Construction policy briefing: March

The March CBI Construction policy briefing arrives with a spring in the step of businesses and the public. The evenings are lighter, the Easter bank holidays are in sight, and most importantly, there is cautious but growing optimism that the milestones in the government’s roadmap out of lockdown can be met.

On top of an increasingly successful vaccine rollout programme, the March Budget last week contained a further boost for businesses in the short-term as the economy recovers from the worst recession in 300 years. For more on what the recent announcements mean for businesses, and how the CBI has been shaping these on members’ behalf, read on.

What a difference a date makes

The CBI welcomed the government’s roadmap published on 22 February, which set out the sequence in which government plans to ease restrictions in England, starting with schools returning on 8 March. A roadmap is something the CBI had been calling for, with clear phases of reopening being vital to give businesses more certainty over planning for the future. While some parts of the economy will open more slowly than others, additional financial support announced in the Budget on 3 March will help firms in those industries successfully navigate the coming months.

For the inside story, watch the CBI webinar on what the roadmap means for the economy. In more detail, we published five key takeaways for businesses on the roadmap, with the government’s approach to setting ‘no earlier than’ milestones particularly key to avoiding a start-stop approach to planning.

CBI welcomes Budget mix of COVID support and economic momentum

The Budget on Wednesday 3 March marked a number of wins for the CBI, having lobbied government hard on the need for extended business support while the economy slowly recovers from the impact of coronavirus over the last 12 months.

Among significant announcements the CBI had called for, the Chancellor Rishi Sunak said:

• The Coronavirus Job Retention Scheme would be extended until September, with government paying 80% of wages until July, and business contributions starting in August.
• Business rates holidays will be extended for hard hit sectors, with a level of relief continuing for the next 12 months.
• New Recovery Loans will be launched to succeed CBILS, with firms able to borrow between £25,000 to £10m.

For more on the COVID financial support available to firms, check out the CBI’s guide to the Budget announcements.

Build Bank Better: UK Infrastructure Bank launched to back higher-risk projects

The Budget also saw confirmation of the new UK Infrastructure Bank, a key component of the government’s strategy to invest in infrastructure as part of commitments to a net-zero economy and levelling up the UK’s regions.

The CBI called for a new infrastructure bank in its work on the future of infrastructure funding, and the guidance published alongside Budget promises a role for the new bank that could have a game-changing impact on funding infrastructure. Here’s how the bank will work.

Get more information on what the Budget announcements mean for the construction, infrastructure and energy sectors – and what we might see later this year at a 2021 Spending Review.

Changes to Prompt Payment Code announced – is your business ready?

Reforms have been announced that will update and strengthen the Prompt Payment Code, driving Code signatories to improve payments to smaller suppliers.

The CBI played a key role in the reform of the Prompt Payment Code, campaigning for a better environment for those most at risk of slow payment, but arguing for reform to avoid disrupting long-established corporate-level practices.

The new Prompt Payment Rules come into force in July – find out what they mean and ensure you’re prepared. The CBI also encourages businesses of all sizes to consider signing the Prompt Payment Code as a record of committing to fair payment practices.

Take part: your views needed in industry insurance survey

The CBI is pleased to be supporting government and business with vital research into challenges in the Professional Indemnity Insurance market. These challenges threaten to hinder efforts to complete essential and urgent building safety work in the aftermath of the Grenfell Tower fire.

Members in the construction and related sectors are asked to take part in this survey as soon as possible, before it closes on 12 March.

Take the survey now

Get in touch

The CBI is currently planning work throughout 2021 to support the construction, housing and infrastructure sectors. Get in touch with myself to shape the CBI’s work in these areas, and tell us how we can help your business thrive this year.