2021 Budget – The Impact on The Construction Sector
Mar 04, 2021
The 3rd of March saw Chancellor of the ExChequer Rishi Sunak deliver his 2021 budget, with much of its content coming as welcome news for business across the UK.
Key takeaways included the extension of the furlough support scheme which will have provided relief for many firms and employees alike, keeping organisations afloat, and protecting the livelihoods of individuals working in the hardest-hit sectors. Homebuyers are also set to benefit – with the stamp duty holiday being extended until the end of June and a £5bn support package will see retail and hospitality sectors receive a well-needed boost after lockdown saw them forced to close.
How does the 2021 budget affect the construction sector?
Whilst many of the proposed plans will have a positive impact on all sectors, here are some of the key highlights for construction:
- A new mortgage guarantee scheme is set to guarantee that UK housebuyers will be eligible for mortgages of up to £600,00 on receipt of a 5% deposit providing great reassurance for housebuilders and developers across the UK.
- Continued financial support for self-employed workers will provide invaluable benefit to construction professionals with statistics from November 2020 recording over 800,000 self-employed workers within the construction sector, higher than any other industry. (https://www.statista.com/statistics/318406/united-kingdom-self-employed-type-of-work-industry-section/)
- The introduction of a UK infrastructure bank aimed at helping the UK achieve its net-zero target by offering financial support toward projects that help satisfy this objective.
- The creation of a new Modern Methods of Construction (MMC) taskforce made up of industry experts across the Government designed to support the adoption of this new way of working and provide a valuable resource.
- A new National Infrastructure Commission (NIC) study on redevelopments will consider how best to maximise the efforts of the infrastructure policy with a view to putting in place regeneration plans for towns in England which in turn should provide opportunity for skilled tradespeople.
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References:
https://www.buildersmerchantsnews.co.uk/Budget-2021-What-it-means-for-the-industry/50748
https://www.pbctoday.co.uk/news/planning-construction-news/budget-2021/89849/