INDUSTRY UPDATE VIEWPOINT
Viewpoint
“The lack of involvement DEFRA has in the biodiversity credit market is also extremely worrying, especially as smaller builders are more likely to need to offset biodiversity offsite. Unless these issues are addressed, BNG will create substantial barriers to small house builders.” BATJIC agrees to a four per cent pay rise Wet weather and faulty schemes are hampering construction output, but there is positive news for small builders. The Building and Allied Trades Joint Industrial Council (BATJIC) has agreed to giving builders: ● A four per cent wage rate increase ● An extra day of holiday Managed by the FMB, the agreement between BATJIC and Unite the Union came into effect on Monday 17 June 2024. Calling it a “fair rise for the nation’s small builders”, Berry said the FMB helped the two parties strike the right balance between employers and staff – as both have seen their costs rise in recent years. Berry added: “While the BATJIC agreement is completely voluntary, we know many FMB members choose to use it for guidance on their wage rates and other employment rights. The agreement helps builders attract new
The FMB gives its viewpoint on the headlines affecting the construction sector
Poor weather slows work
A particularly wet start to the year slowed down construction output by 1.4 per cent in the first four months of 2024, marking a worrying trend for the industry. Recent construction industry output data by the Office for National Statistics (ONS) revealed the disconcerting slower pace in project output, but the FMB said there’s more behind the percentage drop than just poor weather. Brian Berry, Chief Executive of the FMB, said: “While survey data collected
efficient upgrades to their homes ● Addressing the industry’s skills crisis
Government’s Biodiversity Net Gain scheme needs a rethink The FMB expects a lot from the recently elected Government – including for it to resolve the negative effects the Biodiversity Net Gain scheme has had on housebuilding. After reading the recent National Audit Office (NAO) report, which identifies substantial risks to the scheme’s long- term effectiveness, the FMB wants the new Government to make changes. Berry said: “SME housebuilders were broadly supportive of the aims of a BNG scheme, but they have been warning for some time that excessive regulation and additional costs to firms preparing for the changes, coupled with local authorities being significantly underprepared, will make it near impossible for smaller firms to manage. “The NAO report has confirmed their fears. We will now need to see a substantial re-think from DEFRA, including increased funding for local authorities, if the Government wants to see a long-term environmental benefit.
by the ONS indicates continued wet and windy conditions once
again contributed to the struggles of construction firms, the stagnation seen across the UK economy suggests this is part of a wider problem. “The performance of the construction industry is a key element of the UK’s overall economic performance. It is our hope that the newly elected Government will prioritise long-term economic growth, with construction receiving the attention it needs and deserves.” The FMB hopes to see the Government take action by: ● Boosting housebuilding rates ● Supporting people to carry out energy
staff and maintain their current workforce by
guiding employers to offer competitive wages and a range of other employment benefits.”
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