News

CPA leads formation of Construction Growth Coalition

The Construction Plant-hire Association (CPA) has led the formation of the Construction Growth Coalition (CGC), bringing together nine organisations from across the construction industry to strengthen the sector's representation in government policy and decision-making.

Co-chaired by CPA Chief Executive Steve Mulholland and Dr Victoria Hills, Chief Executive of the Chartered Institute of Building (CIOB), the coalition aims to provide an independent voice for the construction supply chain, with particular emphasis on small and medium-sized enterprises (SMEs) and micro businesses, which account for 99% of the sector. Officially launched at the CPA Gala Dinner in Liverpool on 5 November, the CGC represents nearly 45,000 members across the £141bn construction industry. It is calling for government action to restore confidence, encourage investment and protect jobs.

The launch follows a period of declining construction activity. Glenigan figures show that project starts fell by 21% to £20.3bn in the three months to September compared with the same period last year. Nationally Significant Infrastructure project starts fell by 92%, while private housing and non-residential starts declined by 34% and 45% respectively. The coalition has highlighted rising employer National Insurance Contributions, changes to Business Property Relief, the Employment Rights Act, planning delays and increasing fuel costs as factors putting further pressure on businesses and investment. It also points to a 20.5% fall in construction vacancies in the three months to September and 23,000 jobs lost between March and June, alongside the sector recording more company insolvencies than any other industry in England and Wales over the 12 months to September.

Steve Mulholland, Co-Chair of the CGC, said:

"UK construction is in full-blown crisis. Work on Britain's biggest infrastructure projects is taking too long to get out of the ground and funded, house building is going backwards and small firms and the supply chain are being squeezed from every side.

“You cannot build 1.5 million homes or rebuild the country's infrastructure while making it harder and more expensive for the people doing the building to train and employ. Make no mistake, government policy is driving the sector into the ground.

"Our members continue to tell us the same thing: the Employment Rights Act, hikes to NICs, growing tax liabilities and endless red tape are suffocating them. At the same time, the patchwork of net zero and decarbonisation policies across the country means companies cannot invest in equipment that can be used nationwide with confidence. The result is stagnant activity, job losses, and an industry under strain.

“We stand ready to work with the Government to reverse our sector’s decline and develop policies that can kickstart construction activity.”

Dr Victoria Hills added:

"Construction touches every part of national life, from the homes we live in, to the schools, hospitals and infrastructure our communities rely on. Today's figures show an industry in crisis, and that matters for everyone.

"The Construction Growth Coalition brings the whole industry together, from sole traders and SMEs, to major employers and industry charities, to give government a single, informed voice from the backbone of British construction.

“Decisions that affect construction should be made with the industry, not for it. We want to work constructively with government to give the sector the skills, standards and certainty it needs to deliver."

The CGC will campaign across a range of areas, including skills and apprenticeships, taxation and fuel costs, regulation and procurement, building safety, decarbonisation, and mental health and wellbeing. It has been established to represent the interests of more than 885,000 construction SMEs and micro businesses.

The coalition is open to construction businesses of all sizes, including the self-employed. Further information is available at www.constructiongrowth.co.uk