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Built environment industry calls for intervention on social value

2023-03-17T12:04:16Z

Meeting Place:

[[File:Meeting_Place-03836.jpg|link=File:Meeting_Place-03836.jpg]]

Industry calls for intervention to 'level the playing field' on social value

Public, private and third-sector leaders call for five key improvements to unlock built environment’s potential

An event bringing together private, public and third-sector leaders across the built environment has called on the government to be bolder when it comes to social value, if we are to unlock the potential it can deliver for communities across the UK.

Published today by comms agency Meeting Place, the [https://meeting-place.uk/insights/news/our-call-to-government-to-level-the-playing-field-on-social-value/ Unlocking the potential of social value] report puts forward insight gathered at the recent symposium. It outlines five key recommendations which the industry must work towards, if it is to maximise social value - the impact an organisation contributes to wider society, beyond the profit it generates.

The news follows [https://www.investmentmonitor.ai/news/record-breaking-social-value-uk-construction-industry-h1-2022%EF%BF%BC/ new research] from Scape, which highlights the construction industry delivered a record-breaking £1.1bn of social and local economic value in the first half of 2022, equating to a 30% return on investment, up from 20% the previous year.

Although a substantial increase, delegates at Meeting Place’s Social Value Symposium identified real issues in parity when it comes to best practice within the sector and believe more can be done.

The figure contrasts with the total output of the UK construction industry, which delivers [https://www.designingbuildings.co.uk/wiki/UK_construction_industry £110bn annually] (7% of GDP).

The event’s partner organisations - Places for People, Socius and BoKlok - brought together decades of best practice expertise in their field to help shape the narrative, understanding and recommendations. The symposium highlighted five key areas where intervention and improvement will prove key in redressing the imbalance:

1. More powers and accountability – Delegates felt the Social Value Act (2012) ‘lacks teeth’, with take- up in recent years piecemeal at best.

2. Greater flexibility – Moving beyond pure compliance to proactively communicate and engage throughout the whole process – constantly evaluating, refining and developing the offer to the community.

3. Greater collaboration across public and private sectors – Delegates noted inconsistencies between local authorities across the country when it comes to their approach and understanding of social value. Local authorities should take Bristol City Council’s lead by creating an impactful social value framework for developers to follow and align to.

4. Avoiding the ‘parachute’ – Interventions which are meaningful and deliver in the long term are too often absent from conversations about social value. Delegates suggested more should be done to understand what communities tangibly want and need, with a lack of consistency identified when it comes to community involvement.

5. Qualitative and quantitative - Businesses which invest efforts in collating accurate data and metrics to evidence their positive impact will be best placed to tackle virtue signalling criticisms head-on.

Nikki Davies, Meeting Place’s Managing Director, said: “Social impact is evolving into a litmus test for how businesses should operate in the UK. It has certainly come a long way since the Social Value Act in 2012, but there is now a real appetite and need for the industry to level up with businesses that are leading the charge.

“As a result, we are calling on the government and local authorities to be bolder in their ambitions, if we are to see improvements and level the playing field. Although it is already embedded in the procurement process, we want to see social value becoming an integral, legally binding part of the planning process, rather than something to “consider”, as has previously been the case.

“Government intervention and stewardship will be key, along with greater devolved powers for local authorities. We also need a stronger and swifter culture shift within certain parts of the private sector – moving away from a fixation on profits and bonuses, to align with those who maximise benefits for people, places and the planet.”

Liam Ronan-Chlond, Head of Engagement & Social Value at Socius explains: “Social value is a mindset, it’s about committing to making a long-term investment and creating a more positive future. Socius has made social value the responsibility of the entire company, and beyond that, we even look at our supply chain, encouraging the organisations that we work with to ‘do more good’.

“Our ambitions are fully aligned with Meeting Place and its Social Value Symposium whitepaper and we support its call on the government and local authorities to put greater emphasis on social impact.”

For more information on Meeting Place and to read the Social Value Symposium whitepaper, please visit: [https://meeting-place.uk/insights/news/our-call-to-government-to-level-the-playing-field-on-social-value/ https://meeting-place.uk/insights/news/our-call-to-government-to-level-the-playing-field-on-social-value/]

Built environment industry calls for intervention on social value

2023-03-17T12:02:29Z

Meeting Place:

[[File:Meeting Place-03836.jpg]]

Industry calls for intervention to 'level the playing field' on social value

Public, private and third-sector leaders call for five key improvements to unlock built environment’s potential

An event bringing together private, public and third-sector leaders across the built environment has called on the government to be bolder when it comes to social value, if we are to unlock the potential it can deliver for communities across the UK.

Published today by comms agency Meeting Place, the [https://meeting-place.uk/insights/news/our-call-to-government-to-level-the-playing-field-on-social-value/ Unlocking the potential of social value] report puts forward insight gathered at the recent symposium. It outlines five key recommendations which the industry must work towards, if it is to maximise social value - the impact an organisation contributes to wider society, beyond the profit it generates.

The news follows [https://www.investmentmonitor.ai/news/record-breaking-social-value-uk-construction-industry-h1-2022%EF%BF%BC/ new research] from Scape, which highlights the construction industry delivered a record-breaking £1.1bn of social and local economic value in the first half of 2022, equating to a 30% return on investment, up from 20% the previous year.

Although a substantial increase, delegates at Meeting Place’s Social Value Symposium identified real issues in parity when it comes to best practice within the sector and believe more can be done.

The figure contrasts with the total output of the UK construction industry, which delivers [https://www.designingbuildings.co.uk/wiki/UK_construction_industry £110bn annually] (7% of GDP).

The event’s partner organisations - Places for People, Socius and BoKlok - brought together decades of best practice expertise in their field to help shape the narrative, understanding and recommendations. The symposium highlighted five key areas where intervention and improvement will prove key in redressing the imbalance:

1. More powers and accountability – Delegates felt the Social Value Act (2012) ‘lacks teeth’, with take- up in recent years piecemeal at best.

2. Greater flexibility – Moving beyond pure compliance to proactively communicate and engage throughout the whole process – constantly evaluating, refining and developing the offer to the community.

3. Greater collaboration across public and private sectors – Delegates noted inconsistencies between local authorities across the country when it comes to their approach and understanding of social value. Local authorities should take Bristol City Council’s lead by creating an impactful social value framework for developers to follow and align to.

4. Avoiding the ‘parachute’ – Interventions which are meaningful and deliver in the long term are too often absent from conversations about social value. Delegates suggested more should be done to understand what communities tangibly want and need, with a lack of consistency identified when it comes to community involvement.

5. Qualitative and quantitative - Businesses which invest efforts in collating accurate data and metrics to evidence their positive impact will be best placed to tackle virtue signalling criticisms head-on.

Nikki Davies, Meeting Place’s Managing Director, said: “Social impact is evolving into a litmus test for how businesses should operate in the UK. It has certainly come a long way since the Social Value Act in 2012, but there is now a real appetite and need for the industry to level up with businesses that are leading the charge.

“As a result, we are calling on the government and local authorities to be bolder in their ambitions, if we are to see improvements and level the playing field. Although it is already embedded in the procurement process, we want to see social value becoming an integral, legally binding part of the planning process, rather than something to “consider”, as has previously been the case.

“Government intervention and stewardship will be key, along with greater devolved powers for local authorities. We also need a stronger and swifter culture shift within certain parts of the private sector – moving away from a fixation on profits and bonuses, to align with those who maximise benefits for people, places and the planet.”

Liam Ronan-Chlond, Head of Engagement & Social Value at Socius explains: “Social value is a mindset, it’s about committing to making a long-term investment and creating a more positive future. Socius has made social value the responsibility of the entire company, and beyond that, we even look at our supply chain, encouraging the organisations that we work with to ‘do more good’.

“Our ambitions are fully aligned with Meeting Place and its Social Value Symposium whitepaper and we support its call on the government and local authorities to put greater emphasis on social impact.”

For more information on Meeting Place and to read the Social Value Symposium whitepaper, please visit: [https://meeting-place.uk/insights/news/our-call-to-government-to-level-the-playing-field-on-social-value/ https://meeting-place.uk/insights/news/our-call-to-government-to-level-the-playing-field-on-social-value/]

File:Meeting Place-03836.jpg

2023-03-17T12:01:27Z

Meeting Place:

Built environment industry calls for intervention on social value

2023-03-17T12:00:44Z

Meeting Place: Created page with "Industry calls for intervention to 'level the playing field' on social value Public, private and third-sector leaders call for five key improvements to unlock built environment..."

Industry calls for intervention to 'level the playing field' on social value

Public, private and third-sector leaders call for five key improvements to unlock built environment’s potential

An event bringing together private, public and third-sector leaders across the built environment has called on the government to be bolder when it comes to social value, if we are to unlock the potential it can deliver for communities across the UK.

Published today by comms agency Meeting Place, the [https://meeting-place.uk/insights/news/our-call-to-government-to-level-the-playing-field-on-social-value/ Unlocking the potential of social value] report puts forward insight gathered at the recent symposium. It outlines five key recommendations which the industry must work towards, if it is to maximise social value - the impact an organisation contributes to wider society, beyond the profit it generates.

The news follows [https://www.investmentmonitor.ai/news/record-breaking-social-value-uk-construction-industry-h1-2022%EF%BF%BC/ new research] from Scape, which highlights the construction industry delivered a record-breaking £1.1bn of social and local economic value in the first half of 2022, equating to a 30% return on investment, up from 20% the previous year.

Although a substantial increase, delegates at Meeting Place’s Social Value Symposium identified real issues in parity when it comes to best practice within the sector and believe more can be done.

The figure contrasts with the total output of the UK construction industry, which delivers [https://www.designingbuildings.co.uk/wiki/UK_construction_industry £110bn annually] (7% of GDP).

The event’s partner organisations - Places for People, Socius and BoKlok - brought together decades of best practice expertise in their field to help shape the narrative, understanding and recommendations. The symposium highlighted five key areas where intervention and improvement will prove key in redressing the imbalance:

1. More powers and accountability – Delegates felt the Social Value Act (2012) ‘lacks teeth’, with take- up in recent years piecemeal at best.

2. Greater flexibility – Moving beyond pure compliance to proactively communicate and engage throughout the whole process – constantly evaluating, refining and developing the offer to the community.

3. Greater collaboration across public and private sectors – Delegates noted inconsistencies between local authorities across the country when it comes to their approach and understanding of social value. Local authorities should take Bristol City Council’s lead by creating an impactful social value framework for developers to follow and align to.

4. Avoiding the ‘parachute’ – Interventions which are meaningful and deliver in the long term are too often absent from conversations about social value. Delegates suggested more should be done to understand what communities tangibly want and need, with a lack of consistency identified when it comes to community involvement.

5. Qualitative and quantitative - Businesses which invest efforts in collating accurate data and metrics to evidence their positive impact will be best placed to tackle virtue signalling criticisms head-on.

Nikki Davies, Meeting Place’s Managing Director, said: “Social impact is evolving into a litmus test for how businesses should operate in the UK. It has certainly come a long way since the Social Value Act in 2012, but there is now a real appetite and need for the industry to level up with businesses that are leading the charge.

“As a result, we are calling on the government and local authorities to be bolder in their ambitions, if we are to see improvements and level the playing field. Although it is already embedded in the procurement process, we want to see social value becoming an integral, legally binding part of the planning process, rather than something to “consider”, as has previously been the case.

“Government intervention and stewardship will be key, along with greater devolved powers for local authorities. We also need a stronger and swifter culture shift within certain parts of the private sector – moving away from a fixation on profits and bonuses, to align with those who maximise benefits for people, places and the planet.”

Liam Ronan-Chlond, Head of Engagement & Social Value at Socius explains: “Social value is a mindset, it’s about committing to making a long-term investment and creating a more positive future. Socius has made social value the responsibility of the entire company, and beyond that, we even look at our supply chain, encouraging the organisations that we work with to ‘do more good’.

“Our ambitions are fully aligned with Meeting Place and its Social Value Symposium whitepaper and we support its call on the government and local authorities to put greater emphasis on social impact.”

For more information on Meeting Place and to read the Social Value Symposium whitepaper, please visit: [https://meeting-place.uk/insights/news/our-call-to-government-to-level-the-playing-field-on-social-value/ https://meeting-place.uk/insights/news/our-call-to-government-to-level-the-playing-field-on-social-value/]

2023 Spring Budget summary and industry response

2023-03-17T11:59:08Z

Meeting Place:

[[File:Spring_Budget_2023_banner.jpg|link=File:Spring_Budget_2023_banner.jpg]]

= 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 =

As part of his announcement he stated that "Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year." He informed British MPs that the British economy was “proving the doubters wrong” in the face of “enormous challenges” and a number of measures would boost efforts to get people back to work such as;

== Energy ==

The energy price guarantee rise has been axed with the cap remaining at £2,500 for an additional three months to help 'bridge' the gap as companies wait for wholesale prices to fall. Whilst for homes he said "High energy bills are one of the biggest worries for families, which is why we’re maintaining the energy price guarantee at its current level."

== Development ==

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 ==

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 ==

£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 ==

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 ==

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 ==

A new programme known as Universal Support to provide support for disabled people to find work with a £400m plan for mental health and other resources for those unable to work due to medical issues. £400 million plan to increase the availability of mental health and musculoskeletal resources.

== 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, and greater work coach support for those working below this level.

== 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. £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 ==

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 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.

However, ECA has warned that the Chancellor’s corporation tax hike could harm electrotechnical businesses, especially SMEs, as they continue to face fiscal pressures from the energy crisis, the cost-of-living crisis, and inflation.

ECA Director of Legal and Business Rob Driscoll said:

“SMEs are a vital part of the construction sector, which itself is the backbone of the British economy. Today’s corporation tax hikes come at a time when SMEs have dealt with Covid, hyperinflating labour, materials and energy costs, rising insolvencies, receding demand and increased borrowing costs. Today’s budget may prove to be counter-intuitive and hinder businesses’ ability to pivot into delivering our urgent Net Zero targets. The drive to Net Zero hinges on skilled engineering services professionals doing the frontline work to upgrade our grid, electrify transport and heating, and connect our homes and businesses to clean energy sources.”

ECA Director of Workforce and Public Affairs said:

“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 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 =

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.

“Our concern however is that construction is already battling a huge skills gap, and this has to be addressed if the industry can play its vital part in delivering the Government’s growth plans. Schemes to get retired and disabled people back into work are unlikely to help fill many of the more physically demanding vacant roles, however we’re keen to hear more about the proposed “Returnerships” which could be a good opportunity for older workers to retrain for less physical roles of which there are a growing number in the sector.

“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 ==

“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 ==

“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.

“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 ==

“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.

“We are therefore pleased that today’s budget states that the government has accepted the Migration Advisory Committee’s (MAC) interim recommendations to initially add five construction occupations to the Shortage Occupation List (SOL), ahead of its wider SOL review concluding in Autumn 2023, with reviews taking place more regularly.

“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 ==

“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 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 (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.”

== 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.

“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.

“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.”

-----
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.”

[[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.”

-----
This section appears in a Press Release as 'Budget Response - Barbour ABI' dated March 15, 2023.

= Related articles on Designing Buildings =

* APM articles.
* APM responds to the Government 2022 mini budget.
* CIOB articles
* CIOB Ireland responds to Budget 2022.
* ECA articles
* ECA joins calls for unprecedented action on energy prices in Spring Budget.
* ECA calls on Government to reform and rebalance energy levies and avoid cost of living crisis..
* Energy price crisis: ECA calls for energy levy reform.
* Response to 2022 September mini budget.

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