Chancellor Rishi Sunak has unveiled a £30bn package to boost the economy and get the country through the coronavirus outbreak.
He is suspending business rates for many firms in England, extending sick pay and boosting NHS funding.
In his first Budget speech, he warned of a "significant" but temporary disruption to the UK economy but vowed: "We will get through this together."
The Bank of England has announced an emergency cut in interest rates.
The Budget set out plans for a new £1bn fund to remove all unsafe combustible cladding from all public and private housing higher than 18 metres, as well as £600bn to be spent on infrastructure and housing by mid-2025.
Key points of the Budget include:
- More than £600bn is set to be spent on roads, rail, broadband and housing by the middle of 2025
- There will be £27bn for motorways and other key roads, including new tunnel for the A303 near Stonehenge
- £2.5bn will be made available to fix potholes and resurface roads over five years
- Further education colleges will get £1.5bn in new investment in their buildings
- £650m package to tackle homelessness, providing an extra 6,000 places for rough sleepers
- Stamp duty surcharge for foreign buyers of UK properties to be levied at 2% from April 2021
- New £1bn fund to remove all unsafe combustible cladding from all public and private housing higher than 18 metres
- Plastic packaging tax to come into force from April 2022
- Manufacturers and importers whose products have less than 30% recyclable material will be charged £200 per tonne
Brian Berry, Chief Executive of the Federation of Master Builders (FMB) said: “Understandably, the Chancellor has delivered a ‘first aid Budget’ to overcome the short-term crisis caused by COVID-19. But he has missed an important opportunity to announce interventions that would support the sustainable, long-term recovery construction needs. The autumn Budget must include measures to cut VAT on repair and renovation, and a National Retrofit Strategy to promote decarbonisation and create jobs and growth
“Builders are increasingly concerned about the impact COVID-19 will have on their businesses. Today’s package of measures 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
“An investment of £13.7 billion in housing is welcome news, however, there was no mention of how the Government plan to support SME house builders. 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.”
Stephen Phipson, Chief Executive of Make UK, the manufacturer’s organisation, described the Budget as a “welcome, realistic and pragmatic statement” which recognises the unparalleled times in which we are living.
“Business understands that dealing with the impact of the coronavirus on individuals and the economy was always going to be the Chancellor’s priority and he has our full support in doing whatever is necessary to protect the public and the economy at such a difficult time,” he continued.
“Aside from the overwhelming immediate priority the Chancellor has also recognised the need to turbocharge investment in long term measures which will boost the productive potential of the economy and support green growth. For too long the UK’s infrastructure outside the South East has played second fiddle and industry will welcome the resources devoted to improving links across the UK, in particular the strategic road network.
“In a world which is rapidly becoming digital the UK needs to stay at the forefront of research and innovation. Today’s measures to boost R&D will be applauded by industry and will help the UK lead in the technologies of the future.”
Julie Hirigoyen, chief executive at UKGBC, highlighted the fact that the Chancellor had previously billed the Budget as one which would be about reaching net zero and protecting our environment.
“Clearly that did not get done,” she claimed. “While Coronavirus is rightly at the forefront of everyone’s minds right now, the transition to net zero is also incredibly urgent, with this upcoming decade crucial to achieving it.
“Yet Government plans remain incredibly light on detail – especially with regards to buildings, energy efficiency and heat – all of which are crucial planks of a net zero economy. Instead the can has been kicked down the road again, with the promise of ‘more detail’ in the Treasury’s Net Zero Review due to be published ahead of COP26 in November.”
“Some welcome measures in today’s Budget include funding to improve climate resilience and biodiversity, including through a £200m place-based resilience programme, and, buried within the Budget documents, the extension of the Climate Change Agreement scheme, which incentivises energy intensive businesses to improve their energy efficiency.
“Unfortunately, notably absent from the budget documents are the Government’s three biggest manifesto promises on energy efficiency: The social housing decarbonisation fund, Home Upgrade Grants and the Public Sector Decarbonisation scheme.
“There was plenty of talk about homes in today’s speech – but no promise that they will help achieve net zero or be affordable to run. Hopefully tomorrow’s planning announcement will bring with it some welcome news for those in the built environment industry looking to get net zero done.”
Eddie Tuttle, director for policy, research & public affairs at the
Chartered Institute of Building (CIOB) said: “Small
and medium-sized businesses (SMEs) account for more than 99% of all UK
businesses in the construction industry.
“We are therefore pleased to see today’s
announcement recognising the potential affects that COVID-19 will have on SMEs
and acknowledge the government’s efforts to increase funding to help offset any
costs incurred. However, a significant number of construction workers are
self-employed and may not be covered by this investment and this will need to
be monitored across all sectors.
“The Chancellor has also announced that
the government will support businesses who experience disruption to their
cashflow during the COVID-19 response. An expanded Business Rates relief, a
Coronavirus Business Interruption Loan scheme and a £2.2 billion grant scheme
for small businesses, with a dedicated helpline for those who need a deferral
period on their tax liabilities will also offer SMEs a sigh of relief.
“We look forward to working with
government on their plans for a new construction strategy and infrastructure
strategy. We encourage government to ensure they provide a clear route map for
how additional spending will be utilised and look at smarter ways the built
environment can be used to tackle numerous socio-economic issues the country
faces. Whether that is the quality of our built environment or rebalancing and pushing
for greater regional investment.
“Following the Grenfell tragedy, one of
the most important objectives is to ensure residents have a voice and feel safe
and secure in their home. We welcome the announcement that the government will
invest an additional £1 billion to remove unsafe cladding from residential
building above 18 metres to ensure buildings are safe for residents.
“The failures of quality that resulted
in the recent incidents at Grenfell highlighted the need for an urgent review
of the way in which quality is managed within the UK construction industry. We
are glad the government is committed to remove not just ACM cladding but all
unsafe cladding from buildings above 18 metres. We urge that government ensures
that any new home is built to a high quality standard and ensure that buildings
are fit for use.
“Given today’s Budget announcements we
encourage government to work closely with the construction industry in order to
produce a clearer vision and a smarter, more focussed, attention from policy
makers to ensure the industry continues to thrive in a more conducive
environment.
“In our Real Value of Construction 2020
report, we showcase the true value of the construction industry and the wider
built environment, outlining the socio-economic contribution of the industry on
a regional level. In it we called for creating clusters of construction-related
businesses and activities to increase innovation and productivity, better
measures to understand the value of construction, devolved and smart funding
for training, boosting support and networking to promote international trade
and to review the current business model to ensure it is fit for purpose.”
