Boris Johnson (Image: Dreamstime/Katatonia82)
Construction industry groups have scrambled to set out their demands to incoming prime minister Boris Johnson, with calls to back infrastructure projects and support SMEs.
Reacting to the news of Johnson’s election to the leadership of the Conservative party and consequently his appointment as prime minister, Aecom’s UK and Ireland chief executive David Barwell said: “While Mr Johnson’s view on the future of some key infrastructure projects has in the past been mixed, his appointment as our new prime minister gives him the perfect opportunity to do what’s right for the country… backing investment in infrastructure and providing certainty around our future pipeline.
“I was extremely pleased to hear the promise of “better infrastructure” in Mr Johnson’s acceptance speech and regardless of Brexit I would suggest a starting point for his plan to “energize the country” would be to fully endorse schemes such as HS2, Crossrail 2, Northern Powerhouse Rail and Heathrow’s expansion. All of which must proceed if we are to maintain our country’s ability to compete on a global stage.”
Electrical Contractors Association (ECA) chief executive Steve Bratt said: “If the new government is to deliver a range of key infrastructure projects, such as high-speed rail, major housing developments and renewable power generation, then it needs to promote a competitive market based on quality and innovation. Unfair, unsustainable practices such as false self-employment, cash retentions and reliance on unqualified, incompetent labour need tackling as a priority.
“The engineering services industry plays a fundamental role in improving the UK’s built environment, which in turn is the engine of progress and growth across the economy. Businesses stand ready to support government to reach its ambitious climate targets and deliver key infrastructure, but change is required to make this a reality.”
Mark Robinson, chief executive of public sector procurement organisation Scape Group, questioned Johnson’s ability to deliver what he has promised. He said: “While the outcome of the Tory leadership contest is no surprise, the next couple of months are likely to hold one or two. Boris Johnson has made a lot of promises during his month-long campaign, and admittedly some of which are very attractive – more police on our streets, more money for education, an increase to the national living wage, all while delivering ‘great infrastructure’ projects.
“His ambition is undeniable, but this would all be delivered against a backdrop of Brexit and tax cuts to individuals and corporations. The economics don’t match-up and something is going to have to give – and I don’t see it being the tax breaks.
“We need greater transparency on our future position with the rest of the world to increase business optimism and a defined transition period is our best chance of securing this. Latest data from the construction industry shows that output is slowing down and on the ground, projects are not being pushed forward by either the public or the private sector. The country would benefit from certainty, and crashing out without a deal isn’t going to provide this.”
Meanwhile, Building Engineering Services Association (BESA) chief executive David Frise called on Johnson to support the Aldous Bill on retentions. He said: “SMEs are under greater financial pressure than ever, which is making it increasingly difficult for them to invest in the technology and processes – and to recruit and train the skilled workforce needed – that will be crucial to the government’s zero carbon vision.
“The collapse of Britain’s oldest construction firm – the 430-year-old Durtnell & Sons – shows the depth of the problem engulfing the sector with retentions and late payment taking a heavy toll on the firms most needed to deliver many of the low carbon solutions needed to meet the government’s target.”
Brian Berry, chief executive of the Federation of Master Builders (FMB), said: “Boris the builder must build columns instead of writing them if he is to fix the housing crisis and restore the hope of home ownership to a generation. We will only reach the number of good quality homes we need, and at the rate we need them, if local house builders are freed up to build as many homes as the large house builders. We want to see Boris bring down the barriers facing construction SMEs, including those who repair and maintain our homes. If Boris is looking to cut taxes, then we suggest slashing VAT on home improvement works, as nine in ten builders believe this is the single best tool in Boris the builder’s toolkit to prevent an economic downturn post-Brexit.”
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David Barwell’s comments highlight the problem with such an industry focused attitude to moving forward. At a time of such major global warming and climate extinction issues, to promote more flying (Heathrow), HS2 and the likes will not cure these issues at all. We all need to totally review what we build and why, by reduction in many cases. People need to reduce their travel costs and time and carbon emission taxes introduced. That requires a real fresh start. Building toytowns with little or no community built in is another profitable area for developers, but doesn’t address long term problems. The whole construction industry has major culture issues it needs to address if it genuinely wants to be taken seriously.
“I was extremely pleased to hear the promise of “ ” in Mr or Mrs acceptance speech. How often have we heard those words
HS2 will just create more commuters to London and nobody can seriously believe future expansion will ever go far enough North to reach Scotland.
Crossrail 2 will just centralise the economy even more on London, forcing graduates to move south and bumping up London house prices.
Northern Powerhouse Rail is decades too late and will only ensure the North’s rail is a couple decades out of date. That is if it ever goes ahead.
Heathrow’s expansion will at best create more connecting flights throughout the UK as all flights to ‘exotic’ destinations leave via Heathrow. At worst it will drive prices down further and create even more emissions.
Meanwhile it was 38.1c in Cambridge yesterday, and broke 40C on the continent. Liverpool City council is selling terraced houses for £1. And Chris Boardman only got £160mil out of the £1.5bilion he needed to transform Greater Manchester’s active travel provision.
If the best the industry can ask for is to double down on the same environmentally illiterate nonsense that has been done for decades then we should be ashamed of ourselves.
We need to stop building for cars and planes and invest in rail, it and active travel. We need to prioritise regions and forget about London. It is a black hole that sucks talent and money from the rest of the UK and demands investment to meet its ever growing needs, which of course sucks more talent and money from the rest again. HS2 should have linked into London last, after it connected the Midlands to Northern England to Scotland with a branch for Wales and the South West of England.