What did the budget do for the construction sector?

Stairways What did the budget do for the construction sector?

As is usual these days, many of the key points from the Budget appeared in newspapers before the Chancellor got to his feet in the House of Commons earlier today. As a result, there were no massive surprises. Overall there was, perhaps, more give than take for the construction industry.

However, giving with one hand and then taking with the other is not helpful to the sector as we help drive the country out of lockdown.

£126m boost for traineeship scheme

The big thing here is that this scheme will be open to people of all ages. It is an incentive to upskill and aid professional development for all.

Any investment in training has to be a good thing, but businesses need to ensure someone is allocated, and has the time, to supervise and manage any training scheme to make it successful. We have first-hand experience of this and have learned from our mistakes. Money alone will not achieve the aim.

The construction industry should be seen as an attractive proposition for young people seeking training schemes. We have kept going through most of the last 12 months. We need to champion that we are open for business and offer great opportunities.

There are some great training schemes out there in manufacturing and construction, like those at the British Woodworking Federation We need to be shouting about these.

Furlough scheme extended to September

Delighted this has been confirmed. This has to be good news for our industry. We really need this right now to help keep our supply chains flowing, avoid client delays and ensure the sector is fit for business as Covid restrictions ease.

Mortgage guarantee to buyers with less than 5% deposit

Anything that helps stimulate this end of the market is a good thing. It also helps apprentices and future tradespeople with jobs, potentially enabling them to move closer to employers rather than where mum and dad are.

Minimum wage

It’s been mooted for some time but today it was confirmed: a new rate of £8.91 per hour from April.

While I wholeheartedly agree with the gradual increases to improve lifestyles for those in more manual roles, there is a significant downside. The gap between manual workers and those who are more skilled is shrinking. This is a disincentive to people to upskill and develop professionally.

At this time, I feel funds would be better funnelled to schemes like Help to Grow and Kickstart, helping to upskill people. With increased automation, there are fewer and fewer roles for those on minimum wage. Increasing the threshold, therefore, could be a disincentive to companies employing people in more manual roles.

It seems to me this is not taking account of the bigger picture. Available funds could be better channelled towards improving pay in the NHS, for example, at this moment in time.

Corporation tax hike to 25%

Giving with one hand and taking away with the other? Not helpful. Few companies in construction will be in a position to cope with a tax hike right now. Many have kept going through the last year and continued to contribute taxes. This means lower uptake of the furlough scheme, putting less pressure on the public purse. Why penalise us now?

Other sectors, quite understandably, have not been able to operate so have not been able to contribute. They have been hit badly and many may not open again. However, it’s entirely possible that this broad-brush approach now on corporation tax will be the death knell for some companies in a sector which has done what it can to keep industry moving during unprecedented times.

That said, this not coming in until 2023 and not affecting companies whose profits have been severely hit by current circumstances, does lessen the pain.

Tax “super deduction”

This is a great move to further help companies invest in new premises and equipment, heading off issues linked to a reduction in routine maintenance. In these times, with companies looking to cut costs, routine maintenance and investment in new equipment are easy targets, but it is a false economy. Further down the line, equipment fails, buildings crumble and that affects everyone in a supply chain.

Extending the existing scheme from 100% to 130% tax encourages modernisation.

So, lots to talk about, many positives, some negatives but, overall, I’m feeling slightly happier than I was this morning.

Karen Wood
Stairways Midlands Joint Managing Director

Stairways

Author: Stairways

Stairways, founded in 1989, has grown to become one of the UK’s largest manufacturers of carpentry and joinery products. Stairways now boast three state-of-art facilities that offer over 85,000 sq ft production capacity. Stairways goal is to raise their profile and brand awareness to become known throughout the industry as the UK’s leading staircase and door solution provider.

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As a highly reputable firm within the industry, Stairways are dedicated to meeting their client’s product and application requirements. All materials used are manufactured to the highest quality and meet the relevant standards achieving ISO9001, FSC®, and various product certifications, whilst their staircases and door solutions are manufactured with compliance to UK building regulations & legislative standards in mind. Using the knowledge, passion, and experience acquired across all team members over the past thirty years, Stairways aim to continue to be the best in what they do.

THE FUTURE

Stairways are continuously looking for opportunities to improve and expand their service offering; this includes the investment in new machinery to further enhance and innovate the manufacturing process, with the aim to shorten lead times and increase overall in-house capacity. The changes Stairways employ are always focused upon improving the customer experience, to ensure their process remains as efficient as possible from start to finish.

THE HISTORY

Privately owned and managed since it was founded in 1989, Stairways has grown to become one of the UK’s largest manufacturers of carpentry and joinery products. Starting as a small staircase manufacturer, Stairways now boast three state-of-art facilities that offer over 85,000 sq ft of bespoke and mass production capacity.

RESIDENTIAL

Stairways are passionate about helping national and regional housebuilders, architects and contractors complete large-scale project requirements within the residential sector. Stairways quality timber staircases and door solutions are often specified due to their functionality, flexibility and ease of installation, whilst offering peace of mind compliance.

STUDENT ACCOMMODATION

Stairways are the perfect supplier of FSC® accredited range of door solutions. Offering a range of door and frame finishes, acoustic, fire and smoke resistant configurations that are ideally suited for heavy traffic student accommodation. Their vast experience with producing high-quality door solutions for a wide range of projects ensures that they consistently meet and exceed expected timescales, specification and performance requirements.

Leisure

Choose from Stairways variety of opening systems within the Eco-Mercial range to best assist with functionality and performance requirements. Our vast experience with producing high-quality door solutions and staircases for a wide range of projects ensures that we consistently meet and exceed expected timescales, specifications, and performance requirements.

Education

Choose from Stairways variety of opening systems within the Eco-Mercial range to best assist with functionality and performance requirements. Our vast experience with producing high-quality door solutions and staircases for a wide range of projects ensures that we consistently meet and exceed expected timescales, specification and performance requirements.

Commercial

Stairways provide innovative design and finishing solutions to architects, specifiers and contractors. Our FSC® accredited range of door solution and staircase products are ideally suited for heavy-duty applications within the commercial sector.

Hotels

Stairways are one of the leading manufacturers of doors, door sets, and door solutions. Their door solutions for hotels and leisure facilities meet and exceed all the relevant safety and performance requirements, whilst achieving the relevant aesthetics in keeping with the building design.

Medical

Stairways are the perfect supplier of FSC® accredited range of door solutions. Offering a range of door and frame finishes, acoustic, fire and smoke resistant configurations that are ideally suited for heavy traffic medical facilities. Their vast experience with producing high volume, high-quality door solutions that consistently meet and exceed expected timescales, specification, and performance requirements.