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2009 Pre-Budget Report: Construction industry reaction
Practical Law UK Legal Update 4-500-9913 (Approx. 4 pages)
2009 Pre-Budget Report: Construction industry reaction
by PLC Construction
| Published on 11 Dec 2009 • England, Wales |
A legal update on the construction and engineering industry's reaction to the 2009 Pre-Budget Report, delivered by the Chancellor on 9 December 2009.
Speedread
Industry reaction to the 2009 Pre-Budget Report (2009 PBR) has been more muted than we expected. Perhaps it is a case of businesses and individuals battening down the hatches for rough times ahead.
While most commentators are concerned about the cuts in capital spending that will affect construction, criticism of the Chancellor's decisions is tempered by the knowledge that, given the state of public finances, some cuts were inevitable.
2009 Pre-Budget Report
For more information on the 2009 Pre-Budget Report (2009 PBR), see Legal update, 2009 Pre-Budget Report: Construction aspects.
Summary of industry reaction
Industry reaction to the 2009 Pre-Budget Report (2009 PBR) has been more muted than we expected. Perhaps it is a case of businesses and individuals battening down the hatches for rough times ahead.
While most commentators are concerned about the cuts in capital spending that will affect construction, with many openly expressing their disappointment, criticism of the Chancellor's decisions is tempered by the knowledge that, given the state of public finances, some cuts were inevitable.
Association for Consultancy and Engineering
The Association for Consultancy and Engineering (ACE) welcomed the decision to establish Infrastructure UK, describing it as a positive contribution to the UK infrastructure debate. Nelson Ogunshakin, ACE chief executive, said:
"Today the Chancellor has acknowledged our calls for a strategic approach to the UK's essential infrastructure. Our transport, water and energy networks are the life line of the UK economy and are too valuable to be allowed to develop piecemeal."
British Property Federation (BPF)
Ken Dytor, chairman of BPF's regeneration committee:
"Infrastructure UK is potentially a major step forward but will only be effective if it cuts through the silos that exist between government departments in order to unlock real value for money."
Building's Brickonomics blog
Bryan Green, author of the Brickonomics blog:
"..the Government is pumping money into construction faster and intends to continue doing so for a year or so more. That may account for the slowing in the collapse of the construction figures and the reduced panic we have experienced in recent months... But this extra money, while welcome in staving off the pain now, does suggest a rather larger fall when the flow dwindles, as is planned."
Confederation of British Industry (CBI)
Richard Lambert, CBI Director-General, on measures to promote the shift to a low-carbon economy:
"This is an encouraging package to support companies as they seek to exploit new low-carbon opportunities... By committing to support four Carbon Capture and Storage demonstration plants, the Government is increasing the UK's chances of success in getting this transformative technology off the ground. The introduction of a boiler scrappage scheme is a sensible way of encouraging households to replace older models with more efficient ones."
Construction Industry Council (CIC)
Graham Watts, chair of the CIC, on Infrastructure UK:
"This is a very welcome development. The fact we will have an expert body, looking over the government's significant investment in infrastructure, should take a lot of the waste out of the system."
Construction Products Association (CPA)
Welcoming the boiler "scrappage" scheme as a small step in the right direction, a CPA statement said:
"The Association welcomes measures to help improve the energy efficiency of the built environment and in particular the widely trailed Boiler Scrappage Scheme, which is a small step in the right direction. 'Although tackling 125,000 boilers is a welcome start, there are nearly five million boilers currently in use with a permanent pilot light, so if the government is to live up to its ambition to maintain leadership in the low-carbon sector, the scale of the problem that needs to be addressed remains considerable'."
The Royal Institute of British Architects
Anna Scott-Marshall, Head of Public Affairs at the Royal Institute of British Architects (RIBA) said:
"The Chancellor rightly highlighted the low carbon skills as a priority in the week when we are seeking to reach a global deal in Copenhagen. The announcements for the new body Infrastructure UK to co-ordinate and deliver nationally significant infrastructure is a welcome step to improving the delivery of major infrastructure."
Trades Union Congress (TUC)
Brendan Barber, TUC General Secretary, focused on job creation opportunities:
"The extension of the Young Person's Guarantee shows that the Government has learnt the lessons of previous recessions and is taking decisive action to prevent another lost generation of young people."