COVID-19: Government must Help Britain’s builders now more than ever

It would probably be easier to list the things that haven’t affected by Coronavirus. This crisis has touched us all, pressing pause on progress overall. Now, small and medium-sized construction building companies need urgent and immediate additional support from the Government to prevent wide-scale insolvencies and job losses, according to industry experts. Buildingspecifier’s Joe Bradbury investigates:

How long will this go on?

“At this point, the answer to this is anyone’s guess. In Boris Johnson’s opening statement from yesterday’s press conference on coronavirus, the PM stated “I want to begin by thanking everyone, by thanking you, in the media, and also thanking everyone for the huge efforts that the country is making to comply with the advice that we’ve been given.

“We’re asking such a huge amount, asking students to put their education on hold, we’re asking people not to socialise in the normal way, and already we can see the impact that this is having on the UK economy and on business, on great, great companies.

“It’s vital that we in Government stand behind them when what we are asking everyone to do is so crucial for saving literally thousands of lives by defeating this virus.

“I am conscious as the days have gone by that people will want to know how long we are expecting them to keep it up and I wanted to try to say something about how I see the timescale of this campaign and where we’re going and what we need to do.

“I do think, looking at it all, that we can turn the tide within the next 12 weeks.”

Builders have reported the following impacts on their firms:

• Three-quarters (76%) say projects have been delayed or cancelled;
• Just under two-thirds (64%) have seen a drop in enquiries;
• Almost all (98%) estimate that one quarter (25%) or fewer of their staff can work from home; and
• Almost one in ten (8%) have already had to make redundancies, representing 58 individuals now without jobs.

The Federation of Master Builders is calling on the Government to:

• Provide a three month tax holiday on VAT, PAYE and CIS payments. The Government must also delay the implementation of Reverse Charge VAT by one year;
• Extend the £25,000 cash grant currently only provided to retail and hospitality to construction firms;
• Provide the equivalent rate of Statutory Sick Pay to the self-employed who fill 37% of industry jobs;
• Ensure that the Coronavirus Business Interruption Loan Scheme is quick and easy to use, and is launched as soon as possible.

The FMB is also calling on the Government to work with the CITB to help employers keep their apprentices; provide clarification to builders and householders whether social distancing means all domestic building work must stop even if all concerned are well; and start to issue construction industry-specific guidance.

Brian Berry, Chief Executive of the FMB, said “The Government has overlooked the market in which small builders operate. Builders working in the domestic sector simply cannot work from home and are already feeling the impact of the pandemic as a result. The Government must intervene as a matter of urgency if small building companies are to protect their workforces, avoid further job losses, and prevent building companies going to the wall.”

“We musn’t allow a repeat of the 2008 recession when one in three SME construction firms left the industry. Building new homes and levelling-up infrastructure will be key to rebuilding our economy after the virus has passed, and the Government will need an army of builders in place to deliver that.”

“The FMB is supporting its 7,500 members during this difficult time, through its dedicated helplines, tailored communication and guidance, and insurance services. We are also working closely with the Construction Leadership Council (CLC) as well as other industry bodies to ensure the industry is united through this crisis. I’m calling on the Government to match our efforts and ramp up their support for builders immediately.”

Richard Beresford, chief executive of the National Federation of Builders, added “The situation is extremely serious, especially for the elderly, people with underlying health conditions, pregnant parents or very young children. Government and the construction sector needs to also recognise the risk of mass absence from construction sites and the potential impact of delayed payment resulting in the need to lay staff off or make redundancies. A pragmatic and dynamic risk based approach, supported by government is needed.

NFB is working hard to ensure its members are supported with the relevant guidance on the coronavirus, for example on statutory sick pay, commercial legal advice on construction contracts and general business advice of mitigating the risk for essential construction work.”

So far, several NFB members have reported issues of absence through self-isolation. However, with government advice and guidance pointing to a substantial increase on the current 1,500 cases, it is clear that things will change rapidly in the coming days and weeks.

In summary

What is happening now is unprecedented. Brexit and the election, once permanently on everybody’s lips have been replaced with a chronic sense of fear and uncertainty. We don’t know how this will affect construction over the coming weeks and months, but we do know that the impact will be profound. In order to survive, we will need to put our differences aside, let go of old rivalries and work collectively as an industry. It seems a strange irony to end on at a time where social distancing is being actively encouraged, but we need to pull together, now more than ever. Future success may very well depend upon i