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- Construction policy briefing: December
Construction policy briefing: December
A round-up of the latest updates for all those working within and around the construction sector.
This final construction sector update of 2020 comes at the end of an extraordinary and, at times, deeply troubling year for business.
The news about an effective Covid-19 vaccine and signs of a gradual economic recovery mean many businesses can look forward to a slow return of confidence and optimism in 2021. For construction, particularly looking to the first half of next year, that optimism hangs in the balance.
The CBI is directly aware of challenges facing the industry and continues to work with our members and government to improve the operating environment and project pipeline to sustain activity in the sector. Below are some of our biggest impacts in recent weeks, and reaction to government announcements that we’ve been calling for, as we work with CBI members to strengthen the industry’s resilience and capability to take advantage of the recovery from the pandemic.
CBI win: Construction Playbook launched
The government has launched a new Construction Playbook, following calls by the CBI and industry to improve public sector procurement of construction projects. The Construction Playbook builds on the Cabinet Office’s Outsourcing Playbook published in 2019, and provides specific guidance and principles for procurement of construction, civil engineering and building works in the public sector.
Importantly, the Construction Playbook will be mandatory for government departments, who will be required to ‘comply or explain’: comply with the guidance or provide a rationale as to why they are not. This should give businesses more confidence and stability operating in the public sector, though the Playbook will take time to bed in.
The CBI has welcomed the launch of the Construction Playbook as a key step towards securing financial sustainability in the industry, which was a focus of the CBI’s report Fine Margins earlier this year.
Read the Construction Playbook
One-year Spending Review announced
There have been positive developments for the industry in recent government spending announcements. The Spending Review two weeks ago promised a new ‘levelling up fund’ and more detail on the ‘Shared Prosperity Fund’ that will replace European Investment Bank support for regional development projects. In total, the Spending Review committed more than £27bn in funding for projects over the next year.
Perhaps most importantly for the construction industry, government finally published its long-awaited National Infrastructure Strategy – some two years after it was first expected. Among many positive developments, this included plans to create a National Infrastructure Bank to drive investment in UK infrastructure projects, and detailed specific multi-hundred-million investments across the UK that will be coming forward.
The CBI’s whole-economy response to the Spending Review can be viewed now on MyCBI, while the government’s full National Infrastructure Strategy can be read on gov.uk.
10 points to zero
Ahead of the Spending Review, the Prime Minister launched a new 10-point plan to drive the UK’s ambition of net-zero emissions by 2050, and underpin thousands of ‘green economy’ jobs for the future. The CBI welcomed further plans for investment in hydrogen generation, carbon capture and applying more funding to drive behaviours in electric vehicle use. Read the CBI’s view
Housing at the heart of the economic recovery
The CBI has been focusing on developments in the housing sector and in related policy this autumn. We recently responded to the Ministry of Housing, Communities and Local Government’s planning consultation ‘Planning for the Future’. A vital area of policy for members across the economy, the CBI’s response welcomed proposals to speed up effective planning decision-making, but highlighted to government that businesses want to see stronger commitments to sustainability and affordability in delivering new homes.
Read the CBI’s response on the future of the planning system.
The CBI has also published a new paper on affordable housing, All for Affordable. The CBI’s first full report on housing in several years, All for Affordable sets out four ways that government should be addressing the availability of truly affordable homes during this parliament.
Get in touch
The CBI is currently planning its priorities for 2021 to support the construction, housing and infrastructure sectors.Get in touch with Tim Miller, Senior Sector Adviser, Infrastructure and Energy, to shape the CBI’s work in these areas, and tell us how we can help your business thrive in the new year.