The UK economy continued its stronger than expected recovery in July, growing by 6.6% following June’s expansion of 8.7%. The economy has now recovered around half of the lost output between March and May, it remains 11.7% smaller than in February: to put it in context, the economy is the same size now that it was in 2013.

While the speed of the economy is encouraging, many experts’ current sentiments are very downbeat: this is because many indicators have weakened recently and are expected to deteriorate further. The UK currently faces a triple threat of:

• a weakening economic outlook set to deteriorate further as emergency government support measures are withdrawn later in the autumn,
• new Covid-19 outbreaks leading to restrictions that inhibit further economic recovery, and
• a disruptive Brexit causing shortages of goods and labour, and price inflation among other disruptions.

The Bank of England’s Chief Economist recently warned the government against extending the furlough scheme, arguing it would delay a “necessary process of adjustment” and the focus should be on transitioning to new ways of working.

Sector comparison
Construction continued its strong recovery, growing by a further 18% in July after being the most impacted sector in April. Further detail is contained within the report.

The production sector output increased by 6%, led by the manufacture of clothes and transport equipment. Services also increased by 6% with wholesale and retail trade, information and communication and defence approaching recovery to February’s levels. Accommodation and food services, while growing strongly, is still 40% compared to earlier in the year.

Construction remains 25% down compared to February, with services -13% and manufacturing -12%.

FIS members can access the full report here.

Details must be stored for 21 days and shared with National Health Service Test and Trace, if requested. There are fixed penalties for organisations that do not comply. Businesses and organisations had previously been advised to collect and share data, with many effectively doing so, however this programme will now be formally mandated from 18 September 2020.

Further details can be found here.

CITB has approached the Department for Education (DfE) with its latest Levy Proposals, which will include cutting 2021-22 Levy rates by 50% for all employers.  In addition, by raising the Small Business Levy Exemption threshold for employers with wage bills under £120,000, the proposals also see an extra 5,000 small employers paying no CITB Levy at all.  The proposals were formulated following conversations with industry leaders, stakeholders and a cross section of employers during the summer on what the priorities for construction are and how to fund them.

The Skills Stability Plan 2020-21, launched just over two months ago, reshaped CITB’s immediate support for employers.  The Strategic Plan, to be published later in September, looks at how CITB can best support the construction industry through to 2025 and how they will fund this.  The effect COVID-19 will have in future is very uncertain, so CITB have built in flexibility to adapt and respond quickly if needs change.

CITB regularly updates its Training Standards, releasing new ones, deactivating others and creating new grant eligible training (GET) codes for those that have moved from development to full Standards.  When making a grant claim it is important to use the correct code and Standard name to ensure payments get to you as quickly as possible.  The Grant Codes for Short Duration standards list has the most up to date information, and all upcoming changes can be found in the Construction Training Directory section here.

FIS is currently providing a supplementary fund for FIS members in addition to the money employers receive in CITB GET Code grant.  FIS can help check you are getting all of the funds you are eligible for, please ask for a Skills and Funding Clinic by completing the Registration Form, alternatively you can email info@thefis.org or telephone 0121 707 0077.

T Levels are central to the Government’s plans to improve technical and vocational education and address the skills gap. With content designed by more than 250 employers, these new high-quality technical qualifications follow GCSEs and will deliver a pipeline of young people with the skills, knowledge and workplace experience that businesses need.  These rigorous two-year courses are based on the world’s best technical education systems and combine classroom learning with a substantial industry placement.  Each T Level is equivalent to three A-Levels and attracts UCAS points offering graduates the opportunity of moving into a job, an apprenticeship or continuing to further study.  The industry placement, lasting at least 45 days, is unique to T Levels and allows students to put the knowledge and skills they have learned into practice. It is also an opportunity to try out their chosen industry and gain experience in the workplace. For employers, they offer the chance to bring in fresh ideas and to spot and nurture early talent.

For more information please see:

• T Level video:  aimed primarily at students and parents
• New T Level website with sections for both employers, students and parents:
• Introduction of T Levels page on gov.uk

The following T’Levels may be of interest to FIS members:

• design, surveying and planning for construction (now available)
• onsite construction (starting September 2021)
• building services engineering for construction (starting September 2021)
• design and development for engineering and manufacturing
• accounting
• finance
• human resources
• maintenance, installation and repair for engineering and manufacturing
• management and administration
• engineering, manufacturing, processing and control

It’s about competency…  To find out more about the work FIS is doing to support competency and recruitment, to find a supplier of quality training or to identify funding that can support your plans, visit our skills hubs here.