The CIOB has welcomed the move by the chancellor to prioritise construction as well as productivity in the Autumn Statement.
Chancellor Philip Hammond announced plans to set up a National Productivity Investment Fund in an attempt to close the UK’s productivity gap with its competitors.
The fund will have £23bn over five years to invest in “innovation and infrastructure” – an average of £4.6bn a year, according to the report.
As part of the fund, Hammond pledged £2.3bn for infrastructure work for housing and £1.4bn will be provided to deliver 40,000 new affordable homes.
David Hawkes, CIOB policy manager, said: “It’s clear that the chancellor recognises that improving productivity is vital to economic prosperity.
“In construction, we know what can be done to improve productivity, but require certainty for firms to invest in innovation, skills and training in order to support it. For this reason, we welcome the £23bn National Productivity Investment Fund, to be spent on improving innovation and infrastructure over the next five years.”
He added: “The CIOB’s report into productivity published earlier this year found strong support from industry and MPs for the public sector to invest in construction to help increase productivity.
“Given this view, we are keen to ensure the fund recognises the contribution that the industry makes to improving productivity in the wider economy.”
The CIOB said it was also happy to see £13m support to help businesses improve managerial skills, but awaits further details on eligibility and distribution.
For main reaction report, click here.
