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Queens Speech sets the stage for investment in jobs and a greener, safer recovery

The Queen’s Speech marks the start of the Parliamentary year, it is delivered by the Queen, but written by Ministers and identifies priorities in terms of laws that it wants to pass through the house and vote on this year.  This year the Government has identified 31 bills that MPs and peers will be asked to scrutinise and vote on over the next year.  Inclusion in the Speech doesn’t necessarily mean it will automatically become law, but the Government has a strong majority and through the Parliamentary process these bills will be scrutinised and adapted.

The themes in the speech reaffirm commitments to build back better, cleaner and greener with Net Zero Strategy central, seizing opportunity from exiting the EU, driving investment and levelling up with a view to strengthening the Union.

Below we look at the areas that will have the most significant impact on businesses in the construction industry and the finishes and interiors sector.

Planning bill
This has been billed as the biggest shake-up of the planning system in decades.  Whilst we have heard this statement by successive Governments, the bill does mark a fairly fundamental change as under proposals local planning authorities would no longer have the powers to turn down housing developments if they meet set standards.  The Bill also forces local authorities to set new zones for housing. This Bill is already getting opposition from within the Conservative Party, so is by no means a done deal yet.

Skills and Post-16 Education Bill
The Government is planning landmark reforms for the delivery of skills and training with a focus on ensuring that people can train and retrain at any stage in their lives.  Central to the Bill is introducing a right to government-funded training for all adults lacking A-levels or a qualificaion of equivalent value. The Bill will also extend the student loan system to those who want to study at local further education colleges. All adults will be entitled to four years’ worth of loans for training or education that can be taken at any point in their life.

Building Safety Bill
Government continues to press ahead with reshaping the regulation and enforcement that impacts building safety, this includes changes to the Building Regulations, new regulators and particular scrutiny on the safety of high-rise buildings and inspections of buildings under construction in the wake of the 2017 Grenfell Tower disaster.

Environment Bill
Provides a regulatory framework to impose, adapt and absorb elements previously covered under EU directives.  The Bill allows Government to set legally binding targets, restore nature and biodiversity, tackle air pollution, establish an independent Office for Environmental Protection, cut plastic use and includes particular reference to “revolutionising” how we recycle.

Subsidy control bill
State Aid rules are no longer Governed by the EU (although are referenced in the Trade Agreement).  This Bill will enable Government to write legislation to establish a state aid regime in the UK that helps to accelerate recovery.
An independent body will be established to help government ensure intervention reflects strategic interests and National circumstances without breaching the terms of the trade and co-operation agreement with the EU.

Freeports bill
Again aimed at driving investment and regeneration at the same time as supporting trade, this Bill will allow Government to establish the legal framework for initially eight freeports: Teesside, London Gateway, Liverpool City Region, Humber, Felixstowe, Southampton, Plymouth and East Midlands airport.  Discussions continue between the UK Government and the devolved administrations to ensure the delivery of further Freeports in Scotland, Wales and Northern Ireland as soon as possible.

Businesses within Freeport areas will benefit from more generous tax reliefs, simplified customs procedures and wider Government support.

Procurement bill
This Bill is designed to consolidate and streamline the 350 plus EU derived regulations and make our procurement regime quicker, simpler and easier to use, allowing more freedom for suppliers and the public  sector to innovate and work in partnership with the private sector.  The Bill crystalises that “social value” must be considered a factor in the picking of suppliers (in keeping with the philosophy of the Construction Playbook).

Professional qualifications bill
Provides a new bespoke framework for the UK to recognise professional qualifications from across the world to ensure employers can access professionals where there are UK shortages. Whilst targeting the need to help fill skill shortages after Brexit, it is unlikely to have much impact on trade operative end of construction, but is more targeted at occupations like medicine and teaching, and will provide some freedom in the Engineering, Architectural and Surveying end of the market.

Advanced Research and Invention Agency Bill
This is likely to drive investment as the Government focusses on making the UK a global science superpower by developing our Life Sciences sector to attract the best people and businesses from across the world, increasing public expenditure on research and development to £22 billion; and creating the Advanced Research and Invention Agency focused on funding highrisk, high-reward research and development.

Registration of Overseas Entities Bill
It is clear that International Investment will be critical to support growth, but more control is required.  This Bill is about transparency and ensuring foreign owners of UK property are no longer able to conceal their identity: a register of beneficial ownership will be set up to crack down on tax evasion.

The Speech also highlights a number of Funds designed to support investment in change these include:

Future Fund: Breakthrough
The £375 million, UK-wide ‘Future Fund: Breakthrough’ scheme will target innovative, R&D-intensive firms and provide them with the capital they need to grow and succeed.

Levelling Up Fund
The £4.8 billion Levelling Up Fund will invest in infrastructure that improves everyday life across the UK, including regenerating town centre and high streets, upgrading local transport, and investing in cultural and heritage assets.

UK Community Renewal Fund/ UK Shared Prosperity Fund (UKSPF)
The £220 million UK-wide Community Renewal Fund will provide funding for local areas across the UK in 2021-22 to help them prepare for the introduction of the UK Shared Prosperity Fund, in addition to the continued high level of funding from EU structural funds.

Towns Fund
Through the Towns Fund the Government has confirmed a £1 billion investment in 45 Town Deals across England, which will help local areas to grow their economies, create and sustain local jobs whilst encouraging opportunities to reshape the look and feel of their area.

National Skills Fund
The Government is investing significant amounts into further education – £1.5 billion to improve our college estate; £2.5 billion (£3 billion when including Barnett funding for devolved administrations) in the National Skills Fund; and £650 million extra into 16-19 further education

Commenting on the speech, FIS CEO Iain McIlwee stated: “As expected, this is a Queens Speech packed full of optimism, all about a fresh start outside the EU and building back after COVID.  The focus on Skills is particularly encouraging – we now need to ensure that construction is a key beneficiary of this.  The Planning reform is also a good sign of a Government recognition that construction activity is key to growth and hampered by red tape and nymbyism, but I suspect it will be a while before the sector sees the full benefit of this reform as it meets opposition in the House.  My sincere hope is that the Building Safety Bill is passed this side of the summer recess so we can crack on with the much needed reform that it heralds.”

Full details of the Queens Speech including a transcript and supporting information is available here.

Vital Update:  Right to Work checks

Vital Update: Right to Work checks

Now that the UK has left the European Union, freedom of movement of people no longer applies and a new points based system has been implemented to manage immigration.  There are a number of actions that employers are recommended to undertake.

The Home Office has now confirmed that changes to the Right to Work checks that were introduced as a temporary measure in response to the coronavirus panedemic will now end on 20 June (not Sunday 16 May as originally planned).

Whilst employers are currently able to conduct checks via video calls and use scanned copies rather than original documents, from 21 June 2021 they must either:
check the applicant’s original documents, or
check the applicant’s right to work online using their share code.

Within this there are two groups to consider, those who will have a right to work through the settlement scheme (those resident before  31 December 2020) and those relying on a visa (i.e. individuals newly arriving from the 1 January 2021).  Note Irish citizens, based on historic agreement that pre-dates UK – EU arrangements, retain a right to work in the UK and are not subjected to the new rules detailed below.

It has been confirmed that employers will not need to carry out retrospective checks on employees verified between 30 March 2020 and 21 June 2021.

See the Latest Government Guidance on Right to Work checks here

You can access guidance on Hiring Overseas Workers in the FIS Employment and Workforce Management Toolkit here

Guidance for employing foreign workers

Build UK has produced a flowchart to help members through the process of employing a foreign worker. The flowchart covers the EU Settlement Scheme, which closes for applications on 30 June 2021, the Points‐Based Immigration System and the Skilled Worker Visa, which is required from 1 July 2021, and provides links to further guidance on a particular area if required.

On 20 May, FIS will be joined by experts who will provide guidance on the right to work checks to ensure that your workforce is legal to work in the UK. Employing EU workers (excluding the Republic of Ireland) who have not applied through the settlement scheme by the 30 June will not be legal workers and this may have serious implications for your business.

You can register your free place here.

Mental Health Support:  Help Inside the Hard Hat

Mental Health Support: Help Inside the Hard Hat

To coincide with Mental Health Awareness Week, The Lighthouse Club is launching its ‘Help Inside the Hard Hat’ campaign to raise awareness of mental health within the construction industry.

To help support the charity’s biggest ever campaign, Help Inside the Hard Hat, they are offering a huge range of pro-active support and resources for our community, including their 24/7 Construction Industry Helpline, their free app and mental health training.

The resources available for you to download, free of charge. So, whether you just want to print your own posters on a photocopier or get them professionally printed, or go large with some eye-catching hoardings, there is everything you need. You can even add your company logo if you wish!

Fore more information and to access the resources visit https://www.lighthouseclub.org/help-inside-the-hard-hat/

Visit the FIS Mental Health Awareness Toolkit here

Help and advice to help to minimise the risk of a cyber attack

Help and advice to help to minimise the risk of a cyber attack

The National Cyber Security Centre (NCSC) has recently launched its Small Organisations Newsletter. SMEs cover a huge range of businesses and make up 99% of all business in the UK. Often SMEs do not have the budget of large organisations to spend on cyber security. This Newsletter aims to break down cyber related issues into bitesize pieces which can be read in your coffee break. The NCSC wants to arm you and your business with the advice and tools to minimise the risk of a cyber attack. Each month will cover a different topic and will offer advice and links to further information.

What is the NCSC?

The NCSC was set up in 2016 to make the UK the safest place to live and work online. They support the most critical organisations in the UK, the wider public sector, industry, SMEs as well as the general public. When incidents do occur, the NCSC provides effective incident response to minimise harm to the UK, help with recovery, and learning lessons for the future.

How to sign up

You can sign up to the newsletter using this link

Business Risk Management Tool

FIS has produced a Business Risk Management Tool to support contractors and help them adopt a structured approach to understanding risk and reducing uncertainty.  The tool identifies over 120 common risk areas for contractors against the categories including Information Management, Business Management, Contractual, Financial, Quality, H&S and Procurement,  providing a mechanism to score and rank risk and advice on mitigation and management.  A risk management matrix ranks risk in term of probability of an event occurring and the severity of the impact should the event occur. It can be used to identify and prioritise activity so that a contractor can then make informed business decisions and improve their resilience.

The Risk Management Tool is available to download free for members of the FIS community here – FIS Business Risk Management Tool.

The FIS Digital Toolkit

The FIS Digital Toolkit helps your navigate through the confusion and find the digital tools that work for your business – access the FIS Digital Toolkit Here

New Market Surveillance requirements for Economic Operators

New Market Surveillance requirements for Economic Operators

Regulation (EU) 2019/1020 – Market surveillance and compliance of products amending Directive 2004/42/EC, Regulations (EC) No. 765/2008 and (EU) 305/2011 (the EU-CPR) comes into full effect on 16 July 2021. However, Articles 29-33 and 36 applied from 1 January 2021. The whole of the new legislation will apply to Northern Ireland (so long as the NI Protocol is in place) and the EU. The Regulation can be viewed here.

This legislation extends the market surveillance requirements industry has become used to under existing regulations. While the Regulation is primarily about the consistency and coordination of market surveillance, there are also a few new requirements for businesses to action to help authorities trace products from manufacture to end user. These requirements only apply to certain products and when there is no manufacturer, authorised representative or importer already based in NI or the EU. The products covered by this new Regulation include:

  • Construction products
  • Eco-design
  • Gas appliances
  • Machinery
  • Low voltage electrical equipment
  • Radio equipment
  • Restricting hazardous substances in electrical and electronic equipment
  • Pressure equipment
  • Simple pressure vessels
  • Numerous others – see legislation Article 4(5) for a list of Regulations covered.

The economic operators the legislation covers are:

  • Manufacturers established within and outside the EU (including NI)
  • Importers
  • Authorised Representatives
  • Fulfilment service providers* where none of the above three economic operators named above is established in the EU (including NI).

[Note: * – Any natural or legal person offering, in the course of a commercial activity, at least two of the following services:

  • Warehousing
  • Packaging
  • Addressing & dispatching without having ownership of the products, excluding postal services, parcel delivery services and any other postal services or freight transport services.]

Regulation Requirements

A product can only be placed on the market if there is an economic operator established in the EU (includes NI) who is responsible for the following tasks:

  • Verifying that the DOP or a DOC (for non-construction products) and technical documentation have been drawn up
  • Keeping the DOP or DOC at the disposal of the market surveillance authority (MSA) for the required period set out in the respective legislation (10 years for the EU-CPR)
  • Ensuring that the technical documentation can be made available to the MSA upon request
  • Provide the MSA with any information they request to demonstrate conformity of products in the appropriate language
  • If they believe that a product poses a risk, to inform the MSA
  • To cooperate with the MSA over corrective action as required.

The legislation does not stipulate whether these tasks have to be allocated to one economic operator or can be shared between more than one economic operator.  Also, The regulation does not require an authorised representative to be appointed for each product.

The key changes / new requirements of the legislation  (greater detail can be gleaned by reading the appropriate articles in their entirety)

  • Article 4(4) Tasks of economic operators

The name, registered trade name or registered trade mark and contact details, including postal address, of the economic operators named above shall be indicated on the product or its packaging, the parcel or an accompanying document.

  • Article 6 Distance sales

Products offered for sale online or through other means of distance sales shall be deemed to be made available on the market if the offer is targeted at an end user within the EU.

  • Article 15 Recovery of costs by market surveillance authorities

In cases of non-compliance, Member States may authorise market surveillance authorities to reclaim from the relevant economic operator the total cost of their activities.

  • Article 25 Controls on products entering the EU market

Customs Authorities can be designated as the authority controlling a products entry to the EU market.

  • Article 29 Union Product Compliance Network

The Network shall serve to provide structured coordination and cooperation between enforcement authorities within the Member States and the European Commission.

  • Article 40

In Article 56(1) of Regulation 305/2011 (the EU-CPR), the first subparagraph is replaced by the following:

Replacement Text Original Text in the EU-CPR

(provided for comparison purposes only)

Where the market surveillance authorities of one Member State have sufficient reason to believe that a construction product covered by a harmonised standard or for which a European Technical Assessment has been issued does not achieve the declared performance and presents a risk for the fulfilment of the basic requirements for construction works covered by this Regulation, they shall carry out an evaluation in relation to the product concerned covering the respective requirements laid down by this Regulation. The relevant economic operators shall cooperate as necessary with the market surveillance authorities. Where the market surveillance authorities of one Member State have taken action pursuant to Article 20 of Regulation (EC) 765/2008 or where they have sufficient reason to believe that a construction product covered by a harmonised standard or for which a European Technical Assessment has been issued does not achieve the declared performance and presents a risk for the fulfilment of the basic requirements for construction works covered by this Regulation, they shall carry out an evaluation in relation to the product concerned covering the respective requirements laid down by this Regulation. The relevant economic operators shall cooperate as necessary with the market surveillance authorities.
  • The activities of market surveillance authorities have been enhanced as has their administration system and their harmonisation across national boundaries. Control of products entering the EU market have similarly been increased.

 

 

Holyrood candidates back regulation of construction industry and development of skills at special CICV Forum hustings

Holyrood candidates back regulation of construction industry and development of skills at special CICV Forum hustings

Regulation of the construction industry is essential for a safer and more productive future, election hopefuls from Scotland’s main political parties told a special digital hustings hosted by the Construction Industry Coronavirus (CICV) Forum

The importance of skills and training in the industry also won unanimous cross-party agreement from panellists during the exclusive event held online this week.

Support for reform of procurement practices and a review of VAT on domestic repairs were other positive talking points – supporting the Forum’s own manifesto suggestions for ways to improve the industry.

The hustings, held via webinar on Tuesday 27 April, featured five candidates currently facing election to the Scottish Parliament:

  • Carole Ford, Scottish Liberal Democrats
  • Monica Lennon, Scottish Labour
  • Laura Moodie, Scottish Greens
  • Alexander Stewart, Scottish Conservative and Unionist
  • Kevin Stewart, SNP.

Answering questions from senior Forum representatives and members of a selected audience, all panellists agreed that regulation was essential for the future of the construction industry.

Kevin Stewart said: “It should be the aim of all of us to drive up standards and safety and build trust in people doing day to day work. Why is a security guard a regulated professional when a plumber is not?

“We need to have real debate about the regulatory issues, and a consensus about moving forward on regulation. The Grenfell Inquiry highlights the need to have occupations regulated to keep people safe and give public confidence in construction work.”

Ms Ford agreed, saying: “Professional regulation’s primary purpose is to protect the public, maintain high standards and protect qualifications and standards in the sector.

“The cowboys are doing no favours to those who are properly qualified, so we are totally committed to all measures which would support consumers and protect standards and professional qualifications, and totally in support of having a well-regulated, well respected construction industry which has the confidence of the public.”

Also in favour of regulation was Ms Lennon, who said: “It is important that qualified tradespeople are recognised for their experience and their competence, meaning the public will have confidence in who is coming into their homes or workplace.

“It makes sense to give people confidence in their work and that they will work safely and have pride in what they do, so we fully support measures to improve regulation and improve public safety.”

Training and apprenticeships ‘vitally important’

The importance of skills, training and apprenticeships in the sector was another topic on which all panellists were in full agreement.

Alexander Stewart said: “Economic growth is the cornerstone for this recovery, and construction plays a vital role in that. Skills and training apprenticeships are vitally important and we fundamentally believe that there should be more funding put into it.

“We want to bring people back and get more new people into the industry and ensure that women have more opportunity to become more involved. We also want economic growth, which will only come about through investment in training and support mechanisms.”

Ms Lennon concurred: “Jobs are at the top and at the heart of our manifesto and our vision for the next five years is a roadmap to recovery that focuses on skills – up-skilling, re-skilling and how we can support local government to take on apprentices and use a talented workforce in Scotland to retro-fit homes to tackle fuel poverty and create new jobs in construction and manufacturing.”

Procurement ‘a bugbear that needs resolved’

Questions on procurement reform had been raised by several Forum members ahead of the husting – and again, all five panellists were firm in their convictions that change is needed.

Ms Moodie said: “We believe public procurement could be a real growth boost for small, local businesses that are socially and environmentally responsible and we are committed to reforming procurement requirements that could fulfil that.

“We want to make sure Scottish businesses capture more of the supply chain opportunities, especially from the rise in the growing renewable industry and I believe there is a lot of room for improvement in terms of accessibility and use of online procurement tools. We would also like to see more support for small businesses so they can compete on a level playing field with bigger companies in terms of bidding for the work.”

Both Mr Stewarts agreed that public sector procurement should focus on “best value and not cost” – a key part of the manifesto released last month by leading Forum member SELECT.

Ms Lennon added: “Procurement is quite simply a bugbear that needs resolved and there are huge opportunities around local engagement and low carbon innovation. SMEs are the lifeblood of our economy and we will reorientate procurement to make sure it works for businesses in Scotland.”

VAT rules ‘a burden on business’

The Forum’s manifesto proposals to mitigate the imposition of VAT on domestic repairs, innovations, and green energy projects, gained the support of all the candidates.

Ms Moodie said it was a “burden on businesses” when they were trying to expand and develop, while Ms Lennon said any changes would unlock plenty of opportunities.

Ms Ford agreed, adding: “The current VAT system is regressive and holding back demand for vital energy efficiency improvements and retrofits.”

Kevin Stewart was also in agreement, adding that VAT was not a devolved matter but that he wanted it reduced or abolished for refurbishment repairs and regeneration projects.

Homes ‘need to be fit for purpose’

Panellists also responded to one audience member’s point that a recent survey revealed that 52 per cent of homes are not wind and watertight, with £3.8bn spent annually on their repair and maintenance.

Ms Ford replied that in the west of Scotland the factoring issue in tenements needs looked at as well as that of owners’ responsibilities, saying: “The Edinburgh solution has its own problems, but owners and the responsibilities of multi-occupancy properties needs reviewed.”

Kevin Stewart spoke of “educating people” about the importance of properties being wind and watertight and the need to be ambitious in helping more, while namesake Alexander added: “Homes need to be fit for purpose and there is a need to invest in the sector.”

Praise for ‘collective expertise’

Finally, there was one more thing all the panellists agreed upon – the excellent work of the CICV Forum.

The unique collective was formed in early March 2020 in response to the urgent COVID-19 threat and now comprises 29 leading construction trade and professional associations.

Alexander Stewart said: “It’s so important that the Forum is at the table as you have boots on the ground and work closely together to get the plans put into place. All the ideas in the CICV Forum manifesto are very good and we would support you in achieving them.”

Ms Ford agreed, saying: “The level of detail in CICV Forum documents is only possible because of your collective expertise. Working together has generated documentation that is a lot better than if carried out by one organisation.”

Kevin Stewart added: “The Forum has been at forefront of promoting working safely and long may it stay at the table with government. In particular I would like to pay tribute to the construction character Campbell who has been used to promote messaging through your clever use of social media.”

Forum actions include lobbying the Scottish Government to influence policy and push for positive action, as well as providing expert advice on important sector issues including commercial, employment, planning, skills, and health and safety.

Hustings ‘a resounding success’

The hustings format was the brainchild of Gordon Nelson, Scotland Director of the Federation of Master Builders, a key member of the Forum.

He said: “From the feedback we have received from the sector, it was clear that the hustings event was a resounding success and generated a wealth of constructive and thought-provoking answers from our panellists.

“It proved also that construction is very much at the heart of Scotland’s recovery, and that all parties are committed to rebuilding together and investing in a safer and fully skilled industry that will benefit the whole nation.”