Posts tagged economy
Chancellor George Osborne is expected to announce tomorrow an extra £5bn of investment for capital projects in the construction industry that will boost the trades and create new jobs.
In the Autumn Statement, set to be announced tomorrow at 12:30 GMT in the House of Commons, the Chancellor will demand departmental savings of 1% next year and 2% in 2014/15 to raise extra cash for construction projects across the country.
The Statement provides an update on the Government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility. These forecasts are published alongside the Autumn Statement on 5 December.
At least £1bn of this is understood to have been earmarked to build an extra 100 new free schools and academies, but the move raises hope that there will be extra cash for housing as well as transport schemes.
Health, education, HM Revenue and Customs and nuclear decommissioning will escape his latest spending cut as well as frontline staff. Mostly savings will come from administration and back office staff.
Treasury sources say £1bn will go towards building 100 new free schools and academies, creating an additional 50,000 new school places.
The new cash for school will be in addition to the new PF2 schools programme that the industry has been eagerly awaiting, which will see £1.75bn spent on building and refurbishing 219 schools.
Outsourcing company Mitie has been awarded a ten-year repair and maintenance contract that will create new trade jobs and boost building sector.
The contract is worth £70 million over ten years with the potential to rise to £120 million if Golding Homes issue additional works. The multi-million scheme will see the housing association’s upkeep of 6,000 properties across Kent.
The deal is expected to benefit customers with more flexible appointment system and a quicker repairs ordering process. It will generate additional opportunities for skills training and employment in the trades.
Peter Stringer, Golding Homes chief executive, said: “We carefully considered a range of models for providing repairs and maintenance services, based on our customers’ priorities.
We concluded that creating a wholly owned subsidiary company as a vehicle for the contract will best help us meet our goals.
“We are confident that selecting Mitie as our partner will bring the professional and innovative approach our customers deserve and we look forward to working closely with them.”
Mitie will work with Golding Homes and its wholly owned subsidiary Golding Services to deliver gas maintenance, responsive repairs, void reinstatements and planned works.
Commenting on the contract award, Peter Griffin, director for social housing at Mitie, said:
“At Mitie we’re passionate about working with our customers to develop strategic partnerships that can provide long-term investment in both service infrastructure and assets. We’re delighted to be working with Golding Homes and Golding Services to deliver this exciting new contract.”
Norman Lamb has used the Liberal Democrat Conference in Brighton to announce an extra £100 million investment for the construction of new care homes.
The care services minister revealed that the government fund for specialised housing will be increased from £200 million to £300 million which could see the building of 9,000 new homes and boost the trades.
Norman Lamb said: “Staying independent and having the choice to live in your own home as you get older is something we know most people want.”
The Chartered Institute of Housing (CIH) welcomed the announcement by the care services minister, describing it as a great opportunity to build safe and improved homes across the country.
Domini Gunn, director of health and wellbeing at the CIH, said: “We are delighted to see the Department of Health making a commitment to help support greater health and independence for older people and to provide safe homes.
“The investment will create new opportunities to deliver additional and improved services through collaboration with housing and health professionals as well as planning departments.
“This is a great opportunity for housing to be recognised as an important function in the effective delivery of care provision.”
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:
As reported earlier this week, Heathrow Airport has announced to build a new terminal for the London Olympic Games to ease the increased traffic of people at one of the busiest airports in the world.
Building work at London Heathrow will create new jobs, transport networks and regenerate 6th runway in Heathrow Airport, which expects nearly 50% more passengers arriving on July 26, the day before the opening ceremony.
As part of preparations for the new terminal at Heathrow, building construction work will take place to build specialist lifts for Paralympians and improve facilities from which participating athletes will depart.
Nick Cole, Heathrow’s head of Olympic and Paralympic planning, asserted: “The London 2012 Games will be a unique operational task and a massive challenge for Heathrow.
“The airport is one of the most popular international airports in the world and already operates close to capacity.”- Mr Cole added.
Work is also currently underway on Heathrow’s new £2.2 billion terminal two, which will replace its existing terminals one and two once completed in 2014, with around 5,000 people to be employed on the site of this project.
What is your opinion about the plan of building a new Olympic Terminal at Heathrow Airport? If you are working in the building construction sector, do you think that could be a good opportunity for you/your business? Share your thoughts by leaving a comment below:
Asda, the UK’s second biggest supermarket behind Tesco, has announced that it is to open 25 new stores, extend and refurbish 43 of its existing stores and build 3 new depots this year, offering the building industry more opportunities.
New stores are planned for Merseyside, Coventry, Gateshead in Tyne & Wear, Nottinghamshire, Mitcham in London, Ramsgate in Kent, Shepshed in Leicestershire, Todmorden in West Yorkshire, Worcester, and Worthing in West Sussex.
The supermarket which employs over 180,000 people in 528 UK stores and depots will add over 600,000 sq ft of net selling space with its 25 new stores, this will be either as superstores, small format supermarkets or Asda Living stores.
The supermarket confirmed today that it will invest over £500m in UK stores and depots in 2012. The 25 planned new stores and the three depots will create up to 5,000 new jobs across the country. Asda expects many of those employees will be apprentices who are undertaking a City & Guilds apprenticeship.
Prime Minister, David Cameron has welcomed the announcement saying that it is good news for many people across the country who are currently looking to enter employment.
Mr Cameron said: “The additional investment and 5,000 new jobs announced by Asda today will be a real boost for the economy and more importantly for people around Britain seeking jobs.
“I also welcome Asda’s commitment to not only create jobs but invest in their staff too; offering employees the chance to join an apprenticeship scheme to gain skills which will benefit them throughout their career.”- Mr Cameron added.
Asda’s investment and job creation plans were unveiled during a UK visit by President and CEO of Walmart International, Doug McMillon, who emphasised the importance of the project for the UK.
He said:”Our continued investment is because we see a tremendous opportunity in front of us – I’m proud of the difference you’re making and that we can make an even bigger difference in the lives of our customers and the communities we serve”.
Andy Clarke, President and CEO of Asda said he is delighted for the expansion scheme which will create new jobs and employment opportunities for people in all sectors of the UK.
Mr Clarke said: “I look forward to seeing these new stores and depots open for business and welcoming new colleagues and customers.”
Stores currently scheduled for 2012 opening include:
Coventry, West Midlands
Gateshead, Tyne & Wear
Todmorden, West Yorkshire
Tunbridge Wells, Kent (opened Jan 12)
Worthing- Littlehampton Rd, West Sussex
Inverness Slackbuie, Highlands
Larkhall, South Lanarkshire
If you are living in one of the areas in which a new Asda store is to be built are you more optimistic about finding a job? Tell us how is your business going to benefit from the £500 million investment? Share your thoughts with us by leaving a comment below:
As reported on Train4TradeSkills blog this week, Premier Inn, the England’s biggest budget hotel chain, has announced further investments for the building industry as it paves the way for more hotels to be built across the UK.
In addition to the £5.9 million investment in Camborne announced yesterday, Premier Inn brings £4.1 million investment to Coventry, as it opens a new hotel later this month.
With low availability of affordable hotel places in some parts of the UK and pressure to reduce costs, more smaller hotels are being built – especially such offering affordable prices to customers. Premier Inn has invested millions of pounds across the country in building and renovating new hotels across the UK. Recent developments include hotels in Worcestershire, Barry, Dartford and Camborne.
Although UK unemployment rose by 118,000, in the past three months since November, the building sector doesn’t seem to be affected due to the governments’ extensive investment to create thousands of jobs in the building construction sector.
The Prime Minister announced in the Commons today that whilst unemployment is rising, there is an increase in the number of people working; another 18, 000 people are in work.
“We need more private sector employment and we need to move further and faster on that agenda.” – Mr Cameron said.
Chris Grayling, the Work and Pensions Minister said in a BBC interview this morning that the recent figures on unemployment are more complex than they first appear.
Mr Grayling said that the government has lots of work to do in regards to improving employment opportunities and getting more people back to work. He said: “The private sector is creating jobs faster than the changes in the public sector.”
Mr Grayling said that there were more to the statistics than what first met the eye, but he admitted unemployment level was much too high.
If you are in the building sector, do you feel safer with your job than people in other industries? Tell us why? Do you think that enough is being done to tackle the unemployment?
More than 100 business leaders, economists and MPs from all parties are pressing the government for more investment in infrastructure projects which will create hundreds of thousands jobs in the construction sector.
Letters to national newspapers, including the Daily Telegraph, The Guardian and The Financial Times, call for a £17bn investment in High Speed 2 (HS2) between London and Birmingham which will create one million long-term British jobs.
A letter to the Daily Telegraph, which was signed by more than 100 business leader, states “We call on the government to approve plans for HS2 and to push ahead with its construction as soon as possible”.
The signatories come from a wide range of business interests including the likes of Simon Carr of Henry Boot, Naomi Connell of VolkerWessels, Paul Cook of Galliford Try, Chris Webster of Miller Construction and John Wood of Tolent Construction.
A letter in the Financial Times goes on to suggest that if Britain does not invest more into the infrastructure it will be left behind from other European countries. The letter states: “The absence of a high-speed rail line connecting the north of England to London and the rest of the European Union is a continuous embarrassment to British businesses promoting UK plc overseas.”
The letter suggests that a high-speed rail, along with other major infrastructure projects in Britain, is crucial for giving confidence to businesses and stimulating economic growth in time of recession. It says: “Economic studies show that effective modes of transport, including high-speed rail, enable entrepreneurs to get their goods and services to market in a secure and timely manner and facilitate the movement of workers to the most suitable jobs.”
The group of businesses and economists urging the government to approve the rail link argue that it would be a boost for business, especially across the north of England, and will create jobs and ease transport overcrowding.
What is your reaction to business leaders pushing the government to approve plans for HS2 and its construction? Do you welcome the HS2 as an opportunity for you and your business? Share your thoughts with us by commenting below: