Budget 2021 Industry Reactions

On Wednesday, 27^th October 2021, Rishi Sunak, the Chancellor of the Exchequer, delivered his long-anticipated Autumn 2021 Budget, here are some industry expert reactions to what was announced.

Sean Keyes, managing director, Sutcliffe: “The £1.8bn pledged towards brownfield housing developments is closest to our hearts as engineers and will make a real impact in making the UK more sustainable, as it’ll not only stop us from using Greenfield sites, but also help us clean up brownfield land.

“The digitisation of the planning system is also something I’ve personally spoken to a lot of local planners about in the past and the general consensus is that most people are struggling to meet planning times at the moment, which means projects then start at a slower timescale, which then halts the economy. Investment in speeding up the planning system is well received across the construction and property sector and something that has been a long time coming.

“The levelling up agenda needs to continue and needs to be pushed hard by the Conservative party – with levelling up all about creating equal job opportunities, higher life expectancies and a better way of life across the country and not just in the South, today’s budget will again go some way towards that, especially with the significant investment in transport links and stations in Liverpool, Runcorn and St Helens.

“As a company who has a long reputation for supporting the future generation, the £3bn pledge in post-16 education to fund the skills revolution will be a fantastic boost to the economy too. Every business needs to support those at the bottom rung of the ladder in order to nurture, inspire and up-skill, to ensure that those coming out of education at 16+ can flourish and build our future economies. This investment in the youth may not have an immediate impact, but if we don’t at least invest what our competitor nations are, then we will fall behind and I am delighted that programmes such as the Kickstart scheme are giving young people a chance to shine.”

Kevin Tully, managing director, Tulway: “We’ve got to find a way out of this pandemic and having already spent hundreds of billions of pounds to support people and businesses, it goes without saying that taxes will increase in order for the government to claw back some of this output. I’m hoping for a higher wage economy going forward and today’s budget goes some way towards ensuring that.

“Employers need to be involved more in the training funding process, rather than simply giving large amounts of money to colleges and universities for them to up-skill and train. The £3bn post-16 education to fund the skills revolution is fantastic news for our sector and for Tulway, as we pledge to take on 20 more apprentices between now and 2025.

“The green agenda is also going to open up an incredible amount of opportunities for businesses across the Liverpool City Region. A lot of people don’t realise how heavily involved the engineering sector is in the process of transforming from fossil fuels to green energy, but Tulway and many other businesses like us are playing a huge role in the net zero agenda and long may it continue.”

Alex Rose, Director of New Homes at Zoopla comments: “With the scarcity of homes and the imbalance of supply and demand set to continue well into 2022, the government’s pledge of £1.8 billion in funding to help deliver 160,000 new homes on brownfield land can certainly be viewed as a positive. However, with £300 million of this funding designated to metro mayors and councils to unlock smaller brownfield sites for housing, it is unclear how the balance of the funding will be allocated. With housebuilders often viewing brownfield sites as a less attractive option due to risks like contamination, it remains to be seen how far this investment will stretch in practice.”

Commenting on the Budget and the £1.8bn investment in brownfield urban land regeneration, Tom Brown, Managing Director of Real Estate at Ingenious, said: “The chancellor’s commitment to invest £1.8bn in brownfield urban land regeneration which is the equivalent of 2,000 football pitches is welcome. If channelled effectively this could improve the lives of millions of people across the country providing much needed new housing and spaces in areas that have been neglected for too long.

“Looking at the key sustainability agenda, this approach confirmed today should be prioritised over developing on other valuable green field sites which can cause loss of vital natural space. We would however welcome a further government commitment to the sustainable development of these brownfield sites so that where possible, existing buildings are preserved and sustainable materials are used.”

Graham Harle, CEO of Gleeds Worldwide, responds to the Autumn Statement: “Todays’ Budget, for us operating in property and Construction, felt a little like a hotly anticipated meal where Chef had leaked much of his surprise menu in advance & when it came to it, the showstopper was something of a soggy soufflé. For instance last weeks’ news on the Governments heat and buildings strategy, gave the Chancellor a chance to announce serious funding for a long term national retrofit programme to improve the energy efficiency of the UK’s 30 million buildings but we heard nothing  and news of the much delayed revised integrated rail plan was also absent .

There was £1.5bn in new money to improve transport links which is welcomed plus £1.8 bn for brownfield residential building and £3.8bn to build new prisons. Investment relief on Business rates for Green improvements is also welcomed as were new discounts on rates for retail and hospitality. But when achieving Carbon zero is seen as a bigger issue by most people than Covid, the lack of investment in this area was a missed opportunity.”

Marc Vlessing, CEO of Pocket Living: “Whilst we welcome any support offered to boost levels of housing delivery in this budget, we believe that the Government needs to go much further to deliver intergenerational equality of housing opportunity. It needs to be bold, visionary and interventionist if we are to address the UK’s dysfunctional housing market and help more people achieve their aspiration of home ownership.

“A prime example would be around brownfield land release and the Chancellor’s funding announcement. This should be community led not council driven. Everyone has a role in solving the housing crisis and the fund should be open to all to innovate and find solutions on brownfield land. Only through incentives which encourage everyone to step up will the housing crisis be solved.

“At Pocket Living, we have been innovating and pushing the boundaries of housing further than most. We will continue to do so, irrespective of the barriers along the way, in order to unlock growth and housing opportunity. We strongly urge the government to do the same.”

Richard Waterhouse, spokesperson for NBS, said: “Whilst we welcome the chancellor’s investment in brownfield sites, which will no doubt help the sector meet Government quotas to tackle the housing crisis, stronger direction is needed around hard-deadlines and targets for how the construction industry plans to meet Net Zero target emissions.

“Its plans for a ‘skills revolution’ is also a step in the right direction and a significant investment in digital education will be perfectly timed to tackle the skills shortage the sector urgently needs to  address. However, the chancellor should also look to address more immediate crises, such as a solution to materials shortages which isn’t currently hindering significant growth for the sector.”

Ben Hancock, managing director, Oscar Acoustics, said: “The rise in corporation tax is yet another blow to SMEs still recovering from the difficulties of the past 18 months. Further cuts to business rates would have sent a clear message that the Government is firmly behind companies looking to make a strong recovery and contribute to the country’s struggling economy.

Darren Caplan, Chief Executive of the Railway Industry Association (RIA), said: “Whilst it is positive to see confirmation of what looks like an additional £1.5bn of funding for regional transport projects, including in rail, this Budget appears to be a missed opportunity to unleash the potential of the railways in helping the country to build back better.

“There was no indication in the statement of whether long-term day-to-day funding of the railway network will be maintained at least at current levels in the years ahead. We still don’t know what is in the Integrated Rail Plan for the Midlands & the North, we still have uncertainty over major projects, such as HS2 Eastern Leg, Northern Powerhouse Rail and Midlands Rail Hub, and we still await an update of the Rail Network Enhancements Pipeline, now more than two years since it was last published.

“With COP26 just around the corner, too, this would have been a good time to set out the Government’s plans to reach a net zero railway, including a rolling programme of electrification and fleet orders of hydrogen and battery trains. These plans would have not just shown UK leadership in decarbonisation on a global stage, but would also significantly boost green jobs and investment, as the UK moves to a cleaner, post-Covid economy.

“There could also have been some clarification on areas like digital signalling, with 60% of traditional signalling needing replacing in the next 15 years. Our rail exporters need to know whether Tradeshow Access Programme budgets will be reinstated or replaced, so that they can play their part in helping the country deliver on Global Britain ambitions.

“It is clear that UK rail can play a leading role in the UK’s economic recovery, but to do this the railway industry really does need greater sight of, and input into, the Government’s investment plans. Visibility of these plans is vital to supporting effective, reliable and clean world-class railway infrastructure and rolling stock in the coming years, boosting the UK economy and its connectivity not just now, at this critical time, but also for the years ahead as we move on from the pandemic.”

Jim Wood, Managing Director of Barratt London, comments: “We welcome the support for housebuilding, increased investment in the planning system and the opening up of more sites on derelict and brownfield land. It is vital that we continue to increase housing supply to tackle the country’s shortage of homes, helping to create jobs and economic growth.

“The recent support for improving the energy efficiency and sustainability of new homes is welcomed – Barratt are helping to lead the way with the new Z House; our flagship zero carbon home delivering a carbon reduction of 125%. Barratt has a target to bring all of its new homes across the country, including London, to carbon zero by 2030.”

Commenting on today’s Budget, Stuart Law, CEO of the Assetz group, said: “We welcome the Chancellor’s package of housing-related investment announced in today’s Budget, particularly the provision of affordable housing and improved use of brownfield sites. However, given the focus on green grants and the need for housing to become more sustainable in future, the Government must do more to support homeowners during this transition over the coming months and years.

“It is encouraging to see the Chancellor earmark funds for helping homeowners to make their properties more energy efficient, however the current support packages still represent something of a drop in the ocean in terms of what needs to be achieved and more can and should be done to support the move towards greener homes and mass consumer adoption. The new homes industry has been leading the way in meeting the Government’s ambitions for sustainable energy-efficient housing stock, and we anticipate that demand for newer, more environmentally friendly homes will increase substantially over coming months and years, attracting a significant premium as a result.

“Comparatively, older, historic homes could see a reverse in popularity as the additional costs associated with making them greener, as well as reducing mortgage lender appetite to fund inefficient homes, dampens demand and therefore price growth.

“We also heard the Chancellor encourage the Bank of England to raise interest rates to control inflation indicating that whilst both of these cost the government, and hence the taxpayer, more in debt servicing costs, he regards the risk of inflation to be greater on balance. We would agree and expect inflation to run ‘hot’ for some years to come whilst interest rate rises are likely to be more muted in our view.”

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Extra Measures to Support Heat & Buildings Strategy

The UK Government’s new Heat and Buildings Strategy is a welcome development when it comes to decarbonising the UK heating sector. However, it needs to be supported by further policy if net zero is to be fully achieved, according to the REHAU Group.

The long-awaited strategy was launched earlier this month by the Department of Business, Energy and Industrial Strategy (BEIS), with the £450 million Boiler Upgrade Scheme being the centrepiece to the development. As of April 2022, home owners will be eligible to apply for grants of £5000 to install heat pumps, with the intention of driving down the cost of clean heat, as well as reducing dependence on fossil fuels.

However, REHAU has advised that greater scope will be necessary if climate targets are to be achieved.

Steve Richmond, Head of Marketing and Technical at REHAU, said: “The Boiler Upgrade Scheme is a really positive development for the uptake of cleaner technology. However, at £5-6K funding per heat pump, we’re only providing scope for a maximum of 90,000 installations. The UK is currently installing roughly 35,000 each year, so we need to be more ambitious if we are to reach the Prime Minister’s target of 600,000 heat pumps per annum by 2028.

“With increasing installations, the Government’s ambition is to reduce the cost of heat pumps by 25-50% by 2025. However, the number of trained installers and manufacturing costs are likely to be a challenge here. The Government has signalled that they want to see more local manufacturing for low-carbon solutions, and REHAU has been manufacturing its pre-insulated RAUVITHERM pipe since 2012, which is used for both heat pumps and district heating.”

District heating networks also feature heavily in the strategy, with a £338 million investment in the Heat Network Transformation Programme set to take place between 2022 and 2025. Other measures such as the £150 million Home Upgrade Grant have been put in place to help off-gas grid homes achieve a reduction in their carbon emissions.

With the Future Homes Standard also set to ban gas boilers in new builds by 2025, heat pumps and district heating networks are expected to become the new standard for residential heating. Growing uptake of low-carbon heat sources has in turn led to increased demand for energy-efficient heat distribution solutions, such as underfloor heating and cooling or Thermally Activated Building Structures (TABS), which make use of a building’s natural structure to both heat and cool.

Steve Richmond concluded: “With the decision on hydrogen’s future being pushed back to 2026, there is a greater need than ever to evaluate our path to net zero. The launch of the Government’s Heat and Buildings Strategy is a vital step in this journey but cannot bear the load of this challenge alone. Only through the support of other initiatives will we achieve a net zero Britain.”

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Major Solar PV Project to Cut Carbon in Coventry

Howard Ward Associates (HWA), a Midlands-based construction engineering consultancy, has been appointed by Ineco Energy to deliver a major solar PV project at 41 sites throughout Coventry.

The scheme, which is part of a wider decarbonisation strategy in the city, will deliver carbon reductions as well as renewable energy generation improvements across a wide number of council sites such as:

• Sports facilities
• Schools
• Office buildings
• Cemeteries
• Country Park visitor centres

HWA has specialist expertise in the solar PV sector, and has advised on major schemes throughout the UK. For Ineco, the practice has been appointed to provide surveys and assessments to determine the structural capacity for the installation of solar panels and inverters.

This ambitious programme is set to generate 1,840 MWh of energy, with the potential to save Coventry City up to £276,000 annually. Over the lifetime of these projects, it will save the carbon equivalent of planting 9,766 trees.

Phase one of the works saw the completion of six Coventry schools ahead of the new 2021/22 academic year; this was funded by the Public Sector Decarbonisation Scheme (PSDS).

Giles Ward, director at HWA, said: “We are really pleased to be working on a number of solar PV installations across Coventry alongside Ineco Energy. The scheme is contributing to the city’s decarbonisation strategy, helping to deliver carbon reductions and renewable energy systems on a significant scale.”

“This is a diverse industry in which we have gained extensive knowledge and experience since the field was in its infancy. It is great to see that solar PV installations have developed significantly, and their demand and accessibility continue to grow as local authorities, businesses and organisations across the UK seek energy-efficient solutions.”

Work has also started on Coventry Central Library, a council office building and Windmill Road Cemetery in the city, projects which are due for completion this month.

Angus Rose, director of Ineco Energy, commented: “We’re extremely proud to be helping Coventry City Council to reduce its carbon footprint with the installation of solar PV across the region. There has never been a more important time to reduce the carbon footprint of our communities and secure a greener future for generations to come.

“This part of the project, funded by PSDS, only scratches the surface of the ambitious project with Coventry City Council. The ongoing decarbonisation plans funded by ERDF will allow the council to make buildings more energy-efficient and help the region reach its net zero target.”

Phase two of the project will see solar PV being installed across 32 further Coventry City Council public buildings; it will be funded through the European Regional Development Fund (ERDF).

Ineco Energy specialises in the development, installation and ongoing management of renewable and energy-efficient solutions for local authorities, schools and businesses within England and Wales.

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Autumn Budget: Paving a Way for Recovery

On Wednesday, 27^th October 2021, Rishi Sunak delivered his fourth budget as Chancellor of the Exchequer.

Still working within the constraints of COVID-19, the key theme of the Chancellor’s speech was levelling up the United Kingdom as the nation comes out from the pandemic.

Looking forward and into the nation’s recovery, Mr Sunak announced investments in housing, education, spending within every Government department as well foreign aid spending.

Levelling up was a major topic of Mr Sunak’s Budget speech, where he announced £2.6 billion for the UK Shared Prosperity Fund, which focuses on getting people into jobs throughout the UK.  There was also £205 million in new funding to help build and transform up to 8,000 state-of-the-art football pitches for communities.

Along with this, funding was announced to turn more than 100 areas of derelict land into new pocket parks.

The Chancellor also announced the first round of the UK-wide Levelling Up Funding, with £1.7 billion going into local investment in local areas. This means that the funds will range from the redevelopment of Inverness Castle to the upgrading of the ferry to the Isles of Scilly.

Looking at the devolved nations of the United Kingdom, Scotland is set to receive £170 million in funds, £120 million is going to Wales and Northern Ireland will receive £50 million.

Between 2020 and 2025, £2.6 billion is set to be invested into a new, long term pipeline which will see 50 local roads being upgraded in England, and £5 billion invested into local road maintenance, which the Chancellor said was enough to “fill one million potholes per year”.

Taking a look into transport, Rishi Sunak announced £5.7 billion into English city regions over five years, which will help transform local transport networks via London-style integrate settlements. The areas are:

• Greater Manchester
• Liverpool City Region
• The Tees Valley
• West Yorkshire
• South Yorkshire
• West Midlands, and
• West of England.

Along with this, Mr Sunak announced a £3 billion investment over this Parliament to help level up bus services in England, with £1.2 billion of a new, dedicated London-stye bus transformation deal to help improve infrastructure, fares and services.

Mr Sunak also announced the investment of £11.5 billion in the shape of the Affordable Homes Programme in England from 2021-2026, this will help build up to 180,000 new affordable homes, with 65% of the funding going to homes out with London.

There was also an announcement of £1.8 billion in funding to unlock 1,500 of brownfield land, this will help with the unlocking of new housing, and infrastructure for local communities. Recover from the pandemic, including surgeries and other medical procedures.

The NHS is also set to benefit from funding, with an announcement of £1.5 billion in the next three years for new surgical hubs, increased bed capacity and equipment to help elective services.

Todays Budget also confirmed new funding for zero emissions buses, with an allocation of £70 million for Zero Emission Bus funding to help and deliver buses, as well as the related infrastructure in Warrington, Leicester, Milton Keynes, Kent, Cambridgeshire and Peterborough.

There is also going to be investment into the Transport Decarbonisation Plan, which will receive £6.1 billion to help boost the number of zero emissions vehicles, help to develop greener plans and ships, as well as encouraging more trips by bus, bicycle and foot.

Donald Morrison, SVP People & Places Solutions Europe and Digital Strategies at Jacobs said: “Today’s spending commitment to improve regional transport networks and roads is a significant opportunity to create new sustainable infrastructure. Globally, cities account for 60% of global carbon emissions and 78% of energy use, but the UK can now set an example of the alternative. If we use data to plan how this funding is used, we will design transport systems that encourage individuals to take public transport, use electric vehicles, walk and cycle more. Being ambitious in how we use this funding, we can create healthier places to live as well as contributing to the global reduction in emissions.”

Bob Hide, co-founder and managing director of specialist risk management consultancy, Equib, which specialises in advising on large-scale infrastructure programmes and construction projects, said: “The Chancellor’s significant investment in bolstering regional transport infrastructure underlines the Government’s commitment to its ‘levelling-up’ agenda.

“It’s £21bn spending on the UK’s roads and £46bn on railways will help to level the playing field with the Capital, speeding up journey times between cities and supporting the economy by creating much-needed jobs. However, in order to optimise outcomes for these ambitious projects and ensure that taxpayers’ money is put to best use, it’s vital that effective risk management from the early stages of initiatives remains at the top of the agenda.”

Rebecca Wilkinson, tax partner at accountancy firm, Menzies LLP, said: “These funding announcements are good news for the property and construction sector as they will ensure the continuation of major construction projects. Sadly, there was no mention of any kind of visa changes to aid construction companies with finding much needed labour to combat shortages.”

New business rates reliefs were also announced. Rebecca said: “This is great for the property sector as it helps maintain confidence in the high street and should encourage continued investment in towns.”

The Chancellor’s Budget once again focused on the recovery from the pandemic, along with a focus on the UK leaving the European Union, and showcasing the country as a strong, independent state. Once again, ‘Levelling Up’ was a key theme, showing that there is still light at the end of the long tunnel of a nation who have been stuck in a pandemic for mor than 18 months.

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Planning Early to Avoid Gull Issues Always Pays Off

Netting is the most effective way to protect buildings and structures by denying access to pest birds. It is a physical barrier that provides total exclusion from unwanted birds in a target area. Netting is an investment that offers the long-lasting protection your customers need. Moreover, Capital Expenditure (CAPEX) is a great way to finance a large installation. It is an advantageous way to structure the investment while still allowing businesses to finance growth.

DON’T IGNORE THE RISKS THAT BIRDS WILL BRING TO BUSINESSES

The control of gulls is necessary to prevent the spread of disease, damage to building infrastructure and to preserve public health and safety. Gulls can cause a major stress on a business.

• When gulls colonise a roof area, they damage it by pecking at mastic, putty around windows, surface materials and insulation around ducting.
• The build-up of nesting material, fouling and other associated debris can also block gutters and drains causing leaks and floods of contaminated water into premises.
• These big birds are noisy and can be very aggressive, especially during their nesting and rearing period. Maintenance work to air conditioning units and plant equipment cannot be carried out as the gulls will attack anybody approaching their nests.
• Urban gulls can live up to 20 years and will return to nest on the same building year after year.

ECOLAB, A PARTNER YOU CAN TRUST

Ecolab are the market leaders in bird management and control and have a dedicated team of experts to help you deliver the right solutions for your site. With a decade of experience, Ecolab has a wide range of industry accreditations while the installation teams have all the necessary safety training and certification to safely and competently work from height to deliver high quality work.

SAFE AND EFFICIENT END-TO-END BIRD SOLUTIONS

Our dedicated team of bird control experts will anticipate and take ownership of your bird challenges and provide you with an end-to-end solution so you can concentrate on what you do best.

SAFETY IS ALWAYS AT THE FOREFRONT OF WHAT WE DO

Our team uses a strict safety methodology (RAMS) that ensures we work safely, especially when it includes working at height. In all cases, we carry out a risk assessment, looking at the hazard and risk factors and who could be harmed and how. We also evaluate the risks, record them and continuously monitor and review the situation. This step in our work is crucial to ensure our teams and yours (including employees, contractors and customers) are protected and safe at all times.

A HIGHER STANDARD OF BIRD CONTROL

Our bird control experts will always prioritise aesthetics to ensure installations are discreet and blend into their environment. They will fit a netting solution according to strict and detailed Standard Operating Procedures (SOPs) that will ensure your installation is safe, correctly fitted and tensioned, practical and durable.

Be proactive and protect your site from nuisance birds from the beginning of your project. Find out more about Ecolab’s bird control solutions and get a free site survey.

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ERP Forecasting Help Construction Industry with Supply Chain Disruption

Supply chain and logistics problems were an issue for businesses across the construction industry last year, thanks to disruptions caused by the pandemic combining with Brexit to create a perfect storm. Those supply chain pressures could have been more easily weathered if construction companies had been pre-prepared for them, says Kevin Crowe of OGL Computer. So how exactly can the industry prepare for unforeseen circumstances? One approach is by implementing ERP (Enterprise Resource Planning) and using that system as a forecasting tool.

ERP could have had a significant impact on businesses suffering from issues including price volatility, reduced staffing levels, the shortage and costs of shipping containers, and employees having to work remotely. Many businesses also had to shift much of their business online to continue trading, which is where ERP would have been an advantage.

ERP systems have features that are tailored to driving the effectiveness and efficiency of a business, such as integrating previously disparate business functions. So, under ERP, purchasing, inventory, sales and marketing, finance and even HR are all combined to provide company-wide updates. This increases productivity, efficiency and responsiveness, helping to provide a better customer experience and freeing up local resource.

For construction companies that sell services, products and tools online, ERP also offers the opportunity to input direct pricing from suppliers, which helps minimise the chance of eroded margins, keeping customers up-to-date with price information and avoiding the need to waste any time in continuously contacting suppliers.

ERP systems enable digital transformation to weather supply chain issues

Supply chain problems often stem from inaccurately forecasting sales and stock levels. For construction businesses to remedy any potential supply chain disruptions, transparency and visibility of the entire supply chain is key. Understanding any gaps is where ERP systems can help.

Small and medium sized construction businesses are realising just how transformative ERP systems can be in providing better stock control, customer service and ultimately profitability.

For anyone in the construction industry unsure whether their business would benefit from implementing an ERP system, ask yourself:

• Do you have an increasing workload of day-to-day tasks, including admin, that could be made easier through automation? If your business is drowning in admin tasks and processes, an ERP software system could enable your existing staff to more efficiently carry out those same tasks, in less time.
• Do you have full visibility of your customers’ sales journeys or are you missing sales opportunities? By implementing ERP to manage stock and sales, you could easily absorb new prospect accounts and reach out to a wider set of new customer targets.
• Do you find it hard to keep up with customer demands and expectations? ERP can help you to deliver a personalised service that makes your customers return time and again. Improved customer service can directly influence your good reputation across the construction industry.

Real life: increasing efficiencies and improving customer experience with ERP

In today’s hybrid working environment, smaller teams working from home can use ERP to process the same amount of work as larger teams working in an office. ERP can also improve customers’ experiences.

Joseph Ash Galvanizing, for example, provides customers from large construction companies and fabricators with a wide range of spin galvanizing, shot blasting and powder coating services. They were having challenges with their legacy system, an older physical server infrastructure that was running End of Life operating systems. The company wanted to move to a fully virtualised environment running the latest available operating systems to remain competitive.

OGL Computer Services (OGL) created a bespoke IT solutions package for Joseph Ash Galvanizing that provided a centralised management system enabling its internal IT team to manage the entire server farm from a single console. This improved efficiency, performance and productivity.

Upgrading Joseph Ash Galvanizing’s systems to a web-based ERP solution, hosted on the cloud, gave the company the ability to work at a quicker pace, with secure remote access rather than the need for dedicated servers. Joseph Ash Galvanizing benefited from the simplicity of an off-the-shelf product with the benefits of easy-to-implement customisation, with quick and easy user onboarding.

ERP drivers and barriers

A survey* found that 88 per cent of UK construction and building suppliers agree that a central ERP system gives a company greater visibility and control of stock.

76% of respondents saw benefits from integrating disparate systems into a single ERP software solution, which is used by the likes of Gibbs Tools, Montrose Group and Allfix. 57% of respondents cited the main reason to use a single system, as reducing administration time, followed by 40% citing improved accuracy of information and 37% stating improved efficiencies by removing duplication of work across different departments.

Just under half of the respondents (44%) have concerns about security of their data in the cloud, so are reluctant to move core applications and data to the cloud, while nearly a third (31%) recognise that manual processes are ineffective in managing business operations.

Construction companies considering ERP can mitigate any potential issues when switching over to ERP if they follow these simple steps:

• Review existing business processes to see how they can be redesigned to increase effectiveness
• Choose technology that meets future business strategies, not just present circumstances
• If you are looking to start selling online, make sure that the software has an integrated eCommerce functionality to maximise efficiencies
• Review and clean customer, supplier and product data to increase the chances of a smooth migration
• Provide full training to the main users in each department, so they can help train other staff and take ownership of the process for their department
• Choose a software provider that can support and help your business achieve maximum return on investment. Choosing the right supplier is just as important – if not more so – than the ERP system itself.

Construction businesses are increasingly turning to ERP to optimise processes and boost profits. ERP software consolidates all business-critical data into one system so all users can see exactly what’s going on in real-time. Connecting all areas of your business, ERP technology offers instant access to the information companies need to deliver their construction projects more cost-effectively. By optimising processes from sales orders to stock, finance, pricing and online selling, ERP provides the entire construction industry with full control and visibility to boost profits and future-proof business.

By implementing ERP, businesses are investing in a system that is built to help them increase sales and support growth, offering the tools needed to make improvements, discover new opportunities and ultimately buy better and sell smarter.

* Source: OGL Computer

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Budget 2021: Filing Patents Could Help Businesses Offset Planned Corporation Tax Increases

Innovative firms should reconsider the importance of patents as part of their business model ahead of planned corporation tax increases, which are due to be introduced in about 18 months’ time, according to European intellectual property firm, Withers & Rogers.

The Government has confirmed that HMRC is intending to increase corporation tax from 19% to 25% in April 2023, and further tax hikes are likely to be announced in the forthcoming Budget on 27th October 2021. When combined with rising costs and disruption linked to supply shortages, tax increases present a significant challenge to many industries, which have been adjusting to a post-Brexit economy during the coronavirus pandemic.

The construction sector has been affected by a number of unforeseen market shocks, including labour shortages and a growing skills gap. The ongoing materials shortage has also driven up the cost of construction, forcing some companies to consider passing on the increased costs to customers.

With increased pressure falling on the sector to adapt to meet net zero targets, these shortages have been felt even more keenly, with innovation becoming a necessity to overcome the challenges presented.

Under-claiming tax reliefs such as Patent Box and R&D tax relief, means construction companies could be missing out on savings that offset some of the tax increases coming their way. With competitors potentially having already claimed through these schemes, it is vital for all businesses to reconsider their approach, to ensure they’re getting the most out of the support available.

Greg Stepney, partner and patent attorney at Withers & Rogers, said:  “HMRC launched its Patent Box scheme in 2013, which slashes corporation tax from 19% to 10% on profits from patented technology¹.  What might come as a surprise to some businesses however is that the lower rate of 10% will apply even when the headline rate of corporation tax rate jumps to 25% in April 2023.

“A single qualifying intellectual property right, for example a UK patent, can be used to reduce corporation tax on all worldwide profits relating to sales of a qualifying item. For the rights owner, this can tot up to a considerable reduction in their corporate tax liability.

“It is important to keep in mind that skilfully prepared patents can be granted for incremental advances in technology rather than being restricted to moments of paradigm shift. It is also possible to get the corporation tax relief on profits from a product comprising only one patented part. To illustrate, a patent covering a particular material or process can, under the correct circumstances, be used to reap tax relief on profits generated by the sale of more complex products that use it. There have been examples of patents to a wing mirror, for example, being used to claim tax relief on sales of a car.”

As well as reviewing the role of patent protection as part of their business model, construction companies should also take advantage of R&D tax relief. The total support claimed through R&D schemes has increased by 19% since March 2019, however less than £500 million of the total £7.4 billion of credits claimed was from the construction industry. With corporation tax set to rise, and the sector continuing to face various challenges, companies need to make sure they are making the most of all tax reliefs available.

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Budget 2021: Government Need to Solve Cladding Crisis

Experts at national law firm Irwin Mitchell say the Government still needs a consistent strategy towards how it handles the “cladding crisis” and calls the Chancellor to pledge extra funds in the Budget tomorrow.

The Government has already announced £5 billion will be available to redress the issue so far, but experts predict this figure is needed to be three times that. Already over half of the initial £1 billion cladding remediation fund has been claimed, leading to concerns that funds will not be sufficient.

Jeremy Raj, national head of Residential Property at Irwin Mitchell said: “Government measures, while a step in the right direction, don’t go far enough. It is essential that the Chancellor doesn’t assume that with £5bn from the Treasury for remediation and the Residential Property Developer Tax on the horizon, the cladding and fire safety issue has been dealt with.

If levelling up is about anything, it is about ensuring that homeowners up and down the country are treated fairly and allowed to live safely and securely in their own homes without the fear that they’ll be shouldered with much of the remediation and ‘waking watch’ costs, as they have largely been thus far, that those truly at fault are brought to account, and that funds are made available for remediation in the meantime.

Raj continued, “And just trying to place the burden on the developers is not the answer either. Although some of the bigger players are able to ring fence funds for this purpose, others cannot afford to and many are struggling to pursue claims against suppliers and contractors for using unsafe materials, some of whom are no longer around.”

“I tend to agree with The Law Society president who said the Building Safety Bill will give leaseholders potentially “worthless” new rights in pursuing developers in claims over dangerous cladding remediation. She highlighted that the cut off extension from 6 to 15 years leaves a five-year gap from some of the first uses of unsafe cladding over 20 years ago. She also noted that many developers have ceased trading and leaseholders have no recourse for claims against these companies.”

“Indeed, there has been an easy – but false – assumption that the blame for all of this should be pinned entirely on developers when the root of the problem was massive regulatory failure, dangerous and unsuitable products, long complex and disjointed chains of responsibility and a system that demands the lowest possible prices at every stage. There has also been a total failure of oversight and good estate management for many buildings up and down the country which has little if nothing to do with any current developers operating in the market.”

So, what can be done? Irwin Mitchell has decided to update its ten-point plan for action with a clear roadmap on the action points the Government and residential property sector needs to consider for solving the crisis once and for all, “putting blame aside and finding a way forward.”

“We hope to see the Chancellor go some way to addressing these issues in the Budget tomorrow.”

The ten-point plan for the cladding crisis is as follows:

1. The figures some leaseholders are being asked to pay for remediation works are financially crippling, unrealistic, and unjustified. They must be given up-front government funding, which they shouldn’t have to repay. Where appropriate this should be offset by future clawback from the parties deemed to have been at fault. Such liability must be determined properly through due legal process.
2. Access to government funding for remediation works must be made easier and faster. The fund must be significantly increased to cover all dangerous materials or defects including those discovered during remediation. We propose a minimum of £15bn. It should be available for all dangerous buildings, regardless of height, covering those under 18 m as well as those over,
3. The government should give freeholders a statutory right to install, maintain and charge for new systems that will help make properties safe. This includes whole-building sprinkler systems and fire alarms. We agree that these costs should be paid for by leaseholders. However, installation will reduce the need for Waking Watches and their associated costs, which typically fall on leaseholders. We should also follow the example of the Welsh government who have said they will fund fire safety surveys for all residential buildings over 11m with unsafe cladding.
4. Planning and building regulations must have greater cohesion and work in tandem with digital and regular on the ground oversight. These must be easily reviewed and checked. Regulations should cover safety and not just aesthetics. Online details of all at-risk buildings, relevant defects, safety features and evacuation procedures should be available to all, including potential homebuyers.
5. The privatisation of building control must be questioned. It needs a complete overhaul with clear, integrated lines of responsibility and best use of the technology that’s currently available. Total independence and wide powers to review and intervene where necessary are required.
6. Certification of safe building materials and methods must be similarly and radically overhauled, so that the failings exposed by the Grenfell Tower inquiry can never be repeated. Sub-contractors must not be allowed to substitute materials without rigorous approved procedures. Risk should not be watered down through the contractual chain to the point of no responsibility.
7. Special provision must be made for disabled occupants of high-risk buildings as quickly as possible. This would include easily available relevant information for fire and rescue services and tailored escape plans.
8. We must learn from what others are doing. The Building Information Modelling (BIM) standards that were developed in the UK have been adopted across the world. But other countries, such as Ireland, have a much more rigorous approach to regulation and enforcement. Digitised record keeping and Modern Methods of Construction must continue to be standardised.
9. We need to continue to increase the number of surveyors able to issue EWS1 certificates. The Fire Safety industry needs similar support. Relative costs are minor and well worth investing in. Many are trapped awaiting administrative assistance that’s keeping their lives on hold.
10. We must be able to look back in years to come at the Grenfell Tower disaster as a watershed moment for the industry and its regulators. It should mark the start of a new era for building standards and the safety of people in high-rise properties.

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Sustainability Projects Showcased for COP26

In advance of the COP26 Climate Conference, Glasgow City Council has launched a site for visitors to explore its sustainability projects and green events taking place across the city.

From smart canals to interactive performance venues, the Storymap gives residents and COP26 attendees the ability to create their own personal walking tour of the city and the key sites which are helping the city reach its ambitious goal of net zero carbon by 2030. Many are part of the Sustainable Glasgow partnership, an initiative aiming to encourage Glasgow business to adopt more sustainable practices.

The interactive map is available throughout the city, and divides it into three areas which can be discovered on different days.

Visitors will also be able to explore a diverse range of projects from rapid electric vehicle charging stations, to living roofs on bus stops, to the Sustainable Glasgow Landing, a pop-up venue next to the River Clyde which, during COP26, will pay host to local as well as global organisations.

Accompanied by a bar over the weekends, the Sustainable Glasgow Landing will feature displays and performances to showcase how we can respond to the climate emergency. From vertical farming to robots delivering your crops to active travel solutions, everyone is invited to explore the exhibitions and rest their weary feet after a long day exploring all that the Storymap has to offer.

Councillor Susan Aitken, Leader of Glasgow City Council, said: “This exciting Storymap will allow locals and visitors alike to enjoy all that our city has to offer during COP26.

“The work of the Sustainable Glasgow partnership will play a crucial role in achieving our climate ambitions and I’m delighted to see the Storymap showcasing the variety and depth of the initiatives in development across the whole of Glasgow as we look to reach net zero carbon by 2030.

“We are proud of what we have achieved to date and look to showcase all that is still to come to ensure our ‘Dear Green Place’ is ready to adapt to the climate crisis which remains a global, national and local priority.”

One of the main aims of COP26 is for nations to declare their commitment to net zero if we are to keep the global goal of limiting warming to 1.5°C within reach.

As we continue to recover from the pandemic, Glasgow looks to continue the legacy from its hosting of the climate conference as an exemplar city for Scotland and the UK, making a tangible reality out of the ambition for a green recovery.

Explore the Sustainable Glasgow Storymap and see what you’d like to add to your walking trail: https://bit.ly/3lO0NFt

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Budget 2021: Unleash Potential of Railways

The Railway Industry Association (RIA) has set out ‘six key actions’ for the UK Government in its submission to the Spending Review.

The national trade body for the rail supply chain has highlighted the role which railways can play in driving economic growth, as well as providing clean connectivity throughout the whole of the UK, ahead of the publication of the Spending Review.

The six key actions:

1. Commit to at least an equal level of funding for Control Period 7 (CP7) than that provided in CP6;
2. Spend the remaining £9.4Bn of the enhancements budget by the end of CP6 (March 2024);
3. Deliver previously committed-to major projects, including HS2 in full, Northern Powerhouse Rail, Transpennine Route Upgrade, East West Rail and Midlands Rail Hub;
4. Launch the rolling programme of rail electrification and fleet orders of hydrogen and battery trains promised in the Transport Decarbonisation Plan and the Net Zero Strategy;
5. Fund Network Rail’s Long-term Deployment Plan for digital signalling, support TfL and HS1’s digital signalling investment, and ensure a steady ramping-up of digital signalling work; and
6. Support rail exporters seeking to market products and services overseas and ensure rail is a key part of our plans for global trade opportunities.

The RIA highlights the importance of visibility and certainty of funding for upcoming rail projects to allow businesses to build on skills and capability to deliver value to the taxpayer. It also sets out the concerns within the supply chain over a hiatus in decision-making due to the pandemic, and as the industry undergoes many changes in the transition to Great British Railways (GBR).

The submission comes amid uncertainty over the status of High Speed 2’s Eastern Leg, which is due to be clarified in the Integrated Rail Plan for the Midlands and North – now delayed by a year.

Darren Caplan, Chief Executive of the Railway Industry Association, commented: “Over the last 18 months, the railways have been vital in transporting goods and essential workers around the country and now we are seeing passenger numbers and freight returning. The railways stand ready to help drive the UK’s recovery, by boosting economic growth, supporting skilled jobs and investment in every region of the country, providing clean transport for millions of people and boosting exports around the world.

“However, our members regularly tell us that uncertainty over upcoming projects and a lack of work pipeline visibility add costs and time to projects. For SMEs, this can even result in them going out of business. That is why we are urging the Government not to delay major decisions and to begin long-term investment plans now – we must not let the experience of the last 18 months affect the investment needed to support railway infrastructure and rolling stock decisions over the next 30 years.

“On major schemes, we are simply calling for the Government to deliver what it has promised. This includes building HS2 in full alongside Northern Powerhouse Rail, Transpennine Route Upgrade, East West Rail, the Midlands Rail Hub and others. It should not be ‘either-or’ when it comes to these schemes.

“So, we ask the Government to provide greater certainty to rail businesses to continue to invest in the UK, if it wants the railway industry to help build back better, build back greener, help its levelling-up agenda and boost Global Britain with higher rail exports.

“We now eagerly await the publication of the Spending Review, the Autumn Budget and the Integrated Rail Plan for the Midlands and North.”

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Wavin Leads Change Toward Net Zero

Wavin, a plumbing and drainage manufacturer, has joined the latest cohort of the Construction Leadership Council’s (CLC) net zero carbon programme, part of the CLC’s CO2nstruct Zero initiative.

Wavin’s involvement is being awarded the status of ‘Industry Business Champion’ and brings together industry-leading manufacturers, contractors and consultants who are committed to uniting the sector to meet the Government’s ambitions targets.

By joining the industry-wide programme, Wavin will work with other companies in the sector as well as sharing evidence of its net zero carbon initiatives, in accordance with the CO2nstruct Zero reporting process set by the CLC. Wavin has pledged to reach net zero emissions by 2050 and has also set a clear target to be the industry leader in sustainability by 2025.

Mike Ward, Managing Director at Wavin UK, said: “We think of sustainability as a journey rather than a destination. We are fully committed to that journey, but recognise that it requires investment combined with action, challenge and change. The recent initiatives launched across our UK business are taking us one step closer to net zero carbon, by cultivating better building and logistical performance and helping us all be more environmentally minded.”

A key part of Wavin’s sustainability efforts also comes from ensuring its partners are focused in their efforts to be more eco-minded. To ensure its supply chain is as transparent as possible, Wavin will be ensuring all suppliers follow the ‘Wavin Sustainable Suppliers Procedure’ and are REACH compliant.

Mr Ward added: “It’s vital for us to think about sustainability at every turn, so it’s a natural step for us to also make sure our trusted partners are on the same page when it comes to their own carbon footprint. We are truly in this together as a sector, and by ensuring we have an environmentally focused supply chain, we can achieve industry-wide carbon net zero in line with the targets.”

Significant investment has been made throughout the business alongside strategic supply chain improvements. With renewable energy now powering all four main production sites in the UK, solar panels and LED lighting are about be installed at Wavin’s main Chippenham site to further boost the clean energy drive.

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Green Business Leaders Call for Action

A new report, entitled ‘Beyond Buildings: Why an integrated approach to buildings and infrastructure is essential for climate action and sustainability’, makes a call to action for the built environment industry and policy makers to respond to the climate crisis with both the building and infrastructure sectors acting together.

In Beyond Buildings, the World Green Building Council also presents the interconnection between buildings and infrastructure, arguing that systemic and integrated solutions will unlock improved sustainability outcomes. They will also accelerate the change in trajectory of GHG emissions from the built environment.

Through presenting roles which both the private and public sectors must play in terms of investment, policy and procurement, WorldGBC’s work identifies that a global framework of principles is necessary to accelerate sustainability performance across infrastructure. If we are to succeed in this critical decade, united action across all sub-sectors of the built environment industry is essential as the purpose of much of our built infrastructure is to create and support places for people.

WorldGBC calls for collaboration amongst all actors in the development of a framework of principles. These principles should be adapted and verified at a local level in order to align with the 1.5° emissions trajectory and the United Nations´ Sustainable Development Goals (SDGs), and be applicable to all asset types, to be co-created, agreed, and universally pursued. This report sets us on the path of that journey.

Nigel Topping, UN High Level Climate Champion for COP26, said: “How our towns, cities and countries continue to grow really matters to the global climate crisis. We have to realise that what worked in the built environment and infrastructure sectors in the past will not work in the future.

“The world faces crisis on multiple fronts, which is why we’re putting collaboration in infrastructure and built environment – a sector that contributes 75% of annual global GHG emissions – at the heart of everything we do.

“Only by forging new partnerships and all-party agreements can we overcome the challenges facing our planet and society today.”

Cristina Gamboa, CEO, WorldGBC, commented: “In the lead-up to the Cities, Regions and Built Environment day at COP26, the importance of considering all aspects of the built environment – both the buildings we live in and the infrastructure that supports them – is critical for taking a holistic and systemic approach to climate action and sustainable development. If we’re to build a better, brighter future, the infrastructure sector needs to de-link its growth from emissions by embracing a systemic approach which delivers sustainable built environments for everyone, everywhere.

“The Beyond Buildings report sets out a path forward to support the rapid adoption of best practice sustainability outcomes across the building, construction and infrastructure space. It identifies critical next steps for the deep transformation needed to meet 2030 reduction goals.

“Our green building network, its partners, members and other organisations advancing sustainable infrastructure and buildings are ready to accelerate this massive transition and ensure a zero carbon, resilient, healthy and sustainable future.”

Richard Palmer, Director of Global Sustainability at Integral Group, added: “The built environment is such an important part of addressing both the causes and impacts of climate change. This report highlights the opportunities between buildings and infrastructure to accelerate climate action at the scale and speed demanded by science.”

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How Planning Systems have Changed in 20 Years

Tim Bartlett, Business Systems Analyst at West Northamptonshire Council (a new Unitary previously South Northamptonshire and three other councils), reflects on his first days in the job implementing a new planning system, and how that very same planning system has continuously improved, updated and adapted over the last 20 years so that it’s as fit for the current development management team as it was for the one at the beginning of the journey in 2001.

It’s funny how quickly technology becomes outdated. If you think back to the beginning of the Millennium, pagers were still considered cutting edge, fax machines were still firmly in use – we couldn’t even comprehend some of the devices and software available to us now. It’d be another 7 years before Facebook appeared. As impressive as a lot of new platforms look, I’ve always felt that the best type of software, will always be considered by its core users as simple, useful, reliable, and above all else will stand the test of time with just a few tweaks, changes and a little customisation – think of the Google search engine!

Like many councils, as a result of the local government reorganisation, my team has recently moved into a new unitary.  On April 1st, 2021, Daventry District, Northampton Borough, South Northants and half of the County Council became West Northamptonshire Council.

For our Development Management Team, there have been some challenges – ones that often come with trying to get several councils working to start working as one council. Especially when they use completely different platforms for different functions, such as processing planning applications, monitoring section 106 agreements and dealing with planning enforcement.

This transition and working through these challenges, has made me reflect on my role and why I was brought into South Northamptonshire Council, in the beginning. I joined in 2001 to implement a new modern planning system, replacing a very old, low tech, green screen software.

Luckily South Northamptonshire Council was forward thinking. It knew that it wanted to digitise its planning department and that in order to do this, it needed a piece of reliable software that could help it realise its ambitions. The project would migrate thousands of data items from mapping, scanned documents and old system records to make it much easier to find and create a system that worked well for everyone.

Choosing the right supplier

The Council chose DEF Software just before I joined, largely because the supplier was offering everything a planning software would normally have plus a customised, flexible, bespoke system.

This would give the council all the core functionality to cover the regulations but also the flexibility to add new fields and functions specific to our site to get the very best from the system and assist planners use it better helping them ‘project manage’ each application better so everything was done at the right time to get the right result.

Having worked with other systems before this role, I knew normally a new implementation of software required large amounts of tedious training sessions and operating manuals. Our new supplier offered this straight away and two hours later I was almost fully trained on most of the system and ready to train others in the team. This was the first time I realised that this thoughtfully put together solution was intuitive and easy to use and that software didn’t have to be complex to work well.

The first fully flexible planning system

Back then there was no planning register, you couldn’t quickly look up planning applications in your area. There wasn’t online mapping in the same way there is now and there weren’t forms you could fill out on the website.

A little after the implementation, in 2004, the Peter Pendleton review of online planning,  set out 21 standards relating to various actions and activities being available online through the Council’s website; we also saw the arrival of the Planning Portal and the need to load electronic apps into your planning system. Pendleton brought about a lot of new online functionality to the sector that is now considered essential and basic.

The new software brought with it new proactive suppliers, eager to develop the system and make it more useful to users, and to the public via an online presence. Back then we didn’t know the real potential of online planning.

The early adoption of a real time planning register with linked document management was really very unusual in terms of it being used widely within local government. We had up to minute application status to help keep people informed and avoid the need for the public to contact planning officers for updates in turn allowing them focus on dealing with getting applications processed. Online forms later populated the registers and back office software directly, removing the need to rekey data manually.

The developers consistently tweaked the system to make improvements. These were either directly by them, or as a result of discussion with us and the planners – they were always willing to listen and open to ideas and because of the way they work we didn’t have to wait ages– useful changes were made and delivered within weeks.

Evolution is the key to success

Fast forward 20 years, and this very same ethos of listening to customers, making continuous and timely improvements and keeping things initiative and easy to use is what has seen us through recent challenges.

There has obviously been a lot of evolution of the system since 2001, a huge part of that is down to DEF Software’s user groups and collaborative learning from other local authorities using the MasterGov suite. There is a real open dialogue about how we can all improve our systems and a sense of pride when a steering group of council representatives helps get a new function live.

Now we’ve arrived in the unitary, some of the councils are using the same system, which is helpful as we’re having to share various aspects of our work. One of the councils is sharing the Street Naming and Number module and the Section 106 Monitoring module in the unitary and another is now providing  support to our building regulations team, which was made much easier, due to the fact we could simply grant them access to our building regs system. Having that flexibility with our system has meant we can change a process really quickly if needed.

Planning systems of the future

It’s hard to imagine what planning systems will look like in another 20 years, but when it comes to IT, real change comes from workplace culture and the idea that your supplier will really listen to you when you request changes; Better still, empathise and suggest even better and more useful solutions to your problems.

When new staff come into the council, we actively encourage them to suggest improvements to the system as we know our provider will listen. This is a new experience for some users who have experienced systems and suppliers that weren’t that good – we can confidently say ‘both our supplier and system are really good, and they have been for last 20 years.’

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Budget 2021: Tax Increases Must be Carefully Measured

Any tax increases the Government might be planning in order to recoup some of the money spent dealing with the pandemic must be carefully measured to avoid further shocks for businesses in the property and construction sector as they continue to grapple with challenging trading conditions.

Some reports have suggested that Chancellor Rishi Sunak might be planning to increase the rate of Capital Gains Tax (CGT), possibly as high as 45%. According to property and construction specialists at Menzies LLP, this could stifle entrepreneurial business plans and make it harder for SMEs to invest in job creation and productivity improvements.

Lucy Mangan tax partner at accountancy firm, Menzies LLP, said: “While some tax increases are expected, any decision to increase CGT above 38%, the current rate of tax that applies to share dividends, could have a devastating effect on business activity. Entrepreneurs would no longer have any tax incentive to invest in building up the value of a business in order to realise gains at the point of sale. The flow of investment into entrepreneurial businesses could start to dry up as a result, undermining the fragile economic recovery.”

To avoid further business shocks, Mangan recommends a measured approach. She said:

“Property and construction businesses are currently facing some major challenges due to rising costs and ongoing materials and skills shortages. As demand for housing and construction services continues to increase, further shocks for businesses must be avoided and any tax increases should be phased to minimise any collateral damage for the economy.”

With the 1.25% increase in Employer NICs due to take effect in April 2022 and Corporation Tax set to rise from the current rate of 19%, to 25% in April 2023, it is clear that the tax landscape for property and construction businesses is getting much tougher.

Lucy Mangan adds: “For SMEs in particular, as headline rates of Corporation Tax and Employer NICs start to increase, it becomes even more important to manage inflationary pressures on the cost base carefully, to remain viable.”

The Chancellor should also consider doing more to encourage business investment in innovation by exploring ways to enhance R&D tax relief. With a review currently underway, it is possible that the Chancellor might consider removing the separate schemes that apply to SMEs and larger companies, in favour of a single one, for all businesses.

Rebecca Wilkinson said: “At a time when investment in innovation is a key focus for the Government as the economy rebounds, R&D tax relief has a major role to play in encouraging property and construction businesses of all sizes to invest in technologies, which could give them a competitive edge. Merging the scheme could really help, potentially making it easier to access.

“With COP26 on the horizon, the energy efficiency debate is also continuing in the property and construction sector. The Chancellor should consider introducing incentives that encourage businesses to invest in green capital or providing further funding to support the development of green homes, in line with the Government’s pledge of achieving net zero emissions by 2050.”

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Investigation into Crumbling Stonework in Parliament

Experts have begun an investigation into crumbling stones, cracking ceilings and warping windows in the Houses of Parliament.

More than 50 skilled engineers, architectural surveyors, acoustics and lighting specialists and ecologists have spent a combined 4,700 hours over Parliament’s recent recess period investigating the building and continuing to build the most detailed record of the Palace of Westminster ever created.

Overall, 2,343 rooms and spaces have been examined throughout the summer and conference recesses, with experts noting thousands of issues, including cracks in stonework and widespread water damage, along with analysing the complex network of outdated electrical and mechanical systems. These investigations are an essential step within the restoration and renewal of the Palace of Westminster, with Parliament being invited to approve the detailed restoration plan in 2023.

Baroness Evans of Bowes Park, Leader of the House of Lords, said: “This preparation survey work of the Palace of Westminster is essential to understand the extent and complexity of the programme of works required. In due course it will enable parliamentarians to properly scrutinise the proposed work and ensure value for money.”

Issues were recorded with many of the historical features, including original Victorian stained-glass windows which are warping and sagging due to age. Surveyors also studied the enormous basement and the miles of outdated and interweaving gas, electrics, water, sewage and heating pipes to get up to date records on the problems that need fixing.

The Palace of Westminster is one of the most loved and recognised buildings in the world, but despite a programme of maintenance works, it’s falling apart faster than it can be fixed and is in urgent need of a programme of essential restoration.

Work was also done to understand the provenance of quirky candle and gas light fittings, some of which were discovered to have been turned upside down when converted to electric power over 100 years ago. Further investigation is ongoing but it is thought the Palace may contain the oldest still-in-use gas lighting system in the world. Several remarkable candle chandeliers that survived the great fire of 1834, which destroyed the original palace, were also studied and recorded.

Acoustics experts, considering how to improve audibility within the building, walked 240km, measuring 80 rooms, running 300 individual acoustics tests and taking 2,000 measurements.

Experts in ecology and door specialists from Manchester, window surveyors from Glasgow and architects and engineers from across London, in addition to historical surveyors and specialists from Cambridge, Suffolk and Hampshire, were involved in the building investigations.

Sarah Johnson, CEO of the Houses of Parliament Restoration and Renewal Sponsor Body, said: “The essential programme to restore the deteriorating Palace of Westminster will protect our world-famous Parliament for generations to come. These critical and complex investigations are already informing our detailed restoration plan, which will for the first time set out a true sense of the costs and timescales of the much-needed work.”

David Goldstone, CEO of the Houses of Parliament Restoration and Renewal Delivery Authority, commented: “Our specialist investigators and surveyors are spending tens of thousands of hours building the most detailed record of Parliament ever created as we develop the plan for the essential restoration of one of the world’s most famous buildings.”

The Houses of Parliament Restoration and Renewal project is set to create thousands of new jobs and apprenticeships whilst also boosting both traditional and cutting-edge skills involving craftspeople and businesses from throughout the UK, in a national effort.

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Building an Electric Future – Challenges and Opportunities

Jordan Brompton, co-founder and CMO of myenergi, discusses the government’s recent electric vehicle charging point legislation announcement and explains what this means for both housebuilders and property developers.

In September, Transport Minister Rachel Maclean announced plans for the introduction of new legislation, which will see all new build properties (both homes and offices) fitted with mandatory electric vehicle (EV) charging points. Set to come into force in 2022, the bill will prove a defining moment in our transition to electrification and further expand our rapidly growing national charging infrastructure.

With all devices required to feature ‘smart’ functionality (i.e. capable of communicating with the car about when is best to plug into the grid), consideration has clearly been given to preventing the energy network from being overloaded. If we get it right, the move will help to further boost confidence in EVs for those who are still concerned about range implications and personal access to charging points.

However, with hundreds of different charging options and often few ways to distinguish between them, how can housebuilders and property developers be sure of choosing the right products for their requirements? What’s more, how do we prevent the market from being flooded by opportunist companies and cheap, unsuitable units? Unfortunately, these questions are yet to be answered.

Driving sustainable progress

It’s important to reiterate that this announcement is hugely positive news – a truly defining moment in our national transition to electrification. Indeed, rather than just another headache when buying your next car, charging your EV at home will soon become as easy and routine as turning on your central heating or setting your house alarm.

This said, as with any legislation, it comes with its own set of challenges. Indeed, the home charge market has experienced significant growth in recent years, with numerous brands entering the sector and introducing their innovative new technologies. Some are truly pioneering home charge solutions – others not so.

The resulting challenge for property developers is to be aware of the differences and be able to easily identify the future-proof solutions that will add significant value. After all, the last thing homeowners need is the pressure to swap out a dated and incompatible charging device less than a few years after purchasing their new property.

Personally, I believe that the government should take the guesswork out of its legislation, by publishing impartial guidance surrounding the most suitable products for installation, including their differences, their features and their applicability for both new build and commercial settings. This would help to ensure the smooth implementation and lasting success of the new bill – important for many in the construction market who, understandably, have limited experience with EV charging technologies.

What does ‘good’ look like?

While limiting the bill to ‘smart’ models will go some distance to preventing the installation of unsuitable units (after all, smart technology is far more complex to develop and will dissuade many opportunist companies), it isn’t a fail-safe solution. It’s likely that new housing estates will be fitted with a bulk number or similar devices, so it’s important to ensure that these are well-built, easy to install, safe and future-proof.

As an example, zappi – our next generation eco-smart EV charger, has already proven its suitability and longevity at thousands of properties worldwide. Alongside standard charging modes, it’s the first device on the market capable of harnessing power from renewable energy micro-generation technologies, such as PV panels and small-scale wind turbines.

In result, this means that zappi users have the opportunity to charge for free. What’s more, by using their own self-generated renewable energy, the risk of overloading the grid is effectively eliminated and our customers can boast an impressively low carbon footprint. Smart charging points like zappi therefore offer numerous benefits to house builders and property developers. Indeed, their future-proof characteristics will ensure suitability for years to come – an important requirement for the homeowner or property manager.

Getting it right from the outset

While the planned introduction of legislation regarding mandated EV charging point installation should prove an important catalyst to our smooth national transition to electrification, education and guidance is critical to long-term success. To ensure that the right devices are installed, property developers need a quick and simple way to check that the home charge solutions that they specify are fit-for-purpose and can be used by homeowners for years to come.

As an industry, we need the government to drive this initiative – on an impartial basis. It can’t be left to chance. If we get this right, we’ll be seen as the global leaders in electrification. If we get it wrong, we could damage the trust we’ve built with the general public about the suitability and daily practicality of both driving and charging electric vehicles.

Let’s not take one step forward and two steps backward. We need to get it right from the outset.

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Flood Prevention Yields 20% Cost Saving

A new flood prevention programme in Great Yarmouth built on behalf of Anglian Water is set to use an innovation-led approach to help protect properties. It will deliver over 20% cost savings on traditional approaches and will also minimise distruption.

As a partner in the @one Alliance (the collaboration set up to deliver Anglian Water’s capital investment programme), civil engineering and infrastructure specialist Barhale has been appointed principal contractor to carry out the work at Burgh Road, Gorleston.

However, opposed to undertaking a large-scale works programme, Barhale will bring back several redundant assets into use and will reconfigure the existing network with a small number of specific, smaller-scale interventions. This will produce faster-to-deliver, less expensive solutions with a lower impact on the community.

These works will also mobilise a nearby box culvert including the associated pipework, pipework modifications, chambers, actuated valve, level monitor and telemetry.

Project manager Dan Ledger explained that the programme follows the Anglian Water strategy of seeking innovative, ‘Tech not Tank’ approaches that make the most of current infrastructure, rather than simply defaulting to expensive build programmes to increase overall physical capacity.

“The typical approach in this situation would be to look to build new capacity into the system, which usually entails significant works to install new tanks and sewers,” he said. “That can mean long build programmes and disruption for local communities.”

He continued: “We worked closely with Anglian to find a smarter solution which uses existing, unused headroom within the existing infrastructure to minimise intervention and to protect the vulnerable properties from flooding.”

The programme of works is expected to be completed in mid 2022.

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Plans to Drive Down Cost of Clean Heat

New plans have been announced by the UK Government to lower the cost of clean heating. Low-carbon, more efficient heating systems are set to be no more expensive, and in many cases could end up being cheaper, to buy under the new plans.

Through the Heat and Buildings Strategy, the Government has set out its plans to incentivise people to install low-carbon heating systems in a simple, fair and cheap way as they start to replace their old boilers over the next decade. This will also significantly reduce the UK’s dependency on fossil fuels and exposure to global price spikes while also supporting around 240,000 new jobs by 2035.

New grants of £5k will be available from April 2022 to help encourage homeowners to install more efficient, low-carbon heating systems, such as heat pumps, through a new £450 million three-year Boiler Upgrade Scheme. These new grants mean people who choose to install a heat pump will pay a similar amount as if they were installing a traditional gas boiler.

The Boiler Upgrade Scheme is part of more than £3.9 billion of new funding being announced by the Government for decarbonising heat and buildings. This will fund the next three years of investment through the Social Housing Decarbonisation Fund, the Home Upgrade Grant scheme, the Boiler Upgrade Scheme and the Heat Networks Transformation Programme and reducing carbon emissions from public buildings through the Public Sector Decarbonisation Scheme.

Prime Minister Boris Johnson said: “As we clean up the way we heat our homes over the next decade, we are backing our brilliant innovators to make clean technology like heat pumps as cheap to buy and run as gas boilers – supporting thousands of green jobs.

“Our new grants will help homeowners make the switch sooner, without costing them extra, so that going green is the better choice when their boiler needs an upgrade.”

Government and industry will also work together to help meet the aim of heat pumps costing the same to buy and run as fossil fuel boilers by 2030, with big cost reductions of between a quarter and a half by 2025 expected as the market expands and technology develops.

This will support the Government’s new target for all new heating systems installed in UK homes by 2035 to be either using low-carbon technologies, such as electric heat pumps, or supporting new technologies like hydrogen-ready boilers, where we are confident we can supply clean, green fuel.

No-one will be forced to remove their existing fossil fuel boilers, with the transition over the next 14 years seeing the UK’s households gradually move away from fossil fuel boilers in an affordable, practical and fair way, enabling homeowners to easily make these green choices when the time comes to replace their old boiler.

Active Building Centre CEO Ron Cowley commented: “We welcome the Government’s support for investment in homes and help to equip buildings with energy-saving heat pumps. Reducing the amount of energy we need to keep our homes warm is a vital step in our efforts to reach the UK’s target of net zero by 2050.

“All homes would benefit from needing less energy, but by using renewable energy to heat them we can drive down the harmful carbon emissions and pollution produced by burning gas.

“Forty per cent of emissions come from buildings, and they need a wholesale upgrade with higher standards for newbuilds and better insulation for existing housing.

“The Active Building Centre’s team is working hard to develop the technology and expertise to help make these changes cheaper and easier, and to ensure the vital challenge of decarbonising our housing can be met across the country.”

In response to the Government’s Net Zero Strategy, David Wright, Chief Engineer at National Grid, said: “In the lead-up to COP26, the UK has certainly raised the bar on ambition to tackle climate change – and we now need to see what this means in practice. Today’s strategy builds on the Ten Point Plan, the energy white paper and a number of strategies that have been published in recent months, outlining what is needed to deliver a net zero future.

“Now the focus needs to be on implementation and investment in infrastructure and technologies. We’re at a critical stage in the journey where net zero is possible with the technologies and opportunities we have today and, in order to deliver on this, we have to accelerate and ramp up efforts to deploy long-term solutions at scale.”

Commenting on the announcement, Mike Foster, CEO of the Energy and Utilities Alliance, cautioned: “The grant hardly sets the world alight and is insufficient to the scale of the challenge we face in terms of reaching net zero.

“It subsidises 30,000 heat pumps being installed each year and is well short of the support needed to get to 600,000 heat pumps installed each year by 2028. My suspicion is that the Chancellor is putting the brakes on the Prime Minister’s flight of green fantasy.

“I suspect hydrogen-ready boiler installations will be far greater than that number by 2028, suggesting that consumers have made their choice. But that choice, between heat pumps or hydrogen-ready boilers, is one they should have.

Mr Foster also expressed concern with the plight of those in fuel poverty. “For the 4.5 million households currently in fuel poverty, faced with rocketing bills and cuts to their universal credit, they must wonder what they have done wrong.

“The £5k grant only pays half the cost of a heat pump, so those in fuel poverty will see no warmth from the Government’s generosity; instead, it is a middle-class bung for people who were probably going to fit a heat pump anyway.

“For the same amount of money, £150 million a year, half a million homes could have loft insulation fitted, saving each household £135 a year, and removing 290,000 tonnes of carbon emissions each year. Instead, removing 45,000 gas boilers, replacing them with the subsidised heat pumps, will remove only 71,000 tonnes of carbon each year. This is hardly the COP figure the Prime Minister wants to read.”

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Sustainable Material Trailed at Manchester’s Mayfield

Manchester’s Mayfield regeneration made history last week when the location used a pioneering piece of structural engineering, a new low-emissions concrete which has the potential to transform the global construction sector.

Concretene uses graphene to significantly improve the mechanical performance of concrete, allowing for reductions in the amount of material used and the need for steel reinforcement. This can in turn reduce CO₂ emissions by around 30% and can also drive down costs, meaning Concretene is both greener and cheaper for developers.

It will be used at Mayfield to create a new 54×14 metre mezzanine floor; this will become a roller disco at the hugely popular Escape the Freight Island attraction within Depot Mayfield.

This is the first time Concretene has been used commercially in a suspended slab, and also marks a huge step toward testing and developing it as a widely used building material, which allows it to be used as a substitute for concrete on an industrial scale.

This innovative material has been developed by the University of Manchester’s Graphene Engineering Innovation Centre (GEIC) and Nationwide Engineering.

Alex McDermott, co-founder of Nationwide Engineering, said: “Today is a huge milestone for the team, as not only is this our first commercial use of Concretene, but also the first suspended slab as used in high-rise developments.

“As world leaders in Graphene Enhanced Concrete technology, the interest from the international building industry has been beyond expectations, as looming legislation is forcing significant carbon reductions throughout construction.”

Nationwide Engineering co-founder Rob Hibberd added: “Our partnership with the University has fast-tracked the development of Concretene, going from lab to product in 18 months.”

Concretene has huge potential to address the construction industry’s need to lower emissions, by reducing the amount of concrete required in construction projects by as much as 30%. It also offers efficiency savings by slashing drying time from 28 days to just 12 hours.

James Baker, CEO of Graphene@Manchester at Manchester University, commented: “We’re delighted to play a part in this exciting project at Mayfield, showcasing how our research can translate into real-world outcomes for sustainability that can be adopted by business and make a major contribution to the city region’s ambitions for net zero by 2038.

“This Manchester-based technology can also contribute to levelling up by positioning our region as a global R&D centre for sustainable materials for the construction industry – attracting investment, creating new businesses and offering high-wage jobs.”

Production of cement for concrete is one of the leading causes of global CO₂ emissions, producing around 8% of total global emissions.

Amid ever-increasing global industrialisation, concrete is the most widely used substance on Earth after water. Its environmental impact is high, however; for every 1 tonne of cement, 1.25 tonnes of CO₂ is produced. In context, global CO₂ from cement production fills a space the size of London’s O2 Arena every 23 seconds.

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