Budget: missed opportunity for construction

Aaron Morby 12 years ago
Share

Construction leaders said the Chancellor has failed to deliver a desperately needed short-term boost to work as the industry faces a 5% fall in output.

The Chancellor’s measures to ease the burden on business and reduce taxation were welcomed.

But there is growing concern that the Government has failed to appreciate the serious immediate problems contractors face from dwindling orders.

Public spending cuts will be deeper this year and industry leaders say the Budget’s limited extra road and rail spending measures fall a long way short of what is needed.

CPA chief executive Michael Ankers, said: ‘The government clearly recognises the constraints on our economic growth imposed by the poor quality of our infrastructure and a planning system that is not fit for purpose.

“But we are still some way from seeing any benefit from the steps being taken to bring private finance into future road building and we await the details of the revolutionary planning reforms that the Chancellor referred to.

“Construction is facing a very difficult 12 to 18 months and these will not do much to change this.”

He added: “What we would have liked to see is some of the additional savings made on current spending reinvested in capital projects.”

Dan Labbad, chief executive of Lend Lease in Britain, said: “The Government clearly understands that investing in major infrastructure projects creates more jobs and more growth.”

“The priority now should be to bring more of the schemes in the National Infrastructure Plan forward as quickly as possible.

“Progress on delivering the pipeline is still too slow and there is not enough visibility on what schemes will be going out to tender and when.”

“It is also essential that a successor to PFI is formulated quickly.”

Institution of Civil Engineers director general Nick Baveystock, welcomed progress developing new funding models such as Tax Increment Financing and the pilot for a new Earn Back Model.

He said:”But Government should do more to improve the credibility of its aspirations by publishing an assessment of the level of funding it believes it can realistically secure from all categories of investors and a clear programme of work that will unlock these funds.

“This would boost investor confidence and encourage further investment.”

Julia Evans, chief executive of the National Federation of Builders, echoed concerns that the Government was losing interest in the green agenda.

She said: “It is particularly disappointing that an opportunity was missed to harmonise VAT rates on the domestic energy efficiency installation, ahead of the Green Deal launch later this year.”

The Federation welcomed the new £20bn National Loan Guarantee Scheme fund but questioned whether it will simply enable SMEs already at the front of the queue to get cheaper loans, or whether it will also support otherwise perfectly viable SMEs in sectors like construction, deemed toxic by the banks.

She said: “Lending to the construction sector remains depressed and construction SMEs find themselves at the back even of the SME queue. We hope that the scheme succeeds in its aims, but see no indication that it will.

“It also amounts to a significant admission of failure on the government’s part as it has already introduced mechanisms such as Project Merlin and the Enterprise Finance Guarantee scheme, designed to encourage the banks to lend to viable businesses.

“These schemes should have met the needs of businesses had the banks delivered on them, but they failed.”

Latest news

Police ban mobile cranes from roads over Easter

Plant hire bosses livid as forces across the country extend abnormal load embargoes
18 hours ago

Director jailed for exposing workers to asbestos

Ten tonnes of asbestos insulating board stripped out by unqualified workers
22 hours ago

Site labour rates start rising again

Industry's biggest payroll firm says "it feels like things could be turning round"
1 day ago

Council finds extra £33m for Buckinghamshire link road

South East Aylesbury Link Road costs soar by nearly 30% to £147m
1 day ago

Quartet win £490m North West & Central railway works deal

Skanska, Kier, Octavius Infrastructure and Story Contracting bag major projects deal
1 day ago

Unite Students plans first major mixed-use scheme

Developer's first mixed BTR and PBSA project to be built in Edinburgh
2 days ago

Galliford Try names new finance director

Rentokil's Kris Hampson joins contractor to replace Andrew Duxbury
1 day ago

Council boss hits out at bat threat to £274m road job

Natural England could scupper scheme due to be built by Ferrovial
1 day ago

Hydrogen-fuelled diggers to be allowed onto highways

Government to raise barrier to widespread use of hydrogen fuelled plant in construction
2 days ago

Plans in for £118m Government hub in Darlington

Work pencilled to start later this year on new home for 1,450 civil servants
2 days ago

New contractor highlights Henry Construction jobs on website

New firm lists jobs by failed contractor to show its experience
2 days ago

Contractors line up for £2.6bn Anglian Water AMP8 deal

Eight big names land places on pioneering @one Alliance
3 days ago

McAleer & Rushe bags first major later living project

Work to start this month on 167-flat Royal Tunbridge Wells project
2 days ago

Kier starts first all-electric prison houseblock job in Kent

Next-generation fully electric T60 prison houseblock to be built at HMP Elmley
2 days ago

Keepmoat sees better times ahead in housing market

Profits dip in 2023 despite construction of record number of new homes
2 days ago

Vistry signs partnership deals for 1,900 mixed tenure homes

West Sussex former airfield and Newmarket sites to break ground
3 days ago

Turnover at Wates tops £2bn for first time

Construction division exceeds £1bn turnover as average contract value hits record high of £48.3m
3 days ago

L&G looks to sell Cala Homes in exit from house building

Insurance giant reported to be preparing to offload 3,000 homes-a-year developer
4 days ago

Multiplex profit almost trebles as margin hits 5.5%

Revenue jumps 20% to £675m as big London scheme complete
3 days ago

TopHat puts plans to open huge Corby factory on hold

Advanced manufacturing facility was due to employ 1,000 people
3 days ago

Laing O’Rourke lands Calderdale hospital job

Enabling works to start by the end of this year at West Yorkshire site
3 days ago

Go-ahead for £475m Sunderland film and TV studios

Work to start this year on first phase Corwn Work studios
3 days ago

Willmott Dixon set for £20m Stockport Community Hub

Planning decision expected in June on Marple leisure and health clinic project
3 days ago

Police hunt for blundering dumper truck thief

Raider drove into a fence before getting stuck on a bank
3 days ago

Beattie Passive files administration notice

Passivhaus pioneer has been in business for more than ten years
4 days ago

McAlpine set for £50m space and tech centre

Northumbria Uni sign pre-con deal for new satellite research hub
4 days ago

VolkerFitzpatrick seals £34m Kent road viaduct

Work to start next year on Sturry Link Road near Canterbury
4 days ago

Eight win £600m Scottish civil engineering framework

Balfour, Farrans, Graham and Morgan Sindall win major works lot
4 days ago

Site engineer crushed to death by excavator

22-year-old victim died just months after graduating from university
6 days ago

NG Bailey fined £135,000 after hospital site death

Worker died after striking overhead beam while navigating a mobile elevating work platform
7 days ago

Contractor services