Industry wants more than Brexit on Government's to-do list

Latest News Fri, Dec 13, 2019 10:51 AM

Boris Johnson has promised to deliver Brexit and repay the trust of voters after he led the Conservatives to a general election win.

The prime minister has a Commons majority of 78, with one seat still to declare, and said he would work "flat out" and lead a "people's government".

The response from industry has been positive that the PM now has a clear majority and striong mandate to move forward. However, many point out that it is not just Brexit the new Government needs to deliver with plenty of issues stacking up for it to tackle as a matter of urgency.

RIBA President, Alan Jones, said: “Many people will remember this as the ‘Brexit election’. The Conservatives must now deliver on their promise to resolve the political crisis which has been paralysing wider society and the economy.

"The RIBA has been clear that this involves developing trade deals which allow practices to access talent, goods and services, and will welcome further detail on how this will be achieved.

"The new government must bring the country together by turning promises into action. We need critical investment to solve the housing crisis through high-quality planning and homes, initiatives to tackle climate change and complete reform of our fire and building safety regulations to keep people safe.

The result must draw a line under years of crippling uncertainty that has been so toxic for UK construction, says the Federation of Master Builders (FMB).

Brian Berry, Chief Executive of the FMB, said: “The new Conservative Government has a golden opportunity to sort out Brexit and set out its new vision for the UK. Building the homes and infrastructure that this country needs has to be a key priority to help drive the economy forward.

“The Government needs to back the nation’s army of small builders, by delivering on the promised £3bn National Skills Fund, investing in quality through a licensing scheme for the whole UK construction industry, and supporting local builders to retrofit the millions of homes that need to be upgraded to low carbon.”

Carolyn Fairbairn, CBI Director-General, congratulated Boris Johnson and the Conservative Party on the result.

"After three years of gridlock, the Prime Minister has a clear mandate to govern," she added. "Businesses across the UK urge him to use it to rebuild confidence in our economy and break the cycle of uncertainty.

“Employers share the Prime Minister’s optimism for the UK and are ready to play a leading role. They can bring the innovation, investment and jobs for a new era of inclusive growth. The biggest issues of our times – from tackling climate change to reskilling the workforce for new technologies – can only be delivered through real partnership between government and business.

“The starting point must be rebuilding business confidence, and early reassurance on Brexit will be vital. Firms will continue to do all they can to prepare for Brexit, but will want to know they won’t face another no deal cliff-edge next year. Pro-enterprise policies on immigration, infrastructure, innovation and skills, will help relaunch the UK on the world stage.

“Despite recent challenges, the UK remains a great place to start and build a business. A new contract between enterprise and government can make the UK a global magnet for investment, powering higher productivity and living standards across the UK.”

British Chambers of Commerce Director General Dr Adam Marshall said restoring business, investor and consumer confidence – and firing up the economy – must now be the Prime Minister’s top priority.

“Campaign slogans must give way to a renewed focus on the details that matter," he continued. "Our business communities need to see swift, decisive action to avoid a messy and disorderly exit from the EU and to tackle the barriers holding back investment and growth here in the UK.”

Businesses’ priorities for the new government include:

  • Avoiding a no-deal exit from the EU and delivering a smooth transition giving firms time to prepare.
  • Acting rapidly to reform business rates and replace them with a fairer system.
  • Pressing ahead with improvements to transport infrastructure including HS2,Nothern Powerhouse Rail and additional capacity at Heathrow.
  • Investing in our skills base and reforming the Apprenticeships Levy so that more small firms can access high-quality training locally, at affordable cost.
  • Delivering a sensible immigration system that gives firms access to essential overseas talent at all levels.

Stephen Phipson, Chief Executive of Make UK, said: "Uncertainty and delay have caused great damage and manufacturers will hope this result means that the skies can now begin to clear.

"The recent focus on Brexit and the absence of bandwidth in Government has meant that there has been little movement on many vital policy issues and there remains work to do before industry can turn on the taps of investment.

"The first job is the urgent need to begin negotiations on our future trading relationship with Europe, cementing frictionless trade, access to key skills, regulatory alignment and space for business to prepare for new arrangements. Manufacturing exports are one of the powerhouses of our economy and we must allow them to flourish.

"At the same time we call on the Prime Minister to set out a vision for the future of our economy which allies a re-invigorated plan for modern industrial transformation and growth with how we are going to tackle the immense societal challenges such as digitisation and climate change.

"Today is a new start and we hope that the Prime Minister and his Government get down to work with a matter of urgency to promote growth, investment and skilled jobs across the whole of the UK. We stand ready to work together in partnership to archive these aims."

The National Federation of Builders (NFB) hopes it is a signal for the nation to get moving again after a prolonged period of inertia.

The election result has taken the nation closer to ending Brexit uncertainty and restoring business confidence, while ensuring that a programme for legislation can go through the House of Commons. NFB members have experienced a challenging period thanks to building projects being delayed until Brexit certainty was restored, so it is to be hoped that the wheels of industry will begin turning again.

Members of the NFB are particularly looking forward to seeing what plans the Government has on late payment, fixing the broken planning process, home ownership, social housing and procurement reform. Addressing these issues will once again make building and construction the engine room of the nation’s economy.

Richard Beresford, chief executive of the NFB, said: “We are well overdue a period of certainty and stability so businesses can thrive. The date of 31 January 2020 is not far away and the Government must redouble its efforts to make sure all industries and businesses are fully represented in planning for either a transition period or no deal.

“The Brexit deadlock has negatively impacted the productivity of construction and housebuilding but our members will be breathing a sigh of relief that a direction of travel can now be set. With so many commitments to small business, housing and the climate, we look forward to supporting Prime Minister Johnson to deliver his manifesto and ambitions.”

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