Chancellor Philip Hammond warned before yesterday's Budget announcements that it would be short on excitement and reaction from thje construction industry suggests he was right.
There were some elements that found favour from the wider industry. However, it appears that construction's place in the sun had been during the Autumn Statement.
The chancellor’s Budget contained no specific housing measures, but pledges were made on apprenticeships and skills, including the introduction of “T”-levels.
Under the T-levels system, the government will increase by more than 50% the number of programme hours of training for 16-19 year olds on technical routes to more than 900 hours a year on average, including the completion of a “high quality” three-month industry work placement.
The chancellor Philip Hammond announced maintenance loans to students on technical education courses. He also stated that the introduction of the government’s apprenticeship levy would support the delivery of 3 million apprenticeship starts by 2020.
Hammond said it was the government’s “job” to ensure “our children enjoy the same opportunities as we did”, including ensuring that the next generation could access the housing ladder.
David Thomas, Barratt Developments' ceo, said: “We applaud the measures announced today to support the UK’s economy, particularly on skills. With 350,000 workers having left construction since the financial crisis, there is a real need to bring in more young people into the industry with new skills, so the announcements today are important.”
Meanwhile, parts of the industry lamented the absence of announcements on stamp duty. Henry Smith, ceo of London developer Aitch Group, said: “The government has yet again chosen to ignore the effects of a stamp duty levy which is damaging the UK property market, as well as reducing the government’s own tax takings.”
Melanie Leech, Chief Executive of the British Property Federation, said: “This was possibly one of the least eventful Budgets in recent memory, and we are thankful for that.
"The government had nothing to prove after two months of White Papers and Strategies, and the real estate industry will welcome the stability the Budget signals. We anticipated the government’s short-term relief for businesses hardest hit by the increases in business rates, but we urge the Chancellor to understand the unfairness prevailing in the appeals system.
"The Chancellor has two Budgets this year and he should use his second in the Autumn to also have a stock-take of some of the recent SDLT measures and whether they are having unintended consequences or inhibiting investment.
“The Chancellor’s focus on increasing infrastructure spend will act as the backbone to regeneration up and down the country, opening sites for new housing and employment. This provides a huge vote of confidence for our industry which supports most, if not all, UK economic activity, encompassing a vast range of essential economic and social infrastructure.
"We provide the professionally-managed rented homes in which many people live, the commercial space in which virtually all types of businesses operate and the shopping centres, restaurants, cinemas and more in which people spend leisure time.”
Brian Berry, Chief Executive of the FMB, described the Budget as "an all-round strong performance from the Chancellor" and said the good news reported right across the piece would provide the country as a whole with a boost.
"However, increasing tax on the self-employed is not helpful," he added. "If we want to establish a resilient, Brexit-proof economy, we must encourage and support our current and future entrepreneurs in the construction industry and beyond. A jump in National Insurance Contributions from 1% to 10% next year could send the wrong message to those individuals who are considering going it alone.
"The self-employed are the backbone of our economy and the Government should tread carefully here.”
