Summer Budget 2015; What is Planned for the Construction Sector?
The government expects the reforms made to welfare and taxation, to deliver savings of £17 billion per year, along with £15 billion worth of departmental spending cuts, the implications of which on the construction industry will be revealed later on in the year.
Although the budget did not include many measures which would impact directly on the construction industry, the government’s commitment to building more homes and further planning reforms are due to be published tomorrow.
Yesterday’s budget spelled good news for those operating within the oil and gas industries. A new investment Allowance will be introduced to encourage further investment in the North Sea and reductions in the supplementary tax charge on oil and gas companies fell from 30% to 20%. The rate of Petroleum Revenue Tax paid on older oil and gas fields is also to be reduced from a hefty 50% to 35%.
The oil and gas sector provides highly-skilled jobs, energy security and makes a significant contribution to the UK economy. These changes are expected to increase the production of oil in the UK by around 15% and drive £4 billion worth of new investment in this sector in the next 5 years.
The government also discussed their plans to build a Northern Powerhouse, improving transport systems between major cities in the North, rolling out better roads and improved rail connections for quicker journeys.
More power is being given to local areas, with a new devolution deal for things like transport, business support and skills for West Yorkshire, and more planning powers for London.
Ten Enterprise Zones across the country are also being supported to go further to create growth and jobs.
The government is also working on a Cardiff city deal and opening negotiations on the Swansea Bay Tidal Lagoon.