CLC urges Chancellor to focus on three key construction issues

The Construction Leadership Council has written to the Chancellor Jeremy Hunt highlighting three key issues it regards as priorities for the Spring Budget.

The UK construction industry offers one of the biggest and most easily deliverable opportunities to grow the UK economy, says the CLC.

The construction sector is worth 9% of GDP to the UK economy each year and employs in total just over 2.63m people. Of the infrastructure and construction pipeline the Government pipeline of projects 25-30% is public sector. In addition, through setting long term policy frameworks in regulated markets and directly influencing private sector investment, for example through the planning system, the reach of Government extends to the entire sector.

“Maintaining stability across the sector’s pipeline of projects is the single biggest factor to enable us to enhance productivity, invest in skills and innovation and ultimately deliver growth for the economy and the infrastructure and housing the UK needs,” writes Mark Reynolds, co-chair of the CLC.

“While housing delivery has increased substantially with almost 1.2 million new homes built in the past five years alone, it is set to decline rapidly due to a number of factors including the economic climate, nutrient neutrality, delays in the planning process and the proposed reforms to the National Planning Policy Framework (NPPF).

“House building levels could return to levels last seen in the aftermath of the global financial crisis and are forecast to deteriorate further next year. Such a fall would have significant social and economic implications for the country by undermining nearly 400,000 jobs, costing over £20bn in lost economic activity, and generating £3bn less investment in affordable housing.”

The CLC has pinpointed five areas that will help housebuilding and following on from that it is urging the Chancellor ensure more confidence in infrastructure.

“The changes recently announced in the Network North plan have introduced a different set of priorities to the infrastructure and Construction pipeline,” the letter continues. “In order for the industry to fully support the Government’s ambitions in delivering upon these announcements it is essential we have clarity on what will come to market and when in order for us to plan, retain staff and invest accordingly.”

The CLC wants the Government to implement the Construction Playbook consistently, provide certainty on the Government Construction pipeline where possible and acknowledge the increase in investment in Infrastructure the country needs.

It is also asking for clearer support and clarity for the green transition in the built environment.

“The CLC has promoted a National Retrofit strategy since 2020, if we are to achieve Net Zero Carbon by 2050, many of our existing homes require greater insulation for heat pumps to work efficiently,” the letter states.

“It is currently estimated that 11 million homes will need upgrading and whilst current Government plans support the social housing sector in this there is a gap in the privately owned market. The majority of these upgrades are delivered by SMEs and as such encouraging economic activity here would safeguard their pipeline of work.”