Summer Budget 2015

On Summer Budget day Glenigan commented on the Chancellor’s statement and published a summary of the key measures in the Budget that had implications for UK construction. A copy of the report can be found here.

Glenigan Comment

Today’s Budget was the Chancellor’s opportunity to set out the new Government’s fiscal priorities and strategy for the next five years. The Budget includes welfare and tax reforms that are expected to deliver savings of £17 billion a year. The details of how a further £15 billion of savings will be found through departmental spending cuts, and the potential implications for important construction markets, will be revealed in the autumn.

The Budget included few measures that will impact directly upon construction. The Chancellor reiterated the Government’s commitment to building more homes and further planning reforms as due to be published on Friday. The announced reduction in mortgage tax relief for buy-to-let landlords will have little direct impact on new housing supply, although if it increases upward pressure on rents it may help encourage corporate investment in the private rented sector.

Plans to ‘ring fence’ vehicle excise duty for investment in the strategic road network appear to be largely a political statement: The change will not apply until the start of the next Parliament.

A levy is planned on all large UK employers to fund an increase in apprenticeships. The implications for existing sector bodies such as CITB will be set out in this autumns’ Spending Review.