by Iain McIlwee | 23 Jun, 2020 | Main News Feed
The Prime Minister Boris Johnson has today announced that (in England) the two-metre social distancing rule will be replaced with “one-metre plus” guidance from the 4th July. In another step towards “normality”, the “one-metre plus” approach will mean that people can be one metre away from each other as long as other measures are put in place to limit the transmission of the virus, such as “wearing face coverings, installing screens and facing away from other people”. Mr Johnson reiterated in his speech to the house that people should still say two metres apart from others where possible.
In his speech Mr Johnson advised the House that Government have now ordered over 2.2 billion items of protective equipment from UK based manufacturers, many of whose production lines have been called into being to serve this new demand. He also announced that new guidance will be published on how businesses can reduce the risk by taking certain steps to protect workers and customers. “These include, for instance, avoiding face-to-face seating by changing office layouts, reducing the number of people in enclosed spaces, improving ventilation, using protective screens and face coverings, closing non-essential social spaces, providing hand sanitiser and changing shift patterns so that staff work in set teams. And of course, we already mandate face coverings on public transport. Whilst the experts cannot give a precise assessment of how much the risk is reduced, they judge these mitigations would make “1 metre plus” broadly equivalent to the risk at 2 metres if those mitigations are fully implemented.”
The Prime Minister reflected on the importance of this announcement to the hospitality sector and plans to re-open large sections on the 4th July stating – “I know this rule effectively makes life impossible for large parts of our economy, even without other restrictions. For example, it prevents all but a fraction of our hospitality industry from operating.” He has committed to publishing findings of the expert review in the Commons Library this week.
Responding to the announcement FIS CEO Iain McIlwee said: “This measure is less targeted at construction and more at the fact that From July 4, the hospitality sector will start to re-open. That said, we now need to review our own guidance – with only 12% of our members able to operate profitably under the existing Site Operating Procedures, this announcement could have a huge impact on productivity and be a vital lifeline. I think it is important to echo what the Prime Minister said in his speech – where it is possible to keep 2 metres apart people should. The sector has reacted well to adapting processes to enable maintaining safe working distances, and not withstanding productivity, we also know that behaviours are one of our biggest challenges. We need to continue re-enforcing the importance of safe working distances – evidence tells us that the risk will increase the closer we get and we need to continue to do all we can to protect our people and prevent any transmission of the virus”.
In the speech the Prime Minister also reminded that the administrations in Scotland, Wales and Northern Ireland hold responsibility for their own lockdown restrictions and they will respond to the united view of the Chief Medical Officers at their own pace, based on their own judgement.
Responding to the statement the Construction Leadership Council commented:
“The Government is reviewing its ‘Safer Working’ guidance in light of this. Consequently, the Construction Leadership Council (CLC) will review its own guidance (including the Site & Branch Operating Procedures) and update it to reflect the new requirements.”
You can read the full speech here.
Details of current H&S Guidance including PPE from FIS is available in our H&S COVID Toolkit Here including detailed guidance on PPE and our Task Assessment Tool.
by Iain McIlwee | 18 Jun, 2020 | Main News Feed
A £230 million Return to Work package has been unveiled to help stimulate Scotland’s economy following the coronavirus (COVID-19) pandemic.
The initiative covers construction, low carbon projects, digitisation and business support and will provide a flow of work for businesses and support jobs. It is funded by the reallocation of underspends from schemes interrupted by COVID-19.
New projects featured in the package include:
- £51 million for business support, including boosting high growth companies
- £78 million for construction, including £40 million for regeneration projects and £20 million for roads maintenance
- £66 million to kick-start our green recovery, including £7 million to equip buses for physical distancing and the return to work
- £35.5 million for digitisation, including justice and education services
Finance Secretary Kate Forbes announced the package today as she opened a Scottish Parliament debate on the financial implications of COVID-19. She also sought Parliament’s support for the Scottish Government’s call to be granted additional financial powers to manage the crisis.
Ms Forbes said:
“The impact of COVID-19 has been enormous on both businesses and individuals and the Scottish Government has so far spent more than £4 billion tackling its effects.
“We are also taking steps to accelerate our economic recovery and this package ensures that we can make immediate use of money which, because of the pandemic, might otherwise not have been spent this year.
“I do not underestimate the challenges we face but I also see opportunities. It is important we take this chance to reshape our economy in a way that works for everyone and promotes long-term growth, not just quick fixes.
“This £230 million delivers investment across Scotland and will boost the green recovery, speed up digitisation and bolster construction, supporting hundreds of jobs.
“The Return to Work package is part of a process to harness Scotland’s talent and resources and build a modern economy that is robust, fair and sustainable. But it is only a start. Larger programmes will follow and I will continue pressing the UK Government both for new financial powers and greater certainty over funding.
“These additional powers are now absolutely essential – without them Scotland will be planning for recovery with one hand tied behind our back.”
by Iain McIlwee | 18 Jun, 2020 | Main News Feed
In Scotland today the First Minister has confirmed a gradual introduction of Phase 2 of the National route map for easing COVID-19 restrictions, which means the Construction Sector can move to Phase 3 of the Construction Restart Model from Monday 22nd June.
Phase 3: Steady state operation (where physical distancing can be maintained)
In this phase, the site complement will have reached a steady state level and, depending upon the site parameters, evidence suggest that this could mean that only 30% to 40% of the original workforce are able to be accommodated, due to physical distancing criteria.
As in Phase 1, due to the shortage of medical style PPE supply, only work that can be carried out within physical distancing parameters or with physical barriers will be carried out. Progress throughout Phase 3 will be subject to monitoring and supervision by site management, with any data/evidence gathered (such as site Covid-19 related absences) being used to inform continual review of management practices and arrangements to ensure safe working and physical distancing.
In a subsequent briefing from The Minister for Local Government, Housing and Planning, Kevin Stewart, to members of the CICV Forum (attended by FIS CEO, Iain McIlwee), the Minister expressed his gratitude to the construction sector for their patience and support in providing evidence to support this transition. He emphasised that the plan was centred on small steps taken slowly and carefully – it does not mean a return to normal and that strict adherence to the 2m working rule is essential. He applauded the level of collaboration in the sector, which he recognised was unprecedented. The Minister also highlighted the opportunity to benefit from the £230 million Return to Work Package, launched this week, £78 million of which has been earmarked for construction. He concluded his update by emphasising the importance of the construction sector to the Scottish economy and to ensure that if any difficulties are occurring in the way Public Bodies are managing contracts and not meeting the requirements of CPN 4: Managing Disputes and Cashflow then this should be reported to officials.
Full details of the phased plan are available here.
It has also been confirmed that face coverings will become mandatory on public transport from Monday 22 June. Further details can be found here.
by Iain McIlwee | 17 Jun, 2020 | Main News Feed
Retaining Talent in Construction reveals an anticipated reduction of 9.9% in the construction workforce by September. In the longer term, 43% of respondents expect to make redundancies, with up to 20% of their workforce being affected. 6.7% of apprentices are likely to lose their jobs by September, and 60% of respondents are looking to take on fewer apprentices at the next intake.
The cross-industry ‘People Survey’ was carried out by Build UK on behalf of the Construction Leadership Council (CLC) at the start of June 2020 to provide a snapshot of how a reduced workload post coronavirus (COVID-19) may affect the construction workforce.
In the wake of recent cuts announced by Travis Perkins, the report reinforces the need to look to targeted support for construction businesses, stimulus for construction works and a supply chain focus on extending the benefit of pipeline through to all employers in the supply chain, through earlier engagement and better planning.
Speaking on the launch of the report FIS CEO, Iain McIlwee commented: “The numbers give us a feel for what the future could look like if key issues related to support for apprentices, encouragement to retain, incentives to build and better planning of the pipeline aren’t addressed. We talk about the new normal, but numbers like this are a stark reminder of how tough it will be for many if swift action is not taken to support the industry. Just to put it in to context, 20% of the construction workforce is around a quarter of a million people! We need to look to Government for stimulus, but better and earlier planning and procurement is in our hands – as well as improving confidence and preventing decisions based on short term survival, it will also lead to better quality and support much needed investment in automation, digital and off-site solutions”.
You can read the full report Retaining Talent in Construction here
by Iain McIlwee | 16 Jun, 2020 | Main News Feed
The procurement pipeline includes over 340 procurement contracts across 269 projects, programmes and other investments. It also sets out a projection of infrastructure procurement over the next year of up to £37 billion.
The procurement pipeline is made up of work packages, projects and programmes that are planned to go out to market for procurement throughout the 2020/21 financial year. rojects where contracts have already been awarded or where funding has already been drawn down will not be included in the procurement pipeline. Projects in the early stages of development are also not included in the procurement pipeline for 2020/21.
The Pipeline aims to provide confidence and certainty to the market during the COVID-19 pandemic – and as such is a key part of the CLC’s ‘Road to Recovery’ .
Andy Mitchell, Co-Chair of the CLC said:
“The Construction Sector is facing an unprecedented challenge as a result of COVID-19. As the largest single client of economic and social infrastructure, a strong and clear pipeline of work from Government is vital to generating confidence and certainty.
I am therefore delighted that the Government has today responded to one of the proposals in the CLC Industry Recovery Plan and look forward to working with Government to deliver these projects over the months and years to come”.
Projects Relevent to the Finishes and Interiors Sector
Within the IPA there are a little over £1.4 billion investment in schools, £2.2 bn new Housing & Regeneration Projects, £1.2 bn investment in prisons and over £100m on cultural and heritage works. The department of Works and Pensions is responsible for £115m of fit-out work across the UK. The full list of projects is available here.
Iain McIlwee, CEO of the FIS responded. “Pipeline and confidence are key to a swift recovery in construction. For me though the benefit of publishing this is limited if it is not matched with a procurement drive that supports early supply chain engagement. We have to remember that the bulk of jobs are in the specialist fields and we need to extend this foresight into the supply chain to support real investment in skills and process improvement. Earlier engagement has the added benefit of ensuring specialist knowledge is available to iron out any design wrinkles and practical issues are addressed in planning rather than on site. Whilst more complex, it we need to try to find a similar process to monitor larger private investments and housing to ensure construction is optimised and ready to meet demand”.
You can view the National Infrastructure and Construction Procurement Pipeline 2020/21 here
For private sector pipeline, you can track projects, FIS works with Barbour ABI who publish a monthly report of key regional contract awards, members can download this report here.
by Iain McIlwee | 13 Jun, 2020 | Main News Feed
The Government has updated its guidance on the Coronavirus Job Retention Scheme, which confirms how the scheme will change from 1 July 2020 to provide for ‘flexible furloughing’:
- Employers can only furlough an employee who has previously been furloughed prior to 30 June. The exception is employees returning from statutory maternity and paternity leave, provided that their employer has previously furloughed other employees
- Employers can bring furloughed employees back to work for any amount of time and on any work pattern while still claiming grant for the hours not worked. Flexible furlough agreements must be for a minimum of one week, and employees can enter into a flexible furlough agreement more than once
- Employers must confirm in writing with employees and keep records of how many hours employees work and the number of hours they are furloughed
- If an employee is flexible furloughed over two different calendar months, a separate claim must be submitted for each month
- From 1 August, employers will have to contribute towards the cost of furloughed employees’ wages.
When making a claim, employers will need to provide the number of hours an employee would have usually worked as well as the number of hours they actually worked, and the Coronavirus Job Retention Scheme calculator has been updated to assist in working out claim amounts for flexible furloughing.
The first time you will be able to make claims for days in July will be 1 July, you cannot claim for periods in July before this point.
31 July is the last day that you can submit claims for periods ending on or before 30 June.
Visit the FIS Employment Law Toolkit here
by Iain McIlwee | 12 Jun, 2020 | Main News Feed
From next Monday (15 June) face coverings will be mandatory on public transport in England to help reduce the risk of transmission of coronavirus when social distancing is not always possible. A face covering is a simple cloth that covers your nose and mouth, and the Government has published guidance on How to wear and make a cloth face covering. Anyone using public transport who does not wear a face covering could receive a fine.
Wherever possible, people should continue to work from home and avoid public transport, and the Government has published Safer travel guidance for passengers. Transport for London (TfL) is encouraging passengers who must travel to consider walking or cycling as part of their journey, or getting off a stop or two early to reduce numbers on Tubes and buses.
Next Monday will also see Thames Clippers resuming services for passengers on a temporary timetable. Services will run between 6:00am and 9:00pm on weekdays and between 9:30am and 7:30pm on weekends, with park and ride available from the O2 for £8 per day for Thames Clippers customers. All passengers will be required to maintain social distancing, wear a face covering and pay by contactless, and the on‐board café will reopen for takeaway service only.
Travel and Accommodation
To help contractors working away from home find local accommodation: Build UK has temporarily repurposed its Open Doors website. There are now 340 providers listed offering 22,000 beds.
An Essential Workers letter has been prepared to support the booking process. This can be downloaded here.
by Iain McIlwee | 11 Jun, 2020 | Main News Feed
In the case of a suspected case of COVID-19
Many business owners will in the coming weeks be confronted with a worker who is displaying symptoms of COVID-19. Soldiering on is not an option and we must continue to re-enforce at every opportunity that an individual should not go to the workplace if they:
- are unwell with coronavirus symptoms
- are told to self-isolate by a government test and trace service, because they’ve been in close contact with someone who’s testing positive
- need to self-isolate because someone in their household has symptoms
If they’re already at work and displaying symptoms, swift action and leadership is essential and they should be advised:
- immediately to go home
- avoid touching anything, and wash their hands regularly
- cough or sneeze into a tissue and put it in a bin, or if they do not have tissues, cough and sneeze into the crook of their elbow
- use a separate bathroom from others, if possible
- avoid using public transport to travel home, if possible
- The worker should be advised to arrange a test as soon as practicable
The workplace does not necessarily have to close and the Government has produced cleaning advice.
Remember this is likely to cause anxiety for the person in question, so it is important to be supportive and sensitive to this.
How to manage colleagues who have been in close proximity
You need to act quickly to minimize the risk of the disease spreading. You will need to ask the worker who in the business they have been in “close contact” with within the prior two weeks (closer than 2m for longer than 15 mins).
Workers will be required to isolate if they:
- have coronavirus symptoms and are awaiting a test result
- have tested positive for coronavirus
- are a member of the same household as someone who has symptoms or has tested positive for coronavirus
- have been in close recent contact with someone who has tested positive and received a notification to self-isolate from NHS test and trace.
If they are working in a “bubble” then you may decide to limit the risk of further spread to ask the entire bubble to self-isolate whilst clarity is sought. Further guidance on how to manage this situation moving forward is included in the section on Testing and Tracing.
You need to be mindful of the need to respect confidentiality and that you should not reveal the potentially effected worker’s identity.
When else might a member or staff be required to self-isolate?
If a government ‘test and trace’ service tells someone they’ve been in close recent contact with someone who has tested positive, they must self-isolate for 14 days. If they develop symptoms, everyone else in their household must self-isolate for 14 days.
If someone lives in a household and is the first to have symptoms, they must self-isolate for 7 days. Everyone else in their household must self-isolate for 14 days.
If during this time your are tested and the result is negative, the individual and other household members no longer need to self-isolate.
What if a staff member is reluctant to be tested?
An implied term within an employment contract is that an employee has a duty to obey lawful and reasonable instructions given the employer.
Whilst there is no formal case law to confirm this, in the case of COVID-19, both the employer and employee also have a duty to safeguard the health and safety of co-workers. As a consequence unreasonable refusal to take a test could be deemed to constitute a breach of their employment contract and be followed up as a disciplinary action.
In lieu of a test, any employee displaying symptoms should follow instructions to self isolate.
In the case of a subcontractor, you would need to refer to the terms of your contract. It is advisable to remind them on the potential implication of their actions on colleagues who may have been exposed.
Information on Testing and Tracing
Details of the government test and trace services are available here:
We are advised at the time of writing (11th June) that testing can take up to 48 hours to arrange, but results are typically available within 12 hours.
Anyone who tests are positive will be contacted by the NHS test and trace service or local public health teams via a text, email or by phone. They will be asked for the contact details of anyone they’ve been in close proximity to and about places they have visited. Anyone considered at risk of catching the virus will then be contacted and told to self-isolate for 14 days whether they have symptoms or not. The rest of their household does not have to self-isolate unless someone in the house becomes ill.
Testing and tracing is a public health measure, intended to inhibit the spread of the virus as the country slowly comes out of lockdown. It could potentially reveal hotspots where the infection rate is higher and the government has said this information could lead to ‘local lockdowns’ to tackle flare-ups in towns, schools or workplaces.
An NHS Covid-19 contact-tracing app is currently being trialled that will also (anonymously) alert users when they have been in close contact with someone identified as having been infected by the virus.
Supporting staff who need to self-isolate
If someone needs to self-isolate, it’s good practice for employers to:
Depending on someone’s circumstances, they might have to self-isolate more than once during the coronavirus pandemic. Employers should support them in the same way each time.
In these situations, the employer should again look to see whether there are any options for working from home. If this is not possible, it is advisable, in the case of an employee, to treat as a suspension and pay the employee as normal.
Supporting employers with a workplace outbreak
If multiple cases of coronavirus appear in a workplace, an outbreak control team from either the local authority or Public Health England will, if necessary, be assigned to help the employer manage the outbreak. Employers should seek advice from their local authority in the first instance.
How does Statutory Sick Pay (SSP) Work
Employees in self-isolation are entitled to Statutory Sick Pay for every day they are in isolation, as long as they meet the eligibility conditions. Information for employers on reclaiming Statutory Sick Pay is available here.
The FIS is seeking clarification on whether SSP can be claimed if an employee is suspended due to contact as a cautionary measure, but is not displaying symptoms. Currently the criteria on the HMRC website states:
You must keep the following records for 3 years after the date you receive the payment for your claim:
- the dates the employee was off sick
- which of those dates were qualifying days
- the reason they said they were off work – if they had symptoms, someone they lived with had symptoms or they were shielding
- the employee’s National Insurance number
You can choose how you keep records of your employees’ sickness absence. HMRC may need to see these records if there’s a dispute over payment of SSP.
If the worker is self-employed and hence not eligible for SSP through the “employer” and are advised to self-isolate, they would be eligible to make a claim for Universal Credit (UC) or new style Employment and Support Allowance. More information on how to claim is available here.
RIDDOR reporting of COVID-19
You should only make a report under RIDDOR when when it is confirmed that a worker has been diagnosed as having COVID-19 attributed to an occupational exposure to coronavirus. This should be reported as a case of disease. It is recommended that you contact the HSE to advise of your particular circumstances to ensue that it falls under the RIDDOR requirements.
You can access the FIS COVID H&S Toolkit here
You can access the FIS COVID Employment Toolkit here
If you have any questions not answered in this article, please send them in to info@thefis.org or call our helpline on 0121 707 0077.
by Iain McIlwee | 11 Jun, 2020 | Main News Feed
The First Minister has announced today that the construction sector will be now be allowed to move to Phase 2 in its restart plan from today provided that businesses follow guidance on the safety and welfare of the workforce and the public. This will include work carried out in domestic properties. This announcement is in line with the industry-agreed six-step phased model for the return of the construction sector:
- Phase 0: Planning
- Phase 1: Covid-19 Pre-start Site prep
- Phase 2: ‘Soft start’ to site works (only where physical distancing can be maintained)
This phase begins when the site preparations are complete and when it is safe to do so in line with public health advice. It will consist of a progressive return of a proportion of the original workforce to ensure that extended inductions, including site tours to explain the new arrangements for hygiene and physical distancing, are able to be carried out.
The health and safety of the workforce is of paramount interest to the sector and there will be a phased return of a proportion of the workforce, brought back in “batches” to allow a high supervisor to worker ratio. This will allow extended inductions and site tours to familiarise the workforce with the new arrangements and allow time for those to become “the new normal.”
As explained above, the number of workers able to return will depend upon the space available on site (both external areas and floorplates, if a building) and the welfare facilities that have been provided. Contractors will have to adjust their site facilities and work planning to ensure that physical distancing requirements are able to be met at each stage. During this phase, due to the shortage of medical style PPE supply, only work that can be carried out within physical distancing parameters or using protective barriers, will be carried out. Risk assessment approaches will still be used to control the hazard of Covid-19 but if this shows that close working is still required and that protective barriers would be ineffective, that work will not be carried out until supplies of medical style PPE are restored to normal. This means that some tasks will not be able to be carried out, although the industry will make strenuous efforts to develop innovative ways of completing critical tasks, working within the new parameters.
- Phase 3: Steady state operation (only where physical distancing can be maintained)
- Phase 4: Steady state operation (where physical distancing can be maintained and/or with PPE use)
- Phase 5: Increasing density/productivity with experience
The latest announcement, moving to Phase 2 of the plan provides an opportunity for businesses to return to site work on a “soft-start” basis. It also allows businesses to undertake all forms of work in domestic properties.
Full details of the phased plan are available here.
Further details to support H&S are provided in the FIS H&S Toolkit Here. This includes specific site operating procedures for Scotland and excellent additional advice developed through the CICV Forum and the FIS COVID 19 H&S Task Group. FIS has also developed a Restart Risk Management Checklist for members here which has also been updated today in line with new advice available on what to do if a worker exhibits symptoms of COVID-19.
by Iain McIlwee | 10 Jun, 2020 | Main News Feed
With companies beginning a phased return to work, the wide-ranging questionnaire addresses multiple issues which have not gone away during the pandemic and suggests that the sector cannot realistically go back to the way it was.
The consultation is the latest in a series of initiatives from the Forum, which has been at the forefront of information dissemination to the sector throughout the COVID-19 crisis, and which has become for many enterprises the first port of call for clarity of advice.
Forum chair and SELECT Managing Director Alan Wilson, said: ”All too often we are told that a body or organisation is the ‘voice’ of a sector but to be the voice, first of all you must listen to what members are saying.
“Being the ‘ears of the industry’ is a concept often sadly forgotten and this piece of work aims do just that – listening to what the industry wants before suggesting options for change.”
Led by Consultant Len Bunton, the consultation was compiled with the input of four leading quantity surveying firms, as well as Ian Honeyman, Commercial Director of the Scottish Building Federation, and Ken Lewandowski, former local chairman of Clydesdale Bank.
Mr Bunton said that, for everyone involved in construction, the ultimate objective for the post-pandemic future must be an industry which is not only fair and transparent but allows contractors and the supply chain to operate profitable businesses.
He said: “The questions in the consultation will be put to the many trade and professional bodies in the Forum, as well as their members. The aim is to focus on the step changes which are necessary, the main problems and the potential solutions.
“We want to look at the endemic problems of low tendering, no margins and the lack of regard for competency and experience. Serious cashflow and payment issues, poor quality and health and safety probelems are also consistent concerns for the industry.
“We also need to consult with public and private sector clients who are the lifeblood of the industry, as their investment creates employment for the construction sector in Scotland.”
Mr Bunton added: “The consultation makes the point that the CICV Forum, which was quickly and efficiently assembled to deal with the ongoing effects of the shutdown, has demonstrated the desirability of disparate parties coming together to work for the mutual benefit of the sector.”
The Forum, made up of trade associations (including FIS), professional services bodies, companies and individuals, stepped into the fray immediately in March with advice on how to operate safely while carrying out emergency or essential work.
It has since been drawing on the collective expertise of its members to maintain a steady supply of information and practical advice to the sector as well as carrying out surveys, producing animations and posters, hosting webinars and speaking regularly with Government ministers.
- The consultation was initially issued to members of the Forum only. If you would like to submit your thoughts about the future of the Scottish construction sector, please download the questionnaire here and send initially to iainmcilwee@thefis.org by 19 June to enable collation of responses.
by Iain McIlwee | 5 Jun, 2020 | Main News Feed
As of last week, the Scottish Government has allowed the construction sector to start work on preparing its sites for a safe return to work – Phase 1 on the industry Re-Start Plan (see information here) – and that industry has been asked to “consult with government to ensure it is safe to do so in line with public health advice” before starting Phase 2 on that plan – the” Soft Start” return to work.
To provide confidence that Phase 2 can begin evidence of the advance preparation of sites, in line with the new Site Operating Guidance and their own (or sector specific) procedures (see details in the FIS COVID-19 H&S Toolkit), it is critical now that industry share material through the Construction Leadership Forum in Scotland. Evidence shared with the Construction Leadership Forum will help them and, more importantly, government, gain confidence that the industry is preparing to start work safely.
Examples of the potential activities being sought, dependent upon the nature of the site, could include:
- Installing new, or expanding existing, site welfare and toilet facilities
- Installing hand washing/sanitiser stations
- Alterations to form “one way” systems
- Installation of Covid-19 signage
- Marking 2m distancing on access routes throughout the site
- Re-modelling office and meeting rooms for physical distancing
- Cleaning of all site facilities and the workspace
- “Road testing” all new systems prior to supply chain returning to site
The “evidence” that could include photographs, videos, written reports (examples of RAMS), site plan changes management plans, completed checklists and customer testimonials. The Construction Leadership Forum will be seeking sample evidence across a wide range of project types and situations.
Any information should be sent initially to CICV Forum member and FIS CEO iainmcilwee@thefie.org who will arrange for it to sent to the Construction Leadership Forum to collate and provide as evidence. Additionally, in the spirit of collaboration, if you are inclined to share more broadly as evidence of good practice through the Construction Leadership Forum members and/or included on the FIS Community H&S Best Practice Gallery please let us know when you submit the information.
Visit the FIS H&S COVID-19 Toolkit Here
by Iain McIlwee | 5 Jun, 2020 | Main News Feed
The complex question of how to bring workforce safely off furlough and back to work is examined in detail in the latest guidance to be issued by the CICV Forum in Scotland.
With the Scottish Government authorising a phased easing of the lockdown rules, the Forum’s comprehensive 22-page document, Returning from Furlough, provides a practical step-by-step overview of how employers should bring workers back to full employment.
It is the latest in a series of initiatives from the Forum, which has been at the forefront of construction advice throughout the pandemic, becoming the first port of call for many enterprises seeking clarity.
Fiona Harper, Director of Employment and Skills at Forum member SELECT, said: “The past few months have been a particularly stressful time for both employers and employees, but we are now approaching the stage where firms may be looking at the process of how to ‘unfurlough’ their staff.
“Our latest guidance, therefore, looks in detail at the options that all parties face now that the Coronavirus Job Retention Scheme has been extended until October and employers will be asked to begin to share the burden of paying salaries with the UK Government.”
The latest guidance covers a wide range of issues and examines subjects such as:
- the timeline for bringing furlough to an end
- when it can be ended
- the steps to keep furloughed workers safe
- measures to ‘unfurlough’ workers
- ‘unfurloughing’ and ‘re-furloughing’
- potential refusal to return
- mental health of staff.
- The document also supplies useful letter templates covering the long-anticipated restart, as well as any health and safety preparations and a questionnaire to help gather information about the process.
Iain McIlwee, CEO of Forum member of the Finishes and Interiors Sector, said: “This is an excellent guide that brings real clarity to an incredibly complex subject. Whilst it is targetted at Scotland, it is relevant for all in the UK. One thing we are learning in recent weeks is that restarting is more complex than stopping and it is simple and clear guidance like this that is essential to helping companies feel their way forward. The CICV has been one of the positives that I have drawn from recent weeks, it has been open and collaborative and drawn on the strengths of the group. Huge thanks to Vaughan of the SBF who chaired it, to Fiona and the other members of this sub group for a job well done.”
The Forum, made up of trade associations, professional services bodies, companies and individuals, stepped into the fray immediately in March with advice on how to operate safely while carrying out emergency or essential work. It has since then been drawing on the collective expertise of its members to maintain a steady supply of information and practical advice to the sector as well as carrying out surveys, producing animations and posters, hosting webinars and making appeals to Government Ministers.
You can download the Guide via the FIS COVID-19 Employment Toolkit (see section on Furloughing)
by Iain McIlwee | 5 Jun, 2020 | Main News Feed
Domestic reverse charge VAT for construction services – delay in implementation announced
Following pressure from the industry (including a letter signed by FIS in the Telegraph last weekend). HMRC have announced that the introduction of the domestic reverse charge for construction services will be delayed for a period of 5 months from 1 October 2020 until 1 March 2021.
A domestic reverse charge means the UK customer who gets supplies of construction services must account for the VAT due on these supplies on their VAT return, rather than the UK supplier. This removes the scope for fraudsters to steal the VAT due to HMRC and follows similar measures introduced in response to criminal threats for mobile telephones, computer chips, emissions allowances, gas and electricity, telecommunication services and renewable energy certificates.
The domestic reverse charge for building and construction services was originally planned to come into force on 1 October 2019, but it has already been delayed for a year in response to industry concerns.
In a statement published to day HMRC have reported: “To help these businesses overcome the effects that the coronavirus pandemic has had on them and give them more time to prepare, the introduction of the reverse charge has been delayed for a period of 5 months until 1 March 2021.”
In this statement they go on to report that HMRC remains committed to the introduction of the reverse charge and has put in place a robust compliance strategy for tackling fraud in the construction sector using tried and tested compliance tools.
In the intervening period, HMRC will continue to focus additional resource on identifying and tackling existing perpetrators of the fraud. It will also work closely with the sector to raise awareness and provide additional guidance and support to make sure all businesses will be ready for the new implementation date. The additional amendment to require end users and intermediary suppliers to notify their sub-contractors of their end user or intermediary supplier status in writing is designed to make sure both parties are clear whether the supply is excluded from the reverse charge. It reflects recommended advice published in HMRC guidance and brings certainty for sub-contractors as to the correct treatment for their supplies. If followed, it will remove a concern that HMRC may seek to challenge the reverse charge treatment where a business that qualified as an end user or intermediary supplier had not given any notification of their status.
In response to this statement Iain McIlwee, CEO of Finishes and Interiors Sector stated “On the one hand it is good news we have a delay, but I am still baffled by the unblinking need to carry on regardless. For me HMRC have found a way to solve a problem that just shifts burden away from HMRC and onto industry, create new admin and uncertainty. Government must realise that cashflow is critical in construction, whenever this is introduced it creates an air bubble for specialists – simply kicking the can down the road doesn’t make this go away. Draconian tax measures are not what is needed right now, we need to be learning from the COVID response and the successes and failures of schemes like CBILS in conjunction with procurement practices that support liquidity – if we don’t get this in place many more businesses will fail and Reverse Charge VAT may well be the tipping point”.
You can read in full the Revenue and Customs Brief 7 (2020): domestic reverse charge VAT for construction services – delay in implementation here
To access The FIS Implementing Reverse Charge VAT Toolkit – click here
by Iain McIlwee | 4 Jun, 2020 | Insurance, Main News Feed
Finishes and Interiors Sector (FIS) this morning welcomed the announcement from Business Secretary Alok Sharma that Government is able to provide guarantees of up to £10 billion to Trade Credit Insurance schemes for business-to-business transactions.
Trade Credit Insurance, provides essential cover to hundreds of thousands of business-to-business transactions, will receive up to £10 billion of government guarantees, ministers announced today. Business Secretary of State Alok Sharma said:
“Trade Credit Insurance is a daily necessity for hundreds of thousands of businesses across the UK – particularly those in non-service sectors such as the manufacturing and construction sectors. Our £10 billion guarantee gives peace of mind to businesses, allowing them to continue to trade and maintaining liquidity in supply chains. This reinsurance scheme is an important step as we carefully set about firing up our economy as we emerge from the pandemic.
The Economic Secretary to the Treasury, John Glen said:
“Billions of pounds of business turnover is supported by Trade Credit Insurance each year. This reinsurance scheme will see the government and insurers working closely together to ensure that the vast majority of this cover remains in place. This means that businesses and supply chains can continue to be protected at this pivotal time as we begin to kick start the economy.”
Chief Executive of the Finishes and Interiors Sector, Iain McIlwee added:
“The guarantees will provide much needed reassurance to manufacturers and distributors and support them in extending credit to contractors in the Finishes and Interiors Sector. A key risk identified in our planning was concern that credit agreements could shorten at a time when cash is already short. Cash flow will be critical over the next few months and whilst many have opted not to or been knocked back by schemes like CBILS, the removal of lines of credit traditionally available to them would have been catastrophic. I know there has been some hard work put in to this through the Construction Leadership Council and we are grateful to our colleagues at the Construction Products Association and Builders Merchant’s Federation who have done a lot of the heavy lifting”.
Trade Credit Insurance underwrites an estimated £350 billion of economic activity of more than 630,000 businesses in the UK each year. It insures suppliers selling goods against the company they are selling to defaulting on payment, giving businesses the confidence to trade with one another.
The full statement from the Minister is available here.
by Iain McIlwee | 1 Jun, 2020 | Main News Feed, Transformation
The Construction Leadership Council’s Covid-19 Task Force has laid out a roadmap of proposals that will help to secure the future of construction businesses nationwide, while setting the industry on a sustainable path towards recovery.
Roadmap to Recovery details the key actions that industry, clients and Government that will support the recovery of the £413 billion UK construction and built environment sector. Front and centre is the premise that, employing over 3m workers across the UK and exporting billions of pounds of products and services, the construction sector construction is uniquely placed to drive the national economic recovery.
The strategy aims to increase the level of activity, accelerate the process of industry adjustment to the new normal and build capacity in the industry to deliver strategic priorities, including: increasing prosperity across the UK; decarbonisation; modernisation through digital and manufacturing technologies; and delivering better, safer buildings.
There are 3 phases to the roadmap, which it is suggested are delivered over a two year period:
Phase 1: Restart – increase output, maximise employment and minimise disruption (0-3 months)
Restart is now well underway, with various Government interventions in placed focussed on supporting cashflow and both phased return to work plans in place across the UK with H&S Guidance reflecting requirements across the home nations. The Roadmap recognises concerns about training and retaining apprentices and the need to urgently develop a talent retention scheme, reacting to a potential short-term dip in employment. Beyond this, the focus is on both client and industry behaviours and the need for relief measures such as those provided for by PPN02/20 and equivalent public sector procurement measures in Scotland, Wales and Northern Ireland. The recovery plan emphasises the importance of Public and private sector clients committing to following Government and CLC guidance on responsible contractual behaviour and recommends widespread adoption of the Conflict Avoidance Pledge. It highlights too the need for renewed industry commitment to ensure prompt payment to firms within the supply chain.
In a recent FIS survey, it was concerning that only 12% of respondents reported that they can continue to operate profitably in all cases under new site operating procedures. This concerning situation is recognised in the Roadmap which recommends the urgent need to undertake work on cost planning related to operating under new site procedures and to share this across the public and private sectors.
Phase 2: Reset: drive demand, increase productivity, strengthen capability in the supply chain (3-12 months)
A key theme of reset is to build on elements highlighted in the restart phase to define new ways of working to embed better and more collaborative business models and contractual terms into the sector. The theme of productivity looms large and the Roadmap identifies that new approaches will be needed to compensate for the loss of productivity due to restrictions and the importance of encouraging investment in particularly digital and offsite capabilities. The Roadmap highlights the importance of ongoing work on competency and better collaboration. It also identifies the need for stimulus with Housing and Building Safety as priority areas. The FIS has recently written to the Construction Minister highlighting Schools and accelerating the Building Safety Programme – this is picked up in the Roadmap referencing supporting towns, homes and employment to level up the UK, and invest in developing the infrastructure chapters of local growth plans.
The Roadmap also flags up the importance of delaying the Reverse Charge VAT (as reported in the Telegraph this weekend).
Phase 3: Reinvent: transform the industry, deliver better value, collaboration and partnership (12-24 months)
Seizing the opportunity to secure a better future for the construction sector is central to Phase 3. This phase is very much about tangible outcomes from a period of change and ensuring the potential of digital and offsite solutions are realised and that step changes are made in terms of the embracing net zero carbon targets and ensuring that collaborative procurement models ensure that the sector meets the requirements of the new building safety regime. It also recognises the need to modernise the training and qualifications system for construction to ensure that this is fit for purpose, and will support the delivery of the skills that the industry will need in future such as those related to the delivery of net zero carbon, and the multi-skilling of the construction workforce to increase flexibility and adaptability
The ultimate outcomes will be a more capable, professional, productive and profitable sector, which delivers better value to clients, better performing infrastructure and buildings, and competes successfully in global markets.
Iain McIlwee CEO of the Finishes and Interiors Sector, “This is a great start from the CLC and it is encouraging that this Roadmap is not a huge departure from a journey that in many ways we have already started. It builds on and re-emphasise a lot of the concepts we are familiar with from the Construction Sector Deal and locks in learnings from the work of the Building Safety Review. It has been a tough few months for everyone and it is clear that there is more challenges ahead as the industry starts to open up, but it is good to finally start looking a bit further ahead. We look forward to working with the Minister and colleagues from across the construction sector to ensuring that the spirit of collaboration is upheld and we are all held to account to ensure that the industry emerges stronger. The Roadmap starts to show us the way, but it also recognises construction is a complex ecosystem and it is beholden now on sectors such as ours to look at the detail as it applies to our community and ensure we develop sub-sector specific plans and look at behaviours and activities that align us with CLC’s overarching Recovery Plan and the one industry sentiment that underpins it”.
The task force is now engaging with Government to test how the plans proposals might be delivered. FIS is an active member of the CLC Advisory Group and participates in weekly updates where members views are carried forwards.
The roadmap to recovery plan can be downloaded here.
by Iain McIlwee | 1 Jun, 2020 | Main News Feed
As
reported in the Telegraph this weekend, FIS joined leaders from across the construction sector calling on the Chancellor to delay the controversial change in VAT which they say poses a threat to the survival of firms hit hardest by the virus crisis.
Industry chiefs representing thousands of construction companies warned that an upcoming VAT “reverse charge” would put pressure on cash-strapped firms and further damage the troubled sector.
Concerns about construction firms going under have accelerated during the pandemic, with more than 4,000 projects with a combined value of £68bn delayed or cancelled by Covid-19, according to research company Barbour ABI.
In a joint letter, more than a dozen trade bodies, including the Finishes and Interiors Sector, said that many firms no longer had the financial resources or man power required to prepare for upcoming changes, with many of the required staff – including in finance or IT – currently on furlough.
The new rules, which are being introduced to combat tax fraud, will see VAT charges on certain construction services paid directly to HMRC instead of the supplier.
The letter make it clear that changes to the way VAT payments were collected would pile on administrative burdens for those struggling with the economic impact of the pandemic.
The new measures are also likely to squeeze cash flow for businesses no longer receiving VAT payments, particularly smaller firms and those that have requested government-backed rescue loans. Services affected by the new reverse charge include construction work on larger structures, such as buildings, roads and bridges.
Industry groups have asked for the changes to be pushed back by at least one year as companies grapple with the effects of the crisis.
Britain’s building and construction industry employs nearly three million people across 315,000 firms, and represents 9pc of GDP. Industry chiefs said delaying VAT reverse charges would help support the wider economic recovery.
by Iain McIlwee | 21 May, 2020 | Main News Feed
The CICV Forum, supported by FIS, has welcomed the first tentative steps announced to get the sector in Scotland back to work – but insists health and safety and collaboration must be at the heart of the phased return. The collective – which includes FIS has been working towards restart with a number of bodies, including the Construction Leadership Forum – commented after First Minister Nicola Sturgeon said Scotland will begin a process to reopen construction sites from May 28, alongside other measures.
Under the phased return to work, businesses in Scotland will be allowed to resume work on sites, based on a six-point plan which the government has developed with the industry. In her statement today, the First Minister said: “The construction industry will be able to carefully implement steps one and two of its six-step restart plan, which it has developed with us. However, let me be clear, that there must be genuine partnership with trade unions – this can only be done, if it is done safely.”
The six phases are:
- Phase zero: Planning. From 28th May (next Thursday)
- Phase one: COVID-19 pre-start site prep
- Phase two: “Soft start” to site works
- Phase three: Steady state operation (only where physical distancing can be maintained)
- Phase four: Steady state operation (where physical distancing can be maintained and/or with PPE use)
- Phase five: Increasing density/productivity with experience
The overriding focus on safety has been welcomed by the Forum, which has successfully produced a range of industry advice about correct working during course of the crisis. This is supplemented by the FIS’s own H&S Toolkit.
Commenting on the announcement from the First Minister, FIS CEO, Iain McIlwee stated “This will be welcome news to all of our members in Scotland, project restart can begin. We look forward to working with them and colleagues from the CICV Forum in understanding the phases and helping to make the transition through as clear, smooth and safe as possible. In doing this we can learn from lessons in other parts of the UK, certainly the safety first, people first approach sets the right precedent. I very much hope the spirit of collaboration continues – we need to ensure that this carries into the working practices and that the supply chain continues to pull together, works through the productivity and safety challenges and ultimately practices the principles set down in the Conflict Avoidance Pledge. We don’t just want to return we want to use the opportunity to reset the industry and leave some of the negative behaviours and practices behind us, to work together to make the Scottish Construction Industry better than it was before.”
Vaughan Hart, Managing Director of Forum member the Scottish Building Federation, said: “The shutdown in Scotland has been one of the biggest challenges the sector has ever faced and, while we wholeheartedly welcome the return to work, it must be carried out in the proper manner.
“This means that the health and safety of operatives is paramount, and the correct guidance and procedures must be adhered to at every phase of the proposed route map. The Forum has been at the forefront of helping the industry by clarifying advice and this effort will now come into its own.”
The Forum says it now plans to release more guidance to help business owners, contractors and apprentices through each stage of the phased return, including advice for construction sites, domestic work and colleges.
Alan Wilson, Chair of the CICV Forum and Managing Director of SELECT, the electrotechnical trade body for Scotland, said: “This is the news we have been waiting for and it has not come a moment too soon.
“We all understand the reasons why Scotland has been in virtual shutdown since March, and we all need to work together to assist the sector as it faces an uphill struggle to recover.”
Hew Edgar, Head of UK Government Relations and City Strategy, added “One of the most important lessons to come out of the crisis is the value of working together for mutual benefit.
“The Forum, was only created eight weeks ago, and is the perfect example of this principle, having brought together a huge range of organisations and individuals in a concerted effort to protect the industry.
“As we restart the sector, collaboration between everyone involved – clients, architects, surveyors, contractors, subcontractors and suppliers – will be of the utmost importance since many of the issues which beset the industry pre-COVID, such as late payments and retentions, will still need to be addressed.”
Download the Coronavirus (COVID-19): framework for decision making – Scotland’s route map through and out of the crisis
by Iain McIlwee | 12 May, 2020 | Main News Feed
The CICV Forum has written to Holyrood urging the Government to adopt a five-point plan to assist contractors through the worst of the COVID-19 crisis.
The collection of 23 trade and professional bodies (including FIS) has addressed its appeal to Kevin Stewart MSP, Minister for Local Government, Housing and Planning. The letter asks the Scottish Government to implement the following five key points, along with desired aims:
- Agreement by public sector procurers on all project costs at March 31, including resolution of disputes, and payment within 14 days.
Aim: Release cash to the industry and the supply chain.
- Public sector procurers to consider release of all or part of retentions.
Aim: As above.
- Introduction of 14-day payment period when construction recommences.
Aim: Improvement of cashflow.
- Introduction of Project Bank Accounts (PBAs) when construction recommences.
Aim: Ensuring rapid cashflow.
- Lowering PBA threshold on public sector procurement to £250,000
Aim: Ensuring rapid cashflow.
The urgency of the appeal was highlighted by the fate of the latest victim of the building industry shutdown – Central Building Contractors (Glasgow), which went into administration at the end of April, making 148 staff redundant and sending shivers down the supply chain.
Len Bunton, head of the CICV Forum Clients sub-group, said: “Even before the sudden shutdown of the construction industry in Scotland, the sector was experiencing extreme difficulties in relation to cashflow and payment. Urgent attention to payment cash flow and fairness is now needed by the public and private sector in Scotland.”
Iain McIlwee, CEO of Finishes and Interiors Sector (FIS) added, “Our industry faces an unprecedented challenge in Scotland and we need to to all we can to ensure that we protect it during this hibernation phase so that it is ready to scale back up and support growth again in Scotland. Critical to this is protecting cash reserves and Government must lead by example.”
The CICV Forum, which was set up two months ago, now has 23 trade and professional body members. It has established a series of influential sub-groups dealing with mission-critical aspects such as Health and Safety, Skills, Communication and Future Planning.
Find out more about the CICV Forum here
by Iain McIlwee | 11 May, 2020 | Main News Feed
New guidance on safer working has been published for a variety of sectors including “Construction and Other Outdoor Work” and also “Guidance for people who work in or run offices, contact centres and similar indoor environments” can be accessed here. The Guidance does little to extend the work of the Construction Leadership Council. On the construction specific elements there is a working group in place to review whether new guidance will result in changes to the Site Operating Procedures, but in the meantime it is worth referring to new Guidance on PPE and Face Masks to support existing risk management strategies (note this is not construction specific and repeated for all sectors).
Personal Protective Equipment
PPE protects the user against health or safety risks at work. It can include items such as safety helmets, gloves, eye protection, high-visibility clothing, safety footwear and safety harnesses. It also includes respiratory protective equipment, such as face masks.
Where you are already using PPE in your work activity to protect against non-COVID-19 risks, you should continue to do so.
At the start of this document we described the steps you need to take to manage COVID-19 risk in the workplace. This includes working from home and staying 2m away from each other in the workplace if at all possible. When managing the risk of COVID-19, additional PPE beyond what you usually wear is not beneficial. This is because COVID-19 is a different type of risk to the risks you normally face in a workplace, and needs to be managed through social distancing, hygiene and fixed teams or partnering, not through the use of PPE.
The exception is clinical settings, like a hospital, or a small handful of other roles for which Public Health England advises use of PPE, for example, first responders and immigration enforcement officers. If you are in one of these groups you should refer to the advice at:
Workplaces should not encourage the precautionary use of extra PPE to protect against COVID-19 outside clinical settings or when responding to a suspected or confirmed case of COVID-19.
Unless you are in a situation where the risk of COVID-19 transmission is very high, your risk assessment should reflect the fact that the role of PPE in providing additional protection is extremely limited. However, if your risk assessment does show that PPE is required, then you must provide this PPE free of charge to workers who need it. Any PPE provided must fit properly
Face coverings
There are some circumstances when wearing a face covering may be marginally beneficial as a precautionary measure. The evidence suggests that wearing a face covering does not protect you, but it may protect others if you are infected but have not developed symptoms.
A face covering can be very simple and may be worn in enclosed spaces where social distancing isn’t possible. It just needs to cover your mouth and nose. It is not the same as a face mask, such as the surgical masks or respirators used by health and care workers. Similarly, face coverings are not the same as the PPE used to manage risks like dust and spray in an industrial context. Supplies of PPE, including face masks, must continue to be reserved for those who need them to protect against risks in their workplace, such as health and care workers, and those in industrial settings like those exposed to dust hazards.
It is important to know that the evidence of the benefit of using a face covering to protect others is weak and the effect is likely to be small, therefore face coverings are not a replacement for the other ways of managing risk, including minimising time spent in contact, using fixed teams and partnering for close-up work, and increasing hand and surface washing. These other measures remain the best ways of managing risk in the workplace and government would therefore not expect to see employers relying on face coverings as risk management for the purpose of their health and safety assessments.
Wearing a face covering is optional and is not required by law, including in the workplace. If you choose to wear one, it is important to use face coverings properly and wash your hands before putting them on and taking them off.
Employers should support their workers in using face coverings safely if they choose to wear one. This means telling workers:
- wash your hands thoroughly with soap and water for 20 seconds or use hand sanitiser before putting a face covering on, and after removing it
- when wearing a face covering, avoid touching your face or face covering, as you could contaminate them with germs from your hands
- change your face covering if it becomes damp or if you’ve touched it
- continue to wash your hands regularly
- change and wash your face covering daily
- if the material is washable, wash in line with manufacturer’s instructions. If it’s not washable, dispose of it carefully in your usual waste
- practise social distancing wherever possible
You can make face-coverings at home and can find guidance on how to do this and use them safely on GOV.UK
Further details of the recovery strategy and social distancing guidelines can be found below:
You can visit the FIS COVID-19 Hub here.
You can access the FIS COVID-19 H&S Toolkit here (this includes the FIS Guide to PPE)
by Iain McIlwee | 11 Mar, 2020 | Main News Feed
Change and Coronavirus were the main themes of the Budget. It was a Budget warning of short term pain, but long term gain and the catchphrase was “Getting it Done”. The good news for the construction sector was that this included “Getting Britain Building”. The Chancellor confirmed that Coronavirus will create some short term pain, but Government announced some practical methods to help businesses and individuals through it. Growth this year still predicted at 1.1%, accelerating to 1.8% next year.
A quick run down of key announcements (including measures to support people and businesses through a period of uncertainty created by the Coronavirus).
For the Sector:
The Construction sector as a whole will benefit from the £175 billion additional expenditure in infrastructure expenditure. The Chancellor advised that the Office of Budget Responsibility has greeted this positively predicting that it will boost growth by 0.5% pa. A big focus of this is devolution and the Budget included the announcement of a new Metro Mayoral authority in West Yorkshire and emphasised the importance of unlocking the potential of all of the UK through this investment.
Housing
- Affordable Homes Settlement extended
- Cutting Interest Rates on Social Housing by 1% should unlock investment from this sector
- Confirming £1.1 bn towards the Housing Infrastructure Fund to build c 70,000 houses
- Additional £400 m fund for mayoral authorities to build housing on brownfield sites
- A “Building Safety Fund” worth £1 billion announced to extend the ACM Remediation Fund.
For the workers:
- Confirmed Statutory Sick Pay starting from day one
- NICS threshold raise to £9,500
- The national living wage to increase to two-thirds of median earnings by 2024 (it will increase to £10.50 / hr)
- Self Employed benefitting quicker an easier access to Universal Benefit (from day one) as a direct response to the Coronavirus. Minimum income level will be removed.
For the employers:
- Statutory Sick Pay – as a temporary measure, businesses with less than 250 employees will be eligible to claim this with up to 14 days refunded in full
- New Temporary Business interruption loan scheme up to £1.2 million to support SMEs announced (underpinned by with 80% gov backed guarantees)
- Fuel Duty Frozen
- £130 million of new startup loans
- £200 million British Business Bank to invest in scale up
- Fair Tax – review and reform entrepreneurs tax relief, not to fully abolish, but reduce lifetime limit to £1 million
- R&D Expenditure Credit to increase from 12% to 13%
- Structured Building Fund increased from 2 to 3% to support investment
- Cut taxes on employment
- Whilst our members won’t benefit from the extension of the retail business rate relief to cover the hospitality sector, some may be eligible for the £3,000 cash grant available to companies who benefit from the small business rate relief. You can check the ‘rateable value’ of your property – this is set by the Valuation Office Agency (VOA) and used by your local council to calculate your business rates bill. https://www.gov.uk/correct-your-business-rates. FIS will be reinforcing our messages around Asset Management in the announced longer term Business Rate Review.
Sustainability
- Introduce new plastic packaging tax, £200 per tonne tax on packaging made of <30% recycled
- Red Diesel Relief Scheme abolished for most sectors delayed for two years (agriculture exempted and discussions with other industries over the summer).
Flood Defences
Education
- £1.5 bn new funding to dramatically improve the Further Education College estate
A more detailed analysis for FIS Members has been prepared by the CPA and is available to download here.
FIS CEO, Iain McIlwee summed the speech up:
“I think we have to tip our hat at the Chancellor, he is getting things done – this was a Budget for business and the people, the tone was optimistic and inspired hope. The £175 billion investment in infrastructure is tangible and, at least in part, it has allayed some of the concerns that the Coronavirus creates. Particularly announcements on SSP are encouraging and ensure support is quantifiable and helpful. Access to credit will no doubt help allay some fears too.
Having been calling for a Building Safety Fund for some 2 years now, it is encouraging to hear that the ACM Cladding fund is being extended to look more holistically at this. We look forward to learning more about how this will work. My concern is that on the surface it doesn’t go quite as far as ideally we’d like, but will respond more fully on this once the detail is available”.
Find out about the FIS Three Steps to Rebuilding Construction Campaign here.
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