On Monday, Chancellor Philip Hammond announced his latest Autumn budget, the last before Brexit. Within it was plenty of news for the industry, with housing, apprentices and infrastructure all being mentioned, but being announced so close to Halloween, did he deliver a trick or a treat for the industry?
The Chancellor announced that the government have committed an extra £500m of funding to the Housing Infrastructure Fund, which is expected to unlock 650,000 new homes. Although £291m of which is set to go to London, that’s still over half to be shared around the rest of the country – fingers crossed for some for the North East. He said the fund would receive a £38bn boost by 2023/24. I’m not usually the pessimist but that’s a lot of money in a short space of time, so I won’t hold my breath on that just yet. He also announced that the Letwin Review, the investigation into why the UK isn’t building enough homes, recommends reforming the planning system to speed up building, but there are no plans to act upon the suggestion – another case of all talk and no action.
Controversial PFI and PF2 contracts, under which private companies provide public services and infrastructure, are to be completely abolished. All existing contracts under the PFI and PF2 system will be honoured but Hammond said he would never sign off on a PFI contract.
Addressing the newly introduced Apprenticeship Levy, the Chancellor confirmed that smaller firms who train apprentices would have their contribution to the apprenticeship levy halved, falling from 10% to 5%. Apprenticeship starts have plummeted over the last year following the introduction of costs to small firms who want to get young people into work. Dropping the proportion of apprenticeship training costs footed by small firms is a much-needed development which should lead to even more apprenticeship starts.
The Budget briefly, and I mean briefly, mentioned how Brexit will affect the industry, stating that “The government will review its existing support for infrastructure finance, to ensure that it continues to meet market needs as the UK leaves the EU.”
Overall, it was a Budget that made some small adjustments but
lacked bold, long-term commitments, which I think we all expected. While austerity may be coming to an end, it certainly hasn’t ended. While we might have been promised less potholes in the road, with Brexit looming, I think we’re all in for a bumpy year ahead.
For more information on Constructing Excellence in the North East, please contact chief executive, Catriona Lingwood, on 0191 500 7880 or email email@example.com.