2023 Spring Budget summary and industry response - Revision history

Editor at 12:37, 17 March 2023

2023-03-17T12:37:51Z

Editor at 12:35, 17 March 2023

2023-03-17T12:35:30Z

Editor at 12:34, 17 March 2023

2023-03-17T12:34:33Z

← Older revision		Revision as of 12:34, 17 March 2023
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	[[File:Barbour_ABI_Contract_awards_by_region.jpg\|link=File:Barbour_ABI_Contract_awards_by_region.jpg]]		[[File:Barbour_ABI_Contract_awards_by_region.jpg\|link=File:Barbour_ABI_Contract_awards_by_region.jpg]]
		+
		+	This section appears in a Press Release as 'Budget Response - Barbour ABI' dated March 15, 2023. For further information visit [https://barbour-abi.com https://barbour-abi.com]
		+
		+	= UK Sustainable Investment and Finance Association response =
		+
		+	UKSIF exists to bring together the UK’s sustainable finance and investment community and support our members to expand, enhance and promote this key sector. Our work drives growth and new opportunities for our members as global leaders in the sustainable finance industry. UKSIF represents a diverse range of financial services firms committed to these aims, and our 300+ members, managing over £19trn in assets under management (AUM), include investment managers, pension funds, banks, financial advisers, research providers, NGOs, among others.
		+
		+	Chief executive James Alexander,
		+
		+	“While a number of today’s Budget measures are welcome, including support for carbon capture and storage technologies and some clarity provided on the UK’s ‘green taxonomy’, this Budget should have begun serious consideration of a positive UK response to the global clean energy ‘arms race’.
		+
		+	“The upcoming ‘Green Finance Strategy’ should give this further attention, particularly in light of actions outlined by the United States and more recently the EU. As a priority, many investors want to see from government credible decarbonisation roadmaps for key economic sectors, including for those areas where policy clarity is particularly lacking, as well as incentives in place to unlock private capital into the wider economy and the UK’s transition. We look forward to continue working with policymakers and other stakeholders ahead of the Strategy, and hope that collectively we can seek ways to secure the UK’s ongoing leadership on sustainable finance.”
		+
		+	For further information visit [https://uksif.org/about/ https://uksif.org/about/]
		+
		+	= UK Energy Systems Catapult response =
		+
		+	UK Energy Systems Catapult was set up to accelerate the transformation of the UK’s energy system and ensure UK businesses and consumers capture the opportunities of clean growth on the way to Net Zero, it is an independent, not-for-profit centre that bridges the gap between industry, government, academia and research.
		+
		+	Chief executive Guy Newey said ;"
		+
		+	Support for nuclear has been steadfast for 20 years, but progress has been slow. This Budget focused not on the big projects, but more on SMRs. In addition to the competition, the government has already committed to investing £210m into the Rolls-Royce SMR project. Only by committing to a standardised nuclear program can we sustain the learning curve and trigger the virtuous cycle of economic performance as supply chain capabilities are developed, and perceived technological, project delivery, and financial risks fall. This vote of confidence from government is welcome and will help to further diversify our energy mix. It is great to see this support for the big stuff. The next challenge for the government to start grappling with is how this smorgasbord of new clean technologies is going to fit together. This is as big an innovation challenge as any of the progress we have made on renewables and means unlocking the potential of flexible technologies like storage and demand side response. If we don’t get this right, the faint sound of our creaking grid will get louder.”
		+
		+	For further information visit [https://es.catapult.org.uk/about/ https://es.catapult.org.uk/about/] [https://ashden.org/about-us/ https://ashden.org/about-us/]
		+
		+	= Ashden Climate solutions in action response =
		+
		+	For two decades the Ashden Awards have accelerated the most exciting climate innovators, through a rigorous global search, working to scale up impact and inspire others. Ashden supports proven climate innovation in the UK and developing countries focussing with on-the-ground solutions will drive the system changes our planet needs. The cities manager Cara Jenkinson
		+
		+	“This budget was a terrible wasted opportunity. Mr Hunt referred to four Es in his budget –‘ Enterprise, Employment, Education and Everywhere’ but the two that could have helped all four were missing – ‘Energy Efficiency’. This budget showed a UK government committed to investing £20bn in nuclear and carbon capture. £20bn could retrofit millions of homes and provide the government and society with huge quick wins – tackling the energy, climate and cost of living crises at the same time. The chancellor’s thinking needs a rapid upgrade – just like 19 million homes in the UK that need retrofitting. By laying out measures to boost retrofit demand and creating a generation of skilled retrofit workers, he could have not only generated savings for struggling households, but also given businesses the confidence needed to generate over 200,000 new energy efficiency jobs. A missed opportunity, that UK households, workers and businesses will keenly feel in years to come.”
		+
		+	For further information visit [https://ashden.org/about-us/ https://ashden.org/about-us/]

	= Meeting Place response =		= Meeting Place response =

−	Nikki Davies, Managing Director at ~~comms~~ agency ~~[https://meeting-place.uk/~~ Meeting Place]:	+	Nikki Davies, Managing Director at property communications agency Meeting Place

	“Although there wasn’t much by way of noteworthy interventions or headline-grabbing incentives for the property sector, it’s encouraging to see greener shoots emerge in the economy as interest rates start to fall.		“Although there wasn’t much by way of noteworthy interventions or headline-grabbing incentives for the property sector, it’s encouraging to see greener shoots emerge in the economy as interest rates start to fall.
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	“A noteworthy intervention which presents the built environment with real opportunity is the announcement of £80m to support 12 new Investment Zones - delivering streamlined planning in line with the government’s strategy for the UK to become a life science and tech powerhouse. It’ll be interesting to see how this pans out across the UK, against Hunt’s ‘back-to-work’ strategy - getting the ‘economically inactive’ back to work and whether it can deliver jobs and bridge the skills gap in sectors such as life sciences and construction.”		“A noteworthy intervention which presents the built environment with real opportunity is the announcement of £80m to support 12 new Investment Zones - delivering streamlined planning in line with the government’s strategy for the UK to become a life science and tech powerhouse. It’ll be interesting to see how this pans out across the UK, against Hunt’s ‘back-to-work’ strategy - getting the ‘economically inactive’ back to work and whether it can deliver jobs and bridge the skills gap in sectors such as life sciences and construction.”

−	-----	+	For further information visit [https://meeting-place.uk/about-us/ https://meeting-place.uk/about-us/]
−	~~This section appears in a Press Release as 'Budget Response - Barbour ABI' dated March 15, 2023.~~	+

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Meeting Place at 11:59, 17 March 2023

2023-03-17T11:59:08Z

← Older revision		Revision as of 11:59, 17 March 2023
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	“Subcontractors and suppliers would do well to explore these regions in the coming years to take advantage of any opportunities. However, there is a real danger that this will just be a case of moving money around and leaving other areas underinvested in. It’s also unlikely to make any difference to the significant imbalance between London and other regions.”		“Subcontractors and suppliers would do well to explore these regions in the coming years to take advantage of any opportunities. However, there is a real danger that this will just be a case of moving money around and leaving other areas underinvested in. It’s also unlikely to make any difference to the significant imbalance between London and other regions.”

−	[[File:~~Barbour ABI Contract awards by region~~.jpg]]	+	[[File:Barbour_ABI_Contract_awards_by_region.jpg\|link=File:Barbour_ABI_Contract_awards_by_region.jpg]]
		+
		+	= Meeting Place response =
		+
		+	Nikki Davies, Managing Director at comms agency [https://meeting-place.uk/ Meeting Place]:
		+
		+	“Although there wasn’t much by way of noteworthy interventions or headline-grabbing incentives for the property sector, it’s encouraging to see greener shoots emerge in the economy as interest rates start to fall.
		+
		+	“Hunt’s laissez-faire approach to housing in the Budget is perhaps no bad thing, especially given Kwarteng’s meddling in the last budget. After a tumultuous year, the sunnier economic outlook will no doubt deliver a shot in the arm for homebuilders in terms of the viability of homes, mortgage affordability and the reduction in costs for construction and materials.
		+
		+	“A noteworthy intervention which presents the built environment with real opportunity is the announcement of £80m to support 12 new Investment Zones - delivering streamlined planning in line with the government’s strategy for the UK to become a life science and tech powerhouse. It’ll be interesting to see how this pans out across the UK, against Hunt’s ‘back-to-work’ strategy - getting the ‘economically inactive’ back to work and whether it can deliver jobs and bridge the skills gap in sectors such as life sciences and construction.”

	-----		-----

Editor at 07:20, 17 March 2023

2023-03-17T07:20:52Z

← Older revision		Revision as of 07:20, 17 March 2023
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	“Subcontractors and suppliers would do well to explore these regions in the coming years to take advantage of any opportunities. However, there is a real danger that this will just be a case of moving money around and leaving other areas underinvested in. It’s also unlikely to make any difference to the significant imbalance between London and other regions.”		“Subcontractors and suppliers would do well to explore these regions in the coming years to take advantage of any opportunities. However, there is a real danger that this will just be a case of moving money around and leaving other areas underinvested in. It’s also unlikely to make any difference to the significant imbalance between London and other regions.”
		+
		+	[[File:Barbour ABI Contract awards by region.jpg]]

	-----		-----

Editor at 07:13, 17 March 2023

2023-03-17T07:13:38Z

← Older revision		Revision as of 07:13, 17 March 2023
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	“The measures announced by the Chancellor to encourage people back to work fail to address sector-specific labour and skills shortages. The extended energy bill support will provide some peace of mind, but this will be short-lived. To make the UK energy independent, a skilled, competent workforce is vital to maintain existing electrical Infrastructure. As the electrification of the UK accelerates rapidly, our sector needs stronger engagement from Government to develop a flexible and competent electrical workforce in sufficient numbers to meet growing demand and ultimately help deliver Net Zero on time.”		“The measures announced by the Chancellor to encourage people back to work fail to address sector-specific labour and skills shortages. The extended energy bill support will provide some peace of mind, but this will be short-lived. To make the UK energy independent, a skilled, competent workforce is vital to maintain existing electrical Infrastructure. As the electrification of the UK accelerates rapidly, our sector needs stronger engagement from Government to develop a flexible and competent electrical workforce in sufficient numbers to meet growing demand and ultimately help deliver Net Zero on time.”

−	~~Ref~~ '[https://www.ecatoday.co.uk/news/2303/Spring-Budget-Electrical-sector-welcomes-energy-bi Spring Budget: Electrical sector welcomes energy bills U-turn, but warns of skills crisis]' dated March 15, 2023.	+	This section appears in a Press Release and on the ECA website as '[https://www.ecatoday.co.uk/news/2303/Spring-Budget-Electrical-sector-welcomes-energy-bi Spring Budget: Electrical sector welcomes energy bills U-turn, but warns of skills crisis]' dated March 15, 2023.

	= Chartered Institute of Building response =		= Chartered Institute of Building response =
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	“It is well documented that the construction workforce has an ageing population with Office for National Statistics (ONS) data indicating that this is rising on the back of a 13% increase in the number of construction workers aged 45 and over in 2018 (representing 47% of the industry as a whole). Alongside this, similar data from Q4 2022 suggests that over 500,000 UK-born construction workers are expected to retire in the next 10-15 years. With this in mind, we support the principle of the ‘Returnership’ scheme announced in today’s budget targeted at getting those over 50 back into work. While many roles in construction may not be suitable for those over a certain age due to its physical nature, there is huge untapped potential to mentor the new intake of construction professionals.”		“It is well documented that the construction workforce has an ageing population with Office for National Statistics (ONS) data indicating that this is rising on the back of a 13% increase in the number of construction workers aged 45 and over in 2018 (representing 47% of the industry as a whole). Alongside this, similar data from Q4 2022 suggests that over 500,000 UK-born construction workers are expected to retire in the next 10-15 years. With this in mind, we support the principle of the ‘Returnership’ scheme announced in today’s budget targeted at getting those over 50 back into work. While many roles in construction may not be suitable for those over a certain age due to its physical nature, there is huge untapped potential to mentor the new intake of construction professionals.”

−	~~Ref~~ '[https://www.ciob.org/news/ciob-responds-to-chancellors-2023-budget CIOB responds to Chancellor's 2023 Budget]' dated March 15, 2023.	+	This section appears on the CIOB website as '[https://www.ciob.org/news/ciob-responds-to-chancellors-2023-budget CIOB responds to Chancellor's 2023 Budget]' dated March 15, 2023.

	= Association for Project Management response =		= Association for Project Management response =
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	In his Budget statement, Jeremy Hunt said: “This is a budget for growth. We tackle the two biggest barriers that stop businesses growing – investment incentives and labour supply. An enterprise economy can only grow if it can hire the people it needs. This is a comprehensive plan to remove barriers to work.”		In his Budget statement, Jeremy Hunt said: “This is a budget for growth. We tackle the two biggest barriers that stop businesses growing – investment incentives and labour supply. An enterprise economy can only grow if it can hire the people it needs. This is a comprehensive plan to remove barriers to work.”

−	== APM~~'s response~~ ==	+	== Adam Boddison OBE, APM Chief Executive ==

	Professor Adam Boddison OBE, Chief Executive at APM, said: “A healthy and stable economic environment is vital for the successful delivery of projects – especially those that are supporting government initiatives. And of course, people deliver projects, so having more people in the workforce will make it easier for project teams to recruit. We therefore welcome measures announced by the Chancellor today that support economic growth and tackle barriers people face when joining or re-joining the workforce. However, the most sustainable way to grow the economy is not merely by growing the size of the workforce, but by ensuring people have the skills and capabilities they need to succeed in areas like project management that bring financial benefits as well as social ones. We therefore urge the Government to commit to investing in the skills necessary for delivering projects that will help the UK address challenges such as climate change, infrastructure improvement and digital transformation.		Professor Adam Boddison OBE, Chief Executive at APM, said: “A healthy and stable economic environment is vital for the successful delivery of projects – especially those that are supporting government initiatives. And of course, people deliver projects, so having more people in the workforce will make it easier for project teams to recruit. We therefore welcome measures announced by the Chancellor today that support economic growth and tackle barriers people face when joining or re-joining the workforce. However, the most sustainable way to grow the economy is not merely by growing the size of the workforce, but by ensuring people have the skills and capabilities they need to succeed in areas like project management that bring financial benefits as well as social ones. We therefore urge the Government to commit to investing in the skills necessary for delivering projects that will help the UK address challenges such as climate change, infrastructure improvement and digital transformation.
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	-----		-----
−	~~Ref~~ '[https://www.apm.org.uk/news/budget-response-apm-urges-government-do-more-to-tackle-issues-impacting-projects/ Budget response: APM urges Government do more to tackle issues impacting projects]' dated March 15, 2023.	+	This section appears and on the APM website as '[https://www.apm.org.uk/news/budget-response-apm-urges-government-do-more-to-tackle-issues-impacting-projects/ Budget response: APM urges Government do more to tackle issues impacting projects]' dated March 15, 2023.
		+
		+	= Barbour ABI response =
		+
		+	Tom Hall, chief economist, Barbour ABI:
		+
		+	“The twelve low-tax investment zones announced in the budget could provide a boost for the construction industry in areas which have not rebounded as strongly post-Covid.
		+
		+	“In particular, our research suggests that contract values in the East Midlands have fallen 6% in 2021 and 2022 compared to figures before 2020, even with rising construction costs.
		+
		+	“Meanwhile, other listed areas such as Manchester, Liverpool, West Midlands, Yorkshire and Scotland are currently some of the weaker areas in terms of contract awards value growth, though the Northeast is an outlier, having already experienced 70% growth in the past two years.
		+
		+	“Subcontractors and suppliers would do well to explore these regions in the coming years to take advantage of any opportunities. However, there is a real danger that this will just be a case of moving money around and leaving other areas underinvested in. It’s also unlikely to make any difference to the significant imbalance between London and other regions.”
		+
		+	-----
		+	This section appears in a Press Release as 'Budget Response - Barbour ABI' dated March 15, 2023.

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Designing Buildings at 06:49, 17 March 2023

2023-03-17T06:49:27Z

← Older revision		Revision as of 06:49, 17 March 2023
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	[[File:Spring_Budget_2023_banner.jpg\|link=File:Spring_Budget_2023_banner.jpg]]		[[File:Spring_Budget_2023_banner.jpg\|link=File:Spring_Budget_2023_banner.jpg]]

−	Early in the afternoon on the 15th of March Chancellor Jeremy Hunt unveiled what he described as a “Budget for growth”. He did so against the back drop of strikes amongst ~~Junior~~ doctors, ~~the~~ London ~~underground~~, civil servants, teachers, lecturers and BBC journalists. A copy of the [https://www.gov.uk/government/publications/spring-budget-2023 full budget is available on the Government website], whilst as summary of key points and responses ~~fro~~ industry is given below.	+	= Introduction =
		+
		+	Early in the afternoon of the 15th of March 2023, Chancellor Jeremy Hunt unveiled what he described as a “Budget for growth”. He did so against the back drop of strikes amongst junior doctors, London Underground, civil servants, teachers, lecturers and BBC journalists. A copy of the [https://www.gov.uk/government/publications/spring-budget-2023 full budget is available on the Government website], whilst as summary of key points and responses from industry are given below.

	= Summary in brief =		= Summary in brief =
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	== Development ==		== Development ==

−	12 new investment zones, that will provide access to £80 million of support for raising skills and infrastructure. Meanwhile, over £200 million will be ~~interested~~ in local regeneration projects, including in Scotland, Wales, Northern Ireland, the North East, East and West Midlands, Manchester, Liverpool, Teeside, ~~aswelll~~ as South and West Yorkshire.	+	12 new investment zones were announced, that will provide access to £80 million of support for raising skills and infrastructure. Meanwhile, over £200 million will be invested in local regeneration projects, including in Scotland, Wales, Northern Ireland, the North East, East and West Midlands, Manchester, Liverpool, Teeside, as well as South and West Yorkshire.

−	== Business ~~Tax~~ ==	+	== Business tax ==

−	A £1.8 billion package of support for SMEs who spend more than 40% of their total expenditure on R&D, will be able to claim a credit worth £27 for every £100 they spend. An expenditure credit rate of 34% for film and television industry and for theatres, orchestras and museums ~~the~~ current 45% and 50% reliefs will be extended for two years.	+	A £1.8 billion package of support for SMEs who spend more than 40% of their total expenditure on R&D, who will be able to claim a credit worth £27 for every £100 they spend. An expenditure credit rate of 34% for the film and television industry and for theatres, orchestras and museums. The current 45% and 50% reliefs will be extended for two years.

	== Public funding ==		== Public funding ==

−	£100 million to support charity work that helps struggling families, ~~and~~ £63 million to keep public pools and leisure centres ~~"afloat"~~ and £10 million in extra funding ~~to be given~~ over the next two years to help the voluntary sector	+	£100 million to support charity work that helps struggling families, £63 million to keep public pools and leisure centres open, and £10 million in extra funding over the next two years to help the voluntary sector.

	== Childcare ==		== Childcare ==

−	Fee childcare to be expanded to allow up to 30 hours a week of free childcare extended to nine months and two-year-olds, with funding paid to nurseries ~~ncreased~~ by £200 million in December rising to £288 million next year with increased flexibility as ratios change.	+	Fee childcare to be expanded to allow up to 30 hours a week of free childcare extended to nine months and two-year-olds, with funding paid to nurseries increased by £200 million in December rising to £288 million next year with increased flexibility as ratios change.

	== Product duty ==		== Product duty ==

−	Duty will be made 11 pence lower in pubs compared to supermarkets and fuel duty will ~~also~~ not be uprated over the next 12-month period.	+	Duty will be made 11 pence lower in pubs compared to supermarkets and fuel duty will not be uprated over the next 12-month period.

	== Universal Support ==		== Universal Support ==
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	== Universal Credit ==		== Universal Credit ==

−	Universal Credit claimants subject to higher sanctions for refusing job offers, administrative earnings threshold to change from 15 hours to 18 hours at National Living Wage per claimant, ~~indicating greter~~ work coach support for those working below this level.	+	Universal Credit claimants subject to higher sanctions for refusing job offers, administrative earnings threshold to change from 15 hours to 18 hours at National Living Wage per claimant, and greater work coach support for those working below this level.

−	== ~~Defense~~ ==	+	== Defence ==

−	£5 billion towards the military over a two-year period - accompanied by an extra £1.98 billion this year and £2.97 billion next year.	+	£5 billion towards the military over a two-year period - accompanied by an extra £1.98 billion this year and £2.97 billion next year. £11 billion to be added to the defence budget over the next five years, stabilising at 2.5 per cent of Britain's GDP. £5 billion towards the military over a two-year period with an extra £1.98 billion this year and £2.97 billion next year.
−		+
−	£11 billion to be added to the defence budget over the next five years, stabilising at 2.5 per cent of Britain's GDP. £5 billion towards the military over a two-year period with an extra £1.98 billion this year and £2.97 billion next year.	+

	== Pensions ==		== Pensions ==

−	An increase in the pensions annual tax-free allowance from £40,000 to £60,000 and the maximum amount ~~one~~ can ~~draw~~ from pensions (workplace or personal) in a lifetime without paying extra tax, the lifetime allowance (LTA) has been abolished.	+	An increase in the pensions annual tax-free allowance from £40,000 to £60,000 and the maximum amount that can be drawn from pensions (workplace or personal) in a lifetime without paying extra tax, the lifetime allowance (LTA) has been abolished.

	= Electrical Contractors' Association response =		= Electrical Contractors' Association response =
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	“The measures announced by the Chancellor to encourage people back to work fail to address sector-specific labour and skills shortages. The extended energy bill support will provide some peace of mind, but this will be short-lived. To make the UK energy independent, a skilled, competent workforce is vital to maintain existing electrical Infrastructure. As the electrification of the UK accelerates rapidly, our sector needs stronger engagement from Government to develop a flexible and competent electrical workforce in sufficient numbers to meet growing demand and ultimately help deliver Net Zero on time.”		“The measures announced by the Chancellor to encourage people back to work fail to address sector-specific labour and skills shortages. The extended energy bill support will provide some peace of mind, but this will be short-lived. To make the UK energy independent, a skilled, competent workforce is vital to maintain existing electrical Infrastructure. As the electrification of the UK accelerates rapidly, our sector needs stronger engagement from Government to develop a flexible and competent electrical workforce in sufficient numbers to meet growing demand and ultimately help deliver Net Zero on time.”

−	~~-----~~	+	Ref '[https://www.ecatoday.co.uk/news/2303/Spring-Budget-Electrical-sector-welcomes-energy-bi Spring Budget: Electrical sector welcomes energy bills U-turn, but warns of skills crisis]' dated March 15, 2023.
−	~~This section appears in press release form and on the ECA Today webiste as~~ '[https://www.ecatoday.co.uk/news/2303/Spring-Budget-Electrical-sector-welcomes-energy-bi Spring Budget: Electrical sector welcomes energy bills U-turn, but warns of skills crisis]' dated March 15, 2023.	+

	= Chartered Institute of Building response =		= Chartered Institute of Building response =
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	“It is well documented that the construction workforce has an ageing population with Office for National Statistics (ONS) data indicating that this is rising on the back of a 13% increase in the number of construction workers aged 45 and over in 2018 (representing 47% of the industry as a whole). Alongside this, similar data from Q4 2022 suggests that over 500,000 UK-born construction workers are expected to retire in the next 10-15 years. With this in mind, we support the principle of the ‘Returnership’ scheme announced in today’s budget targeted at getting those over 50 back into work. While many roles in construction may not be suitable for those over a certain age due to its physical nature, there is huge untapped potential to mentor the new intake of construction professionals.”		“It is well documented that the construction workforce has an ageing population with Office for National Statistics (ONS) data indicating that this is rising on the back of a 13% increase in the number of construction workers aged 45 and over in 2018 (representing 47% of the industry as a whole). Alongside this, similar data from Q4 2022 suggests that over 500,000 UK-born construction workers are expected to retire in the next 10-15 years. With this in mind, we support the principle of the ‘Returnership’ scheme announced in today’s budget targeted at getting those over 50 back into work. While many roles in construction may not be suitable for those over a certain age due to its physical nature, there is huge untapped potential to mentor the new intake of construction professionals.”

−	~~-----~~	+	Ref '[https://www.ciob.org/news/ciob-responds-to-chancellors-2023-budget CIOB responds to Chancellor's 2023 Budget]' dated March 15, 2023.
−	~~This section appears in on the CIOB webiste as~~ '[https://www.ciob.org/news/ciob-responds-to-chancellors-2023-budget CIOB responds to Chancellor's 2023 Budget]' dated March 15, 2023.	+

	= Association for Project Management response =		= Association for Project Management response =
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	-----		-----
−	~~This section appears in on the CIOB webiste as~~ '[https://www.apm.org.uk/news/budget-response-apm-urges-government-do-more-to-tackle-issues-impacting-projects/ Budget response: APM urges Government do more to tackle issues impacting projects]' dated March 15, 2023.	+	Ref '[https://www.apm.org.uk/news/budget-response-apm-urges-government-do-more-to-tackle-issues-impacting-projects/ Budget response: APM urges Government do more to tackle issues impacting projects]' dated March 15, 2023.

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Editor at 16:33, 15 March 2023

2023-03-15T16:33:52Z

← Older revision		Revision as of 16:33, 15 March 2023
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	An increase in the pensions annual tax-free allowance from £40,000 to £60,000 and the maximum amount one can draw from pensions (workplace or personal) in a lifetime without paying extra tax, the lifetime allowance (LTA) has been abolished.		An increase in the pensions annual tax-free allowance from £40,000 to £60,000 and the maximum amount one can draw from pensions (workplace or personal) in a lifetime without paying extra tax, the lifetime allowance (LTA) has been abolished.

−	= Electrical Contractors' Association ~~(ECA)~~ =	+	= Electrical Contractors' Association response =

	Electrical sector welcomes energy bills U-turn, but warns of skills crisis. ECA has broadly welcomed today’s Budget, praising the extension of the energy support guarantee for another three months.		Electrical sector welcomes energy bills U-turn, but warns of skills crisis. ECA has broadly welcomed today’s Budget, praising the extension of the energy support guarantee for another three months.
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	This section appears in press release form and on the ECA Today webiste as '[https://www.ecatoday.co.uk/news/2303/Spring-Budget-Electrical-sector-welcomes-energy-bi Spring Budget: Electrical sector welcomes energy bills U-turn, but warns of skills crisis]' dated March 15, 2023.		This section appears in press release form and on the ECA Today webiste as '[https://www.ecatoday.co.uk/news/2303/Spring-Budget-Electrical-sector-welcomes-energy-bi Spring Budget: Electrical sector welcomes energy bills U-turn, but warns of skills crisis]' dated March 15, 2023.

−	= Chartered Institute of Building ~~(CIOB)~~ =	+	= Chartered Institute of Building response =

	Eddie Tuttle, Director of policy, external affairs and research at CIOB said: “A number of the proposals in the budget statement will rely heavily on the construction sector, including the creation of new investment zones, growing renewable energy generation and local schemes to improve roads. The prospect of investment in local infrastructure will be welcome news to construction companies across the country.		Eddie Tuttle, Director of policy, external affairs and research at CIOB said: “A number of the proposals in the budget statement will rely heavily on the construction sector, including the creation of new investment zones, growing renewable energy generation and local schemes to improve roads. The prospect of investment in local infrastructure will be welcome news to construction companies across the country.
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	This section appears in on the CIOB webiste as '[https://www.ciob.org/news/ciob-responds-to-chancellors-2023-budget CIOB responds to Chancellor's 2023 Budget]' dated March 15, 2023.		This section appears in on the CIOB webiste as '[https://www.ciob.org/news/ciob-responds-to-chancellors-2023-budget CIOB responds to Chancellor's 2023 Budget]' dated March 15, 2023.

−	= Association for Project Management ~~(APM)~~ =	+	= Association for Project Management response =

	Association for Project Management (APM) has welcomed measures in the UK Government’s new Budget aimed at addressing issues affecting project delivery, but has called for more to be done to help projects fulfil their intended economic and social benefits.		Association for Project Management (APM) has welcomed measures in the UK Government’s new Budget aimed at addressing issues affecting project delivery, but has called for more to be done to help projects fulfil their intended economic and social benefits.

Editor at 16:32, 15 March 2023

2023-03-15T16:32:51Z

← Older revision		Revision as of 16:32, 15 March 2023
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−	[[File:~~Spring Budget 2023 banner~~.jpg]]	+	[[File:Spring_Budget_2023_banner.jpg\|link=File:Spring_Budget_2023_banner.jpg]]

	Early in the afternoon on the 15th of March Chancellor Jeremy Hunt unveiled what he described as a “Budget for growth”. He did so against the back drop of strikes amongst Junior doctors, the London underground, civil servants, teachers, lecturers and BBC journalists. A copy of the [https://www.gov.uk/government/publications/spring-budget-2023 full budget is available on the Government website], whilst as summary of key points and responses fro industry is given below.		Early in the afternoon on the 15th of March Chancellor Jeremy Hunt unveiled what he described as a “Budget for growth”. He did so against the back drop of strikes amongst Junior doctors, the London underground, civil servants, teachers, lecturers and BBC journalists. A copy of the [https://www.gov.uk/government/publications/spring-budget-2023 full budget is available on the Government website], whilst as summary of key points and responses fro industry is given below.
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	“The measures announced by the Chancellor to encourage people back to work fail to address sector-specific labour and skills shortages. The extended energy bill support will provide some peace of mind, but this will be short-lived. To make the UK energy independent, a skilled, competent workforce is vital to maintain existing electrical Infrastructure. As the electrification of the UK accelerates rapidly, our sector needs stronger engagement from Government to develop a flexible and competent electrical workforce in sufficient numbers to meet growing demand and ultimately help deliver Net Zero on time.”		“The measures announced by the Chancellor to encourage people back to work fail to address sector-specific labour and skills shortages. The extended energy bill support will provide some peace of mind, but this will be short-lived. To make the UK energy independent, a skilled, competent workforce is vital to maintain existing electrical Infrastructure. As the electrification of the UK accelerates rapidly, our sector needs stronger engagement from Government to develop a flexible and competent electrical workforce in sufficient numbers to meet growing demand and ultimately help deliver Net Zero on time.”
		+
		+	-----
		+	This section appears in press release form and on the ECA Today webiste as '[https://www.ecatoday.co.uk/news/2303/Spring-Budget-Electrical-sector-welcomes-energy-bi Spring Budget: Electrical sector welcomes energy bills U-turn, but warns of skills crisis]' dated March 15, 2023.

	= Chartered Institute of Building (CIOB) =		= Chartered Institute of Building (CIOB) =
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	“It is well documented that the construction workforce has an ageing population with Office for National Statistics (ONS) data indicating that this is rising on the back of a 13% increase in the number of construction workers aged 45 and over in 2018 (representing 47% of the industry as a whole). Alongside this, similar data from Q4 2022 suggests that over 500,000 UK-born construction workers are expected to retire in the next 10-15 years. With this in mind, we support the principle of the ‘Returnership’ scheme announced in today’s budget targeted at getting those over 50 back into work. While many roles in construction may not be suitable for those over a certain age due to its physical nature, there is huge untapped potential to mentor the new intake of construction professionals.”		“It is well documented that the construction workforce has an ageing population with Office for National Statistics (ONS) data indicating that this is rising on the back of a 13% increase in the number of construction workers aged 45 and over in 2018 (representing 47% of the industry as a whole). Alongside this, similar data from Q4 2022 suggests that over 500,000 UK-born construction workers are expected to retire in the next 10-15 years. With this in mind, we support the principle of the ‘Returnership’ scheme announced in today’s budget targeted at getting those over 50 back into work. While many roles in construction may not be suitable for those over a certain age due to its physical nature, there is huge untapped potential to mentor the new intake of construction professionals.”
		+
		+	-----
		+	This section appears in on the CIOB webiste as '[https://www.ciob.org/news/ciob-responds-to-chancellors-2023-budget CIOB responds to Chancellor's 2023 Budget]' dated March 15, 2023.

	= Association for Project Management (APM) =		= Association for Project Management (APM) =

−	Ahead of the Budget, APM ~~carried~~ out ~~a poll~~ (~~conducted by research company Censuswide~~) ~~of 100 senior projectprofessionals~~, ~~each working~~ on projects ~~across~~ government ~~policies including transformation~~ and ~~service delivery~~, Levelling Up, infrastructure and ~~net zero,~~ to ~~get a sense~~ of the ~~profession’s levels~~ of ~~concerns~~.	+	Association for Project Management (APM) has welcomed measures in the UK Government’s new Budget aimed at addressing issues affecting project delivery, but has called for more to be done to help projects fulfil their intended economic and social benefits.
		+
		+	== Research outcomes ahead of announcement ==
		+
		+	Research by APM has shown that the UK’s project management sector employs 2.13 million full-time equivalent workers and adds £156.5bn of value to the UK economy each year. Ahead of the Budget, APM polled 100 senior project professionals about their concerns on issues that might impact the delivery of projects and programmes they’re working on. Nearly 9 out of 10 respondents (88%) said their main project was aligned to at least one government policy, highlighting the important role projects play in supporting government initiatives; both economic and social.
		+
		+	* 92% said they have concerns about the impact of supply chain issues on their main project.
		+	* 91% said they’re concerned about the impact of ongoing economic instability.
		+	* 87% said they’re concerned over shortages in the UK labour market.
		+
		+	In his Budget statement, Jeremy Hunt, Chancellor of the Exchequer, announced measures intended to tackle barriers to recruitment for UK businesses, and measures to grow the economy. However, there was little mention of supply chain-related issues, which are also significant to economic growth.
		+
		+	== Do more to unlock the economic and social power of projects ==
		+
		+	APM welcomed the measures announced, but called on the government to do more to unlock the economic and social power of projects.
		+
		+	Measures announced by the Chancellor include:
		+
		+	* Increasing the main rate of corporation tax paid by businesses on taxable profits over £250,000 from 19% to 25%.
		+	* The creation of 12 new investment zones around the UK, which will each receive £80 million of investment support for ‘innovation clusters’.
		+	* Funding for Levelling Up initiatives, including £200 million for regeneration projects across England and £8.8 bn for transport infrastructure.
		+	* Launching Great British Nuclear (GBN) to address constraints in the nuclear market and support new nuclear builds.
		+	* Measures to incentivise investment and research in artificial intelligence (AI).
		+	* Providing 30 hours of free weekly childcare for working parents with children below the age of three, along with measures to help people aged over 50, people with disabilities and young people in the care system into work.
		+
		+	In his Budget statement, Jeremy Hunt said: “This is a budget for growth. We tackle the two biggest barriers that stop businesses growing – investment incentives and labour supply. An enterprise economy can only grow if it can hire the people it needs. This is a comprehensive plan to remove barriers to work.”
		+
		+	== APM's response ==

−	~~The poll’s findings indicate general concern among~~ project and ~~programme professionals with regards~~ to the economy, the ~~labour market~~ and ~~supply chain issues~~ in ~~the UK. The majority (91%) of project professionals polled say they are concerned about the impact of ongoing economic instability on their main~~ project. ~~Of these~~, ~~58% say they are very concerned~~ and ~~a third (33%) say they are somewhat concerned~~.	+	Professor Adam Boddison OBE, Chief Executive at APM, said: “A healthy and stable economic environment is vital for the successful delivery of projects – especially those that are supporting government initiatives. And of course, people deliver projects, so having more people in the workforce will make it easier for project teams to recruit. We therefore welcome measures announced by the Chancellor today that support economic growth and tackle barriers people face when joining or re-joining the workforce. However, the most sustainable way to grow the economy is not merely by growing the size of the workforce, but by ensuring people have the skills and capabilities they need to succeed in areas like project management that bring financial benefits as well as social ones. We therefore urge the Government to commit to investing in the skills necessary for delivering projects that will help the UK address challenges such as climate change, infrastructure improvement and digital transformation.

−	~~The impact of~~ supply chain issues ~~on project/s are also a source of worry~~, ~~with 92% expressing a level of concern – over half (52%) of project professionals say~~ they’re ~~somewhat~~ concerned~~, and 40% say they are very concerned about~~ the ~~current situation~~ of ~~supply~~ issues ~~in the UK. The poll also highlights concerns over shortages in the UK labour market, with a total of 87% expressing concerns – 45% who say they are somewhat concerned and 42% who are very concerned~~.	+	“We would also have liked to have seen more detail on plans to address how post-Brexit supply chain issues might be addressed, as people in our profession tell us they’re concerned with the impacts of these issues on projects they’re working on.

−	~~Andrew Baldwin, Head of Public Affairs at APM says: “We know an environment~~ of ~~stability and certainty is vital~~ to ~~ensure~~ the ~~successful delivery~~ of projects ~~– especially those~~ that ~~are supporting government initiatives. This survey is a demonstration~~ of ~~that~~.	+	“While most headlines will focus on the additional support for childcare costs – something we support as a way of helping women in our profession to progress in their careers – the success of this budget will be judged on how effectively it enables projects that will improve people’s lives and shape the future landscape of the UK.”

−	~~“We urge the Government to focus this year’s budget~~ on ~~delivering economic stability and certainty. Projects across~~ the ~~country need both~~ to ~~deliver their benefits~~.”	+	-----
		+	This section appears in on the CIOB webiste as '[https://www.apm.org.uk/news/budget-response-apm-urges-government-do-more-to-tackle-issues-impacting-projects/ Budget response: APM urges Government do more to tackle issues impacting projects]' dated March 15, 2023.

	= Related articles on Designing Buildings =		= Related articles on Designing Buildings =

Editor: moved Industry response to Spring Budget 2023 to 2023 Spring Budget summary and industry response

2023-03-15T15:40:51Z

moved Industry response to Spring Budget 2023 to 2023 Spring Budget summary and industry response

← Older revision

Revision as of 15:40, 15 March 2023

← Older revision		Revision as of 12:35, 17 March 2023
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	“At a time when we’re looking to dramatically improve the diversity of the built environment workforce we were also pleased to hear the Chancellor’s plans on childcare costs which could help more women get into work. It’s important the construction sector now seizes this opportunity and works together with Government to promote the vast range of roles available and the value women can bring to what is typically a male dominated working environment.”		“At a time when we’re looking to dramatically improve the diversity of the built environment workforce we were also pleased to hear the Chancellor’s plans on childcare costs which could help more women get into work. It’s important the construction sector now seizes this opportunity and works together with Government to promote the vast range of roles available and the value women can bring to what is typically a male dominated working environment.”

−	== ~~Additional~~ CIOB comments on Investment Zones ==	+	== CIOB comments on Investment Zones ==

	“We are pleased to see that further long-term policy making is being pursued in the 12 new investment zones announced in today’s budget. However, while we are in favour of greater regional investment to level up the geographical disparities between London and the rest of the UK, there was no acknowledgement of the crucial role that industries like construction will play the success of these zones. Construction is facing an acute skills gap and is feeling the brunt of large infrastructure projects like HS2 absorbing large numbers of skilled workers. We feel that greater emphasis needs to be placed on implementing strategies to recruit trained workers into industries like construction to ensure that these infrastructure investments are more than just empty words.”		“We are pleased to see that further long-term policy making is being pursued in the 12 new investment zones announced in today’s budget. However, while we are in favour of greater regional investment to level up the geographical disparities between London and the rest of the UK, there was no acknowledgement of the crucial role that industries like construction will play the success of these zones. Construction is facing an acute skills gap and is feeling the brunt of large infrastructure projects like HS2 absorbing large numbers of skilled workers. We feel that greater emphasis needs to be placed on implementing strategies to recruit trained workers into industries like construction to ensure that these infrastructure investments are more than just empty words.”

−	== ~~Additional~~ CIOB comments on repair and maintenance of roads and infrastructure ==	+	== CIOB comments on repair and maintenance of roads and infrastructure ==

	“We are pleased to see a further investment of £200m in 2023-24 to repair potholes. Potholes in local roads lead to deaths and accidents with cyclists particularly at risk. At a time when there is a push to increase cycling for environmental and health reasons, deteriorating roads provide a barrier. When policy makers highlight the need for more construction, greater emphasis falls on strategic infrastructure – homes, digital highways, schools, hospitals, roads and railways and this is typically on new builds and structures. Less attention tends to be paid to the work needed to maintain and improve the vast stock of existing buildings, structures and roads that make up the UK’s built environment.		“We are pleased to see a further investment of £200m in 2023-24 to repair potholes. Potholes in local roads lead to deaths and accidents with cyclists particularly at risk. At a time when there is a push to increase cycling for environmental and health reasons, deteriorating roads provide a barrier. When policy makers highlight the need for more construction, greater emphasis falls on strategic infrastructure – homes, digital highways, schools, hospitals, roads and railways and this is typically on new builds and structures. Less attention tends to be paid to the work needed to maintain and improve the vast stock of existing buildings, structures and roads that make up the UK’s built environment.
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	“Research undertaken by the CIOB in 2017 that looked at how the public values investment in the built environment, found road repairs, such as mending potholes topped the poll ratings (60%) ahead of new transport connections (37%) and improvements to the local economy (34%). Road repair and maintenance is labour intensive and grounded in local supply chains, making it ideal to maximise employment within the construction sector, support regional growth and improve the livelihoods of local people.”		“Research undertaken by the CIOB in 2017 that looked at how the public values investment in the built environment, found road repairs, such as mending potholes topped the poll ratings (60%) ahead of new transport connections (37%) and improvements to the local economy (34%). Road repair and maintenance is labour intensive and grounded in local supply chains, making it ideal to maximise employment within the construction sector, support regional growth and improve the livelihoods of local people.”

−	== ~~Additional~~ CIOB comments on migration and accessing the labour market ==	+	== CIOB comments on migration and accessing the labour market ==

	“The construction industry continues to face numerous skills shortages, resulting from a mixture of lack of new entrants, to skilled professionals reaching retirement age. This is why migration continues to be a necessity for construction, helping dampen the harmful effects of having a volatile labour market.		“The construction industry continues to face numerous skills shortages, resulting from a mixture of lack of new entrants, to skilled professionals reaching retirement age. This is why migration continues to be a necessity for construction, helping dampen the harmful effects of having a volatile labour market.
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	“CIOB has been working with a consortium of trade and professional bodies in the built environment to inform the MAC on these skills gaps and shortages and hopes that the Government will continue to listen to the advice of the sector.”		“CIOB has been working with a consortium of trade and professional bodies in the built environment to inform the MAC on these skills gaps and shortages and hopes that the Government will continue to listen to the advice of the sector.”

−	== ~~Additional~~ CIOB comments on Returnerships ==	+	== CIOB comments on Returnerships ==

	“It is well documented that the construction workforce has an ageing population with Office for National Statistics (ONS) data indicating that this is rising on the back of a 13% increase in the number of construction workers aged 45 and over in 2018 (representing 47% of the industry as a whole). Alongside this, similar data from Q4 2022 suggests that over 500,000 UK-born construction workers are expected to retire in the next 10-15 years. With this in mind, we support the principle of the ‘Returnership’ scheme announced in today’s budget targeted at getting those over 50 back into work. While many roles in construction may not be suitable for those over a certain age due to its physical nature, there is huge untapped potential to mentor the new intake of construction professionals.”		“It is well documented that the construction workforce has an ageing population with Office for National Statistics (ONS) data indicating that this is rising on the back of a 13% increase in the number of construction workers aged 45 and over in 2018 (representing 47% of the industry as a whole). Alongside this, similar data from Q4 2022 suggests that over 500,000 UK-born construction workers are expected to retire in the next 10-15 years. With this in mind, we support the principle of the ‘Returnership’ scheme announced in today’s budget targeted at getting those over 50 back into work. While many roles in construction may not be suitable for those over a certain age due to its physical nature, there is huge untapped potential to mentor the new intake of construction professionals.”