Following Chancellor Rishi Sunak’s budget announcement on 25 November 2020, blu-3 is welcoming the decision to pledge an extra £100Bn of capital expenditure towards the development of UK infrastructure.
The investment shows a significant boost of £27Bn over 2019’s budget and will provide much needed support to the sector after what has been a very challenging year for many.
blu-3 welcomes the decision to create a new national infrastructure bank, which will work closely with the private sector to finance major new investment projects across the UK.
The outbreak of coronavirus in March placed extraordinary pressure on not just the construction industry, but the country as a whole. The resulting national lockdown forced many businesses to close their doors for an indefinite period.
Thankfully, the construction industry was allowed to continue functioning as an essential industry, but the guidelines put in place for safe working meant many projects slowed down significantly or were placed on hold all together. While necessary, this resulted in major financial strain for many companies despite the UK Government’s best efforts to provide relief with furlough schemes and other avenues of funding.
While the industry has returned to relatively stable operations with restrictions on working conditions, today’s announcement provides a much-needed sense of relief for business leaders, the vast construction workforce and the public that rely so heavily on the UK’s infrastructure.
The announcement means that many companies can now securely plan ahead for the next 12 months, safe in the knowledge that new projects and adequate funding will be on the horizon.
These measures, alongside the long-awaited news of vaccine development, means the industry can now begin to prepare for 2021 with confidence, with a view to getting the sector and the economy back on its feet and regaining its momentum.
There is no doubt the industry will continue to face challenges over the next year on the road to recovery, but the new budget gives the sector renewed stability, and offers this critical component of the economy a beacon of hope that operations will return to normal.