{"id":146639,"date":"2024-12-05T15:57:23","date_gmt":"2024-12-05T15:57:23","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=146639"},"modified":"2024-12-05T15:57:23","modified_gmt":"2024-12-05T15:57:23","slug":"chancellors-budget-fails-to-inspire-confidence-in-the-industry","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/chancellors-budget-fails-to-inspire-confidence-in-the-industry\/146639\/","title":{"rendered":"Chancellor’s budget fails to inspire confidence in the industry"},"content":{"rendered":"

A 4Q 2024 Market Report from Gleeds<\/a> has highlighted significant concerns among construction professionals in the UK regarding Chancellor Rachel Reeves’ first Budget<\/h2>\n

Only 20% of those surveyed expressed optimism that the Budget would ultimately benefit the construction industry, while a striking 80% voiced apprehensions, believing the announcements made by Rachel Reeves would either have negative consequences or no substantial impact on the sector.<\/p>\n

Skepticism among construction professionals<\/h3>\n

Furthermore, nearly 40% of respondents are convinced that the Budget will lead to a decrease in investment within the UK property market, which is a worrying trend for an industry that relies heavily on investment for growth and development.<\/p>\n

The report also reveals a pervasive skepticism among professionals about the government’s ability to deliver on the promises made during the budget speech in late October<\/a>.<\/p>\n

Nearly 90% of participants expect the government to struggle in meeting these commitments on time. This includes crucial pledges related to major infrastructure projects and the ambitious goal of providing 1.5 million new homes<\/a> during the current parliamentary term.<\/p>\n

This sentiment represents a significant shift from previous surveys, where about 70% of participants viewed construction and real estate as prioritised areas under the Labour leadership. Moreover, less than half believed that the Labour government would be significantly more favorable to the industry compared to its Conservative predecessors.<\/p>\n

Ongoing issues<\/h3>\n

Richard Steer, chair of Gleeds, commented on the findings, noting that the past year has been particularly tumultuous for the construction sector. He pointed to potential trade tariffs imposed from the United States<\/a> and instability in various global markets as primary factors undermining investor confidence. This uncertainty has become the dominant concern among industry experts, as highlighted in their fourth-quarter survey.<\/p>\n

The report also sheds light on an ongoing issue facing the industry: labour shortages. In a worrying trend, a recent study indicated that 68% of adults in the UK would steer clear of pursuing a career in construction, associating the field with negative descriptors such as \u2018dirty\u2019, \u2018strenuous\u2019, and \u2018boring\u2019. This perception underscores the urgent need for the construction industry to attract nearly 937,000 new workers by 2034, as forecasted by the UK Trade Skills index, in order to meet future demands and alleviate current labor shortages.<\/p>\n

In conjunction with labour-related issues, the latest monthly statistics from the Insolvency Service reveal that the construction sector remains the hardest hit by liquidations, administrations, and company voluntary arrangements. The unexpected collapse of ISG, a notable player in the industry, especially caught many stakeholders by surprise, with nearly 60% of Gleeds’ survey respondents expressing astonishment at the news.<\/p>\n

ISG’s downfall<\/h3>\n

Looking ahead, the consultancy\u2019s survey indicates that a similar proportion of industry professionals anticipates further tier one contractors facing administration over the next year. However, there is a note of cautious optimism as well, with approximately one-third of respondents believing that ISG\u2019s downfall could catalyze beneficial changes within the industry\u2014potentially leading to improved profit margins and a broader embrace of project bank accounts to enhance financial stability.<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

A 4Q 2024 Market Report from Gleeds has highlighted significant concerns among construction professionals in the UK regarding Chancellor Rachel Reeves’ first Budget.<\/p>\n","protected":false},"author":17,"featured_media":146641,"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":[276],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-146639","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-government"},"acf":[],"yoast_head":"\nChancellor's budget fails to inspire confidence in the industry | Planning, Building & Construction Today<\/title>\n<meta name=\"description\" content=\"A 4Q 2024 Market Report 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