CTI Blog

CTI Blog - Positive steps forward on apprenticeships and housing in Autumn Budget 2018

This blog post is by Helen Hewitt, CTI Director and CEO fo British Woodworking Federation (BWF)

 

On 29th October 2018, the Chancellor Philip Hammond delivered his Autumn 2018 Budget, the last before Brexit. We were pleased to see some positive measures which will help smaller businesses offer apprenticeships. The £695m initiative to reduce the cost of apprenticeship training for small businesses will halve the amount they have to contribute from 10% to 5%. UK’s SMEs are pivotal to the success of the apprenticeship scheme and this should go some way to resolving the growing skills gap in our sector and to help boost productivity.

Delivering a solution to end the UK’s housing crisis has long been on the political agenda and so we welcomed the Chancellor’s promise of a further £500m for the housing infrastructure fund to help build a further 650,000 homes. In addition, he pointed to strategic partnerships with 9 housing associations to “deliver 13,000 homes across England, up to £1bn pounds of British business bank guarantees, to support the revival of SME house builders.” On the surface, tapping into the potential of SME house builders to increase housing stock is a smart move. However, as we pointed out following the Spring statement, a successful housing strategy is not just about increasing supply. The fund now stands at £5.5bn, yet there was still no mention of an allocation to ensure that essential fire safety works required in existing social houses are paid for. So, the question still remains as to who will foot the bill.  

In more good news for house building, the importance of investing in our high streets with a £675 million Future High Streets Fund to allow councils to rejuvenate town centres could lead to benefits for members. With the Federation of Master Builders estimating last year that as many as 300,000 to 400,000 new homes alone could be created by making use of empty spaces above shops on our high streets, the Future High Streets Fund could be a further boost for residential accommodation.

The Chancellor pledged to publish a full response into the review of build out rates by Sir Oliver Letwin which concluded that large housebuilders are not engaged in ‘systematic speculative land banking.’ We welcome any move to reduce bureaucracy in the planning system and look forward to the Governments response to the recommendations.

The collapse of Carillion left many wondering what the impact on subcontractors would be and called for a review of public sector construction contracts. Some clarity came on Monday when it was announced that public private partnerships will soon be no more with PFI and PF2 contracts abolished. Existing contracts under the PFI and PF2 system will be honoured but no new ones will be signed and a “centre of excellence” will be set up to manage the remaining contracts, worth approximately £200bn. However, more clarity is still required around how a new model will work to ensure that the infrastructure this country requires continues to be built.

 

[News URL: http://cti-timber.org/content/cti-blog-positive-steps-forward-apprenticeships-and-housing-autumn-budget-2018]

CTI Blog - Offsite timber construction has a major role to play in tackling UK Housing Crisis

This blog post is by Andrew Carpenter, Chief Executive of the Structural Timber Association (STA) and Member of the CTI Board of Directors.

 

Through discussion, debate and demonstration, the Government appears to have made the connection between construction and manufacturing and we have foreseen great potentialities within the ‘Industrial Strategy’ for offsite construction to play a significant part in delivering more homes to meet the shortfall in housing stock.

The Confederation of Timber Industries and the STA firmly believe that offsite timber construction is a great opportunity to reach the specified target of one million homes by 2020. With four out of five new homes in Scotland built using structural timber together with much of the housing volume in Canada, the US and Europe – we know that offsite timber solutions deliver.

In the main it will address many Government concerns associated with public procurement of housing including speed of build, environmental impact, lifetime energy efficiency and cost performance. These factors are not only of benefit to Government plans but to the wider construction industry. Cost savings, speed of build, faster return on capital outlay, reduction in waste, improved health and safety - are just some of the benefits of offsite timber construction. Add to this the unrivalled capacity and availability of materials within a robust supply chain combined with a sector that is quick to respond and it’s a clear choice.

Innovation in the structural timber product range has broadened the appeal, driven by intelligent and integrated construction solutions. We can demonstrate how easy, practical and efficiently projects can be completed, having a direct impact on transforming communities, while conveying the dynamic and fast-moving pace of the sector and the excitement that can be engendered when delivering innovative construction methods. 

UK manufacturers of structural timber components have a major role to play. We are geared for capacity, have the skills and materials to respond quickly and the experience to create a world-class offsite manufacturing sector in the UK. Current capacity is typically run on a single day shift only, making increases in output by multi-shifting relatively easy to do. Assuming full year outputs the sector can deliver around 150,000 units in 2020/2021, up from around 80,000 in 2017/2018.

I’ve never known such unified agreement that offsite construction is the solution - there is acceptance at pretty much every Government level, national, regional and local, that offsite is what is needed. The time is right for the construction industry to embrace innovative offsite timber technology and develop better buildings at a rapid rate to meet Government targets, to overcome the shortfall in housing stock, while delivering energy efficient buildings in a cost-effective quality manner.

 

[News URL: http://cti-timber.org/content/cti-blog-offsite-timber-construction-has-major-role-play]