The Government must back local builders by bringing forward policies that support their recovery, according to the Federation of Master Builders (FMB). This is in response to ONS data showing that construction output dropped by 5.9% in March 2020, driven by a 5.1% decrease in repair and maintenance – the key sector in which local builders operate.
Brian Berry, Chief Executive of the FMB, said: “Construction makes a significant contribution to our economy, so when output falls so does the economy. The Government’s green light for construction sites to re-open safely in England is very positive but it’s going to be a hard slog to get activity back to where it was.”
Brian concluded: “To reverse the decline in output a clear plan for recovery is needed that specifically supports local builders. Small to medium-sized (SME) construction firms operate across the country and create local training and employment opportunities. They are central to achieving the Government’s levelling-up agenda and can help stimulate local growth in the long-term. This should be delivered through a national retrofit programme that sets out a plan for upgrading our existing homes. This should be underpinned by a temporary cut in VAT to stimulate demand for these works.”
The FMB has also stated that Government support measures for small to medium-sized (SME) house builders are a welcome start to help boost the housing market’s recovery, in response to the Housing Secretary’s statement made recently.
Brian said: “I welcome the Housing Secretary’s statement this afternoon regarding the sector’s safe return to work. The Government clearly recognises the need to support small to medium-sized (SME) house builders at this pivotal time. Following conversations between the FMB and Housing Minister, I’m especially pleased to see that local authorities are being encouraged to take a more flexible approach to community infrastructure levy (CIL) payments as house builders have been struggling with cashflow and need support to continue building.
“Speeding up the planning system will be welcome news for many smaller house builders who struggle to negotiate what has typically been an unwieldy process. I hope that digitization will mean greater access and transparency in planning decisions for all those involved. We must move towards a market which helps small builders bring forward quality local homes of all types, for local people.”
