By Catriona Lingwood, Chief Executive of Constructing Excellence in the North East
Last week saw Chancellor George Osborne give his final budget before the General Election in May. In my opinion, it wasn’t the most thrilling statement we’ve ever heard from the Chancellor, but then I’m not sure what else I expected so close to the General Election- he wasn’t exactly going to rock the boat was he? Despite not being the most exciting budget, there were a few things announced that will benefit our industry.
In a bid to help further tackle the housing crisis, the Chancellor identified sites around the country where there is a capacity to build around another 45,000 new homes and announced that from the autumn, first-time buyers saving for a deposit will be given a Government top-up of £50 for every £250 saved if they deposit the money into a new Help to Buy ISA scheme. This is great news for those looking to buy their first home- I can’t think of any places where you get that kind of return on investment anymore. Naturally, the amount the Government give you is capped, but I still think it’s a great idea. The only downfall is that since the scheme doesn’t start until autumn, our industry won’t see the impact of people being able to buy more homes until at least another 12-18 months.
Just like throughout his time in Government, flood defences were a big talking point for the Chancellor, with £140m of funding being announced, allowing 165 flood defence schemes throughout the UK to get started earlier than first planned. I’m sure this is music to the ears of people who are on constant edge thinking their homes are going to be flooded every time it rains, but I’m not sure exactly how many of those people it will have an impact on- £140m may sound like a lot of money, but in the grand scheme of things it’s a drop in the ocean when you think of the scale of the issue.
For me, the most interesting bit of the budget was when it got down to the nitty-gritty about a Northern Powerhouse. With stats showing that jobs grew faster in the North than in the South in the past year, the Chancellor had the perfect ammunition to talk about why the Coalition think this is exactly what we need. I’m totally behind the idea of revolutionising travel in the north- the project will deliver faster rail journeys, see major road improvements undertaken, better airport routes developed and will ultimately mean our region can achieve more nationally through increased connectivity and capacity. Why wouldn’t you back it?
In conjunction with the Construction Industry Council, RIBA North East, ICE North East, CIOB North East and FBE we’re holding a Question Time event about the power and role of our region in the UK construction industry and the Northern Powerhouse at the Newcastle Marriott Gosforth Park Hotel on April 17. To find out more or to book your place, contact Leanne McAngus on 0191 374 0233 or email email@example.com.