Construction policy briefing: August

The industry has continued its buoyant recovery from the pandemic as we move through the summer, with the CPA forecasting the sector will enjoy double-digit growth in 2021, while CIPS / Markit data saw record activity in June 2021 followed by further growth in July, albeit at a slower pace. This marks six consecutive months of growth since the start of the year.

However, the industry will be turning closer attention to the autumn. The end of the Coronavirus Job Retention Scheme in September is looming, with more than 129,000 employees in the industry still on furlough at the end of June, according to HMRC figures. The sector has loaned billions from the government’s Covid-19 financial support, and needs to start repaying it. And major projects for the industry continue to attract less-than-positive headlines.

Autumn 2021 will be a critical time for industry to move firmly along the path to recovery. Following the launch of Seize the Moment in May, the CBI will press ahead with our plan to establish a world-leading economy in critical areas like thriving regions, health and decarbonisation. To underpin it, businesses need a stable environment, and the cost of doing business, hiring and training great talent, living with coronavirus and Treasury’s Comprehensive Spending Review all form part of our plans for the next few months. Find out more and get involved below.

Living with coronavirus: CBI calls for new settlement to help businesses get back to business

Late in July, the CBI started the debate on how industry can manage and mitigate coronavirus and government can get the UK economy fully, and permanently, reopened. This followed the so-called ‘pingdemic’ whereby self-isolation requirements ground parts of the economy to a halt, despite the lifting of most coronavirus restrictions when the country reached Step 4 of the government’s roadmap.

To achieve this shared goal, the CBI has argued that we need a new settlement for how to live with the virus based on three key principles:

1. Using mass-testing to stop mass self-isolation
2. Utilising all ‘COVID secure’ tools available to build employee and customer confidence
3. Maximising our world leading vaccine programme

This document followed swift, widespread consultation with our membership and will be refined as we move forward, learning more about what gives confidence to businesses, customers and policymakers, and supporting your businesses to operate at full strength. Read the CBI’s submission to government.

How will business rates affect your investment decisions?

The CBI is conducting a piece of work about the growing burden of business rates, and looking for evidence from the construction sector on:

• reducing the overall burden of business rates on companies
• introducing business rates relief targeted at encouraging sustainable business investment (for example in new energy efficient buildings, or retrofitting existing homes and buildings)

The construction sector is better placed than most to understand how business rates impact investment decisions in the built environment. We will be using this information to emphasise the case for fundamental reform to HM Treasury as they develop the long-awaited business rates policy before the Autumn, as well as in our Spending Review and Autumn Budget submission.

We strongly encourage you to take part in our survey which you can access here. We would be very grateful for responses before close of play on the 20^th of August. The survey should take no more than 10 minutes to complete.

Getting retraining right: support the CBI’s work on a new National Skills Fund

The £2.5bn National Skills Fund underpins to the government’s commitment to a “right to retrain” for all adults. Driving reskilling will be key to managing shifting demand in our economy and ensuring all people can access the skills they need for good jobs.

The government has now launched their formal consultation on how the National Skills Fund can best support adult retraining. The CBI will be responding, making recommendations on how the fund can improve opportunities for people to acquire and develop the skills employers need.

Get involved: to inform our response to the National Skills Fund consultation, please get in touch with Senior Policy Adviser, Aaron Revel. We welcome written feedback and the opportunity to organise a conversation with your company.

To feedback directly to the Department for Education, we recommend attending one of the upcoming events hosted for employers, providers, and individuals.

H1 2021 in review – what the CBI did for business

Over the last six months, the CBI has worked closer than ever with our members to guide government on its continuing response to the pandemic, connect the private sector to share business tips and best practices, and support struggling firms with advice and guidance.

The CBI has put together a ‘greatest hits’ from the first six months of 2021 to demonstrate the power of the business voice, and what your insight can achieve when members and the CBI work in partnership. There are many other achievements we have had with your support that don’t make this list.

The CBI thanks every member for your support and we look forward to continuing to make the difference for UK business over the next six months.