Commitment to HS2 and Brexit were among the main points for construction in a low-key Queen’s Speech delivered yesterday at the opening of Parliament.
In the speech, large parts of the Conservative manifesto were omitted, but it did touch on a number of other measures, as well as a new bill hoped to address the failings of victims in the wake of the Grenfell Tower tragedy.
The main points relating to construction in the speech were:
Infrastructure
A new bill will be brought forward for the next phase of HS2 and to attract investment into infrastructure to support economic growth in the UK. The bill, which gives HS2 powers to build and operate a line from Birmingham to Crewe, was one of 21 pieces of legislation put forward in the government’s programme.
More than £3.5bn is to be spent on this phase of the line, with the construction work expected to be split into four civils packages.
Marie-Claude Henning from the Civil Engineering Contractors Association (CECA) welcomed the decision to bring forward HS2 Phase 2 bill, but warned: “This is just one of many schemes that the UK must press ahead with to shore up the economy.
“In particular, we would like to hear more detail about the government’s plans for Crossrail 2, which was conspicuous in its absence from the Conservative manifesto.
“This is just one of a range of schemes that we must now prioritise and bring forward to market to deliver post-Brexit growth.”
Patrick Flaherty, chief executive for UK & Ireland at Aecom, also said he had hoped to see a mention of Crossrail 2: “We were especially pleased that the new modern industrial strategy played such a prominent role and agree with the government about the vital importance of infrastructure investment to the future of the nation’s prosperity.
“Commitments to HS2, electric cars and protecting critical infrastructure were all welcome. However, we would also like to have seen Crossrail 2 and the Heathrow expansion mentioned.”
Chris Plumley, partner at international law firm Trowers & Hamlins, said: “Today’s Queen’s Speech confirmed that Phase 2 of the HS2 infrastructure project is going ahead and this is great news for the West Midlands. The commitment to public sector infrastructure has already massively benefited our region through the commitment to the Curzon Street railway station and the multi-billion pound investment opportunity for the UK Central Hub near to Birmingham Airport.
“HS2 will bring not just increased capacity to our rail network but will unlock significant regeneration and development opportunities in that area.”
Housing
Housing also got a mention with policies set out in the government’s Housing White Paper earlier this year being confirmed, such as a ban on letting fees.
The speech said that there will be a new Housing Bill which will aim to promote fairness and transparency in the market and allow for the building of more new homes. There was also commitment to building more houses as well as using modern methods on construction. However, there was a lack of detail on this front.
The ban on letting agent fees will go ahead in the next Parliamentary Session which will cover the next two years with the 2018 Queen’s Speech being cancelled to allow the government to concentrate on Brexit.
The speech said that the government hopes that by increasing competition in the private rental sector it will result in lower overall costs and a higher quality of service for renters.
The new law will ban landlords and agents from requiring tenants to pay letting fees as a condition of their tenancy. It will also include ways for tenants to recover unlawfully charged fees. Letting fees are already banned in Scotland.
On the announcement of the new bill, Lucy Morton, head of residential agency at JLL, said: “Reasonable charges including referencing costs may now be charged to landlords which in turn may then be added to the annual rent. It is essential that agents do not cut corners and fail to carry out stringent referencing checks.
“At JLL and we have always advocated complete transparency of all charges made by agents to both landlords and tenants.”
Mark Robinson from Scape Group said: “It is disappointing that nothing more has been said today on the housing market than what was revealed in February’s long-awaited White Paper. Yes, more homes need to be built and, yes, the increasing lack of affordable housing needs to be tackled, but a clear strategy has to be put in place first if we are to make any real progress.”
Brexit/Skills
The speech was mainly centred around Brexit and the laws needed for the EU exit at the end of talks. Of the 27 pieces of legislation, eight were about Brexit.
The speech included new legislation related to trade and customs, immigration and fisheries after the EU exit.
Liz Jenkins, partner at Clyde & Co, commented: “There was a brief mention of an Immigration Bill, which doesn’t give much away about Theresa May’s current thinking on the issue and her stance towards it with Brexit negotiations in mind.
“We all know that the skills shortage for the construction industry is a critical issue that needs addressing. We must continue to make noise about this, so that the government is aware of just how severe a situation this could become post-Brexit.”
Brian Berry, chief executive of the FMB, said: “In terms of today’s Queen’s Speech and the focus of British business, all eyes are on the Immigration Bill. As suspected, we now know that the Bill will end the free movement of people but that begs the question: what will replace it?
“The government has not set out what our post-Brexit immigration system will look like but it is crucial that key strategic industries, such as construction, are able to draw upon sufficient numbers of EU workers.”
Grenfell
The recent Grenfell disaster was also mentioned with the announcement of a new policy to create an independent public advocate to act on behalf of families in the disaster as well as other Hillsborough-style tragedies. May also apologised to the victims of the disaster after the speech.
Jane Duncan from RIBA said: “The RIBA called for a public enquiry in the immediate aftermath of the devastating fire at Grenfell Tower and our expert members are keen to provide every assistance to it.”
