Ahead of the Budget on 11 March, the BMF has called for the necessary investment for a net zero economy.
The Chancellor must be bold, imaginative and use his Budget to lay the foundations for a net zero carbon economy and action to future-proof new homes and retrofit existing properties, according to the Builders Merchants Federation (BMF).
Tackling regional imbalances in productivity by investing further in training and skills to support BMF merchants and their manufacturers, suppliers and trade customers also formed part of the message from BMF CEO John Newcomb in a letter to the Chancellor of the Exchequer, Rishi Sunak MP, prior to his first Budget next Wednesday.
The BMF wants Mr Sunak and his fellow ministers to concentrate on the two major issues affecting members – narrowing the gap between housing demand and supply, and the decarbonisation of heating and electrification of homes.
John Newcomb said: “We welcome the Government’s ambition to help BMF members and the residential, commercial and public sector markets they serve to move towards a net zero carbon economy by 2050. Public and private sector finance will both be required to invest in industrial production and new ways of business operations to make the necessary changes.
“However, we see a genuine need to support businesses to make that transition. That is why we urge the Chancellor to use his Budget to invest and to demonstrate a willingness to work with merchants and manufacturers.”
Next week’s hotly-anticipated Budget comes only a month after a consultation by the Ministry of Housing, Communities & Local Government closed that sought views on the Future Homes Standard aimed at decarbonising new homes. In its response, the BMF said tightening the Building Regulations is realistically the only way. But this means taxpayer funds are necessary to transform markets, improve installer skills and bring about behavioural change.
The BMF has since learned from the recently-appointed Minister for Housing, Christopher Pincher MP, that his officials have received 3,000 responses to the Future Homes Standard consultation.
BMF Budget representations:
In John Newcomb’s letter, the BMF asked the Chancellor for action on three fronts:
Tax Relief
The BMF believes there is a genuine case to support businesses in striving for net zero emissions from housing. One way to do so is to introduce preferential tax treatment for product innovation. The BMF ask is for Enhanced Capital Allowances to help manufacturers accelerate and increase the production of heat pumps and hydrogen-fuelled boilers.
Training and Skills
The availability and capability of the workforce needed is a huge unresolved issue. For many small builders, sub-contractors and local installers, it is too costly to invest in on their own. The BMF ask is for an urgent, properly-funded, national plan of investment in training & skills to boost the number of competent, qualified people employed by SMEs who are equipped to install insulation of all types, hydrogen-fuelled boilers, heat pumps, underfloor heating and other solutions.
Raising Public Awareness
The BMF believes there is a strong case for Whitehall to educate consumers to make carbon-friendly choices when moving or improving their home. The risk is that without the correct information, the void will be filled with unsubstantiated claims about exorbitant costs – or scare stories in tabloid newspapers about ripping out and replacing heating systems. The BMF ask is for a comprehensive awareness campaign – like “Act on CO2” several years’ ago – to explain the best first step is having homes insulated properly before considering heat pumps or other solutions.
