Chancellor's 2022 Autumn statement industry response

[edit] CIOB comment to Autumn Statement / Budget

On November 17th CIOB reacted to the Chancellor’s Autumn Statement and what it means for the built environment sector.

Eddie Tuttle, Director of Policy, External Affairs and Research at the Chartered Institute of Building, said; “While the cost of living and energy crisis are rightly priorities for Government, the role of the construction industry in addressing both of them is, in our view, being underestimated and this has been evident in today’s autumn statement.

“We look forward to seeing the Government’s plans for the funding it has today allocated to improving energy efficiency and hearing more of the detail, which is currently lacking. Representatives from the built environment must be included in the Taskforce the Chancellor has announced if any plans to meet energy efficiency targets are to be successful, and we would welcome the opportunity to share our expertise.

“The built environment sector is without doubt, pivotal in reducing carbon emissions, not only during the construction of new buildings and critical infrastructure, but also in the retrofitting of existing homes to make them more energy efficient. Without this, government will not meet its target of reducing the carbon emissions from buildings by 15 per cent by 2030 and reduce household energy bills, which continue to be one of the biggest concerns for the UK population.

“Continuing investment and forward planning from a stable government is critical to enable the construction sector to properly plan ahead with confidence and play its part in addressing net zero, levelling up and ultimately the cost of living and energy issues faced by millions.”

This comment originally appeared on the CIOB news and blog site as "CIOB Comment - Autumn Statement/Budget" on November 17, 2022.

[edit] APM welcomes announcements around energy, infrastructure and innovation

Association for Project Management (APM) welcomed announcements around energy, infrastructure and innovation in the UK Government’s latest budget, which will put projects in these areas at the forefront of driving economic growth.

Jeremy Hunt, Chancellor of the Exchequer, announced his plans for the UK economy on Thursday, 17 November, amid speculation that there would be large-scale cuts to sectors where major projects take place. Delivering his budget against a background of high inflation and economic uncertainty, Mr Hunt said: “Our priorities are stability, growth and public services…anyone who says there are easy answers is not being straight with the British people.”

However, the Chancellor made a commitment to invest in project-focused areas, referring to these as ‘growth priorities’ These included:

[edit] Energy independence and energy efficiency

• The Government will proceed with plans for a new nuclear power station at Sizewell C.
• Setting a new ‘national ambition’ to reduce energy consumption from buildings and industry by 15% by 2030.

Mr Hunt said: “Britain is a global leader in renewable energy. But we need to go even further with any acceleration of solar, offshore wind and, above all, nuclear.

“[Sizewell C] will create 10,000 highly skilled jobs and provide low carbon power to the equivalent of 6,000 homes for 50 years.”

[edit] Infrastructure

• The Government committed to delivering the core Norther Powerhouse rail, HS2 to Manchester, East-West rail, a new hospitals programme and gigabit broadband rollout.
• These projects will be funded with over £600bn of investment over the next five years.
• Round 2 of the Levelling Up fund will proceed and at least match the £1.7bn round 1 funding.

The Chancellor said: “Connections matter because they allow wealth and opportunity to spread to every corner on the country. That’s why infrastructure is our second growth priority.

“When looking for cuts, capital spending is sometimes seen as an easy option, but doing so limits not our budgets, but our future.

“Our national Conservative mission is to level up economic opportunity across the country. That too needs investment in infrastructure.”

[edit] Innovation

• Supply-side changes to EU regulations affecting life digital, life sciences, green industries financial services and advanced manufacturing, to be decided announced by the end of the year.
• Removal of import tariffs on over 100 goods used by UK business in production processes.
• Changes to investment zones, which will be centred on universities in “left behind” areas to help build clusters for growth industries.

[edit] Comments

Commenting on these announcements, the Chancellor described innovation as the Government’s third growth priority, saying: “21st century economies will be defined by developments in artificial intelligence, quantum technologies and robotics.

“I want to combine our technology and science brilliance with our formidable financial services to turn Britain into the world’s next Silicone Valley.”

APM’s Chief Executive, Professor Adam Boddison, said: “The key words the Chancellor used when presenting this budget were ‘balance’, ‘stability’ and ‘growth’ and it is clear to see that the power of projects to deliver economic and social benefit has been recognised. The emphasis of the Budget is very much on achieving growth through projects in energy, infrastructure and innovation. We welcome this recognition and the investment that accompanies it. However, it must be remembered that policy announcements don’t deliver projects; people do. Investing in people, as well as material resources, will create the skills necessary to deliver projects now and in the future.

“We acknowledge that the UK remains in the midst of challenging economic times and that people across the country are facing hardship and difficulties. We believe that projects will be the key to unlocking economic growth and delivering benefits for society. The success of this budget must therefore be judged not against tomorrow’s headlines but on its impacts on projects and programmes delivering real benefits to people, at both local and national level.”

This text originally appeared on the APM news and blog site as "Chancellor puts projects at the forefront of Budget growth priorities" on November 17, 2022.

[edit] ECA welcomes Hunt’s energy resilience message, but says electricity taxes counterproductive.

Leading electrotechnical and engineering services body ECA says Chancellor Jeremy Hunt’s Autumn Budget offers some stability for business after recent economic turbulence and welcomes its focus on energy resilience.

The proposed reduction in the energy consumption of buildings, which provides an incentive to achieve the highest environmental standards, is a welcome move. But ECA calls for clarity on how this will be implemented. The trade body hopes its expertise in this field will ensure it plays a prominent role in the new task force.

Despite announcements of investment in offshore wind, carbon capture and nuclear, ECA remains concerned about the softening of the UK’s net zero global leadership. Measures such as taxation of electric vehicles, the 45 percent levy on electricity generators, and the April 2023 energy bill cap rise will dampen the appetite to invest in the green economy.

[edit] ECA Director of Workforce and Public Affairs Andrew Eldred said:

“We welcome Mr. Hunt’s highly anticipated budget and its aims to create fairer taxes and energy resilience.

“However, we are worried that clean electricity is still being taxed more heavily than fossil fuels. For the last few years, the UK has consistently generated around 40 percent of its electricity from renewable sources, and the government’s levy on electricity generators could stifle long-term investment in homegrown clean energy and energy security.

“Despite the economic turmoil of the past year, the UK remains a strong global leader in attracting renewable energy investment; we need to capitalise on this tailwind, rather than block it.”

ECA has welcomed the Chancellor’s commitment to upskilling, with a focus on skilled trades that will be vital to the competent installation, operation and maintenance of decarbonized infrastructure, transport, and energy efficiency.

With the skills shortage the primary concern for firms in the construction and built environment sector, ECA calls for additional government support for training to be developed in collaboration with employers.

[edit] Andrew Eldred added:

“The electrotechnical sector is an engine of the high skill, high wage and net zero economy the government wants to achieve. We are pleased to see that the Chancellor understands the need to focus more on workforce skills.

“If done properly, the electrotechnical industry can offer some of the most sought-after and future-proofed career paths, with plenty of prospects for growth and development.”

ECA criticised the announced tax on electric vehicles, saying this sends the wrong message to consumers looking to switch from ICE cars to EVs at a crucial point in our journey to net zero. In addition, a further energy bill cap rise in April 2023 could push even more households into fuel poverty, jeopardising their health and safety.

This comment originally appeared on the ECA Today site as "ECA welcomes Hunt’s energy resilience message, but says electricity taxes counterproductive." on November 21, 2022 and via press release under the same title.

[edit] BESA key Autumn statements points

[edit] Energy Efficiency

• A key priority for the Government and is critical to ensuring the UK is not at the mercy rising gas prices.
• The Government have said that the Business and Energy Secretary Grant Shapps will shortly launch a new Energy Efficiency Taskforce.
• The Government set a new ambition of reducing energy consumption in buildings and industry by 15% by 2030; this will also deliver a £28b saving on the national energy bill. The Government has announced an additional £6bn from 2025 to deliver this.

[edit] Skills

• The Government has announced that Michael Barber will advise the Government on its skills reform programme. Barber previously worked with Tony Blair, heading his Delivery Unit in Downing Street.
• Barber will work with the Government to maximise the impact of Government commitments on skills bootcamps, T-Levels, apprenticeships and the Lifelong Learning Entitlement.
• Hunt said he was concerned that school leavers weren’t all getting the skills they need for a modern economy. He said the key question is: will every young person leave the education system with the same skills that young people in Japan, Switzerland and Germany have?

[edit] National Living Wage

The Government has increased the NLW for people aged 23 and over by 9.7% to £10.42 an hour. In accepting the recommendations from the Low Pay Commission, the Government have also increased the apprenticeship rate by 9.7% to £5.28 an hour.

These key points originally appeared in the BESA newsletter dated November 21, 2022.

[edit] Related articles on Designing Buildings

• APM articles.
• CIOB articles.
• CIOB at the party conferences 2022.
• ECA articles.
• Government publishes UK infrastructure strategy.
• Industry responds as Rishi Sunak becomes new PM.
• No net zero without skilled workforce.