Construction policy briefing: September 2021

This September update arrives in typical ‘back to school’ fashion: during a late heatwave after a disappointing British summer, employees having to get used to commuting again, and companies preparing for a hectic end to the year. There is a ‘new term’ feel in government too, with ministers returning from summer recess determined to focus on big policy issues beyond COVID-19, like levelling up, COP26, and social care, all ahead of party conferences in a few weeks’ time.

For construction, the autumn is in the balance. Growth in new work continued in August, but at a slowing pace. Sustained levels of high materials prices and tightening labour shortages are now being flagged as significant forward-looking concerns by our members, as the CBI’s intervention below makes only too clear. And government is coming under pressure to review major projects on which the industry relies: one reason why the CBI reiterated our position on building HS2 in full.

As always, we continue to amplify the sector’s priorities at the most senior levels in government. Get up to speed on the CBI’s important areas of work in the coming months with an overview of major campaigns below.

Perfect storm: CBI intervention warns of worker shortages for two years without action

On Monday this week, the CBI’s Director General Tony Danker warned that shortages of staff in critical sectors across the UK risk holding back businesses for at least two years, despite economic recovery from the pandemic continuing at pace.

The construction industry was front and centre of our messaging, with cornerstone roles like electrical engineers and welders highlighted as part of the CBI’s intervention, which was based on our exclusive Labour Market Insights data. This has been picked up in Financial Times and other media. Read the CBI Latest labour market insights paper now.

Help us build evidence of how labour shortages are impacting your firms

The CBI’s economics team are conducting detailed surveys of the current and anticipated impacts on businesses of persistent labour shortages, and how challenges might constrain the UK’s economic recovery.

The CBI is interested in in-depth views from the construction industry, and would like to invite your business to take this short survey to help the CBI understand the sector’s position, and enable the CBI build a stronger base of evidence to assist our messages to government.

It will take just a few minutes to complete, and we would greatly appreciate your insight. Answers will be treated in strict confidence. The survey closes on Friday 10 September.

CBI sets out stall for business rates reform ahead of Autumn Budget and CSR

The CBI’s campaign on business rates reform stepped up a gear in recent weeks, with a piece by the CBI’s President Lord Karan Bilimoria appearing in the Sun on Sunday. The CBI’s Chief Economist Rain Newton-Smith has expanded on why reforming business rates will be critical for the future of the UK’s built environment, from saving high street retailers to driving energy efficient commercial buildings ahead of 2050.

Get Rain’s thoughts on why, in a post-pandemic economy, bold action is now needed from the Chancellor. Rain also shows how government could use business rates reform to drive forward our ambitions for world-leading levels of low business emissions and create competitive local economies that attract investment. Read Rain’s thoughts on My CBI.

Supporting SMEs on their journey to decarbonisation

The decarbonisation of our economy is going to need concerted action from every business, every year from now until 2050. As hard as it will be for all firms, the CBI recognises how daunting the landscape is for SMEs, particularly as companies recover from an unprecedented shock.

That is why the CBI has pulled together a practical guide for SMEs on the early steps they can take to begin thinking about and taking action on their carbon footprint. Our guidance also has ways that smaller firms can engage with and learn from leading companies globally.

Ain’t no party like… a Party Conference

Party conference season is back! Later this month, the Lib Dems (online), followed by Labour and then the Conservative party conferences are taking place in the period between 17 September and 6 October. 2021 will see the return of in-person events, while much more will continue to take place virtually. The CBI will attend both the Labour and Conservative conferences.

Is your business attending? Get in touch to link up with the CBI’s colleagues, and find out what we’ll be up to in Brighton and Manchester by reading our update for members on what to look out for this party conference season.

Until next time…

This will be my final construction sector update for the CBI, before I take up a new challenge in government working on construction products regulation at BEIS. Given the importance of building and product safety, I very much hope to continue collaborating with your businesses. Thanks to all members who have worked with me and the CBI on all things construction. I look forward to staying in touch and supporting the sector to thrive and succeed in my new role.