The Taylor Review, an independent review into rural communities commissioned by the Prime Minister and led by Matthew Taylor MP, has been given a broad welcome by the FMB. The FMB doubts however that the Government will implement the report's findings.
Responding to the Taylor Review Brian Berry, Director of External Affairs at the FMB said:
"This review provides a much needed contribution to the rural housing debate which at present is in danger of becoming polarised between those developers wanting to build large new settlements, and some rural communities denying people on low incomes the right to a decent affordable home. The truth is we need more homes to tackle the 1.5 million on the council house waiting list and the 90,000 families living in temporary accommodation. These homes are not just needed in urban areas but in rural communities as well."
Berry continued:
"The countryside needs thriving sustainable communities that can accommodate everyone. By stopping affordable housing development in the countryside all that you are doing is making it a playground for the rich. The closure of village schools, pubs and post offices is a consequence of families and young people having to leave the countryside because they cannot find affordable homes.
This does not mean that those who oppose new developments do not have legitimate concerns. These concerns could however be better addressed by ensuring that all new housing is built to a very high standard, with sufficient open space and sensitive to the local environment. It is therefore pleasing to see that this review is calling for a 'community led approach' to the provision of affordable rural housing and 'new planning policies to shift growth of market towns from endless bland housing estates to create instead new neighbourhood extensions with shops and community facilities, work places and open spaces.' If these criteria could be ensured fears about concreting over the countryside would be allayed and local people might at last have the chance to live in the places they want to."
Berry concluded:
"While we welcome the findings of this review we are concerned that the Government will fail to implement them. To date the Government has favoured a top down approach to house building involving the creation of new settlements, this is simply not the answer, as this review points out. The Government also needs to stop sending out mixed messages to the construction industry. On the one hand it talks of wanting to build more affordable rural homes then on the other refuses to take the necessary decisions in order to allow these homes to be built. If the Government is really serious about increasing the supply of housing why then is it introducing the Community Infrastructure Levy on housing development?"
23 July 2008
News that the Local Government Association (LGA) are considering a legal challenge to the Government's plans for up to 10 so called eco-towns on the grounds that they bypass normal planning procedures should really cause the Government to think again. News of possible legal action by the LGA comes on the back of a scaling down in the number of proposed eco-towns, the Conservative Party no longer supporting the idea, and only today we saw the Government making even more concessions to try and garner support for these so called eco-towns.
Brian Berry, Director of External Affairs at the FMB said:
"News today that the LGA is considering a legal challenge to the Governments eco-town proposals should really cause Gordon Brown and Caroline Flint to sit up and think. Is the Government really planning to bypass normal planning procedures to force eco-towns on communities that do not want them and have had no say in their creation? This is hardly the way to go about building sustainable communities."
Berry continued:
"Eco-towns sound lovely but are really a red herring to give the Government's housing plans a stamp of green credibility. The truth is we already know how to create sustainable homes as demonstrated by the BedZed affordable eco-homes in south London and the renewable energy theme park developed by Kiklees Borough Council in Yorkshire.
Building brand new eco-towns outside existing settlements in the teeth of local opposition is a really bad idea particularly when there are 675,000 homes in England alone sitting empty, all ripe for refitting with green technologies. Given that demand for housing covers the whole of the UK it makes sense for every village and town to have new housing rather creating brand new settlements."
Berry concluded:
"If the Government is really serious about sustainable settlements the better solution would be to develop a patchwork of hundreds of smaller eco-projects, with contracts awarded by local regions for both new homes and refurbishment of old buildings with green measures spread across arrange of proven technologies. Now that really would be a revolution in turning Britain into a more sustainable place to live but the Government seems to think it always know best!"
23 July 2008
The Conservative Party's pledge to offer employers a £2,000 bonus, on top of the money they already receive, for taking on and training apprentices is a welcome kick-start to provide more apprenticeship places in this country, says the Federation of Master Builders (FMB). The FMB warns that the UK construction industry is suffering from a skills shortage despite the recent economic downturn, largely due to a shortage in the number of apprenticeship places being offered by employers.
Brian Berry, Director of External Affairs at the FMB said:
"Quite simply the UK is failing to deliver enough labour as evidenced by the fact that the UK was 11th in the International Skills Competition at the World Skills Summit in 2007. Britain is failing on two fronts: first, failing to meet demand and secondly, failing to train enough people with the right skills to the right levels. However, the failure to address the skills shortage is as much about too few interested employers as it is about too few interested school leavers. For example, in 2007, 30,000 young people applied for an apprentice position but only 8,500 were accepted. This is within a sector in which there are approximately 185,000 construction companies within the UK but only 4 per cent of which employ an apprentice. Clearly, the construction sector needs to be better motivated to reverse this situation if Britain is to maintain its long term competiveness."
Berry continued:
"It is therefore pleasing to see the Conservative Party is waking up to the skills shortage facing the industry. Their pledge to offer employers a £2,000 bonus for taking on and training apprentices is just the encouragement needed to start to redress the current desperate situation."
Geoff Lister, President of the FMB and Chairman of the Cross Industry Apprenticeships Task Force concluded:
"The construction industry currently requires 87,500 apprentices every year for the next five years just to supply the £250 billion of big projects in the pipeline, on-going jobs, and maintenance work. News that the Conservatives have a goal of training 100,000 apprentices in total is welcome news."
21 July 2008
At a time when house building is at its lowest level since 1945 today's announcement is little more than cosmetic surgery to mask the more fundamental problems about providing the millions of new homes that are needed in this country, says the Federation of Master Builders (FMB) in its response to today's announcement by the Housing Minister, Caroline Flint MP entitled 'Facing the housing challenge - action today, innovation for tomorrow.'
Brian Berry, Director of External Affairs at the FMB said:
"The Government needs to stop sending out mixed messages to the construction industry. On the one hand it talks of wanting to build more homes then on the other refuses to take the necessary decisions in order to allow these homes to be built."
Berry continued:
"If the Government is really serious about increasing the supply of housing why then is it introducing the Community Infrastructure Levy on housing development? There are 675,000 empty homes in England, 288,000 of which have been empty for more than six months. A key reason for this situation is the fact that some buildings require considerable repair work before they can be lived in. The high rate of VAT makes them too expensive for many owners to maintain or refurbish. For example, Hyde Housing Association recently paid £120,000 in VAT on a project involving 21 homes. With the reduced rate of five per cent VAT, they would have saved enough to refurbish another three homes. Yet on the issue of VAT the Government refuses to do anything meaningful."
Berry concluded:
"The planning system is the single most important factor inhibiting the construction of new housing. Again we have heard nothing meaningful from the Government about reforming the planning system to make it more streamlined, less bureaucratic, more predictable and quicker. It is time the Government freed the construction industry from the burden of unnecessary bureaucracy and taxation and allow builders to get on with building the homes that are so badly needed."
16 July 2008
The Federation of Master Builders (FMB) is demanding a tougher line from MPs following the publication of today's report into the construction industry. The report "Construction Matters" by the Business and Enterprise Committee, recommends that the Treasury conduct a full analysis of the overall consequences of cutting the rate of VAT on all repair and maintenance work but stops short of recommending a cut in VAT.
Richard Diment, Director General of FMB said:
"This report is a step in the right direction but just doesn't go far enough. There are reports from all over Europe which describe the benefits of cutting VAT on domestic RMI works; Italy found that around 35,000 firms emerged from the informal economy when it cut the vat. The Isle of Man report showed that, when they introduced the reduced rate there, the number of VAT registered firms increased, the size of the informal economy reduced and more employment was created. The report also pointed out that the Isle of Man benefited from improvements to existing housing stock and reduced pressure on green field site developments."
Diment continued:
"102 MPs have already signed the Early Day Motion calling for a cut in the tax that people have to pay just to keep their home in decent condition. We hope that the Treasury will go beyond the recommendation of this report and cut the VAT now."
16 July 2008
The Federation of Master Builders (FMB) is reporting its weakest quarterly survey of the construction market for a decade in its latest 'State of Trade Survey'. The results for the second quarter (Q2) of 2008 (PDF, 423KB) reveal that conditions in the building industry for FMB members show no signs of improving.
Key results from the survey reveal:
- 40% of respondents said that their workload had fallen since Q1 2008
- 36% of respondents expect their workloads to fall further in Q3 to be lower than in Q2 2008
- Nearly 50% of respondents working in the new private housing sector expect their workloads to fall over the next 3 months
- A downturn in employment with 18% more firms reporting that their workforce decreased during the Q2 than said their employment increased.
Brian Berry, Director External Affairs at the FMB said:
"What our survey shows is that builders are operating in an increasingly difficult market. The rapid downturn in the house building sector is now making its mark on small builders with nearly 50% of our survey respondents saying that they expect their workloads to fall over the coming months."
Berry continued:
"Employment has significantly decreased over the last quarter, which is a huge concern not only for the building industry but for the wider economy. There is now growing evidence that small building firms are starting to make staff redundant. However, as in Q1 the issue of the skills gap is still causing problems for firms lucky enough to be in the position to consider recruiting. There is still a lack of core trades such as skilled brick layers, carpenters, and plumbers and the problem is set to increase if the industry does not start thinking about apprentices and the next generation of builders."
Berry concluded:
"The only other glimmer of hope on the horizon for the building industry comes in the latest findings of a new report commissioned by the FMB from Oxford University, 'Building A Greener Britain - Transforming the UK's Existing Housing Stock' (PDF, 3MB), which says there is a potential new market worth between £3.5 and £6.5 billion for green home refurbishments. However, to tap into this new market the Government needs to set out a clear policy about how it intends to make the existing housing stock more energy efficient as part of its commitment to cut carbon emissions by 80 per cent by 2050."
10 July 2008
Building firms, product manufacturers and suppliers could stand to tap into a new market worth between £3.5 and £6.5 billion per year if the UK developed policies, skills programmes, and financial incentives to upgrade our existing housing stock to make it greener and more energy efficient. In addition a refurbished housing stock would help reduce escalating household energy bills as well as making a real difference to climate change. These are the startling conclusions from a new research report, 'Building A Greener Britain-Transforming Britain's Housing Stock' (PDF 3MB), commissioned by the Federation of Mater Builders (FMB) from the Environmental Change Institute, at Oxford University.
The FMB's campaign, 'Building A Greener Britain', which is endorsed by the Prime Minister, David Cameron MP, and Nick Clegg MP, is about how best the building sector can work with other stakeholders including government to bring about a low carbon built environment. The new research carried out by Gavin Killip sets out a series of practical recommendations about what needs to be done to promote the refurbishment of the existing 26 million homes in this country to make them greener and more energy efficient.
The report argues that the Government needs to make a commitment now to upgrade our existing homes to make them greener. The Government needs to start a process of innovation, skills development, and capacity building in the construction industry that is consistent with its aim to cut carbon emissions by 80 per cent by 2050.
The report's recommendations include:
- New government housing policy to demonstrate its commitment to low-carbon refurbishment of existing homes, so that manufacturers and suppliers can invest with confidence in the development of the necessary supply chains
- Cut VAT from 17.5 per cent to 5 per cent on housing refurbishment across the UK as soon as possible.
- Introduce Council Tax rebates to promote energy efficient homes
- Introduce a feed-in tariff to stimulate greater uptake of micro-generation technologies
- Review of Energy Performance Certificates to improve accuracy and reliability
- Energy efficient work to be carried out at the same time as other refurbishment work.
Gavin Killip from Oxford University and author of the report said:
"UK housing is among the worst in Europe when it comes to energy efficiency - which means there's plenty of room for improvement. Bringing British homes up to standard is possible using existing technology but the skills and industry base to deliver the necessary change is under-developed. Making low-carbon housing mainstream will be good for business and good for jobs, as well as reducing energy bills and CO2 emissions."
Richard Diment, Director-General of the FMB said:
"The research clearly demonstrates the need for the Government to urgently formulate a clear decisive housing policy to upgrade Britain's existing home if we are to have any chance of cutting carbon emissions by 80 per cent. FMB wants to work in partnership with the Government because only by working together can we refurbish Britain's homes to make them greener and more energy efficient. Given that existing homes contribute 27 per cent of the UK's total carbon emissions and that 4.5 million families are living in fuel poverty there is really no time or excuses left to delay action."
Diment continued:
"What is particularly encouraging for builders is that at a time when the building sector is suffering a downturn as a result of the credit crunch there is a potential new market of several billion pounds every year. This is good news all round not only for builders but also for homeowners who want warmer houses, and for meeting the UK's environmental commitments to cut carbon emissions. All we need now is the political will!"
09 July 2008
The European Commission's proposals to allow reduced VAT rates on labour intensive and locally-provided services, is a victory for every professional builder and householder in the UK wanting to carry out repairs to their home, says the Federation of Master Builders (FMB) in its response to the Commission's proposal to change the VAT Directive 2006/112/EC to allow Members States to apply reduced VAT rates.
Brian Berry, Director of External Affairs at the FMB said,
"At a time when the construction industry is experiencing serious difficulties with many builders losing their jobs and householders increasingly unable to afford to maintain their homes a cut in VAT for repairs and maintenance work would help the building industry as well as millions of householders. It is really encouraging that the Commission is now proposing to allow Member States to cut VAT on home renovation and maintenance. All that is needed now is a commitment from the UK Government to cut VAT rates."
Berry continued,
"The problem is that cowboy builders flourish in this country by evading VAT by offering the public supposedly cheap deals which all too often leave the client ripped off. A cut in the rate of VAT on domestic building work from 17.5 per cent to 5 per cent would reduce significantly the commercial advantage of the VAT evading trader. The financial incentive to choose a rogue trader would diminish and create a level playing field. This would drive the rogue traders out of the market as customers begin to focus on quality and value and not just price."
Berry continued,
"Evidence from other EU Member States clearly shows the damage caused by high rates of VAT. Denmark which has the highest rate of undeclared work in the EU also has the EU's highest level of VAT (25 per cent). In Italy by contrast when they cut their VAT rates 35,000 enterprises emerged from the informal economy and started paying VAT for the first time, this then lead to the creation of between 65,000 - 75,000 new jobs in the construction industry."
Richard Hyslop, Cut the VAT Coalition Co-ordinator concluded,
"The economic case for lower VAT rates for the repair and maintenance of existing buildings is clear. It is time the UK Government listened not only to the European Commission, but also to the 72 per cent of MPs who also want to see VAT cut from 17.5 per cent to 5 per cent for all building repair and maintenance work. The time for excuses is over; the Government must act now and cut this pernicious tax."
07 July 2008
The Cut the VAT campaign to cut VAT on building repair and maintenance work, whose backers include the Federation of Master Builders (FMB), National Energy Action (NEA) and The TaxPayers' Alliance (TPA), can reveal that with fuel prices expected to rise by as much as 25 per cent this autumn, the Treasury could stand to make an additional £0.3 billion from the VAT levied on fuel bills. This would mean that the Treasury would rake in a staggering £1.6 billion from householders who pay 5 per cent VAT on their fuel bills.
Total expenditure on gas and electricity has increased by £8.2 billion between 2003 and 2006. Fuel cost increases only accounted for a little over half of this figure - £4.5 billion. When additional costs for gas and electricity were added together the main increases for the two fuels were VAT - nearly £0.4 Billion. With the average fuel bill now at £1,058 the Government currently makes an astounding £1.3 billion annually in VAT payments from people's fuel bills.
Reports that fuel bills could be rising by as much as 25 per cent will come as a hammer blow to the 4.5 million UK households already living in fuel poverty. It will also make grim reading for the 1 million extra people who will be forced into fuel poverty when this rise kicks in. The Government by comparison is set to profit handsomely by the prospect of yet another VAT windfall to the Treasury.
As more and more people are dragged into fuel poverty, traditional methods of Government support are increasingly unavailable to those most in need.
Maria Wardrobe from National Energy Action said,
"NEA urges the Government to use this additional revenue to restore the budget for the Warm Front programme and to extend the Winter Fuel Payment to other vulnerable groups including families with young children and those with disabilities. These short term fixes will go someway to helping those hardest hit, but in the long-term we would like to see a top-level Fuel Poverty Summit to get the UK Fuel Poverty Strategy back on track."
Brian Berry, Director of External Affairs at the Federation of Master Builders continued,
"The truth is that the current high rate of VAT on building repair work prevents people, particularly those on low-incomes, from maintaining their homes. In many instances, this results in people living in misery because they cannot afford to have basic repairs or central heating installed. What makes this worse is that these tend to be the most vulnerable people in our society, with the elderly particularly at risk."
Matthew Elliot, Chief Executive of the TaxPayers' Alliance concluded,
"VAT is a cruel tax that hits some of the most vulnerable in society. The higher prices rise, the bigger the VAT bill grows - making things worse when it's already difficult to make ends meet. At a time when people are facing rocky economic prospects and families struggle with a higher cost of living, VAT rubs salt into the wound. If you want to make your home energy efficient then you have to pay VAT, but if you can't afford to do so you have to stump up VAT on fuel instead. It's heads I win, tails you lose. Increasingly people are being pushed over the edge financially as a result of this immoral tax grab."
07 July 2008
Time is running out to scoop yourself a luxury £3,000 holiday and see your builder's name in lights, as the closing date for the Master Builder of the Year Awards 2008 is fast approaching. Entries must be received by 31st July for your chance to win a fabulous holiday prize and for your builder to be awarded the coveted title of Master Builder of the Year.
The Federation of Master Builders and Naomi Cleaver, the presenter of C4 Grand Designs Trade Secrets, are calling on satisfied homeowners throughout the UK to share their best-kept secret - the name of a brilliant builder - as the FMB once again searches to find the best builder in Britain.
The Master Builder of the Year awards are unique, because entries must come from satisfied homeowners who are so pleased with their finished project that they feel their builder deserves national recognition. Both the builders and clients are rewarded, which means if your builder wins, you do too!
Naomi Cleaver said,
"Every profession likes to be appreciated, none more so than builders. The Master Builder of the Year Awards gives customers a chance to thank their builder for a job well done." So, if you have been particularly pleased with any building work that you have had done recently, then call 0870 162 0942 for a form to enter your builder for the Awards. It could be an extension, conversion or a new house. We reward projects of all shapes and sizes, old and new, as well as good apprentices, energy efficient projects and even a 'Heavenly Builder' who has done that little bit extra for their client.
The Awards are open to all builders, from sole traders to larger companies. If you've found a tradesperson worth shouting about, then the FMB wants to hear from you. Entries received so far this year include a small, modern zinc and glass home, a sympathetic conversion of a derelict barn, an extension to an Arts and Crafts manor, a home created from a Grade II listed watermill and repairs to a Victorian workhouse.
You can enter online or by calling 0870 162 0942. The closing date for entries is 31st July and Naomi Cleaver will present the winners with their awards at the Royal Lancaster Hotel in London, on Thursday November 13th 2008.
Master Builder of the Year 2008 is organised by the Federation of Master Builders in association with Nissan Motor (GB) Ltd, and in partnership with Aon Ltd, B & CE Benefit Schemes, Barceló Hotels, British Gypsum Ltd, BuildStore, ConstructionSkills, CSCS, HBXL, Hilti, Velux, Homebuilding and Renovating, NHBC, Energy Saving Trust, Envirowise, Professional Builder magazine, Sage (UK) Ltd, Screwfix Direct, Travis Perkins, Master Builder magazine and CCATF.
03 July 2008
If the Government is really serious about increasing the supply of housing it should be looking to stop the proposed introduction of the Community Infrastructure levy on housing development, speed up the planning system, and tackle the credit crunch, says the Federation of Master Builders (FMB) in its response to today's announcement by the Housing Minister, Caroline Flint MP, to ease the delivery of affordable housing.
Brian Berry, Director of External Affairs at the FMB said,
"At a time when house building is at its lowest level since 1945 today's announcement is little more than cosmetic surgery to mask the more fundamental problems about providing the millions of new homes that are needed in this country. The simple fact is that today's announcement is not about any more additional money as the £270 million had already been allocated."
Berry continued,
"What we need is no more additional taxation on housing development in the form of the Community Infrastructure Levy and a simpler, speedier planning system which will allow quality housing to take place right across the country. Instead all we hear about is the Government's top down housing policy of eco - towns which is not the answer. The Government could do worse than to address the 675,000 empty homes in England and cut the VAT on repairs and maintenance from 17.5 per cent to 5 per cent which offers scope to regenerate and bring other disused buildings back into residential use."
02 July 2008
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