Chancellor’s Autumn Statement set to boost construction spending

  • 21 Nov 2016

Philip Hammond, Chancellor of the Exchequer, signals that big infrastructure spending plus support for housebuilding will be at the centre of his Autumn Statement on Wednesday.

Autumn Statement ‘rumours’

Over the weekend Hammond announced that we can expect spending on railways, energy plants and building projects plus a £1.3 billion package to tackle chronic traffic congestion that is inhibiting UK growth.

Earlier this year the government committed to spending £13bn on transport for the Northern Powerhouse over the course of this Parliament to provide “dramatic improvements to our roads and railways in the North”.

All this is part of re-focusing spending on national infrastructure and skills projects that provide tangible long-term boost to the economy. He sees this as the key way to strengthen the UK economy and thereby “protect our world-class public services.”

The Chancellor believes action taken now to boost construction will help bolster the UK economy as post-Brexit uncertainties continue to adversely affect the economic mood and outlook.

Infrastructure delays costs £50k per minute

Research from Arcadis shows that a one month delay to projects in the transport infrastructure pipeline could cost the UK economy £2bn over the next five years, equivalent to just under £50,000 for every minute of delay. Chris Pike, Development Director for Infrastructure at Arcadis, warned that government commitments made to infrastructure projects over the past weeks must be progressed without delay if the UK is to really benefit.

Infrastructure investment works

The International Monetary Fund reviewed 17 advanced economies and found that an increase in investment spending equivalent to 1% of national income increases the level of output by 0.4 per cent in the same year and 1.5 per cent four years later.

Help for housing

On the housing front, we are told to expect more help for small builders on top of the £3bn housing fund that has already been announced. Hopefully there will be measures to encourage more affordable housing in the rental sector.

Return to austerity?

Rumour has it that Hammond aims to reduce Corporation Tax even prior to Brexit to ensure the UK an attractive place for overseas investment.

However, he is being warned by many ‘experts’ about the inevitable return to austerity. The Institute for Fiscal Studies (IFS) warned about a £25bn black hole in the public finances by the end of the current parliament because of slower growth and higher inflation.

Leave a Reply

Latest news

Plumis

Plumis named as QBE AcceliCITY Resilience Challenge finalist

Plumis has been announced as one of ten finalists in the QBE AcceliCITY Resilience Challenge, a virtual accelerator programme for the world’s foremost urban technology start-ups.

Posted in Articles, Awards, Building Industry Events, Building Industry News, Building Products & Structures, Building Services, Facility Management & Building Services, Health & Safety, Information Technology, Posts, Security and Fire Protection

IG Masonry Support

IG Masonry Support: Beechwood Mews - North London

IG Masonry Support’s expertise was required to provide a smart, characterful brickwork finish to Beechwood Mews, a new residential development in North London.

Posted in Articles, Bricks & Blocks, Building Industry News, Building Products & Structures, Case Studies, Facades, Restoration & Refurbishment, Retrofit & Renovation, Walls

Geberit

Donations land Geberit the CRASH Charity Patron of the Year Award

Bathroom manufacturer, Geberit, has been awarded CRASH Charity Patron of the Year for the third year running in the charity’s Above and Beyond Awards 2022

Posted in Articles, Awards, Bathrooms, Bedrooms & Washrooms, Building Industry Events, Building Industry News, Charity work, Interiors

RENOLIT

RENOLIT's Green Roofing is Simply a Cut Above

In Vantaa, Finland, the company Urho & Alarik Oy has entrusted RENOLIT ALKORPLAN roofing products with the roof construction, for its Ring III Park project.

Posted in Articles, Building Industry News, Building Products & Structures, Case Studies, Damp & Waterproofing, Membranes, Restoration & Refurbishment, Retrofit & Renovation, Roofs, Sustainability & Energy Efficiency