Construction needs less but stronger leadership if it is to play its part in getting Britain in shape for leaving the EU, says Mark Beard.
Mark Beard
Historians will look back on 2016 as momentous year for the Anglo Saxon world: Donald Trump being elected president of the United States; the UK voting to leave the European Union; and Ireland, beating the mighty All Blacks, ending a 111-year wait.
In 2017, we look forward, with renewed optimism, to the British Lions’ three-match series against the All Blacks, as well as meeting new chancellor Philip Hammond’s Autumn Statement challenge to get Britain “match fit” for Brexit.
In my view, it is relatively easy for government to damage a thriving economy, but much harder for a prime minister, chancellor or business secretary to have a significant positive short-term impact on the economy.
Keeping a fairly light rein on day-to-day expenditure, while freeing up the small amount of funds available for investment in science, skills and infrastructure felt to me like a good first step to getting us in shape for Brexit.
Simplifying our tax system and minimising the direct taxation the poorest pay would be a good second step. Two taxes I would look closely at are employee’s national insurance, and rates on empty property rates and fixed plant.
The Coalition government and current Conservative administration have increasingly highlighted infrastructure investment as a social and economic priority. With Hinkley Point, HS2 and Heathrow expansion all taking significant steps forward in the past three months, the government’s £500bn 10-year capital expenditure pipeline is beginning to look more realistic.
As an industry, we have pleaded with government to spend more on our national infrastructure for years and it is pleasing to see political parties of all persuasions accepting the merits of our arguments. But how ready are we to deliver these projects efficiently, promptly and without fault?
I would say “mixed”. Our sites are infinitely better organised and safer than 10 years ago, we are less adversarial, work more constructively with our supply chain and are beginning to embed digital working into our daily activities. But too many projects are delivered late or with functional defects.
Fragmented representation
The recent merger of Constructing Excellence and the Building Research Establishment and the UK Contractors Group and the National Specialist Contractors Council combining to form Build UK are positive signs that the industry is coming together. However, our representation to government and our efforts to improve all still feel fragmented and consequently poorly funded.
Recent management changes at CITB have not helped, but I am sure an industry with one clear voice would have had a much better chance of avoiding the double blow of CITB and national training levies. Much of the funds raised are spent on administration and training which is only partly relevant to our needs.
"I am sure an industry with one clear voice would have had a much better chance of avoiding the double blow of CITB and national training levies."
At Beard, we spend several hundred thousand pounds a year on training and developing our staff — it gives us a competitive edge and helps make us an employer of choice. We do not need the added frictional costs and frustration of paying and seeking to reclaim two government imposed levies to invest in our people.
However, if levies are to be part of our trading landscape, I would be happier if priority was given to training which helps us develop as a modern, digitally engaged industry and channelled to smaller companies that would not otherwise train their staff.
One sector which has benefited from strong sector leadership is manufacturing. EEF, the trade body for engineering and manufacturing employers, is a well-resourced, well-respected organisation which represents large and small manufacturers alike, has clout with key government departments and consequently is able to provide strong leadership for and to its members.
Whether through continued voluntary mergers of the plethora of representative organisations in our industry or a major outside figure or event forcing change, I believe that we will be better able to play our part in making Britain ready for Brexit by coming together with less but stronger industry leadership. How exciting it would be if Build UK could invite the National Federation of Builders, Federation of Master Builders and eventually the British Property Federation to join.
It feels to me that whether we were leavers or remainers, the challenge now is to create a thriving, dynamic economy which is the envy of the remaining 27 EU members, ensuring they are as eager to maintain access to 65 million prosperous British customers as we are to maintain access to 440 million European customers.
A modern, efficient and collaborative construction industry, which had one voice and looked forward to the new digital world, would be a good start to making us “match fit” for Brexit.
Mark Beard is executive chairman of Beard Construction
