Posted: 3rd October
Blog: The UK Plan for a £3-Billion Construction Sector Boost
If you’ve been feeling somewhat apprehensive about the state of the construction industry in the UK over the recent months – then you’re certainly not alone. Government bodies and overseas investors have been displaying their discomfort openly – leading to a downturn in spending for one of the most crucial sectors in the country.
Fortunately for those in the construction world, the British government recently established that they are all set to announce a brand new £3-billion investment into the house building fund – designed to provide developers with cheaper loans to boost the sector, following the unexpected vote to leave the European Union in June.
Investing In Construction
According to information provided by the Finance Minister for the UK – Phillip Hammond, there is a severe and obvious need within the country to consider a “fiscal reset.”
In other words, the UK needs to consider making changes to the way that it spends money. Fortunately, the upcoming fiscal reset should hopefully set out the way that the government plans to respond financially to the vote on June 23rd – though it has taken until the Autumn statement for this information to start being built. In fact, at this point, there is no specific date for the time at which the budget statement will be made public.
In spite of this, the government have announced that they are intending to combine several existing schemes into a new and impressive fund for the construction industry. The fund will include £525 million in a “builder’s fund”, alongside a billion pounds into a large sites infrastructure program, and a range of new money designed to encourage developers to get involved with building brand new homes.
Who Is the Funding For?
At this time, the new funding is predicted to be available and targeted at small and medium-sized developers throughout the UK, offering financial guarantees and cheap loans to make construction easier. Additionally, the funds are reported to be designed in such a way to reduce the potential red tape that might hamper building schemes.
Unfortunately, the finance ministry has not had any immediate comment about these proposed funds yet, despite the fact that housing market data published within the Brexit vote has been somewhat mixed – with various official figures showing a fall in construction output in May, and referendum surveys showing an instant impact on the housing market.