The Budget sets out further action to build a stronger economy, with help for UK businesses to create jobs and kick-start major construction projects across England.
Chancellor Osborne said in Parliament today that the government was “already supporting the largest investment in railways since Victorian times and spending more on new roads than in a generation.”
The Government would now boost spending by £3 billion from 2015-16 with the money saved from departmental budgets, amounting to a total of £15 billion of extra capital spending in the next 10 years
The Chancellor has also announced a new Help to Buy scheme involving equity loans on new build houses and £130 billion mortgage guarantee programme that will help people to buy their new homes.
Chancellor George Osborne said that by investing in the arteries of the country’s infrastructure, the Government will get growth “flowing to every part of the country”.
The latest stimulus of financial support to tackle long-term shortage in the housing market will see the building of new homes and boost employment in the construction industry.
Mr Osborne said: “We’ve switched billions of pounds from current to capital spending since the spending review. But on existing plans, capital spending is still due to fall back in 2015-16. I don’t think that’s sensible.
“So by using our extra savings from government departments, we will boost our infrastructure plans by £3 billion a year from 2015-16.
“That’s £15 billion of extra capital spending over the next decade. Because by investing in the economic arteries of this country, we will get growth flowing to every part of it.
“And public investment will now be higher on average as a percentage of our national income under our plans than it was in the whole period of the last Government.
“In June, we will set out long term spending plans for that long term capital budget.
“And we will use the expertise of Paul Deighton, the man who delivered the Olympics and who now serves in the Treasury, to improve the capacity of Whitehall to deliver big projects and make greater use of independent advice.”
The British Property Federation has welcomed the Government’s funding increase to kick start the housing market and help a number of build-to-rent schemes.
Director of policy at the British Property Federation, Ian Fletcher, said: “It’s encouraging the Government’s confidence in build to rent has been reciprocated and we are delighted to see that the equity funding was heavily oversubscribed.
“Working in partnership with government the sector should deliver an exciting and quality array of homes for renters.”
What is your reaction to Budget 2013 announced by Chancellor Osborne to boost infrastructure spending and build new homes? Share your thoughts by commenting here or raise your voice on our Facebook and Twitter pages.
The Construction Products Association (CPA) has called on the Chancellor George Osborne to recognise the potential of the construction industry to drive economic growth and create new jobs in the trades.
According to the Association, it is vital for the government to spend the multi-billion capital investment boost announced in the Autumn Statement that could provide 0.8% additional growth in GDP.
Chief Executive of the CPA, Diana Montgomery said: “With the general economic outlook continuing to look uncertain, we are urging government to do more to drive growth by building on the recent increase in capital investment for repair and maintenance of roads and extending this to other parts of built environment, such as housing, schools and hospitals.
“We also want to see the UK improve on its current ranking of 24th in the world for the quality of its infrastructure. For the UK economy to remain internationally competitive in attracting inward investment, it is essential that there are significant improvements in its infrastructure.
“Government frequently states it is aware of the importance of the construction industry and its product manufacturers and suppliers. In these challenging times for the UK economy, the opportunities that we provide to drive economic growth and build a more sustainable future for the UK need to be prioritised. We can only hope the Chancellor does indeed recognise this.”
To read the full draft of the letter from the Construction Products Association to the Chancellor, click here.
The infrastructure investment package will be funded by welfare cuts and a reduction in other Whitehall departments. The latest revelation by the Chancellor represents a firm commitment by Government to boost construction projects and create new jobs.
The Civil Engineering Contractors Association (CECA) said that today’s autumn statement demonstrated that the government was listening to the needs of the infrastructure sector.
In advance of today’s statement CECA had worked with other industry bodies to press the case for immediate action to unlock activity in the sector.
Based on analysis of figures published today, CECA believes that around £775 million of work will be release in 2013/14 as a result of the Chancellor’s actions. More than £1 billion further additional work is due to follow the next year.
Commenting, CECA director of external affairs Alasdair Reisner said: “CECA has long argued that there is a pressing need for the government to take action to unlock new work in the infrastructure sector to achieve growth in the economy.
“Today’s Autumn Statement show that the government has listened. A combination of new projects and investment in repair and maintenance work offers the potential of additional work worth £775 million for CECA members in 2013/14.
“Investment in the infrastructure sector offers the best rate of return, but for larger infrastructure projects it can take time for these benefits to be realised, particularly due to the planning system.
“It is thus vital that government and industry work together to identify ways of unlocking work in the sector that will show an immediate benefit.
“By announcing new work in the fiscal year, the Chancellor has recognised the need to stimulate infrastructure activity in the short as well as the long term, as the best means of returning UK plc to economic health.
“Clearly we will need to be sure that this is genuinely new money, rather than recycling of funds that would otherwise have been spent on infrastructure elsewhere. But on the face of it, this appears to have been a good Autumn Statement for the industry.”
The Government is planning to re-write planning rules to boost “nationally significant” infrastructure projects and build new homes, Chancellor George Osborne unveiled yesterday.
The Chancellor said that developers would be allowed to build on the Green Belt around towns and cities if an equivalent area of land is safeguarded elsewhere.
Mr Osborne said: “I think we can speed up planning. It is absolutely ludicrous that it takes years to get planning decisions in this country. The country, in the current economic environment, cannot afford to wait years for development.”
A £10 billion Treasury package will guarantee the debt of housing associations and private developers in bid to create jobs and revive housing market.
The Chancellor said that the Government will do more in order to make it easier for local authorities to grant planning permission for developers in the future.
Mr Osborne announced a Small Business Bank to bring together what he called an “alphabet soup” of Government schemes to help small firms and encourage economic growth.
The scheme will deliver economic growth and increase infrastructure investment to the UK which will create jobs for trade professionals including electricians, plumbers and gas engineers.
Mr Osborne said: “Today’s announcement aims to make mortgages and loans cheaper and more easily available, providing welcome support to businesses that want to expand and families aspiring to own their home.”
It is expected that banks currently offering loans through the National Loan Guarantee Scheme (NLGS) will continue to offer their NLGS branded product.
The Chancellor said: “The NLGS has made a real difference, with over 16,000 cheaper loans worth over £2.5bn already offered to businesses across the UK. In many cases, the money saved has meant an extra person employed who otherwise still might be looking for work.
“The more generous FLS has officially opened for business and will in time effectively take over from the NLGS, delivering credit easing to the whole economy.”
Do your predictions correspond to Chancellor’s indications for economic growth and more jobs? What do you think about the FLS? Share your thoughts by commenting here or raising your voice on our Facebook and Twitter page.
Speaking today at the largest trade and investment event ever held in Britain, Prime Minister David Cameron said that the £8 billion development of the Battersea Power Station in South West London will create 20, 000 jobs during its construction.
The mixed development will contain homes, office space, a hotel and retail space and will see the Northern Line extended with a new transportation hub at the Power Station site.
The Global Investment Conference, launched by the Prime Minister, is the first of a series of global business summits being held in London to showcase the UK during the Olympic and Paralympic Games. The event is expected to generate hundreds of thousands of new jobs for people in the trades.
The conference kicks off the largest and most ambitious set of trade events held in Britain. During the six weeks of the Games, the British Business Embassy will host 17 global business summits that will bring over £1 billion of deals and projects.
These events will allow more than 4,000 business leaders and politicians to exchange views and ideas, discuss local and international economic challenges as well as develop strong global partnerships for future growth and showcase the best of British business to the world.
Chancellor George Osborne said: “Britain has always been a country that is open to the world. In hosting the Olympic Games, we are showcasing that openness. As we welcome the world’s best athletes, we also welcome the world’s best companies – so that they can succeed, invest, and create jobs in Britain.”
Business Secretary Vince Cable said: “Tomorrow we welcome the world to London as the 2012 Olympic Games get underway. This summer is more than just a great sporting spectacle – it is an unrivalled opportunity to promote the best of British industry and make the most of our openness to foreign trade and investment.”
This month, the UN’s World Investment Report showed that the UK had retained its place as the number one destination in Europe for inward investment. The report showed that there were almost 60,000 new jobs created last year as a result of inward investment.
What is your reaction to the Global Investment Conference that could bring billions of pounds to the UK economy? How much of an impact will the Olympics have on your business? Share your thoughts by commenting here or raising your voice on our Facebook and Twitter page.
“Investment in Infrastructure Projects is Crucial for Economic Growth”
The Chancellor of the Exchequer, George Osborne, has unveiled a new UK Guarantees scheme to accelerate major infrastructure projects and create new jobs in the building engineering industry.
The new loan guarantees scheme will enable private sectors investors to benefit from more funding for big building projects which will generate jobs and help economic growth, the UK’s Economics and Finance Ministry said.
It follows two other significant announcements from last week in which the government committed a £9 billion investment package to improve railway networks across England and Wales; and Funding for Lending Scheme which will enable businesses across Britain to access more and cheaper loans.
The UK Guarantees scheme will kick start £40 billion worth of infrastructure projects which will pave the way for more employment opportunities in the trades. The first guarantees are expected to be awarded this autumn.
Under the scheme, the Government will ensure that where major infrastructure projects are struggling to access private finance because of adverse credit conditions, these projects can go ahead.
The Chief Secretary to the Treasury, Danny Alexander, who made the announcement with the Chancellor of the Exchequer last week, said:
“The measures we’re announcing today will help work get started on many important infrastructure projects and help our major exporters, providing lasting benefits for thousands of people and a significant boost to the economy.”
Chancellor George Osborne commented that the Government’s credentials with the International Monetary Fund, and other similar organisations, have helped millions of British families and businesses to keep down the cost of borrowing.
Mr Osborne added: “Now ‘UK Guarantees’ will use that hard-won fiscal credibility to provide public guarantees of up to £50bn of private investment in infrastructure and exports.”
What is your reaction to the UK Guarantees scheme which will accelerate the building of major infrastructure projects? Let us know what you think by commenting here or raising your voice on our Facebook and Twitter page.
“Growth-boosting railway projects to help for the creation of new electrical, plumbing and engineering jobs”
The Government has announced a £9.4 billion infrastructure investment package that will deliver sustainable economic growth and pave the way for thousands of new jobs for people in the trades, the Department for Transport revealed today.
The plan includes the electrification of a number of railway schemes including the Midland Main Line between Bedford and Sheffield creating new jobs in the electrical engineering sector.
Other rail improvements contributing for the creation of more employment opportunities for trade professionals including electricians and engineers, have been announced for the Manchester area, south Wales and East Coast Main Line
Prime Minister David Cameron called it the “biggest modernisation of our railways since the Victorian era” with the deputy Prime Minister, Nick Clegg, naming it as “the biggest expansion in railways in over 150 years”.
The £9 billion investment of growth-boosting railway upgrades across England and Wales will mean faster journey, more reliable services and an increased capacity for 140,000 extra daily commutes, Transport Secretary Justine Greening said in a statement.
Prime Minister David Cameron said: “From Crossrail, high speed rail and now the billions of pounds of investment we are announcing today, this government is committed to taking the long term decisions to deliver growth and jobs.
“In what is the biggest modernisation of our railways since the Victorian era this investment will mean faster journeys, more seats, better access to stations, greater freight links and a truly world class rail network.”
Chancellor of the Exchequer George Osborne commented he was pleased with the government’s decision to fund in full the Northern Hub which will help rebalance the UK economy and enable future economic growth throughout the regions.
Mr Osborne said: “This government is making more funds available to invest in rail projects than at any time since the Victorian era, and shows that the government is committed to delivering on its promises to support investment in public infrastructure that will support economic growth.”
As reported on the BBC website some of the newly announced major improvements include:
- Electrification – completion of the Midland Main Line from Bedford to Sheffield costing £800m, local lines in the Welsh Valleys, costing £600m, and an extension of the already-announced electrification between Manchester and Leeds
- The Northern Hub – a series of projects around Manchester worth £322m that improve northern rail capacity to get more and faster trains across the north of England
- Upgrades to the East Coast Main Line from London to Leeds and Newcastle worth £240m to create faster journeys and capacity
- The reopening of the east-west link from Oxford and Aylesbury to Milton Keynes
- Electrification of the lines from London to Bristol and Cardiff, and from Manchester to Liverpool, Blackpool and Leeds
- Upgrades to stations and tracks creating capacity for an additional 140,000 daily rail commutes at peak times, including £350m for lengthening platforms at London’s Waterloo station
What’s your reaction to the huge investment in rail infrastructure projects across England and Wales which is expected to boost the economy and create new jobs? Share your thoughts by commenting here or raising your voice on our Facebook and Twitter page.
The Government will enable businesses across Britain to access more and cheaper loans which will boost the economy and create new jobs, the BBC has reported.
Chancellor George Osborne announced the new £ 80 billion scheme, describing it as “a huge help for the British economy” which will give businesses the confidence to grow.
Under the Funding for Lending Scheme British banks will be able to lend money to businesses at a low interest rate, enabling the expansion of smaller businesses and the creation of new employment opportunities.
The Chancellor said: “Today’s announcement aims to make mortgages and loans cheaper and more easily available, providing welcome support to businesses that want to expand and families aspiring to own their home.”
Mr Osborne added the initiative would “inject new confidence into our financial system and support the flow of credit to where it is needed in the real economy – showing that we are not powerless to act in the face of the Eurozone debt storm”.
Welcoming the government’s announcement Director-General at the CBI, John Cridland, said: “This new scheme should provide a real incentive for banks and building societies to increase their lending to businesses and individuals, if possible at lower rates of interest.”
What is your reaction to the Funding for Lending scheme and how do you think you will be able to benefit from the £80 billion investment? Let us know what you think by commenting here or raising your voice on our Facebook and Twitter page.
“The CBI is urging the government to get its act together and accelerate infrastructure investment”
The CBI Director General, John Cridland, has urged the government in a Financial Times interview to speed up the implementation of its plan for economic growth by accelerating housing and infrastructure projects across the UK.
The head of Britain’s top business lobbying organisation criticised the government over some delays in road improvement plans and the failure to agree renewable energy subsidies, which according to the CBI are vitally important for boosting economic growth.
“I think it is really disappointing how long it is taking to get momentum and urgency into the growth plan.” The Director General told the Financial Times.
Meanwhile, CBI Director for Business and Environment, Rhian Kelly launched, Creating Britain’s future, a new campaign for the UK’s Contractors Group, highlighting the crucial role that the construction sector plays for the creation of new jobs.
Ms Kelly said: “Our analysis shows that the construction sector has the potential to create 215,000 jobs across the UK and throughout the supply chain.
“It is more important than ever that we recognise the role of construction, both as a catalyst for local job creation across the UK in the short-term, and as the lead mover in the £250bn infrastructure renewal needed to underpin economic growth in the long-term.
“To get spades in the ground on infrastructure delivery, there must be an urgent focus across the UK on bringing forward repair, maintenance and improvement projects, for example on roads, to deliver immediate and tangible results in terms of local jobs and growth.”
Do you share the view of the CBI about the huge potential for growth and the creation of new jobs in the construction industry? How viable do you think is this statement for your business?
The government will not go ahead with a three pence-a-litre rise in fuel duty in August, Chancellor George Osborne has announced.
The move follows a campaign by road users’ groups, who argued the change, announced in the Budget, would damage the economy.
Fuel duty will be frozen for the rest of the year, the chancellor told MPs.
Labour had threatened to force a House of Commons vote on the issue.
Mr Osborne said the government was “doing everything we can in very, very difficult economic circumstances” to help businesses and consumers.
The Confederation of British Industry (CBI) has urged the government to boost economic growth by giving a greater emphasis on infrastructure projects in the UK.
In a new report published today, the CBI has recommended to the Treasury to enhance the credit rating of government construction schemes and raise public funds that will secure private business investment, unlocking billions of pounds to the UK economy.
According to the CBI Director-General, John Cridland, infrastructure investment will offer the UK a sustainable growth development that businesses need.
Mr Cridland said: “As this report makes clear, if we want to see the billions of pounds needed to upgrade our ageing infrastructure and secure jobs and growth for the long-term, the Government must make smarter use of limited public finances. By underpinning and lifting the credit rating of certain infrastructure assets, it can make them less risky and more attractive to investors.
The CBI says that harnessing just a 1 per cent increase from the UK’s pension fund will give a ‘vital boost’ to the UK’s underfunded infrastructure networks and make them more attractive to investors.
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The UK’s Green Business Building Council (UK-GBC) has urged the government to show renewed leadership on green issues which will create more jobs and encourage economic growth.
Appropriate government intervention in energy schemes, more incentives for the development of green infrastructure and strong support for businesses across Britain should be the key priorities for the government to get Britain’s economy back on track, according to the Chief Executive of UK-GBC, Paul King.
The CEO thinks that despite the current economic difficulties in the construction industry, the government could do more to help economic recovery by making sustainable investment into the green economy.
He said: “The construction sector is suffering at the moment but it could play a key role in getting the UK’s economy back on track – with energy efficiency and green infrastructure central to economic recovery. Unfortunately, deregulation is not a miracle cure – in fact we probably need greater intervention from Government – for example bringing in incentives like reduced Stamp Duty to encourage households to take up the Green Deal, and helping the commercial sector cut energy use.”
Responding to the Queen’s Speech to Parliament, Mr King said: “We really need to see the Energy Bill announced today provide a vehicle for the long-awaited roll-out of Display Energy Certificates, which would help UK businesses save money.”
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As part of her speech to Parliament yesterday, Her Majesty the Queen introduced Electricity Market Reform to encourage more investment in low carbon generation and clean energy.
The Queen said: “My Government will propose reform of the electricity market to deliver secure, clean and affordable electricity and ensure prices are fair”.
The Electricity Market Reform will put more restrictions on the emissions of new coal plants and create a new independent regulator, the Office for Nuclear Regulation, which will be funded by the industry, the BBC reported.
The Renewable Energy Association welcomed proposals for new energy bill. It said said that the industry will need to know its details as soon as possible in order to adjust and protect developers in the renewable sector.
Chief Executive of the REA, Gaynor Hartnell, said: “The new arrangements aim to deliver a stable price for renewable electricity generators, irrespective of what happens to electricity prices. If all works as intended, it should make project development less risky and means that the public pays no more than it needs to for green power.”
What is your reaction to the Queen’s speech? How do you think the proposed reform will help you or your business? Share your thoughts by leaving a comment below:
Plans to increase airport capacity in Britain and build a third runway at London Heathrow are likely to be supported by the government despite environmentalists’ concerns.
Both David Cameron and George Osborne, have reviewed their initial decision to rule out future expansion for a third runway at Heathrow Airport. It will deal with increased trade capacity and high volume of extra passengers –the Guardian reported yesterday.
Business leaders have expressed concerns that if a third runway at London Heathrow is not built, trade might move elsewhere in Europe which could have a negative effect on future economic growth in Britain.
Expansion in some of Britain’s largest airports would create work opportunities for thousands of people in the building construction industry, creating new jobs and boosting civil engineering recruitment.
In the Budget Statement last Wednesday, Chancellor George Osborne, said the government will optimise air capacity. It is expected a report on aviation policy to be published, aiming to help businesses to trade better and make further improvement into airport capacity.
Tim Yeo, the Tory Chairman of the Energy and Climate Change Select Committee, told the Guardian that he had “completely changed” his mind on the Heathrow expansion plans and now believed there was no option but to build a third runway; this will ensure that the south of England will remain a worldwide aviation hub.
The Prime Minister said that he recognises the need for expanding airport capacity in Britain and that the government is looking at ways of helping businesses to make the most of country’s aviation capacity.
Mr Cameron said: “I’m not blind to the need to increase airport capacity, particularly in the South-East” adding, “Gatwick is emerging as a business airport for London under a new owner, competing with Heathrow.”
What is your reaction to the expansion of airport capacity at London Heathrow? Do you think construction work at Britain’s major airports will help your business? Share your thoughts by leaving a comment below:
The pharmaceutical giant GlaxoSmithKline (GSK) has confirmed an investment of £500 million across its manufacturing sites to increase production of its products whilst providing a major boost for the UK’s construction and manufacturing industry.
The company announced today it will build a new state-of-the-art manufacturing facility in Cumbria, North of England. An investment of £350 million for building the new facility would create hundreds of jobs and provide work opportunities for people in the building sector.
Building construction work is anticipated to begin within the next two years depending on obtaining the necessary planning consents. It is likely to take up to 6 years before the new facility is entirely completed.
The significant investment comes after Chancellor of the Exchequer, George Osborne, confirmed yesterday in Budget 2012, the government’s commitment to introduce a lower rate of corporation tax on profits generated from UK-owned intellectual property.
Chief Executive at GSK, Sir Andrew Witty, said: “The introduction of the patent box has transformed the way in which we view the UK as a location for new investments, ensuring that the medicines of the future will not only be discovered, but can also continue to be made here in Britain.”
Prime Minister David Cameron welcomed the investment as “excellent news” for businesses saying that cutting business tax will attract further investment to the British economy.
“It shows why we are right to cut business tax and focus on making the UK a dynamic and competitive place that can attract exactly this type of high tech investment.”- Mr Cameron said.
Additional investment of more than £100 million was also confirmed for GSK’s two manufacturing sites in Irvine and Montrose, Scotland. The company also said that it will invest in sustainable green energy production and environmentally friendly manufacturing technologies in the future.
Chancellor of Exchequer, George Osborne, has revealed positive growth figures for the British economy up to 2016, unemployment to fall and the inflation rate to decrease, giving hope to millions of people out of work and boosting businesses across Britain.
The Chancellor said that the Office for Budget Responsibility has revised its forecast figures for growth with an increase of 2% for the next year. Budget 2012 has been described by the Chancellor as a budget rewarding work and encouraging economic growth.
Mr Osborne said that the government will provide funding to upgrade railway lines in the north of England and deal with the lack of airport capacity in the South-East which will create new jobs in the building construction sector.
The Chancellor said: “We want to look at the opportunities for increasing the role of private investment in the road network, learning lessons from the water industry.”
Significant news for the building sector, revealed today in Budget 2012, was the government’s commitment to provide an extra £100 million to improve accommodation for armed forces personnel’s families.
Ten Major UK cities are to receive £100 million to fund 100Mbps superfast broadband in areas where private sector would not normally reach. Those are Belfast, Birmingham, Bradford, Bristol, Cardiff, Edinburgh, Leeds, Manchester, Newcastle and London.
Talking about the renewable energy sector, Chancellor Osborne said that the government will continue with its commitment to support green energy initiatives in the future. However, Mr Osborne said the government will make sure it ensures the fiscal effectiveness of the renewable energy.
Chancellor Osborne said: “I also want to see investment in our world-leading energy sector including renewables,” saying that “renewable energy will play a crucial part in Britain’s energy mix but I will always be alert to the costs we’re asking families, business to bear.”
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The water giant has projected a cost of £7 million per mile to install the 6 ft in diameter pipe which will boost water supply to London and the South of England. United Utilities has made a rough estimate the project will cost £1.1 billion to build the pipeline from London to Birmingham and another £1.5 billion to complete the entire project from Birmingham to Leeds.
Sustainability Director of Thames Water, Richard Aylard, welcomed United Utilities’ plans to build a water pipe alongside the HS2. He said: “It’s well worth looking at and makes sense to do so as part of the HS2 project.” However, Mr Aylard questioned who would bear the cost of the project saying that the scheme is likely to affect water consumers paying higher bills.
The government recently backed the £32 billion investment for the high-speed railway which will create new jobs in the building construction sector, boost the economy and cut the journey time between London and Birmingham to 49 minutes.
United Utilities’ Chief Financial Officer, Russ Houlden, said that England is facing drought challenges and the HS2 is an opportunity to run a water pipeline between the North and South of England which will tackle concerns regarding water shortages in the future.
Mr Houlden said: “The current drought emphasises what we have known for some time – that there is more water available in the North than the South and that this issue will become more acute as climate change impacts hits us over the next 50 years. A North-South pipeline could be built to address that. Typically, the objections to such an idea have been build cost, operational cost, planning difficulties and environmental impact.
“HS2 offers a once-in-a-lifetime opportunity to minimise planning difficulties and environmental impact.” Mr Houlden added.
United Utilities is expected to present its proposals to the House of Commons Select Committee on the 7th March this year. Further details about the construction work and who might be running the scheme will be announced at a later date.
What is your opinion to the proposal of United Utilities to build a £2.6 billion pipeline along the HS2 high-speed rail line? Share your thoughts by leaving a comment below:
Although the building construction sector remains one of the most stable industries in the UK, the CBI thinks greater investment is needed for infrastructure projects to encourage continual growth and business confidence.
The CBI has proposed a number of measures for the government as an opportunity to provide real boost for private sector investments in infrastructure schemes and give more support to small and medium businesses.
General Director at CBI, John Cridland, explained that the government should use Chancellor’s budget statement next month to deliver significant financial stimulus to make mortgages more affordable to the housing market.
Mr Cridland thinks future growth through reforms of the UK’s tax system is essential for businesses to invest in Britain. He is calling on the government to make some changes into the current system which will create new opportunities for growth.
Mr Cridland highlighted the significance of infrastructure investment as one of the most important priorities which the government needs to support in order to encourage industry’s growth and create permanent jobs.
He said: “Delivering private sector investment in infrastructure, supporting mid-sized businesses, hammering out the details on credit easing, extending the Youth Contract to 16 and 17-year-olds, and introducing the New Build Indemnity Scheme for mortgages at the earliest opportunity will all provide a real boost for UK growth and jobs.”
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The Chancellor George Osborne has been urged by business leaders to allocate more investment on capital projects rather than on the current expenditure which will give boost to the construction industry and encourage economic growth.
Improved access to government funds, cutting red tape for businesses and giving greater investment to infrastructure projects are the key demands by business leaders. The call comes ahead of the Chancellor’s budget statement next month which is expected to make significant announcements for creating new jobs and boosting the national economy.
The Construction Products Association (CPA) has urged the Chancellor to cut VAT for domestic projects that will improve energy efficiency for thousands of homes across the UK.
Chief Executive at CPA, Michael Ankers, said that the Chancellor needs to allocate in the budget more capital spending for housing and infrastructure projects because it will give confidence to businesses and provide sustainable investment for growth.
Mr Ankers said: “The 2012 Budget provides the Chancellor with the opportunity to introduce a package of measures to stimulate the economy and deliver growth. This should include a further rebalancing of public spending away from current expenditure and into capital investment, as this will not only generate economic activity and employment but will increase long term productivity as a result of improving the infrastructure of this country.”
What would your suggestions be to the Chancellor Osborne to help businesses across the UK? Is capital investment the best way to create jobs and sustainable development for growth? Share your thoughts by leaving a comment below:
There has been a significant increase in the number of vacancies advertised in the building construction industry, despite the negative forecast on UK unemployment figures to reach almost 3 million by the end of this year.
Recruitment consultants have reported an increase in construction vacancies for the first month of this year. One of the UK’s largest construction engineering recruiter has reported a rise of more than 50% in the number of advertised construction vacancies on their website, careerstructure.com.
Data published by the Recruitment and Employment Confederation (REC) has shown that engineering and construction workers were the most sought after employees in the UK. In contrast, the demand for hotel and catering staff has significantly declined according to the last survey from this year.
The Chartered Institute of Personnel and Development (CIPD) has published a report suggesting unemployment will continue to rise. However, the building construction industry is expected to continue to hiring more workers due to recent infrastructure projects and significant government investment.
The government has invested £5 billion towards infrastructure projects announced in the Autumn Statement in November, by Chancellor George Osborne. This has proven a positive incentive for the industry in regards to the progressive requirement as a result of business confidence and growth in the construction sector.
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The survey conducted by the purchasing managers’ index (PMI) has shown a sharp increase in output, a rise in new orders and a fall in cost faced by the manufacturing and civil engineering sector.
The Chartered Institute of Purchasing and Supply (CIPS) reported companies have seen indications that customers are increasingly willing to spend.
Chief executive at CIPS, David Noble, welcomed the statistics saying they are good news for the manufacturing sector. However, Mr Noble mentioned that more time will be needed for the manufacturing industry to establish whether growth is sustainable.
He told the BBC: “The UK manufacturing sector has sprung to life in the first month of 2012 to defy any economic gloom, but it is too early to say whether this trend is sustainable.”
Meanwhile, the UK’s leading infrastructure contractors have urged the government to continue with delivering recently announced investments for improving infrastructure and boosting businesses across the UK.
The government has previously said in its Autumn Statement for 2012 that a key priority for growth will be the Building and Construction Industry –with recent investment of over £5 billion to improve contractors’ order books for years ahead.
Do you think the good performance of the Civil Engineering and Manufacturing sector is a result of the huge investment by the UK government to stimulate future growth? Share your thoughts with us on Facebook or just by leaving a comment below: