The Chancellor’s 2022 Autumn Statement highlighted the impact of global events on inflation, which the OBR predicts to drop sharply in the middle of 2023, and set out the Government taxation and regulatory strategy to take the country out of recession.
However, it was light on much needed supply reforms which has held the country back for more than two decades, argued the National Federation of Builders.
Richard Beresford, chief executive of the NFB described the announcement as a “mixed bag” for construction.
Stamp duty cuts remain until 2025, red diesel access has not been reinstated but electric vehicles will lose zero rated road tax, energy independence has been made a priority, and investment zones may be watered down to focus on innovation, not placemaking.
“However, two rabbits were pulled out of the hat, on which the NFB lobbied for. Capital and infrastructure budgets will be protected, and a new ‘Energy Efficiency Taskforce’ has been announced,” he said. “These supply side strategies offer positive opportunities and work pipelines for construction, and we look forward to inputting into how an energy efficiency strategy can be sustained by business and consumers, rather than always requiring government funding.”
Despite highlighting that ‘infrastructure allows wealth and opportunity to spread across the nation’, committing to Sizewell C nuclear power thus giving investors certainty, citing a necessity for competition to break up monopolies, and championing a desire for skilled workers to mirror the achievements in Japan, Germany and Switzerland, the Chancellor did not focus on the need for wholesale planning reform as the underpinning factor for any economic and social recovery.
Rico Wojtulewicz, head of housing and planning for the NFB, said: “The planning process sustains our housing monopoly and strangles growth, which is why in places such as Japan and Germany, land use, regional planning, and permission certainty is a primary function of enabling opportunity. As well as ensuring businesses know there are commercial spaces, work pipelines, and regional strategies for them to invest in, their focus on planning certainty ensures places grow sustainably, housing supply keeps up with local demand and levelling up is a natural process, not reliant on taxpayer funding.
“The Government needs to practice what it preaches because it has spent the last twelve years avoiding coherent planning reform and therefore missing out on sustained growth. Revering Singapore, Germany and Japan is no good if you aren’t willing to risk some political capital by enabling their core supply side mechanisms.”
Brian Berry, Chief Executive of the FMB welcomed the strong focus on energy efficiency with the creation of a new Energy Efficiency Task Force (EETF) and an extra £6bn in funding.
He said the industry stands willing and ready to help improve the energy efficiency of existing buildings.
He continued: “The appointment of an adviser on skills reform and investment in the education system to focus on improving vocational skills is also very welcome. Local builders have long been grappling with a shortage of skilled workers and now is the opportunity to properly invest in vocational skills routes and get more people into the construction industry.
“It is disappointing that no direct mention was made about the need to of boost housing supply at a time when we need more homes or to reform the planning system which is holding back development.”
In light of the Autumn Statement 2022, the Home Builders Federation has called on government to engage with the home building industry to deliver against its ambition of 300,000 new homes, and protect the economic and social benefits developments bring.
Stewart Baseley, Executive Chairman of the HBF, says: “Despite the clear threats to supply levels, and the associated impact on the social and economic benefits of building new homes, there is little in today’s statement to assist housing delivery.
“We would urge the Government to engage with industry and look to develop policies that will support demand for new homes and address the acute constraints we face.
“The Autumn Statement was a missed opportunity and whilst Government may be nervous about the politics of new housing, intervention is crucial to the prospects for first-time buyers and the millions of jobs supported by the industry.”
CITB’s Chief Executive, Tim Balcon said construction employers are facing rising energy bills and materials costs and they need confidence in the future pipeline of work and support to train through challenging market conditions.
“We will do everything we can to support the construction industry so companies can continue to have the confidence to invest in skills,” he said.
“CITB has simplified the process for SMEs and sole traders to take on an apprentice and our New Entrant Employer Support team has placed 200 apprentices in the north of England alone since September. This scheme is being rolled out nationwide from January to provide employers the training support they need in this tough environment.
“We also look forward to working with the newly appointed Adviser on Skills Reform, Sir Michael Barber in his review to improve prospects for school leavers.”
