27th March 2014
Budget boost for construction industry
This year’s Budget wasn’t just about bingo and booze. Savers and pensioners are set to benefit from the chancellor’s latest Budget announcements, but so is the construction industry. What does the 2014 Budget mean for the UK construction industry?
First, the government announced that the Help to Buy scheme would be extended until 2020. This is great news for housebuilders, particularly in areas of high housing demand such as the Southeast. The chancellor also confirmed a new £150 million fund to lead to the creation of vast new housing developments. Hundreds of millions of pounds will be spent on new infrastructure and flood defence projects, providing tens of thousands of new contract opportunities for construction companies.
A £500 million Builders’ Finance Fund will provide loans to smaller construction companies that have been struggling to complete projects because they haven’t been able to secure funding from the banks. A Planning Court is due to be established with the aim of tackling planning disputes arising during large developments.
In addition, the doubling of the investment allowance will mean that many businesses will be able to expand or build entirely new premises without paying any tax on the investment. This will further increase demand for construction contractors.
As predicted, most of the help for the housebuilding market will be felt in the Southeast, as that’s where the demand lies. The benefits of the Help to Buy extension and investment allowance increase should be felt across the UK.
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