Cuts to the construction pipeline increase uncertainty
The government construction pipeline decreased in value by 9.1 billion between December 2014 and August 2015 as projects were put on hold or cancelled. Its value now stands at just over 118 billion.
While the value of housing within the pipeline decreased by £2.8 billion, this was attributed to the completion of several social housing schemes and other backlogged projects.
How many times have we heard the phrase ‘business likes certainty’? The lack of budgetary certainty in government departments filters through to projects that are available through the pipeline and the National Infrastructure Plan and damages their credibility. Businesses cannot plan investment, labour and skills using data that are not reliable.
The HBA believes that housing is of enough economic significance that greenlit projects should be included in The National Infrastructure Plan and their delivery be protected. The Spending Review would be the perfect time to signal real commitment to an essential industry by including it in the plan so housing projects can be fast-tracked and protected and a degree of certainty can be restored
Given the financial pressure on local authorities, which are faced with the extension of Right to Buy and the reduction in central government funding, the construction pipeline plays an even more important role in highlighting opportunities for SMEs.
