The Chartered Institute of Building (CIOB) has welcomed Chancellor Philip Hammond’s extra investment in the built environment, as part of yesterday’s Budget.
Among the measures announced yesterday by the Chancellor were:
- A commitment to drop the use of PFI and PF2;
- The release of £420m for pothole repairs;
- An extra £500m for the Housing Infrastructure Fund, which the government said would enable another 650,000 homes to be built;
- £25.3bn for the second Road Investment Strategy for 2020-25;
- A reduction of the 10% contribution to the apprenticeship levy that smaller firms currently have to pay to 5%;
- £650m to rejuvenate high streets in England through the New Future High Streets Fund;
- £1bn of guarantee support via specialist and high street lenders to smaller housebuilders;
- £37m to support Northern Powerhouse Rail, dubbed the Crossrail of the North.
Commenting on the news, Eddie Tuttle, director for policy, research and public affairs at the CIOB said: “The CIOB welcomes the Chancellor’s announcement to commit greater levels of investment in the built environment. The extra £420m to tackle potholes and other minor works can all commence quickly and provide a short-term boost. This combined with new spending commitments for the regions, a refreshed Northern Powerhouse Strategy, and funding to transform our high streets should be seen as an opportunity to boost construction employment.”
Tuttle also welcomed regional investment that added value throughout the country, highlighting the need to close the investment and productivity gap between London and the rest of the UK.
On the issue of training and skills, he said: “The halving of SMEs’ apprenticeship levy contribution from 10% to 5% will prove popular in the construction industry. Additionally, the government’s move to enable levy-paying customers to transfer up to 25% of their funds to pay for apprenticeship training is welcome. In an industry heavily dominated by sub-contracting it is crucial that skills development flows through the supply chain to those at the sharp edge of delivery to support UK infrastructure.
“The announcements yesterday are unlikely to reduce existing pressing skills shortages but indicate a commitment to offer post-18 students a genuine and accessible choice between technical, vocational and academic routes. Although the budget has not provided significant boosts in funding for education, it has announced a series of training and skills measures, such as the National Retraining Scheme (NRS) which could help bring in new skills and those from different backgrounds into the sector.”
Meanwhile, when it came to housing, Tuttle welcomed additional funding to build new homes but expressed concen that the Chancellor planned to simplify the process for converting commercial buildings to housing.
“In a time where building quality, particularly on new builds, is under severe scrutiny we urge policymakers not to view this in isolation but to develop the plans alongside the building regulations review. The ambition has to be a marriage that increases our housing stock more rapidly but also delivers a better quality of living for all,” he said.
He also noted the absence of further details about the New Homes Ombudsman, announced earlier this month, means there is still a lack of clarity on how this will be funded and how significant it will be in supporting the housing agenda.
