Construction policy briefing: October

Since the last CBI construction sector update, the economic and political environment has been changed substantially by coronavirus, as indeed has the industry itself.

Supporting construction during Covid-19

Following the confusion in Spring as to whether the construction industry should remain open for business, and a shutdown to the housing market that prevented properties being bought and sold, the industry has since attempted to make up for lost time, making hay while the sun blazed for large parts of the summer.

The Construction Leadership Council has been a beacon of leadership for the sector, while businesses across the UK have stepped up, collaborating to deliver projects and protect the supply chain, keeping employees safe on Covid-secure sites, and constructing the Nightingale hospitals in record time.

The Prime Minister and Chancellor have both praised the importance of the construction industry and its fundamental contribution to the country, with the launch of a new government drive to ‘build build build’ the UK’s economic recovery from coronavirus.

The fast-paced and non-stop lobbying the CBI has carried out on behalf of businesses has led to numerous successes. Just a snapshot of how the CBI has supported UK construction firms throughout the pandemic so far:

• At the outset of the pandemic, the CBI launched a coronavirus support hub for our members
• We lobbied HM Treasury in April for the introduction of Coronavirus Large Business Interruption Loan Scheme (CLBILS), to meet the need of mid-sized construction firms who were unable to benefit from the initial support launched by the Treasury in March
• The CBI urged government to guarantee trade credit insurance for supply chains firms to ensure that SMEs in critical sectors like construction could continue operating
• We welcomed Nadhim Zahawi MP to the CBI’s daily coronavirus webinar in June
• We called for interventions on planning permissions and Help-to-Buy to support at-scale housebuilding to continue and drive activity in the housing sector
• We ensured the Job Retention Scheme did not come to a ‘cliff-edge’ end in October, successfully working with the Treasury to introduce a new scheme to support jobs

CBI calls for new infrastructure bank and strengthened role for the Infrastructure and Projects Authority

The CBI has launched a report on how the government can create a more attractive environment for private investment into UK infrastructure. Calling for new policy and regulatory measures to drive greater levels of private sector investment, the report highlights the benefits this would bring to businesses in the construction industry, as well as helping improve the environmental impact of the UK’s infrastructure, and protecting the public sector finances.

Read the report now

Social value research reveals construction’s critical role in delivering societal and economic value

In July, the CBI published a report into the government’s approach to social value. Construction is one of the leading industries in delivering social value in the public sector, with numerous examples being highlighted as best practice. Yet there is more that government and industry can do in partnership to put social value at the heart of the outcomes delivered by government procurement, and increase the benefits for communities across the UK.

Find out more about the CBI’s work on social value

A challenging few months ahead

As we now head into a difficult winter period for construction, the CBI will be working in partnership with our members to ensure the government’s ongoing support for business assists the construction and housing sectors through the next few months.

• We are working with the Department for Business, Energy and Industrial Strategy on a support option for construction firms that are experiencing problems obtaining insurance
• We are supporting the Cabinet Office on improving public sector procurement guidance
• We will be publishing a response to the MHCLG Planning White Paper
• We will be building on our asks to HM Treasury in this year’s Spending Review  to support the delivery of higher numbers of affordable homes

To find out more and get involved with the CBI’s work for the construction and housing sectors, please contact Tim Miller.