Commenting on today's Summer Economic Update from the Chancellor of the Exchequer, Brian Berry, Chief Executive of the Federation of Master Builders (FMB), said: “I welcome strongly the package of measures announced today. While these initial investments will kickstart construction and training, the Government must build on these commitments in the Autumn to ensure that growth and jobs are sustained beyond next year.

On the Green Homes Grant:

Berry said: “Grant-funded vouchers are a step in the right direction to launching the retrofit market, and supporting consumers to build with confidence after the pandemic. We hope at the Autumn Budget the Chancellor will bring forward the rest of the £9.2bn manifesto commitment, and support the development of private finance initiatives that will ensure the market grows in a sustainable way. We have an army of local builders ready to deliver these works to a high standard, provide local employment, and generate economic activity in each corner of the UK. The Chancellor has demonstrated his willingness to introduce targeted, temporary cuts in VAT. We hope he will retain, as a possibility, a cut to 5% for home improvement works to further boost demand.”

On the support for jobs retention and creation:

Berry said: “The schemes underpinning job retention, and traineeship and apprenticeship guarantees are welcome news for construction, which has persistently struggled to hire into key trades like bricklaying and carpentry. The Chancellor is right to highlight the need for a new generation of talent, and support should be directed toward this strategic industry. That 71% of apprentices in construction are trained by local builders, and typically over a three-year period, means the scheme must be accessible to small to medium-sized firms (SMEs). Converting these short-term measures into long-term jobs requires careful matching of individuals to the right firm. While we train the tradespeople of tomorrow, it’s great news for SME construction firms that they will be able to access the new Talent Retention Scheme to reduce the risk of redundancy. This will protect against a repeat of the severe job losses experienced by construction during the last recession.”

On Stamp Duty cuts:

Berry said: “Temporary cuts in Stamp Duty will boost the housing market and remove a black cloud that hangs over many second-time house hunters. I’m particularly pleased this is taking place with immediate effect, as we know that potential homeowners typically look for a new home in September. Today’s confirmation of the extension of the Home Building Fund targeted at SMEs is also welcome. Looking ahead to measures to rebuild the economy, investment in planning departments and streamlining of the planning application process will be needed to ensure we also bring forward new development to ease our housing crisis.”

Notes to editors

The Federation of Master Builders (FMB) is the largest trade association in the UK construction industry representing thousands of firms in England, Scotland, Wales and Northern Ireland. Established in 1941 to protect the interests of small and medium-sized (SME) construction firms, the FMB is independent and non-profit making, lobbying for members’ interests at both the national and local level.

The FMB is a source of knowledge, professional advice and support for its members, providing a range of modern and relevant business building services to help them succeed. The FMB is committed to raising quality in the construction industry and offers a free Find a Builder service to consumers. 

 

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