Industry leaders have told RCI their thoughts on the Chancellor of the Exchequer Rishi Sunak’s Budget announcement, which was announced on Wednesday March 11, which revealed plans to assist businesses through the threat of coronavirus, as well as funding for recladding and additional housing.
Housing and homes
The Budget has pledged £1 billion towards replacing combustible cladding from all public and private housing above 18 metres, more than £600 billion towards housing, broadband roads and rail to be spent by 2025, and £650 million to tackle homelessness and provide an extra 6,000 places for rough sleepers.
Commenting on the funding towards recladding high-rise buildings, Peter Johnson, chairman of Vivalda Group, said: “This is very welcome news, as the government has been dragging its feet on this issue for many months. This announcement should bring much needed respite and relief to the thousands of tenants still living in potentially unsafe buildings.
“Fixing our broken high-rise housing market has been a shameful episode in the government’s period in office, which has finally been sorted. We now need to pull together as an industry to bring this sorry taste of affair to a close – and bring confidence and credit back to the embattled cladding sector.”
Meanwhile, Brian Berry, chief executive of the Federation of Master Builders (FMB), said: “A £13.7 billion investment in housing is welcome news, however, there was no mention of how the government plans to support small to medium-sized enterprises (SME) housebuilders. Master builders are facing major barriers finding land, accessing finance and skilled workers – these will all need addressing if we are to build 300,000 homes a year.”
Whilst the Builders Merchants Federation (BMF) was pleased that the Affordable Housing programme will be boosted to build more much-needed social and affordable homes, John Newcomb, chief executive officer, was disappointed to not hear more from the Exchequer about investing in new buildings and existing properties to decarbonise homes on the road to a net zero carbon economy. He pointed out that household energy-efficiency was noticeable by its absence, both from his speech, and from the Budget Red Book.
“Promises to introduce schemes for heat pumps and renewable heating in 2022, are welcome, but they are too vague and insufficient for the task we all face,” said John. “A package of incentives – including a cut in VAT to 5% for home improvements – was what the industry had called for to persuade and encourage residents to upgrade their home.”
Coronavirus
Regarding the coronavirus outbreak, the Chancellor has outlined a £30 billion response to the pandemic, which includes self-employed workers now being entitled to claim Employment and Support Allowance and Universal Credit should they choose to self-isolate, with the minimum income floor for Universal Credit removed for the duration of the outbreak.
Furthermore, businesses employing less than 250 people will be able to claim back funds paid out for statutory sick pay.
Brian Berry told RCI: “Builders are increasingly concerned about the impact coronavirus will have on their businesses. The package of measures [announced] to support SMEs through refunding Statutory Sick Pay, making temporary loans and grants available, and support for the self-employed, will provide welcome relief to small building businesses and their workers alike.”
Lack of emissions handling
Chris Hewett, chief executive of the Solar Trade Association (STA), also gave his thoughts on the Budget, and said: “Unfortunately, this Budget is thin on measures to tackle climate change and support the transition to a low-carbon economy. Renewables are vital to reaching net zero, and without good policies in place to support the uptake of solar, we will fall well short of the 40 gigawatts needed by 2030 to keep on track. Time is running out to act.
“The freeze on the carbon price support rate is particularly disappointing, as is the lack of any meaningful policy on energy efficiency and green improvements for existing homes, such as solar and battery storage.”
Chris continued: “We do welcome the decision to hold a review of business rates, which are the main barrier to the deployment of large rooftop PV. Additionally, we are pleased to see an extension to the Renewable Heat Incentive, and the introduction of a Low Carbon Heat Support Scheme which categorically must apply to solar heat technologies.”
Further improvements to be made
Elsewhere, promises to look again at improving the workings of the Apprenticeship Levy, the continued freeze of Fuel Duty, and more money to encourage the switch to using electric vehicles were all welcome developments, according to the BMF’s John Newcomb.
