August 2019 | Broadsword Group

Recession fears as EU workers leave the UK

August 28, 2019/0 Comments/in News /by joannevickers

There are clear signs that the construction sector is bracing itself for a downturn.

According to the Federation of Master Builders (FMB), an independent, non-profit trade association that represents 8,000 small- to medium-sized building firms, companies are already reducing their headcount of direct employees in favour of subcontractors who are easily removed if the work dries up.

The FMB’s most recent State of Trade survey showed that employment among construction SMEs had dropped for the first time in more than five years.

“Their thinking is that if the worst happens and a recession hits later this year, they need the size of their workforce to be flexible in order for their firm to survive,” said Arthur McArdle, the FMB’s national president. “However, this strategy is not without risk, as if construction bosses are employing more subbies, they might not always be certain of their quality. Rebalancing the workforce may seem like a good idea at the time, but it could lead to reputation-damaging mistakes.”

Another body, the Home Builders Federation (HBF). meanwhile. said however that delays in the planning process and a lack of available land were of more concern at the moment to its members, who account for 80% of all new homes built in England and Wales.

Buyer confidence was cited in March as a major constraint by only 7% of members of the Home Builders Federation (HBF), well down on the 48% who said it was a challenge of a similar scale at the end of last year.

Stockpiling, which has been taking place in other sectors ahead of Brexit, is meanwhile less of an indicator in the building trade. Smaller and medium-sized companies do not have the necessary storage space in the first instance. When shortages have occurred, such as problems in relation to bricks last year, they have been rectified relatively quickly.

Results from a survey of over 10,500 construction workers carried out by recruiter Randstad has revealed that one in three EU nationals have considered leaving the UK because of the Brexit referendum.

The truth is that it’s the potential drop in construction projects, subsequent funding, and availability of jobs that’s the biggest driving force influencing the 39% who are expressing concern. This is followed by uncertainty over trade deals with the EU (19%), new findings suggest.

A no-deal Brexit raises the prospect of delays and cost increases, as employers face difficulties to get vital EU workers to UK building sites, threatening timing of projects. With 7% of construction workers in the UK and over a quarter of London’s construction workforce coming from other EU countries (ONS), plus the £10bn (15%) of building materials coming from the EU, it’s clear that action needs to be taken. The good news is that there is still time to make a difference and retain highly-skilled workers.

As the country gets closer to withdrawing from the EU, it is becoming clearer that employers and employees are sceptical of what the industry will look like later this year in terms of workforce and materials supply. Of all of those surveyed, one fifth admitted that they have considered leaving the country amid Brexit uncertainties.

Source: The Guardian / Showhouse.co.uk

New Septic Tank Regulations in England & Wales deadline approaching

August 21, 2019/0 Comments/in Home Page news feed, News /by joannevickers

From January 1, 2020, the new septic tank regulations will be in place for England and Wales.

All septic tank types that discharge to surface water will require either upgrading or replacement with a sewage treatment plant.

Under the new code of practice by the Environment Agency, homeowners are responsible for the installation and required maintenance of the sewage treatment system on their property, and to limit its impact on the local environment.

Septic tanks can no longer discharge directly into a watercourse must upgrade their sewage treatment system by January 1, 2020, or sooner if the property is going up for sale before this deadline. The tank will also require replacement if the Environmental Agency (EA) finds that it is causing pollution.

In accordance with these regulations, a septic tank or wastewater treatment plant has to meet British Standards BS EN 12566, while any drainage field is required to meet BS EN 6297:2007 standards. The new rules aim to reduce the level of pollution present in national waterways by better controlling and regulating discharge requirements to a watercourse.

The goal is to significantly reduce the level of pollution currently present in national waterways through better control and regulation of discharge requirements to a watercourse. This upgrade to your sewage treatment system must be in place by January 1, 2020, or when you sell the property (if selling before this date).

If buying or selling a property before the 2020 deadline, you are legally required to inform any potential buyers in writing if the property has a septic tank as well as provide all information regarding maintenance requirements and the location of the system.

The Environmental Agency will carry out inspections to enforce the adoption of the new rules. If found to be currently polluting surface water due to discharge from a septic tank, you will be required to install a new system before the deadline.

Any system installed before 1983, prior and the establishment of current standards will most likely need replacement. An existing unit requires the following to be compliant;

CE certificate
Compliance with BS standards
Unit and soakaway system to have been installed correctly
Regular maintenance and emptying

For additional information about the 2020 changes to the septic tank regulations, visit tricel.co.uk/septic-tank-regulations-2020

Source: The Loadstar / Tricel.co.uk

How will the October VAT change affect the construction industry?

August 14, 2019/0 Comments/in News /by joannevickers

Construction workers are calling upon chancellor Sajid Javid to delay VAT changes which many say will cripple firms’ cashflows this autumn.

In June, the government published guidance about the so-called reverse charge on the way VAT is collected in the building and construction industry.

It comes into effect on 1 October and will see the customer receiving the services having to pay the VAT due to HMRC instead of paying the supplier – meaning companies will no longer receive their 20% VAT payment when they submit their bills.

HMRC said it has introduced the change to crack down on companies charging and collecting VAT payments before disappearing and owing the taxman.

But critics say the new rules will hit firms’ cashflows and push many into the red as they struggle to keep up with payments to HMRC.

Last week 15 trade bodies, including the Federation of Master Builders, the Federation of Small Businesses and the Civil Engineering Contractors Association (CECA), wrote to Javid asking him to push back the changes by at least six months.

The British Constructional Steelwork Association said firms with a turnover of £15m could be hit with a negative cashflow of £262,500 by month three of the charge.

“This could be the end for many subcontractors who are already experiencing late payment, difficulties in agreeing final payment amounts,” said the group’s director-general Sarah McCann-Bartlett.

CECA chief executive Alasdair Reisner said: “Civil engineering contractors are extremely worried about the impact of the forthcoming new rules on their immediate cashflow and the impact that this will have on business sustainability. Small contractors do not have the resources to manage the immediate impact of the legislation change.”

In its June guidance, HMRC admitted: “HMRC understands that implementing the reverse charge may cause some difficulties.”

But it told firms: “[We] will apply a light touch in dealing with any errors made in the first six months of the new legislation, as long as you are trying to comply with the new legislation and have acted in good faith.”

For information on the changes and what you need to know, please click here

Source: building.co.uk

Government needs to spend around £146bn over the next 10 years to deliver the homes the UK needs

August 7, 2019/0 Comments/in Home Page news feed /by joannevickers

It is a huge sum, but says head of Policy James Prestwich, social housing is a crucial infrastructure and investing in it will benefit the wider economy.

This year, we mark the centenary of a landmark piece of legislation, which has fundamentally shaped the housing system in this country – perhaps more than any other. The end of the First World War created huge demand for affordable homes across the country, which led to the passage of the Housing & Planning Act of 1919. Now better known as the Addison Act – after Dr Christopher Addison, the then-minister of health and the bill’s author – it set in motion the whole system of social housing we know today.

It made housing a public responsibility for the first time, establishing the principle that the government must ensure there are enough decent, affordable homes to go around. It’s a noble vision, and it’s vital that we don’t lose sight of it.

Now, 100 years on, what does our housing system – especially social housing – look like? For many of us, the cracks are clear to see: rough sleeping is up 165% on 2010 levels, while temporary accommodation is full to bursting. The amount of social housing has fallen, leaving expensive and insecure private renting as the only real alternative for millions of people. This is having dire consequences – 1.3m children are now growing up in poverty in the private rented sector.

Why has this happened, a century on from a landmark law that made the government responsible for ensuring everyone had a decent home? The answer is that, for decades, successive governments of all parties have failed to invest enough in affordable housing. In 1953, the government spent £11.3bn in today’s prices on building new social housing – by last year, this figure had fallen to just £1.27bn.

Ultimately, this is a problem that has been caused by lack of investment. It means that the solution lies in renewed investment, targeted to deliver the social housing the country desperately needs.

Now, for the first time, we can put a price on how much money is required. Over the next 10 years, the government should invest £146bn in building social housing. Per year, this works out at an average of around £12.8bn, in today’s prices.

Of course, this feels like a vast sum of money – and it is. The housing crisis is deeply entrenched, and can’t be solved easily. It will take political will and a significant long-term investment to finally bring it to an end.

However, it’s important to put this figure in perspective. The government already spends about £10bn every year just on roads. The logic is simple: they’re a vital part of our infrastructure and we need a functioning road system to keep the country moving, so the government invests in it. That same logic should also apply to housing.

As well as providing the social homes the country desperately needs, this investment would have wider benefits for everyone. By spending £12.8bn each year, the government could create an economic boom. It would add £120bn to the economy annually, supporting businesses and new jobs, and helping to boost the economy.

Meanwhile, this investment would also save the government money. By building new social housing, more and more people could move out of expensive temporary accommodation or privately rented homes, and into social housing where they can afford the rent and put down roots. This would, in turn, bring down the colossal housing benefit bill, which reached the dizzying heights of £22.3bn last year.

Of course, spending this money won’t fix the problem overnight – the housing crisis requires a long-term perspective and long-term certainty. This would allow the funding to be ramped up, with less money in initial years of the programme as new jobs are created. Then, when additional capacity is in place, more money can be spent in later years.

What’s important is that the government invests the desperately needed money that is required to end the housing crisis. Underfunding is the biggest cause of this crisis, so it must be part of the solution. For the first time, we know exactly what it will take to end this economic, social and human catastrophe. We can also reap the economic rewards of this spending programme, creating new jobs and supporting businesses across the country.

Now that we know what needs to be done, it’s up to the government to take the lead and make it happen.

Source: PBC today