Cameron agrees it’s time to Get Britain Building

Prime Minister David Cameron today conceded he needed to get Britain building again as latest GDP figures were knocked by a sharp fall in construction. The Prime Minister adopted the building industry’s campaign slogan when he expressed concern about the latest output figures which showed the overall economy grew by just 0.5% during the first quarter of 2011.

The growth rate was held back by a disastrous performance from construction, which the Office of National Statistics estimated had recorded a dramatic fall of 4.7% over the previous quarter.

Speaking at Prime Minister’s Questions, David Cameron said: “What's happening in the construction industry is disappointing. “We do need to get Britain building again and that's why we are introducing the new homes bonus." He added: "But what is encouraging in the figures is that the British economy is growing once again, manufacturing is up, exports are up and we are seeing a rebalancing of the economy."

Mike Leonard, spokesperson for GBB and director of the Modern Masonry Alliance, said: “We are delighted that the Prime Minister has today announced that we need to 'Get Britain Building'. The Get Britain Building campaign launched in 2009 has prepared a Plan B, which sets out why investing in construction can create 2.5 million jobs and positive growth in GDP”.

He added: “With 5 million people on the housing waiting list and building material manufacturing capacity and skills being eroded we call on Mr Cameron to turn his fine words into positive action. Our industry is ready and willing to respond.” Read more...

Get Britain Building launches Plan B

Get Britain Building, the largest coalition of those involved in, and concerned with, the built environment, has launched ‘Plan B’, which aims to unite the industry behind a common plan to return to economic growth for the good of UK plc.

‘B’ is, perhaps obviously, for Building and the plan sets out the economic and social benefits of continuing to invest in the construction industry: a realistic and accessible way to create two and a half million real jobs, maintain manufacturing capacity and the skills needed for the long term prosperity of the nation as a whole.

Commenting on the launch Mike Leonard, spokesperson for GBB said, “The market for new homes is showing signs of softening and we are facing up to the biggest public sector cuts of our lifetime which will be announced on October 20th. There has never been a more important time to unite as an industry and make sure our politicians know and appreciate the contribution that the building industry can make to the long term economic recovery of Great Britain.

The Coalition Government is committed to massive spending cuts and tax rises to reduce the massive debt burden. Rising unemployment is likely to be one of the consequences of this action and it is for this reason that we believe that having our Plan B is vital for maintaining and creating real jobs.”

Every £1 invested in construction generates £2.84 in GDP; provides 56p return to the Exchequer and retains 92p within the UK. The construction industry consists of 300,000 companies, 3,000,000 employees – representing 10% of GDP and 8% of the electorate.

Construction equates with sustainable economic growth and real jobs; and Plan B would save or create tangible opportunities for design; professional and technical services; builders and allied crafts and trades; mining and quarrying; manufacturing and distribution; fixtures and fittings and installers; building material supply chain, contractors and sub contractors and plant equipment; conveyancing and estate agencies and social housing providers and maintenance to name but a few...

Plan B is being distributed and promoted at the Liberal Democrat, Labour and Conservative Conferences in September and early October as the GBB campaign goes on the road to promote the construction industry.

For more information and show support for Plan B visit www.getbritainbuilding.org.
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Get Britain Building issues manifesto challenge to all would-be MPs

Get Britain Building has issued a challenge to all Prospective Parliamentary Candidates (PPCs) in the forthcoming election to use the building industry as a motor to revive the UK economy with the launch of its 2010 General Election Manifesto.

The 2010 Manifesto sets out an agenda for common sense and has some very clear messages for future politicians. It has been issued to every single PPC in the UK, given that there is likely to be a larger intake of new MPs than ever before.

The four-page, four colour tract is packed with easy-for-MPs-to-grasp facts and figures underlining the significance of the UK construction industry to the country’s economic and social well-being. Foremost among the policy points posited by GBB is that the single most important commitment on which the new Government should focus is ‘consequential improvements’ to ‘de-carbonise’ existing housing. The easiest route to accomplish this would be to selectively reduce VAT on home improvements where specific actions to take carbon out of the building envelope are completed.

A 5% VAT rate already exists for fuel and some energy saving measures. Extending this to home improvement will encourage both private and public homeowners to invest in ways to (a) use less energy (b) use energy more efficiently or (c) obtain energy from renewable sources – at the same time as altering, extending or renovating homes.
Such a policy would ensure spending is targeted effectively, going where intended, by offering maximum encouragement to voters to invest to bring properties up to modern standards. Such investment will continue to pay dividends for generations to come and over the lifetime of a building.

The recent Cut the VAT report – The Opportunities and Costs of Cutting VAT: The effects of selected reductions in the rate of VAT on the labour element of housing repair, maintenance and improvement 1 – has already indentified the key benefits that such a cut would accrue on the labour on projects alone. These include the creation of 55,000 new jobs in the first year of a VAT cut; the freeing up of £450m per annum for renovations on social housing; the bringing back in to use of 19,000 social houses back into use p.a; and a reduction in housing carbon emissions of up to 337,000 tonnes.

Get Britain Building spokesman Mike Leonard says of the 2010 Manifesto: “It sits perfectly with the needs and benefits of investment in construction; the availability of funding; the delivery of sustainability measures in housing and the requirement to create employment and improve skills. It is a ‘must read’ for any would-be politician at this critical time for suppliers, merchants and contractors”.

While the housing industry is showing some signs of a weak recovery, the RMI and commercial sectors are still firmly in recession. GBB anticipates further falls in output and further job losses in the sector in 2010; and the inevitable attack on public sector spending poses another threat.

Leonard goes on, “There is only one housing market and, although not everyone can afford one, electors need homes whether new or second hand. One family in every 12 is on a waiting list somewhere – over 4.5 million people. This is forecast to be 5m after the General Election and increasing housing supply and improving existing homes are fundamental national requirements. They are as central to UK competitiveness, prosperity and well-being as health or education.

“With 27% of all carbon emissions coming from residential dwellings, the prize in the next Parliament has to be helping voters save energy. New building already plays its part. But nearly 70% of the housing which will be in use in 2050 has already been built. Politicians must do more to make it easier for landlords and homeowners to improve their properties.

Our intention is that the manifesto will be a catalyst for a series of actions that will move our industry to a better place. In particular, we call upon all industry stakeholders to invite their local PPCs to meet you at your place of business or construction site during the election campaign. This will allow candidates to speak with staff and hear, first hand, the benefits of supporting our industry and the contribution it makes to the overall economy”. Read more...

Get Britain Building welcomes VAT report as “important step” towards tax reduction

Get Britain Building has thrown its weight behind a new report – produced by the Cut the VAT Coalition – on the effect of cutting VAT for housing repair, maintenance and improvement (RMI) as an important first step in convincing the Treasury to take action to improve demand and employment in the building industry. The report – The Opportunities and Costs of Cutting VAT: The effects of selected reductions in the rate of VAT on the labour element of housing repair, maintenance and improvement – identifies opportunities for the Government:

• To create 55,000 new jobs in the first year of a VAT cut;
• Free up £450m per annum for renovations on social housing; • Bring 19,000 social houses back into use p.a;
• See sustainability improvements to 174,000 private domestic properties; and
• Reduce housing carbon emissions by up to 337,000 tonnes.

The Opportunities report, published at the House of Commons on February 23rd, estimates that the cost of this to Government could be as little as £102m per annum – equivalent to a quarter of the Car Scrappage Scheme; only twice the recent Boiler Scrappage Programme and representing only a mere 0.01% of the resource so far committed to the bailing out the banks.

It is arguable that, for instance, the £400m Car Scrappage Scheme did not create one single new UK job; the majority of monies out-flowing to companies – such as Hyundai, that benefited to the tune of around £25m – with no British manufacturing base at all.

GBB has been campaigning for a cut in VAT to 5% on domestic works that include an element of ‘consequential improvements’ which deliver sustainability benefits. Such an initiative would not only generate activity in the domestic RMI environment, it would serve to improve the property asset base of the UK and assist the Government in meeting its challenging 2020 and 2050 carbon reduction commitments.

Mike Leonard, GBB spokesperson and director of the Modern Masonry Alliance, said: “This report is a great piece of work as it represents the first costed proposal to Treasury that incontrovertibly demonstrates the enormous economic, social and environmental benefits that would accrue from support for the building industry. Yet: it is only a start. The report only addresses the benefits of VAT reduction on the labour elements of works. It is our belief that should the programme be widened to encompass all elements of RMI – provided sustainable ‘consequential improvements’ are included – the cost to Government would be lower still; possibly cost-neutral and even revenue generating”.

The report reveals that a cut in VAT to five percent would contribute more than £1.4 billion to the UK economy in 2010 alone, rising to £17 billion by 2019. The report also predicts that an extra 81,500 jobs would also be created in the UK by the end of the decade.

Speaking at the launch of the research in the House of Commons, Lorely Burt MP for Solihull said: "This research proves what benefits a VAT cut could have for the UK. We need to act quickly to get people back into work and a cut in VAT would provide many jobs immediately and would continue to provide a sustained flow of jobs over the next decade”.

Leonard also says, “The point of this campaign is now broadly understood, and is penetrating mainstream, cross-party political thought. However, for years, the faceless wonders at the Treasury have been deaf to the message, claiming they did not have numbers to support it. Well now they do, and there can be no excuse for them to carry on prevaricating. In addition, as this report only deals with labour; the treasury now has its own incentive to research how this inexpensive measure would become cheaper still if it were extended to all elements of RMI that included improvements in a building’s environmental performance”.

“For too long, Government has determinedly ignored the opportunity provided by the building industry to help rebuild the economy, while improving investment in infrastructure and UK housing stock. One hopes this report goes some way to demonstrating that they can’t afford to ignore that anymore”, Leonard concludes. Read more...

Cold comfort for construction as sector recession continues

It has never been more critical for the Government to recognise the value of the British construction industry and how it can be deployed to re-energise the UK economy – says the Get Britain Building (GBB) campaign – as the latest research published by the Construction Trade Survey (CTS) reveals the recession in the sector showing no signs of abating. The CTS survey is reinforced by December figures from the Construction Purchasing Managers’ Index (CPMI).

The CTS shows that all areas of the industry contracted during the last quarter of 2009; and prospects in most areas of the industry remain relatively bleak in the near term with orders and enquiries falling for civil engineering contractors, building contractors and specialist contractors. In addition, sales of construction products are also anticipated to fall significantly.

The CPMI for December was still showing a contraction in activity; signifying 22 continuous months of construction sector recession.

“One wonders”, says Chris Pateman, GBB spokesperson and managing director of Builders Merchants Federation, “when the penny is going to drop that – instead of shoring up overseas car makers, for instance – urgent steps need to be taken to support a sector that represents 9% of GDP and employs approximately 7,000,000 people”.

“It’s a mystery that the UK motor industry warrants special treatment – largely favouring overseas manufacturers – when it only accounts for 0.8% of GDP*”, continues Pateman.

Central to the GBB campaign is the proposal that the Government cuts VAT to 5% on domestic works that include an element of ‘consequential improvements’ which deliver sustainability benefits. Such an initiative would not only generate activity in the domestic RMI environment, it would serve to improve the property asset base of the UK and assist the Government in meeting its challenging 2020 and 2050 carbon reduction commitments.

The campaign also believes that not only would the VAT reduction measure be, at least, cost-neutral but also revenue-positive through the increased activity and by bringing more contractors into the formal economy. It is currently undertaking in-depth costing research to reinforce this contention.

November 2009’s CTS certainly made for grim reading with 60% of building contractors reporting that, on balance, output fell during the last quarter in the industrial sector and 50% similarly reporting a fall in the commercial sector during the same period; compared to this time in 2008. Furthermore, 65% of civil engineering contractors also stated that workloads had fallen compared to a year ago.

In that context, 86% of heavy side manufacturers found that sales fell significantly and 75% of light side manufacturers reported that sales, on balance, fell in the third quarter compared to a year ago. Unsurprisingly then, the CTS also reports that over 10% of employment with the construction product manufacturing industry has already been lost.

Pateman concludes: “Government must start to think differently if we are to work and earn our way out of the current crisis. The UK construction industry is well set to be the motor of economic recovery, yet Government seems oblivious to the wealth creation opportunities it provides.
Strategic investment in infrastructure – such as realising the green potential of existing UK housing stock – is just one way we can drag ourselves up by our bootstraps, and one which can only benefit the Treasury from the get-go”.
Read more...

Wolseley lends big building brands’ weight to GBB

Merchant supergroup Wolseley UK is the latest business to lend its backing to the Get Britain Building (GBB) campaign. Latest recruit Wolseley UK – which trades under the Build Center, Plumb Center, BCG, Encon and William Wilson merchant and distribution brands, among others – officially joined the campaign at the end November. It is the UK operating subsidiary of Wolseley PLC. With a turnover of around £1.6bn, it is Britain’s largest distributor, through a nationwide branch network, of building products.

The move will see Get Britain Building logos appearing on company vehicles and on letterheads and marketing support, as local branches take up the opportunity to ally themselves with a campaign which has already captured the imagination of so many of their customers.

Rob Marchbank, CEO Wolseley Europe and MD – Wolseley UK, said: “The unprecedented market conditions continue to be challenging and we fully support any campaign which provides a benefit to communities and the sector. We welcome the pledge by the Government to invest £1.5bn in the housing sector, and encourage the Government to ensure the investment materialises.

“Our nationwide network of branches will be given the opportunity to utilise Get Britain Building marketing materials to help raise awareness of the campaign on a local level and publically show our support.”

Welcoming Wolseley to the campaign, Chris Pateman, GBB spokesperson and managing director of Builders Merchants Federation, says, “The weight of a business like Wolseley behind the campaign cannot be underestimated. The more and bigger the voices calling upon the Government to acknowledge and underwrite the significance of construction to the UK economy; the more likely it will realize the enormous opportunity that we provide to help drive all of us out of recession. As it is, their denial of this is almost wilful – and GBB aims to change that”.

It is GBB’s contention that Government treats construction – which represents 9% of GDP and employs approximately 7,000,000 people – as an ‘invisible industry’, preferring to consider its manufacturing, distribution and contracting arms as disparate sectors.

By doing so, it can avoid accusations of neglect from one of the nation’s powerhouse industries; while being free to favour traditionally emotive, homogenized and unionized groups – such as automotive (which only accounts for 0.8% of GDP) – with headline-grabbing support that brings little to the UK.

Similarly, the construction industry – treated as a whole – is almost double the automotive sector for employment numbers**; and GBB reckons that job losses in building may yet total 400% of those lost to the car industry.

“As has been frequently documented in recent studies it is now critical that the Government recognise the value of the British construction industry and how it can be deployed to re-energise the UK economy.

Strategic investment in infrastructure – such as realising the green potential of existing UK housing stock – is just one of many ways we can drag ourselves up by our bootstraps, and one which can only benefit the Treasury from the off,” concludes Pateman. Read more...

GBB rues missed opportunity on VAT

The Chancellor has missed a golden opportunity to offer the UK construction industry a much needed end of year boost with his refusal not to change VAT on residential refurbishment following the Pre Budget Report.

GBB has been campaigning for a cut in VAT to 5% on domestic works that include an element of ‘consequential improvements’ which deliver sustainability benefits. Such an initiative would not only generate activity in the domestic RMI environment, it would serve to improve the property asset base of the UK and assist the Government in meeting its challenging 2020 and 2050 carbon reduction commitments.

The campaign also believes that not only would the VAT reduction measure be, at least, cost-neutral but also revenue-positive through the increased activity and by bringing more contractors into the formal economy. It is currently undertaking in-depth costing research to reinforce this contention.

Chris Pateman, GBB spokesperson and managing director of the Builders Merchants Federation, said: “Yet again the Government has spurned an opportunity to offer a fillip to one of the UK’s most important industries. The UK construction industry is well set to be the motor of economic recovery, yet Government seems oblivious to the wealth creation opportunities it provides. A reduction in VAT to 5% would provide a huge incentive and offer up a more promising outlook for 2010.

“Strategic investment in infrastructure – such as realising the green potential of existing UK housing stock – is just one way we can drag ourselves up by our bootstraps, and one which can only benefit the Treasury from the get-go”, concluded Pateman. Read more...