Commenting on the Chancellor’s statement, earlier this week, regarding the UK’s economic recovery from COVID-19, Clive Docwra, Managing Director of leading property and construction consultancy McBains, said:
“The Chancellor is right: we need to instil confidence in our economy and get it moving again following the COVID-19 pandemic.
However, in the case of construction, its simply not possible to just “turn on the taps” and “get Britain building”. There’s lead time, which, in many cases, is considerable – with smaller developers, in particular, still struggling with supply chain blockages, staff shortages, and provisions around social distancing.
As a sector that has operated on tight margins, now, for some time, the long-term outlook is not great, despite the Chancellor’s promises and upbeat tone. Many developers are hesitant about committing to new projects against a backdrop of coronavirus, and its likely the Government will need to provide ongoing support for some time to come – or, at the very least, until an effective treatment or vaccine is found.
That being said, some of the proposals announced today – such as the job retention bonus, the new “kickstart” and traineeship support schemes, and the stamp duty holiday – will provide a much-needed boost to the sector and give developers confidence that returning to full operational capacity may well be a risk worth taking.”
