Strategy is the best way to tackle an urgent national infrastructure priority - namely to improve the energy and thermal performance of homes - especially with rising gas prices adding to pressure on household bills.
“The BMF and others involved in property RMI put together the Construction Leadership Council’s 20-year fully-costed plan to improve existing homes; an investment of £5.3 billion over the next 4 years to tackle emissions.
“Today’s news means that international visitors arriving in Glasgow will see a missed opportunity to decarbonise by doing something simple - upgrading homes properly”. Welcoming Government support for further education as part of a low-carbon skills revolution, Newcomb also called for reform of the Apprenticeship Levy, saying: “The BMF is a strong believer in the parity of esteem between academic education and vocational training - so today’s announcement of more investment in further education, with employers and local colleges at the fore-front of the Chancellor’s Skills Revolution, is very welcome. “Apprenticeships are the established way into most crafts & trades we need now, and in future. But the Apprenticeship Levy is not
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DOESN’T HELP INDUSTRY The construction industry has expressed its disappointment at the 2021 Budget which many believe has missed a valuable opportunity.
particular: the announcements of a 12-month relief on businesses rate hikes arising from premises investment, the cancellation of the planned increase to the business rates multiplier, and the extension of the uplift to the Annual Investment Allowance will go some way to supporting manufacturers while we seek to exit the pandemic in the short-term.
working as it should and must be reformed to offer employers and learners a better experience. With numbers falling, significant sums of employer contributions remain unspent and are going straight to the Treasury.
“To match the scale and extent of the net zero challenge, all available funds should be redirected to boost apprenticeships that equip workers with the necessary technical or occupational skills - and the interpersonal skills to reassure homeowners and explain the carbon choices they can make.” Jeff May, Director of
Government Relations and Business Development at the Construction Products Association, said: “We think it is understandable that the focus of the Chancellor’s Budget today was on encouraging economic growth, fiscal discipline and resisting demands from the private sector for further expenditure, and rising inflation in all its forms triggering a vulnerability to interest rate rises. “We were disappointed to see little help for major industrial users with energy costs, or any further financial details on net zero strategies. That said, we welcome a handful of relevant items in
“Given the pre-Budget announcements around various net zero and related sustainability strategies, along with the release in September of the National Infrastructure and Construction Pipeline, the major elements of spending for our sector appear set. The key then, as always, will be delivery. If industry and government can work together and address the supply side risks in particular – labour and skills shortages, energy prices, logistics bottlenecks, for example – then the economic stimulus from our sector in support of this Budget will be considerable.”
Julie Hirigoyen, Chief Executive at UKGBC: “With the COP 26 conference just days away, the Chancellor’s announcements felt like they were from a different planet and a different time. Whilst we welcome changes to business rates to incentivize investment in renewable technologies, new research and development funding, and grants for local authorities, there were no big announcements to fill the clear gap that has emerged around decarbonising existing buildings.
“This was evidently the Chancellor’s big opportunity to plug the major gaps in the Government’s Net Zero and Heat and Buildings Strategies, and put the UK on a firm path to net zero over the next few years. By supporting the industry’s plan for a national programme to retrofit our homes, the Government could
have delivered substantial progress towards net zero and unlocked a new wave of green jobs to help level up the country. Instead, attention to net zero was tokenistic, repeating old announcements alongside incongruous headlines around carbon-intensive investment in roads, cutting air passenger duty and fuel-duty freezes.
“If the Chancellor is serious about building a strong, resilient economy, then turbocharging the green economy should be at the centre of all investment plans and skills initiatives, not merely be an afterthought. Every year that we fail to invest in tackling climate change increases the financial burden on future generations and Governments. With the UK’s green credentials in the spotlight (at COP26 in Glasgow), and public concern about climate change at an all-time high, these announcements could not be more disappointing.” Despite welcome announcements
on funding for skills, business rates and housing, it’s disappointing that the retrofit challenge to make our homes greener and more energy efficient has not been grasped by the Government, just four days ahead of the COP26 conference, the Federation of Master Builders agreed.
Chief executive Brian Berry said: “The Chancellor has missed the opportunity to give householders peace of mind about how they can tackle the net zero challenge. With nothing on retrofit for owner occupiers in last week’s Heat and Buildings Strategy, I’m struggling to see how the country will reach its legally binding net zero targets by 2050 if it doesn’t fix the UK’s 29 million leaky homes.”
Berry continued “I do, however, welcome the investment for skills and training confirmed at £3.8bn over this Parliament. Long-term skills shortages are delaying jobs for builders, with 60% reporting paused jobs in the latest FMB membership survey. I’m also glad to see further investment in housing, and warmly welcome the grant funding for local authorities to free-up small brownfield sites for housing given that land availability is the major obstacle to SME house builders. Relief for businesses by reducing the burden of the business rates system will be well received by some firms.” BMJ
www.buildersmerchantsjournal.net November 2021
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