BCIS finds Autumn Statement “underwhelming”

BCIS’s chief economist, Dr David Crosthwaite, has responded to the Autumn Statement by labelling it as “underwhelming” for the construction industry.

The Building Cost Information Service (BCIS) provide cost and carbon data to the built environment industry.

Crosthwaite said: “In light of the OBR’s central forecast being downgraded, the Autumn Statement was really quite underwhelming for the construction industry, which has been crying out for some clarity, commitment and consistency in policies.

“Crucially, the already delayed National Infrastructure and Construction Pipeline is still nowhere to be seen, with the government saying it will publish a National Infrastructure Strategy next year.

“Investment in infrastructure, and removing barriers to private sector investment, is hugely important to driving economic growth. With the Autumn Statement, construction firms operating in an uncertain market have simply had that uncertainty prolonged yet again.

“We welcome full expensing of plant and machinery becoming permanent, for those firms who qualify. Having the ability to plan capital investment more effectively will be a huge benefit for firms looking to invest now and in the future, and maybe even a lifeline for some.

“For house builders, the promise of more streamlined planning processes and investment in new schemes may be welcomed, but we can’t forget that the significant slowdown in the housing market has been primarily caused by high interest rates creating a lack of demand.

“The housing sector would benefit more from tangible growth in the economy, which could in part have been boosted now by transparency around and commitment to infrastructure plans.”

He ended by explaining his huge disappointment that the government hasn’t addressed the build environment’s contribution to carbon emissions, as COP28 is around the corner.