Construction leaders urge swift government action ahead of upcoming budget.
- Rachel Reeves faces pressure for infrastructure investment plans.
- Industry calls for green projects to boost economic growth.
- Trade bodies highlight need for tax reforms and skill development.
- Sector seeks clarity on project pipelines amidst concerns.
As the construction industry eagerly anticipates the upcoming budget announcement, leaders are pressing Chancellor Rachel Reeves for decisive action on infrastructure investments. Reeves has previously announced funding for school rebuilding and affordable housing. However, decisions to shelve major road projects and review the New Hospital Programme have intensified uncertainties surrounding project pipelines, raising industry concerns.
Prominent figures in the sector are advocating for a focus on green infrastructure as a means to bolster economic growth and combat climate change. Andy Milner, CEO of Amey, stresses the importance of collaboration between the government and industry to innovate and future-proof infrastructure. This approach, he argues, will not only drive economic growth but also address pressing environmental challenges.
The Construction Products Association (CPA) echoes the call for prioritising repair and maintenance projects, emphasising their immediate return on investment and potential to stimulate the construction sector. CPA Chief Executive Peter Caplehorn highlights the scenario with RAAC as an example of the risks posed by insufficient maintenance funding, advocating for consistent project audits as per the Construction Playbook.
David Crosthwaite, Chief Economist at the Building Cost Information Service, urges the government to solidify its commitment to current or new project pipelines. He notes that the sector has heard numerous commitments from Labour without clear implementation strategies. With critical decisions expected in the upcoming spending review, Crosthwaite emphasises the urgency of taking concrete actions rather than postponing until next year.
Industry bodies are also prioritising environmental commitments, urging the government to mandate the reporting of embodied carbon and adopt proposals from group Part Z. The Mineral Products Association (MPA) supports the implementation of low-carbon materials in public projects, while also advocating for the accelerated adoption of the UK Carbon Border Adjustment Mechanism. By aligning with EU rules, they aim to promote sustainable practices and discourage the shifting of production overseas due to cheaper carbon emissions.
The UK Green Building Council argues for increased funding for energy efficiency initiatives, suggesting that a substantial financial commitment over a decade is necessary for a sustainable transformation. Additionally, they propose that stamp duty be linked to a home’s energy performance to incentivise energy efficiency investments by homeowners.
The Construction Plant-hire Association proposes policies to support plant-hire firms, emphasising the importance of reintroducing biodiesel rebates and exploring a scrappage scheme for outdated machinery. CPA Chief Executive Steve Mulholland highlights the financial constraints faced by members, while also advocating for tax breaks to support sustainable investments.
David Crosthwaite also stresses the need for investment in education and training to prepare a skilled workforce adept in green construction techniques. The CPA calls for apprenticeship incentives targeting skill shortages in emerging areas such as retrofit technology and sustainable construction, underscoring the critical role of effective skills policy in fostering industry growth.
Decisive government action is crucial to address the construction sector’s current challenges and foster sustainable economic growth.
