Chancellor Rishi Sunak has pledged billions of pounds worth of infrastructure investment in his Budget, but also confirmed plans to remove construction’s red diesel rebate from 2022.
Sunak had just weeks to prepare for the Budget, following the resignation of his predecessor Sajid Javid, and was forced to announce a package of measures to tackle the rapid spread of coronavirus.
However, there were also a raft of other announcements affecting construction.
Infrastructure:
- A total of £175bn on additional infrastructure expenditure
- A doubling of flood defences expenditure spending of £5.2bn between 2021 and 2027.
Housing and other project funding:
- A Building Safety Fund, worth £1bn, announced to extend the ACM Remediation Fund
- £1.1bn towards the Housing Infrastructure Fund to build around 70,000 houses
- An additional £400m fund for mayoral authorities to build houses on brownfield site
- £1.5bn in new funding to improve the Further Education colleges estate.
Tax and employment:
- Abolition of the Red Diesel Relief Scheme for most sectors, delayed for two years (with agriculture exempted and discussions with other industries over the summer)
- A confirmation for workers that statutory sick pay will start from the first day of illness, following the coronavirus outbreak
- An offer to refund sick pay payments for firms with fewer than 250 staff during the coronavirus outbreak
- A freeze in fuel duty
- An expansion of the R&D Expenditure Credit from 12% to 13%.
For full construction industry reaction to the Budget, click here.
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