Increased growth in construction orders saw 2017 off to a positive start. This month the Construction Industry Training Board (CITB) announced plans for a proposed reduction to the levy and Theresa May unveiled plans for a new industrial strategy. In other news, January saw the inauguration of Donald Trump as President of the United States, which poses the question of what this will mean for infrastructure?
Surge in New Construction Orders
2017 started on a positive note for the construction industry, with a report by CIPS highlighting fast growth in new construction orders. The statistics show the fastest growth in new orders, in over a year. According to The Guardian, housebuilding was the main driver behind construction growth with work for civil engineering projects also growing at a robust pace.
CITB plans levy cut in bid to survive
This month we learned the CITB is to begin consulting on a proposed 30% reduction in the levy and a reformed grants scheme. Sarah Beal, CEO at CITB commented The main advantage of the proposal will mean all employers are treated equally and benefit equally from a reduced CITB levy. “We want to ensure that our offer is relevant, makes a real difference and delivers value for money.” The reform will be sought in August and September, with a Government decision expected by February 2018. More here via Construction Enquirer
Donald Trump & UK Infrastructure
On Friday 20th January 2017, Donald Trump was inaugurated as the 45th President of the United States. Our last bulletin questioned what his presidency would mean for construction and infrastructure. Industry experts, interviewed by the Financial Times seem to be of the common school of thought, suggesting his plans for tax cuts and infrastructure spend will have a positive effect on the UK economy. Additionally, Trump’s plans to disengage from Europe will mean less hostile negotiations for the UK. More here via The Financial Times
The Prime Minister unveils new industrial strategy
On 23rd January 2017, Theresa May launched a modern industrial strategy proposal, with the hope of driving growth across the country. It is expected broadband, energy and infrastructure will see huge investment to drive growth post-Brexit. More here via UK Construction Media.