The Construction Plant-hire Association (CPA) has sent a submission to HM Treasury under the government’s Comprehensive Spending Review
The CPA spending review recommendations include topics intended to spur economic growth as well as decarbonisation and other important issues.
The government spending review is the process used to determine the next budget for departments.
The recommendations take public finances into consideration
The key recommendations made are as follows:
Reducing government duplication of effort and resource in key areas such as net zero and decarbonisation policy, while also providing appropriate resource across government
The statement says: “Moving forwards following the consultation, NRMM decarbonisation policy should be the responsibility of one government department, with clear lines of communication to industry and within government. Failure to do so will waste further resources, cause business uncertainty, and undermine efforts to reach net zero.”
It continues: “The CSR should recognise, account for, and put in place, a realistic timetable for the Treasury, which allows the NRMM plant-hire industry to prepare for when Full Expensing will be extended.”
Enhancing digitalisation of government services
The statement says: “We would encourage the government and supporting agencies such as the DVSA and Construction Industry Training Board (CITB), to explore other areas where digitalisation of services can be introduced to keep up to date with emerging technology and how it can be applied in a cost-effective way. Other countries are already doing this, and it is the next practical step as technology for the provision of government services, develops.”
Ongoing development of the industrial strategy, and the creation of the National Infrastructure & Service Transformation Authority (NISTA)
The statement says: “Under the previous government, the contracting system inherent in construction, was misunderstood. As a trade association, we had to write to both the then Chancellor and the Secretary of State for Business, to explain how construction equipment was procured and then utilised. The government should resist the urge to just engage with national housebuilders and conclude it has consulted with construction – this only forms a fraction of what constitutes the modern industry. It is vital that government departments and policymakers incorporate and recognise the wider construction industry and the sectors that support it. Failure to do so will mean a lost opportunity and a poor return for the government.
“The government departments that work with construction in delivering the industrial strategy and NISTA, should be properly resourced if the ambitions of the strategy are to be realised. Investment in time and resource in creating the delivery mechanisms needed might be an upfront cost now, but the prize is a growing, sustainable economy in the longer term.”
Infrastructure delivery at both national and local levels, and planning reform
The statement says: “The Spending Review must also make provision for planning departments at local and national level, to be adequately resourced if decisions are to be made in a timely manner. Over the course of the last two decades, planning departments and specialist roles within them, have been hollowed out, leading to a backlog in applications and decisions.
“Proper funding will provide applicants, and the communities impacted through developments, some degree of certainty towards the decision-making process and what it means. For all sides, an ongoing delay leads to uncertainty and anxiety towards the future. This is unfair, leading to investment and business plans put on hold, while also undermining the positive contribution new developments can bring to a region and its infrastructure.”
Reform of the skills landscape and the delivery mechanisms of Skills England
“Government needs to ensure there is flexibility between national and regional skills funding, for example with skills bootcamps to support housing and infrastructure needs. Many of our members are already taking responsibility for training the operators and plant mechanics of the future, however we need to see a joined-up approach from government that does not waste resource and undermine national efforts to improve the skills landscape. Flexibility is needed on the part of policymakers to ensure funding is adequate, while also working with industry in the delivery of training. The final settlement in the Spending Review must recognise this.”
The CPA spending review recommendations highlight the importance of plant-hire
The final message of the statement and recommendations says: “CPA members have consistently demonstrated their resilience, their commitment, and their belief in the UK as country to build, grow and maintain their businesses. They do this every day by supporting a wide range of industries and construction sectors, showing their professionalism, and dedication to their work. Our members, working with our world class equipment manufacturers, act as a critical global hub for expertise, knowledge, innovation, and development. They are ready to work with the government in realising its ambition for our future housing and infrastructure needs.
“The Spending Review, while finding value and savings, should not undermine the plant-hire industry and lead to an erosion of trust between the sector and government.”
Last November, the CPA released a statement urging the government to carefully consider the relationship between the budget and their construction goals, and to clarify on points that weren’t well understood, including the lack of clear financial support to hit the new 1.5m homes target.
The recommendations letter can be read in full on the CPA website.
