{"id":70372,"date":"2020-01-20T10:32:08","date_gmt":"2020-01-20T10:32:08","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=70372"},"modified":"2020-01-20T10:32:08","modified_gmt":"2020-01-20T10:32:08","slug":"industry-needs-from-boris","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/industry-needs-from-boris\/70372\/","title":{"rendered":"What the construction industry needs from Boris"},"content":{"rendered":"

In the wake of Boris Johnson\u2019s election win, Ibrahim Imam, founder of PlanRadar<\/a>, looks at five things the new prime minister needs to deliver for the construction industry<\/h2>\n

Many in the UK\u2019s construction industry will have breathed a sigh of relief after the 2019 election<\/a>. Years of uncertainty surrounding the UK\u2019s leadership and its exit from the European Union has been enough to delay significant investment in infrastructure and threaten the future pipeline of projects in the UK.<\/p>\n

The data shows output has slowed down and both the private and public sectors have pursued fewer projects. The construction industry is at a crucial juncture \u2013 and it needs more than stability.<\/p>\n

Here are the five things Boris must deliver for the construction industry:<\/h3>\n

Fulfil his pre-election promises<\/h4>\n

There are never a shortage of infrastructure promises during an election campaign. However, in this Queen\u2019s speech Boris promised to \u201cimplement the biggest infrastructure revolution in living memory\u201d. A good place to start then would be seeing through the promises already made pre-election. This includes the \u00a3100bn \u201cinfrastructure revolution\u201d promised for road and rail and even mega-investment into projects like the \u201cBoris Bridges\u201d that have been touted before.<\/p>\n

There were also key promises made towards the NHS. The government has already pledged \u00a32.7bn to build six new hospitals across England, but a total of 40 have been promised in the next 10 years. The previous Conservative chancellor scrapped PFI, so it isn\u2019t clear what model this is being done under, nonetheless it was one of the most repeated promises in the campaign and more details about the process should be released.<\/p>\n

Resolutions will also be needed for Heathrow Airport<\/a>, where the Prime Minister once promised to lie down in front of the bulldozers to halt the creation of a new runway.<\/p>\n

Railways such as HS2 and Crossrail can provide stimulus for economic growth, as well as other public benefits from projects like Thames Tideway<\/a>. The PM should end the uncertainty over these projects and back the industry to deliver them.<\/p>\n

No cap on construction workers<\/h4>\n

The phrase \u201cAustralian-style points system\u201d reportedly performed well with electoral focus groups, but it\u2019s difficult to see how it could work at all in construction. An exception for the industry is a necessity. Construction and migration have always been strongly linked and large construction sites tend to require a number of workers that local labour markets can rarely supply. Migration benefits both sides, as workers themselves must often move on to find work after completing a project too.<\/p>\n

Foreign workers make up 15% of the construction industry\u2019s workforce and more than half of that number are EU citizens. It\u2019s believed 28% of construction workers in London have migrated from EU countries. Leaving the EU will strip these workers of their right to move freely to the United Kingdom for work. With the salary cap for tier 2 general work visas likely to be around \u00a330,000, it\u2019s not obvious how the situation of all these workers is going to be resolved.<\/p>\n

The prime minister must guarantee key worker status criteria to tradespeople from the EU. These workers will be essential to delivering on the promised projects and achieving freedom of movement policy that supports the industry must be an absolute priority.<\/p>\n

300,000 houses per annum<\/h4>\n

The National Audit Office says the previous government failed to build any of the 200,000 Starter Homes promised in 2015, despite election pledges to do so by the mid-2020s. The statutory framework for Starter Homes in the Housing & Planning Act<\/a>, received Royal Assent back in 2016, but the \u00a32.3bn budget has since been moved elsewhere.<\/p>\n

The election result can offer the one thing the property market demands: certainty. The Conservatives must return to housebuilding. Boris has also promised to support the use of Modern Methods of Construction<\/a>.<\/p>\n

This is crucial: technology can keep costs down and increase productivity, government data shows that even growing productivity by 0.25% a year for 10 years would add \u00a356bn to UK GDP. A proactive approach to housebuilding would reassure foreign investors and prevent them withdrawing their investments from the UK property market.<\/p>\n

Clampdown on late payments<\/h4>\n

Late payments are harmful to both small and large businesses, but in construction, the issue is particularly important. Contractors must have money coming in to pay suppliers and subcontractors in the day-to-day running of the site. Bigger businesses with poor payment practices towards these can cause huge disruption to the pipeline. Federation of Small Businesses national chairman Mike Cherry said that late payments and poor practices lead \u201cto the closure of 50,000 small businesses a year\u201d.<\/p>\n

Strengthening the power of the Small Business Commissioner, an independent public body set up in 2016, will help tackle this issue. Carillion\u2019s cashflow was famously very low and it led to its liquidation in January 2018, with \u00a37bn of liabilities and just \u00a329m left in the bank.<\/p>\n

Get a deal<\/h4>\n

Five major construction trade bodies: Build UK<\/a>, Civil Engineering Contractors Association<\/a>, the Construction Products Association<\/a>, the Federation of Master Builders<\/a> and the Association for Consultancy & Engineering<\/a> wrote to Boris to warn him a no-deal Brexit could cost construction \u00a312bn.<\/p>\n

According to the government\u2019s own figures, about two-thirds of all building materials are currently imported from Europe. Even a small increase in taxation or an introduction on tariffs could have a catastrophic knock-on effect for both small and large businesses. Particularly when parts of the industry are working within such tight profit margins, most suppliers and constructors simply don\u2019t have the capacity to absorb these additional costs. A deal is essential to safeguard the future of the industry.<\/p>\n

 <\/p>\n

\"\"<\/p>\n

Ibrahim Imam<\/strong><\/p>\n

Founder<\/p>\n

PlanRadar<\/a><\/p>\n

Tel: +44 (0)20 396 629 06<\/p>\n

info@planradar.com<\/a><\/p>\n

www.planradar.com<\/a><\/p>\n

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

In the wake of Boris Johnson\u2019s election win, Ibrahim Imam, founder of PlanRadar, looks at five things the new prime minister needs to deliver for the construction 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