THE response from our industry to Chancellor George Osborne’s second Budget has been mixed. The diversity of feeling came across in one construction website’s e-newsletter, which linked to no fewer than 10 articles, each giving comment from various people related to the sector.
Among the most positive was PwC’s head of construction, Jonathan Hook, who described the £250m shared equity scheme as a “welcome boost” for the industry.
Barratt Developments’ chief executive Mark Clare said the move was “exactly the tonic the housing market needed”.
More good vibes came from the Freight Transport Association (FTA), which claimed “a key win” as the fuel duty rise was scrapped and a 1p decrease was announced.
However, it wasn’t all pats on the back for Mr Osborne, as the Construction Products Association claimed not enough had been done to stimulate housing refurbishment ahead of the Green Deal in 2012.
Likewise, the Federation of Master Builders’ director general Richard Diment said: “The Chancellor missed an opportunity to support the Green Deal and kick start consumer demand to make our homes greener.”
Also, UCATT, the construction union, was less complimentary towards the shared equity scheme, arguing the money “would have been better spent on social housing, where there is a chronic need for new homes”.
Unite said the Budget was “a mirage from the architect of the most devastating cuts to jobs and services in generations”.
It is unsurprising, of course, that unions would hammer a Conservative Chancellor’s Budget, but the criticism didn’t stop there.
The Institution of Civil Engineers, while broadly welcoming some of the measures being put in place, placed caveats on most. In the North East, the feeling was that £100m for potholes across the UK was “papering over the cracks”.
Mr Osborne was clearly tackling the fiscal equivalent of a musician’s tricky second album. Having survived delivering the necessary evil of last year’s Budget, he has come through this relatively unscathed and delivered a pathway forward that has been seen by many as being as positive as he could with poor resources.
Yes, the average Joe at the pumps might be nonplussed by a fall of 1p a litre. However, those in the industry who rely heavily on transport will see a difference.
This was never going to be a big giveaway, or as dramatic as a year ago. This was a Budget that laid out a path forward to bring about growth, and with construction set to be a major benefactor of one of its major policies in the shared equity scheme, it should be welcomed.
For more information on Constructing Excellence in the North East, please contact chief executive, Catriona Lingwood, on 0191-3740233 or catriona@cene.org.uk.
Catriona Lingwood, chief executive, Constructing Excellence in the North East