Industry

Construction Industry Implications Following 2021 Budget Announcement

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Chancellor Rishi Sunak announced the budget for 2021, which presented many items that will affect the construction industry significantly. There have been many reactions and comments from chief figures in construction and they seem positive for the most part. Some of the key points that were announced were the extension of Furlough until the end of September, the creation of a UK Infrastructure Bank, the forecast of returning economy to pre-covid level by mid 2022, tax break for business investment, £15bn in green bonds for investors for ‘greener’ transitions and apprenticeship incentives.

Nathan Priestly, the chief executive officer of Priestley Homes, feels that:

• The extension of the stamp duty holiday across England will help keep property market buoyant and ease financial pressure for buyers.
• House prices remaining high, is beneficial for the sector and the new government guarantee scheme for 95% of mortgages will help entice first-time home buyers and make home buying more accessible for many people.

The CEO of CEA (Construction Equipment Association) feels that:

• The announcement of a “Super Deduction” for capital investment could help companies decide on their expenditure plans as for every £100 they spend, they will receive a £130 tax credit.
• As the Chancellor also announced the formation of a UK Infrastructure Bank which will have £12 billion at its disposal, the CEA sees this as a way to leverage additional investment into “green” construction projects.

Joseph O’Grady, the Business Director of CASE:

• “Welcomes” the measures put forth by the Chancellor, that will help the construction industry, in the aftermath of the pandemic.

Many others have expressed positive views towards the proposed budget and how it will affect the construction industry, however there are some critics felt there was no ‘green revolution’ included. It is expected that the construction industry will grow by 8% in 2021, supported by the government’s infrastructure investment plans. Hopefully this new plan will help the construction industry and the country as a whole recover from the pandemic crisis.