INDUSTRY UPDATE VIEWPOINT
Viewpoint
The FMB gives its viewpoint on the headlines affecting the construction sector
King’s speech light on hope The King’s speech outlining the Government’s legislative programme offers little hope to the building industry – with no new initiatives to address the decline in house building. Brian Berry, Chief Executive of the FMB, said: “There was nothing of note in the King’s speech to address the alarming decline in house building rates across the country or any new plans to improve the nation’s draughty and leaky homes. We need to be focusing on economic growth and the absence of ambition to build more homes and improve the ones we have is a missed opportunity. “A clear commitment from the Government to engage with SMEs would have helped provide more assurance at a time when enquiries for new building work are falling by as much as 40%. “More encouraging is the Government’s lead to improve the quality of technical education, by enhancing skills and vocational training, ensuring everybody receives the best possible education through the Advanced British Standard qualification. This is an issue of great importance to SME builders looking to recruit staff and grow their businesses.”
Labour's ‘big build’ needs small builders
It’s encouraging that Labour is tackling the emotive issue of the green belt with the so-called ‘grey belt’, which has restricted sensible and sustainable development for too long. “Bringing SMEs on board with new town developments will ensure high- quality, diverse housing, whilst also creating wider benefits such as vocational skills opportunities. Coupled with the recent announcement by Shadow Chancellor Rachel Reeves to reform the antiquated planning system, this could all add up to a renaissance for small, local builders”.
Labour’s push for a ‘big build’ must include small builders to ensure regional growth across all parts of the UK, said the FMB in response to Sir Keir Starmer’s call for a “decade of national renewal”. Brian Berry, Chief Executive of the FMB, said the industry “has been mired by issues for decades, resulting in small local builders delivering fewer homes to the
detriment of local communities”. He added: “The return to gentle
densification, last seen in the 19th century, could help SMEs regain their share of the market, which has been dominated in recent years by a few major companies.
Building enquiries down There has been a sharp decline in workloads, enquiries and employment amongst small building companies, with 40% of FMB builders reporting a decrease in enquiries. The data comes from the FMB State of Trade Survey for Q3 (more results on page 13). Positively, the repair, maintenance and improvement (RMI) sector remains buoyant with most FMB members reporting increased workloads. Brian Berry, Chief Executive of the FMB, said: “The Government should be concerned at a time when we need to be building more, and not fewer, new homes. With continued pressure on bottom lines, members are putting up prices to accommodate for economic adversity and inflationary pressures. “Worryingly, we’re also seeing over half of small building companies falling below their expected margins, which is why we need the Government to steady the fragile housing market.”
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Master Builder
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