GUEST ARTICLE: Spring Statement Reactions

This guest article features varying reaction to yesterday’s Spring Statement from the Structural Timber Association (STA) and West Midlands construction company, McPhillips…

Timber: The Critical Path to Britain’s Net Zero and Housing Revolution

The Structural Timber Association (STA) welcomes the Chancellor’s transformative statement with regards to housebuilding, acknowledging it as a key moment for continuing the momentum in getting Britain building again – to ensure the Government reaches its target of 1.5 million homes in the next five years. 

Chancellor Rachel Reeves has announced an injection of £2 billion for affordable housing with plans to fund 18,000 social homes.

Andrew Orriss, CEO at STA, comments: “This is a significant investment and sends a clear signal of the commitment to addressing the challenges of the national housing shortage.

“What we need to be mindful of is the delivery of this housebuilding and the scale needed.  This is where offsite manufacture and low carbon structural timber has an essential role to play in helping the Government deliver its target of 1.5 million homes in the next five years. Indeed, there is existing capacity in the established structural timber manufacturing industry which must be utilised.

“The advantages of timber construction are clear, from viability in a commercial sense to the sustainability benefits that are so crucial to the industry. The key to this success hinges on a comprehensive approach to delivery through competency, skills and informed decision making on designs and planning.”

The statement also revealed plans for £600 million worth of investment to train up to 60,000 more skilled construction workers, as well as ten new technical excellence colleges across every region of the country. This is more than a workforce development initiative and has the ability to deliver well paid jobs across the country in the construction sector, not to mention being an essential role to play in helping the Government deliver its housing plans.

Andrew Orriss continues: “These announcements follow a positive start to the year for structural timber with February’s ministerial approval of DEFRA’s Timber in Construction Roadmap (TiC), highlighting a strategic commitment to leverage timber as a key material in our built environment. 

“Additionally, the Government’s recently introduced Plan for Change, recognises the pivotal role of sustainable construction in driving economic growth and addressing climate challenges.

“There can be no doubt that increasing the use of structural timber and offsite manufacturing is one of the most effective ways of ensuring the rapid and high-quality delivery of these vitally needed homes, while also meeting urgent decarbonisation obligations.

“The Structural Timber Association remains dedicated to working collaboratively with government, industry partners, and stakeholders to drive a transformative approach to construction that meets our economic, social, and environmental objectives.”

Statement painted ‘a gloomy picture’

Leading West Midlands construction company McPhillips today welcomed a £600million funding boost for the construction sector – but warned the Spring Statement showed the fragility of the overall economy.

McPhillips managing director Paul Inions said the statement painted a gloomy picture of the state of the nation’s finances, with spending cuts following the tax and borrowing rises announced in the October Budget.

“Having ruled out tax rises ahead of today’s statement, the Chancellor left herself with little option but to cut public spending if she wanted to stay within her own fiscal rules,” he said.

“There is only one way out of her current predicament and that is to do everything she can to help the private sector start to grow. Unfortunately, the rise in employer’s National Insurance contributions which comes into effect next month and changes to employment laws do nothing to help.

“However, the extra £600million of funding to train tens of thousands more skilled construction workers over the next four years is certainly welcomed. If it can deliver on the Chancellor’s promise to train up to 60,000 engineers, bricklayers, electricians and carpenters by 2029 then it will be a big step forward.

“McPhillips runs its own training centre and we know that investment in skills at entry level pays huge dividends further down the line.

“We certainly need this sort of national investment if we are to speed up work on the UK’s infrastructure and build the 1.5million homes the Government has promised in the next five years.”