{"id":125767,"date":"2023-05-05T08:01:29","date_gmt":"2023-05-05T07:01:29","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=125767"},"modified":"2023-05-04T10:03:08","modified_gmt":"2023-05-04T09:03:08","slug":"will-levelling-up-level-playing-field-construction-smes","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/will-levelling-up-level-playing-field-construction-smes\/125767\/","title":{"rendered":"Will \u201clevelling up\u201d level the playing field for construction SMEs?"},"content":{"rendered":"<h2>Access Construction recently hosted a webinar on \u2018What\u2019s New in Construction?\u2019 \u2013 a discussion between a panel of five experts on construction SMEs and The Access Group\u2019s head of construction, Carol Massay<\/h2>\n<p>The panel began with a discussion of the UK government\u2019s new infrastructure levy and its effect on construction SMEs \u2013 an attempt to simplify the current complex levy system.<\/p>\n<p>Access Construction asked the question, will the new Infrastructure Levy make processes<br \/>\nstraightforward or more complicated for UK-based developers?<\/p>\n<p><iframe loading=\"lazy\" src=\"\/\/www.youtube.com\/embed\/XJPLLFZqJls\" width=\"560\" height=\"314\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h3>What is the new Infrastructure Levy?<\/h3>\n<p>Currently under consultation and set to conclude in July, the proposed new Infrastructure Levy is set to replace the current Community Infrastructure Levy (CIL), Section 106 and affordable housing contributions.<\/p>\n<p>Described as \u201ca simple, non-negotiable, locally set Infrastructure Levy (that) will ensure that developers pay their fair share to deliver the infrastructure that communities need\u201d, it is part of the Conservative government\u2019s broad Levelling Up &amp; Regeneration Bill. The ultimate aim is to increase affordable housing and improve living standards in impoverished areas in the country.<\/p>\n<p>It is pitched as a simplification of the current levy process and, in theory, ensures new developments contribute to the wider community through funding for both infrastructure improvements and the creation of much-needed affordable housing.<\/p>\n<p>However, there is a big question mark on its impact on the <a href=\"https:\/\/www.pbctoday.co.uk\/news\/digital-construction\/construction-technology-news\/industry-confident-2023-economic-turbulence-construction-survey-reveals\/120766\/\" target=\"_blank\" rel=\"noopener\">UK construction industry<\/a>.<\/p>\n<h3>Will the new levy be an unfair deal for construction SMEs?<\/h3>\n<p>Sandi Rhys-Jones OBE, the current senior vice-president and incoming president of the<br \/>\nChartered Institute of Building (CIOB), expressed her concerns about the new levy leading to an unfair deal for construction SMEs.<\/p>\n<p>While the aim to simplify and speed up development is great; Sandi had reservations about the new levy really making processes simpler when it is part of a raft of other legislation, such as the 2022 Building Safety Act.<\/p>\n<p>She highlighted the importance of joined-up thinking when it comes to moving forward<br \/>\nfor both the industry and the country. The other concern raised by Sandi is how the new levy will impact the broad band of construction SMEs that make up the core of the construction industry.<\/p>\n<p>While major developers at the top of the tree will have the time and resources to adapt to changing legislation quickly, smaller companies may handle a lot of extra work and complexity to account for the growing number of boxes to tick (for example, whole-life carbon assessments).<\/p>\n<p>Sandi linked this back to a looming crisis within the sector \u2013 its lack of people. The shortfall of over 220,00 within the industry doesn\u2019t stop with the trades but also within management and back-office staff, especially in construction SMEs, who will have to quickly reskill and transform processes to hit government legislation.<\/p>\n<p>\u201cPersonally, I don\u2019t think it\u2019s going to be a level playing field if (the Infrastructure Levy) is a \u2018one-size-fits-all\u2019 approach. Principles are fine, but we need a really clear analytical approach to how this will work in practice,&#8221; said \u00a0Sandi Rhys-Jones, senior vice-president, CIOB.<\/p>\n<p>While the principles behind the levy, such as handling geographic imbalances in the UK,<br \/>\nare admirable, Sandi highlighted the need for a mechanism where it can be applied<br \/>\nequitably. Policymakers need to work with those who represent all types of businesses<br \/>\nin the industry to create something practical.<\/p>\n<h3>Consolidation to avoid chaos<\/h3>\n<p>David Chadwick, editor at Construction Computing, pointed out during the discussion that many major infrastructure projects are seeing delays and cancellations \u2013 the latest being a two-year delay of the HS2 rail project announced in March due to escalating costs.<\/p>\n<p>This is leading to uncertainty across the sector, building on the doubt around the new levy. The suggested solution is consolidating the demands on the industry by regulations and levies set by various government and industry bodies, saving the sector time and resources<br \/>\nand relieving it of the current complexity.<\/p>\n<p>\u201cA consolidation of the raft of seemingly conflicting regulations and measures being foisted on the industry wouldn\u2019t go amiss,&#8221; said David Chadwick, editor at Construction Computing.<\/p>\n<p>Michaela Wain, managing director of Design &amp; Build UK, agreed with the need to simplify<br \/>\nthe industry and consolidate regulations. One of the main criticisms of the new levy is<br \/>\naround the vagueness of the language, particularly the idea that the levy is due once<br \/>\na project is \u201ccompleted\u201d, \u2013 but the complex truth is this could apply to several parts of the<br \/>\nconstruction process.<\/p>\n<p>It is also likely to be set at variable rates according to location due to the variety of land values in the UK.<\/p>\n<p>\u201cThe industry makes things so complex. Microbusinesses and construction SMEs can\u2019t keep track of daily changes to regulations and struggle to keep track because there will always be something different next week. We need to simplify processes \u2013 we are constantly trying to fix problems. If you talk to tradespeople, they just want to do the job,&#8221; said Wain.<\/p>\n<p>Michaela also warned about further impacts of the Infrastructure Levy and how that money<br \/>\nwill be reinvested. Will the affordable housing generated be high-quality, or will the UK see the return of 1970s-style tower blocks?<\/p>\n<p>While the new Infrastructure Levy may be a step forward in simplifying the industry, the<br \/>\ndiscussion around the levy concluded that a lot more consultation with the industry is<br \/>\nneeded to find a fair deal for the industry.<\/p>\n<h3>Handle spiralling costs with Access Construction software<\/h3>\n<p>Access Construction\u2019s suite of construction software is designed to help construction businesses get a better handle on their costs, budget and forecast for the future.<\/p>\n<p><a href=\"https:\/\/www.theaccessgroup.com\/en-gb\/our-brands\/conquest\/\" target=\"_blank\" rel=\"noopener\">Access ConQuest<\/a> is an estimating tool that will help increase your bid-to-win ratio, and <a href=\"https:\/\/www.theaccessgroup.com\/en-gb\/our-brands\/easybuilduk\/\" target=\"_blank\" rel=\"noopener\">Access EasyBuild<\/a> is a construction ERP that gives teams an accurate view of the bigger picture. Find out more about our construction software.<\/p>\n<p><em>*Please note: This is a commercial profile.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Alex Gillham<\/strong><\/p>\n<p>Digital Content Manager<\/p>\n<p>The Access Group<\/p>\n<p>Tel +44 0845 345 3300<\/p>\n<p><a href=\"carol.massay@theaccessgroup.com\" target=\"_blank\" rel=\"noopener\">carol.massay@theaccessgroup.com<\/a><\/p>\n<p><a href=\"http:\/\/www.theaccessgroup.com\" target=\"_blank\" rel=\"noopener\">www.theaccessgroup.com<\/a><\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Access Construction recently hosted a webinar on \u2018What\u2019s New in Construction?\u2019 \u2013 a discussion between a panel of five experts on construction SMEs and The Access Group\u2019s head of construction, Carol Massay.<\/p>\n","protected":false},"author":27,"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":[304],"tags":[464,172727,276,579,172606,621],"stakeholder_rel_tag":[172535],"contributor_rel_tag":[],"class_list":{"0":"post-125767","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-contributor-profile","8":"tag-featured","9":"tag-government","10":"tag-infrastructure","11":"tag-pbc-today-may-2023","12":"tag-sme","13":"stakeholder_rel_tag-the-access-group"},"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>Will \u201clevelling up\u201d level the playing field for construction SMEs?<\/title>\n<meta name=\"description\" content=\"Access Construction held a webinar with a panel of five construction SME experts and Carol Massay, The Access Group&#039;s head of construction\" \/>\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\/planning-construction-news\/will-levelling-up-level-playing-field-construction-smes\/125767\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Will \u201clevelling up\u201d level the playing field for construction SMEs?\" \/>\n<meta property=\"og:description\" content=\"Access Construction recently hosted a webinar on \u2018What\u2019s New in Construction?\u2019 \u2013 a discussion between a panel of five experts and The Access Group\u2019s head of construction, Carol Massay.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/will-levelling-up-level-playing-field-construction-smes\/125767\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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