An Issue Of Trust For Ms Truss

One construction body has called on the new Prime Minister to dispel mistrust that there will be less work, more taxes and no planning reform as the sector tries to do its bit to ward off recession.

The National Federation of Builders has welcomed the election of a Liz Truss to the head of Government but has asked her and  her ministers to focus on ensuring a healthy pipeline of work, a reduction in construction-business taxes and to tackle the ‘desperate’ need for planning reform head-on.

 

Recession

The most recent ONS statistics show that construction output month-on-month has fallen, with a fall in new work and in the repair, maintenance and improvement sector – with  the biggest reductions seen in private sector housing and commercial, indicating an uncertain economic outlook.

 

 “The election of a new Prime Minister means that the work of government can restart, having had a period of stasis over the summer. Inflation has caused our industry no end of problems but the biggest threat is the rolling-back of demand as clients of all shapes and sizes consider putting off work”

– James M. Butcher 

Director of policy, National Federation of Builders

 

Recession is not inevitable

“Liz Truss said during her election campaign that ‘a recession is not inevitable’, so we hope she will take the opportunity to ensure we have a healthy pipeline for our industry and across all work types,” continues the NFB’s Butcher. “We want to see continued investment in major infrastructure, public sector capital projects, housing and implementation of a national retrofit strategy to support builders in the domestic sector as well as our net zero ambitions.”

 

Cut levies

Rico Wojtulewicz, NFB Head of housing and planning policy adds: “The new PM has promised to be a low-tax Conservative and we cannot wait a day longer to see the fruits of that promise. The last government put up national insurance contributions, removed the sector’s entitlement to use red diesel and has added a myriad of levies to housebuilders. It’s high time to roll-back the burden on business and give the industry the room to invest in the future.

 

Planning reform

“The biggest blocker to our nation’s construction potential, not least to meet our housing need, is the horrendous state of our planning laws,” adds Wojtulewicz. “As the former Housing Secretary Robert Jenrick stated over the weekend, the planning reforms the last Government decided not to proceed with were its ‘greatest missed opportunity’. He could not be more right. We must have a revolution in planning laws and that will require radical and bold leadership.”

Picture: The new Prime Minister, Liz Truss.

Article written by Cathryn Ellis
07th September 2022

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