{"id":108158,"date":"2022-03-23T14:41:27","date_gmt":"2022-03-23T14:41:27","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=108158"},"modified":"2022-03-23T14:41:27","modified_gmt":"2022-03-23T14:41:27","slug":"construction-professionals-react-spring-budget-2022","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/construction-professionals-react-spring-budget-2022\/108158\/","title":{"rendered":"Construction industry professionals react to Spring Budget 2022"},"content":{"rendered":"<h2>Rishi Sunak Chancellor of the Exchequer has delivered the Spring Budget 2022, announcing a new tax plan to ease the rising cost of living. Here construction industry professionals share their thoughts on the biggest cut to personal taxes in a quarter of a century<\/h2>\n<p>In the <a href=\"https:\/\/www.gov.uk\/government\/publications\/spring-statement-2022-documents\" target=\"_blank\" rel=\"noopener noreferrer\">Spring Budget 2022<\/a>, Rishi Sunak has announced a tax cut for nearly 30m UK workers through a rise in National Insurance thresholds to \u00a312,570 from July &#8211; saving employees over \u00a3330 in the year.<\/p>\n<p>The new tax plan also includes a \u00a35b income tax cut from 2024 and <a href=\"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/the-petrol-crisis\/106679\/\" target=\"_blank\" rel=\"noopener noreferrer\">fuel duty on petrol<\/a> and diesel will be reduced by 5p per litre for the next year.<\/p>\n<p>As well as this, the statement sets out measures to boost investment, innovation, and growth \u2013 including a \u00a31,000 increase to Employment Allowance to benefit around half a million SMEs.<\/p>\n<p>But how do professionals in the construction industry feel about the Spring Budget 2022 statement?<\/p>\n<h3>&#8216;The Chancellor has done nothing in the Spring Statement to help consumers who face bills doubling this year&#8217;<\/h3>\n<p class=\"x_MsoNormal\">Mike Foster, CEO of the <a href=\"https:\/\/eua.org.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Energy and Utilities Alliance (EUA)<\/a>, says: &#8220;The Chancellor has clearly not heard the outcry over rocketing <a href=\"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/energy-price-cap\/105156\/\" target=\"_blank\" rel=\"noopener noreferrer\">energy bills<\/a> faced by millions. He has done nothing in the Spring Statement to help the vast majority of consumers who face bills doubling this year.<\/p>\n<p class=\"x_MsoNormal\">&#8220;His VAT cut on solar panels and heat pumps will be welcomed by those who make them and by those who can afford to fit them, but a VAT cut on energy bills would have helped everyone.<\/p>\n<p class=\"x_MsoNormal\">&#8220;Frankly, consumers waiting to hear good news on their energy bills will be left asking, \u2018is that it Chancellor?\u2019&#8221;<\/p>\n<h3>&#8216;Cutting VAT on energy-saving products will support retrofitting work for construction&#8217;<\/h3>\n<p class=\"x_Normal1\"><span lang=\"EN\">Commenting on the Chancellor\u2019s Spring Budget 2022 today, Clive Docwra, Managing Director of the property and construction consultancy <\/span><span lang=\"EN\"><a href=\"https:\/\/mcbains.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\" data-linkindex=\"0\">McBains<\/a><\/span><span lang=\"EN\">, said: &#8220;<\/span>At a time when <a href=\"https:\/\/www.pbctoday.co.uk\/news\/plant-equipment-supplies-news\/mace-report-ukraine-russia-war-tender-price-inflation-2022\/107786\/\" target=\"_blank\" rel=\"noopener noreferrer\">inflationary pressures<\/a> are impacting heavily and confidence is dipping, there was little direct help for the construction sector.<\/p>\n<p class=\"x_MsoNormal\">&#8220;Cutting VAT on energy-saving products like solar panels and home insulation will help lower energy bills for the consumer, but also support <a href=\"https:\/\/www.pbctoday.co.uk\/news\/featured\/retrofitting-homes-barries-social-housing\/107645\/\" target=\"_blank\" rel=\"noopener noreferrer\">retrofitting<\/a> work for the construction sector.<\/p>\n<h3>&#8216;Construction industry would have liked to have seen the NI increase paused&#8217;<\/h3>\n<p class=\"x_MsoNormal\">&#8220;The 5% cut in fuel duty will also be of some consolation to the industry, although we would have liked to have seen the NI increase paused, as this would have allowed firms to invest more to recover from the pandemic and increase staff wages to help cover inflationary pressures.<\/p>\n<p class=\"x_MsoNormal\">&#8220;Training schemes could also have done with a boost right now \u2013 the most recent figures show the construction industry had 48,000 vacancies, the highest for 20 years, as a result of an ageing workforce, EU workers leaving since Brexit, and bureaucratic apprenticeship schemes, but all we heard was that this will be tackled in the Autumn budget.&#8221;<\/p>\n<h3>&#8216;Inflation will reduce the affordability of mortgage and rent payments&#8217;<\/h3>\n<p>Iain McKenzie, CEO of\u00a0<a href=\"https:\/\/u7061146.ct.sendgrid.net\/ls\/click?upn=4tNED-2FM8iDZJQyQ53jATUaZiYDXSpzm-2FLF0O7VP8ic3GaZ0ijqETOcn1aRXssu0xLDsq_rECFV-2F7tYwFcv7nB3KkCHtth-2FO0r8UAenZLfDRyEyjLAr1OZYfFTjTaP-2F3r59o21SliOTa0iJ0WyqzLJ7of9xRYi2Y6t6Vl2iRmdbPlrA10ott7rRpuT0bUaQGubUxlssu9vKok2VTw0L-2Bxc0v2lMCSDmwWebZFxqcSzMEzS7yXTUMP5nH2csxdwxG-2FKHmdVjkL8I9BLKzwa-2BCQX6IxRgLmYVXtKIQoID-2BEVRVVnFARcrFKsBqINDJAbkh2Q7-2FfgyJCpdV0VJBbw-2FOamMm5b3JGHVOmq2SQ2BRsOpow0s5-2BPD3XZ9IxW4zpMbD3W8cwzr-2BbsEgLjbjEof5J97hcn95EMWqtGPU-2FL-2FGbqKI-2FJKww-3D\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\" data-linkindex=\"0\">The Guild of Property Professionals<\/a>, says: &#8220;The country is grappling with a cost of living crisis and today\u2019s Spring Statement aims to give some breathing space to consumers.<\/p>\n<p>&#8220;The financial challenges that people face will always trickle down to homeowners, those looking to get on the property ladder and those seeking affordable properties to rent.<\/p>\n<p>&#8220;While energy price rises will increase the cost of powering our homes, the measures taken to cut VAT on environmentally friendly power sources and energy-saving insulation will give homeowners some relief going forward.<\/p>\n<p>&#8220;Regardless of these initiatives, average annual inflation of 7.4% will hit people hard and reduce the affordability of mortgage and rent payments.<\/p>\n<p>&#8220;Raising the national insurance threshold to \u00a312,570 will give 30 million people more money in their pocket to take on these challenges. Yet inflation isn\u2019t set to be under control until 2024, and despite today\u2019s pledge to cut income tax by then, the next two years are set to be a difficult time for many.&#8221;<\/p>\n<h3>&#8216;More needs to be done to prevent households from falling into debt&#8217;<\/h3>\n<p class=\"x_MsoNormal\">Paul Breen, managing director for affordable housing specialist <a href=\"https:\/\/www.livingspacehousing.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">Living Space<\/a> said: &#8220;We welcome the range of measures Chancellor Rishi Sunak has put in place to acknowledge and help to tackle the widespread cost of living crisis.\u00a0However, this is barely scratching the surface of the current issues.<\/p>\n<p class=\"x_MsoNormal\">&#8220;Soaring energy price rises are hitting those on low incomes disproportionately. Far more needs to be done to prevent more households from falling into spiralling debt by simply using their cars and heating their homes.<\/p>\n<h3>&#8216;Affordable housing can lead the way in decarbonising UK housing&#8217;<\/h3>\n<p class=\"x_MsoNormal\">&#8220;With appropriate funding, the affordable housing sector can lead the way in decarbonising the UK\u2019s housing stock. The uplift in cost to build an EPC A-rated home is a fraction of the price of retrofitting an existing home with the same energy saving technology. However, only a small proportion of new homes are being specified to EPC A standards, with many only meeting current Building Regulations.<\/p>\n<p class=\"x_MsoNormal\">&#8220;With oil and gas prices at an all time high, we are delighted that the two new developments Living Space will be breaking ground at over the coming weeks will be EPC A-rated, with zero dependence on fossil fuels.<\/p>\n<p class=\"x_MsoNormal\">&#8220;Air source heat pumps, solar PV roof panels, and enhanced levels of insulation are measures that do cost more to install, but the payback time is short. With this in mind, we feel the <a href=\"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/future-homes-standard-2\/104294\/\" target=\"_blank\" rel=\"noopener noreferrer\">Future Homes Standard<\/a> should be much more ambitious, with housebuilders heavily incentivised to deliver zero carbon ready homes.<\/p>\n<h3>&#8216;Tackle the chronic shortage of quality affordable housing&#8217;<\/h3>\n<p class=\"x_MsoNormal\">&#8220;Living Space is actively seeking additional sites ripe for development to continue to tackle the chronic shortage of quality affordable housing stock across middle England. In his Autumn Budget five months ago, Chancellor Sunak made reference to additional cash towards the Brownfield Land Release Fund.<\/p>\n<p class=\"x_MsoNormal\">&#8220;We would urge that this is rolled out nationwide as soon as possible, as there has never been a greater need to accelerate delivery of affordable and open market new homes, while regenerating previously used land in the process.&#8221;<\/p>\n<h3>&#8221;We need to see increased funding to support a nationwide approach to domestic energy efficiency&#8217;<\/h3>\n<p>Mark Robinson, group chief executive at leading public sector procurement authority <a href=\"https:\/\/www.scape.co.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">SCAPE<\/a>, said: &#8220;Despite strong tax revenues and a fall in borrowing, its \u2018Budget-lite\u2019 billing meant that the Chancellor\u2019s statement was always likely to be lean on new spending.<\/p>\n<p>&#8220;Critically, though, the public purse remains in a strong position to continue delivering the infrastructure investment needed to support local regeneration while addressing the cost-of-living crisis.<\/p>\n<p>&#8220;As part of this, we need to see increased funding to support a nationwide approach to domestic energy efficiency \u2013 something we are actively campaigning for alongside the UK Green Building Council.<\/p>\n<p>&#8220;All eyes will therefore be turning to the Prime Minister\u2019s national energy strategy for clear direction on how the government intends to address long-term cost pressures within the construction industry.&#8221;<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Rishi Sunak Chancellor of the Exchequer has delivered the Spring Budget 2022, announcing a new tax plan to ease the rising cost of living. Here construction industry professionals share their thoughts on the biggest cut to personal taxes in a quarter of a century.<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[307],"tags":[676,430,673,172727,276],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-108158","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-energy-news","7":"tag-construction","8":"tag-energy-efficiency","9":"tag-energy","10":"tag-featured","11":"tag-government"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Construction industry professionals react to Spring Budget 2022<\/title>\n<meta name=\"description\" content=\"Construction professionals share their thoughts on the Spring Budget 2022 - including a tax plan to ease the cost of living and the biggest cut to taxes\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/construction-professionals-react-spring-budget-2022\/108158\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Construction industry professionals react to Spring Budget 2022\" \/>\n<meta property=\"og:description\" content=\"Construction professionals share their thoughts on the Spring Budget 2022 - including a tax plan to ease the cost of living and the biggest cut to taxes\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/construction-professionals-react-spring-budget-2022\/108158\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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