In his statement today the Chancellor turned his attention to the next wave of support job retention in the UK economy, unveiling a new A Plan for Jobs 2020.

Key announcements likely to impact FIS Members:

Job Retention Bonus

The Chancellor confirmed that the Coronavirus Job Retention Scheme (CJRS) will wind down flexibly and gradually, supporting businesses until October. To further support people who have been furloughed in getting back to work the government is introducing a new Job Retention Bonus to reward and incentivise employers who keep on their furloughed employees.

Full detail to be announced, but the outline is that government will introduce a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021.

Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. Payments will be made from February 2021. Further detail about the scheme will be announced by the end of July.

Supporting Young People and Apprentices

High quality traineeships for young people – The government will provide an additional £111 million this year for traineeships in England, to fund high quality work placements and training for 16-24 year olds. This funding is enough to triple participation in traineeships. For the first time ever, the government will fund employers who provide trainees with work experience, at a rate of £1,000 per trainee. The government will improve provision and expand eligibility for traineeships to those with Level 3 qualifications and below, to ensure that more young people have access to high quality training.

Payments for employers who hire new apprentices – The government will introduce a new payment of £2,000 to employers in England for each new apprentice they hire aged under 25, and a £1,500 payment for each new apprentice they hire aged 25 and over, from 1st August 2020 to 31st January 2021. These payments will be in addition to the existing £1,000 payment the government already provides for new 16-18 year-old apprentices, and those aged under 25 with an Education, Health and Care Plan – where that applies.

High value courses for school and college leavers – The government will provide £101 million for the 2020-21 academic year to give all 18-19 year olds in England the opportunity to study targeted high value Level 2 and 3 courses when there are not employment opportunities available to them.

New funding for sector-based work academies – The government will provide an additional £17 million this year to triple the number of sector-based work academy placements in England in order to provide vocational training and guaranteed interviews for more people, helping them gain the skills needed for the jobs available in their local area.

Support targeted at the Construction Sector

The Chancellor recognised  that the UK construction sector is vital for the recovery of the UK economy. The sector accounts for 7.6% of GDP and employs over 2.3 million workers spread across every UK region including over 900,000 self-employed workers.

The Chancellor reconfirmed the commitments made by the Prime Minister in his Build Build Build Speech on the 30th June.

Construction Talent Retention Scheme – The government is funding a Construction Talent Retention Scheme to support the redeployment of workers at risk of redundancy. This will help retain construction skills and match talented workers to opportunities across the UK.

Courts sustainability – The government will invest £40 million to improve the environmental sustainability of the courts and tribunals estate in England and Wales, investing in initiatives to reduce energy and water usage.

NHS maintenance and A&E capacity – The government will provide £1.05 billion in 2020-21 to invest in NHS critical maintenance and A&E capacity across England.

Modernising the NHS mental health estate – The government will provide up to £250 million in 2020-21 to make progress on replacing outdated mental health dormitories with 1,300 single bedrooms across 25 mental health providers in England.

Health Infrastructure Plan – The government will provide a further £200 million for the Health Infrastructure Plan39 to accelerate a number of the 40 new hospital building projects across England.

Further Education (FE) estate funding – Building on the £1.5 billion commitment for FE capital funding made at Budget 2020, the government will bring forward £200 million to 2020-21 to support colleges to carry out urgent and essential maintenance projects. This will be the first step in the government’s commitment to bring the facilities of colleges everywhere in England up to a good level.

School estate funding – The government will provide additional funding of £560 million for schools in England to improve the condition of their buildings and estates in 2020-21. This is on top of the £1.4 billion already invested in school maintenance this year.40

School rebuilding programme – The government has announced over £1 billion to fund the first 50 projects of a new, ten-year school rebuilding programme in England. These projects will be confirmed in the autumn, and further detail on future waves will be confirmed at the Comprehensive Spending Review. Construction on the first sites will begin in September 2021.

Court modernisation – The government will invest £102 million to modernise the court estate in England and Wales. This will include £55 million for essential court maintenance, £37 million for technology to fast-track the digitalisation of the courts, and £10 million for local regeneration projects outside London and the South East which will support employment and economic growth.

Prison and probation estate funding – The government will invest £143 million to improve the prison and probation estate in England and Wales. This will include £20 million to accelerate the digitalisation of prisons, £60 million for 1,000 temporary prison units to expand the capacity of the estate, and £63 million in additional maintenance.

Local infrastructure projects – The government will provide £900 million for shovel-ready projects in England in 2020-21 and 2021-22 to drive local growth and jobs. This could include the development and regeneration of key local sites, investment to improve transport and digital connectivity, and innovation and technology centres. Funding will be provided to Mayoral Combined Authorities and Local Enterprise Partnerships.

Towns Fund capital acceleration – The government will accelerate £96 million of investment in town centres and high streets through the Towns Fund this year. This will provide up to 101 towns across England with funding for projects such as improvements to parks, high streets, and transport.

Local road maintenance – The government will invest £100 million to deliver 29 local road maintenance upgrades across England in 2020-21, including eight bridge and viaduct repairs and improving local roads. This is in addition to the government’s plans to spend £1.5 billion in 2020-21 on filling potholes, resurfacing roads and improving local highway infrastructure.

Unblocking Manchester’s railways – The government will provide £10 million to develop plans for improving the reliability and capacity of the Manchester rail network.

World-class laboratories – The government will provide a £300 million investment in 2020-21 to boost equipment and infrastructure across universities and institutes across the UK.

Support targeted at the Housing Sector

The housing market has been severely affected by the pandemic, with activity and construction both slowing sharply. Estimates suggest that UK residential transactions in May 2020 were nearly 50% lower than in May 2019. According to Nationwide, UK house prices fell in the year to June 2020 for the first time in almost 8 years.

To address this the Chancellor has announced two key measures:

Temporary Stamp Duty Land Tax (SDLT) cut – The government will temporarily increase the Nil Rate Band of Residential SDLT, in England and Northern Ireland, from £125,000 to £500,000. This will apply from 8 July 2020 until 31 March 2021 and cut the tax due for everyone who would have paid SDLT. Nearly nine out of ten people getting on or moving up the property ladder will pay no SDLT at all.

Green Homes Grant – The government will introduce a £2 billion Green Homes Grant, providing at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to £5,000 per household. For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household. In total this could support over 100,000 green jobs and help strengthen a supply chain that will be vital for meeting our target of net zero greenhouse gas emissions by 2050. The scheme aims to upgrade over 600,000 homes across England, saving households hundreds of pounds per year on their energy bills.

Social Housing Decarbonisation Fund – The government will establish a new Social Housing Decarbonisation Fund to help social landlords improve the least energy-efficient social rented homes, starting with a £50 million demonstrator project in 2020-21 to decarbonise social housing. This will mean warmer homes and lower annual energy bills for some of the lowest income households.

Affordable Homes Programme – The government has confirmed that the £12.2 billion Affordable Homes Programme announced at Budget will support up to 180,000 new affordable homes for ownership and rent in England. The £12.2 billion will be spent over five years, with the majority of homes built by 2025-26 and the rest by 2028-29. The Affordable Homes Programme will also include a 1,500 unit pilot of First Homes.

Short-Term Home Building Fund extension – The government will support small- and medium-sized housebuilders that are unable to access private finance by boosting the Short-Term Home Building Fund, providing an additional £450 million in development finance to smaller firms. This is expected to support around 7,200 new homes in England, boosting housing supply and adding resilience to the market. A proportion of this fund will be reserved for firms using innovative approaches to housebuilding such as ‘Modern Methods of Construction’.

Brownfield Housing Fund – The government will allocate a £400 million Brownfield Housing Fund to seven Mayoral Combined Authorities to bring forward land for development and unlock 24,000 homes in England. To allow authorities to begin delivering projects quickly, 90% of the fund will be allocated immediately on a per capita basis, with 10% to be allocated through a competitive process.

Planning reform – The government will introduce new legislation in summer 2020 to make it easier to build better homes in the places people want to live. New regulations will make it easier to convert buildings for different uses, including housing, without the need for planning permission. In July 2020, the government will launch a policy paper setting out its plan for comprehensive reforms of England’s planning system to better support the economy and release more land for housing in areas that need it most.

Other Announcements

The Plan also includes a number of announcements designed to stimulate the Hospitality sector through VAT cuts and a Eat Out to Help Out voucher scheme. There is also a range of new funding to support return to work, funded work experience and employ ability training/coaching through the Department of Work and Pensions and the National Careers Service, alongside further support for apprenticeships, which enable people to work while training.

The Policy Paper A Plan for Jobs 2020 with full details and supporting data can be viewed here

 A Plan for Jobs 2020 speech as delivered by Chancellor Rishi Sunak

The Government has moved to secure vital talent needed to build the UK’s recovery from Covid-19, protecting employment for thousands of people working in the construction sector.

• Construction Talent Retention Scheme will keep skills in the sector, matching displaced workers with employers seeking new staff
• Scheme is based on proven model to safeguard talent in the aerospace and automotive sectors
• Supported by the Construction Leadership Council (CLC) and all leading sector trade bodies

The Chancellor of the Exchequer, Rishi Sunak, today (8 July) announced the launch of the Construction Talent Retention Scheme, a partnership between the Government and industry to secure essential talent in the UK construction sector.

The Construction Talent Retention Scheme, to formally launch later this month, will be an online portal that supports redeployment of staff at risk of redundancy across the sector, while also enabling temporary employee loans between businesses. The Scheme give displaced  workers from other sectors a route to find new employment in construction.

Construction Leadership Council (CLC) co-chair Andy Mitchell added: “This is a great example of what we can achieve when we work collaboratively with Government and we look forward to continuing in this spirit when the proposals and recommendations of our broader Roadmap to Recovery are published. In the meantime we will work with our members and industry stakeholders to encourage the scheme’s use and success.”

Association for Consultancy & Engineering (ACE) chief executive Hannah Vickers said: “This is a proven solution with a strong track-record in other sectors, cross-industry support and pledges from our leading employers. It is vital we keep the skills in our sector to avoid a talent drain and is the only way we will be able to ramp-up activity to lead the recovery of the wider economy and deliver growth through new buildings and infrastructure.”

Group chief executive of Mace, and skills workstream lead at the Construction Leadership Council, Mark Reynolds, said: “The CLC’s Construction Talent Retention Scheme will offer a critical lifeline for the construction industry, it will help the industry retain and share our exceptional talent needed to deliver vital infrastructure and support the country’s recovery plan. The scheme is a great example of Government and industry collaboration during these challenging times for the construction sector. We are delighted to support the initiative as a real solution to protecting employment for thousands in our industry, continuing to build a better future.”

The not-for-profit programme now has funding secured until the end of the financial year, providing a free online platform for any organisation looking to hire, while ensuring that candidates’ skills and experience are given a prominent platform within the industry.

Businesses can register their interest in the scheme at: www.trs-system.co.uk/construction

Finishes and Interiors Sector CEO, Iain McIlwee added a note of thanks to the group who have pulled this together “Construction is one of the most people intensive business, but the erratic nature of the industry, poor planning and communication means that our talent funnel leaks.  The underlying message from the CLC and behind this initiative is that people are at the heart of our industry and we must do all we can to retain the best of us to lead the industry forward.  The challenge for any one business in an uncertain environment is how we flex and adapt as businesses around project and location.  If we don’t start to work more effectively as a wider ecosystem to balance this then we continue to lurch from skills crisis to skills crisis and we will fail to get to the nub of the competency and emerging productivity challenge that we currently face.  We look forward to learning more and working with our members and the wider sector to ensure that this platform works for the people and businesses in our sector.”

A Free Online course where you learn how to foster a culture of quality in construction with the CIOB.

Poor quality builds have a detrimental impact on the construction industry. On this course, you will tackle this problem with professional research and insight into the delivery of quality construction and development projects.

You will look at the current issues faced by the construction industry and how quality management has developed in construction and elsewhere. You will also address some basic practical steps that can be made to ensure construction quality. Upon completion of the course, you will become more confident at instilling a culture of quality on all your construction projects.

FIS Technical Director, Joe Cilia is one of the contributors:

“It was great to support the CIOB in the development of this course.  The FIS PPP Quality Framework is central to all we do and it is great to get this opportunity to share it with the professionals from across the sector and promote these values more widely.”

Joe Cilia

For construction professionals requiring a more in-depth look at the topic and the practical tools and techniques to achieve quality, our 2 day course on Construction Quality Management is the perfect solution.

Here are the answers to some of the most commonly asked questions about this course:

• The course takes place 100% online over a period of 3 weeks. New content is released on a weekly basis, and those who sign up should expect to make a commitment of 2 hours per week.
•  There are no live sessions; we will not expect you to be online at any specific times over the duration of the course.
• If you require a Certificate of Achievement, please select the option to upgrade your enrolment for a fee of £42. Your certificate will be delivered at the end of the course. Those who don’t require proof of their studies can enjoy full access to the course free of charge.
• The course will be open all the time from the 6th July 2020. To join, please click here to be redirected to the Future Learn online platform. This is where the course will be delivered, and it’s also the place where many more FAQs are answered.

Today the Scottish First Minister (SFM) published the findings of a review by the COVID-19 Advisory Group on the 2 metre physical distancing rule. Their advice makes clear that the fundamental science around distance and transmission remains unchanged and that risk increases with proximity to an infected individual.

‘The risk of transmission will be increased if the physical distancing recommendation is reduced to 1 metre from 2 metres. This is not only because of the increased risk of direct transmission from respiratory secretions, but also because of increased surface contamination that would occur in indoor environments with higher occupancy.’

However in her update the SFM recognised that there is also a need to take into account the four harms as set out in our Framework for Decision Making. The framework made clear that, after the necessary condition of suppressing the virus has been met, decisions can be taken which seek to minimise overall harm viewed across health, the economy and broader society. What this means is that policy decisions are required that balance any increased transmission risk from changing the 2 metre requirement, given the current status of the epidemic, with the reduction in other harms that would stem from such a change to the 2 metre requirement.

‘In balancing these considerations, a value judgement must be taken as to whether reducing the physical distancing to 1 metre is a tolerable risk. If this is a policy decision, it must be accompanied by clear guidance on spacing in any indoor environment, emphasis on surface cleaning, hand hygiene and cough etiquette. Messaging must be clear that the virus is still present and a continued threat.’

In Scotland’s route map through and out of the crisis: Update on approach to physical distancing in light of advice from the Scottish Government COVID-19 Advisory Group, Published on 2 July 2020 the SFM sets out plans for exemptions and appropriate mitigations in certain sectors as Scotland moves to Phase 3 of the National Routemap (at present these do not include construction and will not impact on Construction Scotland’s Site operating procedures or additional guidance produced by the CICV Forum in Scotland).

Additional Downloads:

Advice Commissioned by the First Minister and Chief Medical Officer on Physical Distancing 2 July 2020

Advice Commissioned by the First Minister and Chief Medical Officer on Superspreading 2 July 2020

Update on Application of Building Regulations to Adaptations in Scotland

An update was also published yesterday from from Stephen Garvin, Head of Building Standards Division, on the Application of Building Regulations to Adaptations.

Letter re application of building regulations to adaptations, 30 June 2020

Advice note re application of building regulations to adaptations, 30 June 2020

FAQs re application of building regulations to adaptations, 30 June 2020

Build UK has been working with Constructionline to measure the impact of coronavirus on the industry, and have published the results in a new infographic based on data submitted from almost 8,000 suppliers.

The infographic provides some encouraging news with respect to the impact of the CLC’s work on Site Operating Procedures with 99% of respondents making use of this document.  The numbers related to whether companies are expecting significant financial difficulties ahead are concerning with 29% of companies in England, 42% in Scotland, 32% in Wales and 47% in Northern Ireland . 

The Biggest challenges highlighted was continuity of work, however, the survey points also to the significant challenge the industry has in terms of productivity.  The three main things that would help suppliers are outstanding invoices to be paid (38%), a relaxation of project deadlines (28%), and shorter payment terms (24%).

Download the Constructionline-Build-UK Infographic here