Reacting to the news of Johnson’s election to the leadership of the Conservative party and consequently his appointment as prime minister, Aecom’s UK and Ireland chief executive David Barwell said: “While Mr Johnson’s view on the future of some key infrastructure projects has in the past been mixed, his appointment as our new prime minister gives him the perfect opportunity to do what’s right for the country… backing investment in infrastructure and providing certainty around our future pipeline.
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“I was extremely pleased to hear the promise of “better infrastructure” in Mr Johnson’s acceptance speech and regardless of Brexit I would suggest a starting point for his plan to “energize the country” would be to fully endorse schemes such as HS2, Crossrail 2, Northern Powerhouse Rail and Heathrow’s expansion. All of which must proceed if we are to maintain our country’s ability to compete on a global stage.”
Electrical Contractors Association (ECA) chief executive Steve Bratt said: “If the new government is to deliver a range of key infrastructure projects, such as high-speed rail, major housing developments and renewable power generation, then it needs to promote a competitive market based on quality and innovation. Unfair, unsustainable practices such as false self-employment, cash retentions and reliance on unqualified, incompetent labour need tackling as a priority.
“The engineering services industry plays a fundamental role in improving the UK’s built environment, which in turn is the engine of progress and growth across the economy. Businesses stand ready to support government to reach its ambitious climate targets and deliver key infrastructure, but change is required to make this a reality.”
Mark Robinson, chief executive of public sector procurement organisation Scape Group, questioned Johnson’s ability to deliver what he has promised. He said: “While the outcome of the Tory leadership contest is no surprise, the next couple of months are likely to hold one or two. Boris Johnson has made a lot of promises during his month-long campaign, and admittedly some of which are very attractive – more police on our streets, more money for education, an increase to the national living wage, all while delivering ‘great infrastructure’ projects.
“His ambition is undeniable, but this would all be delivered against a backdrop of Brexit and tax cuts to individuals and corporations. The economics don’t match-up and something is going to have to give – and I don’t see it being the tax breaks.
“We need greater transparency on our future position with the rest of the world to increase business optimism and a defined transition period is our best chance of securing this. Latest data from the construction industry shows that output is slowing down and on the ground, projects are not being pushed forward by either the public or the private sector. The country would benefit from certainty, and crashing out without a deal isn’t going to provide this.”
Meanwhile, Building Engineering Services Association (BESA) chief executive David Frise called on Johnson to support the Aldous Bill on retentions. He said: “SMEs are under greater financial pressure than ever, which is making it increasingly difficult for them to invest in the technology and processes – and to recruit and train the skilled workforce needed – that will be crucial to the government’s zero carbon vision.
“The collapse of Britain’s oldest construction firm – the 430-year-old Durtnell & Sons – shows the depth of the problem engulfing the sector with retentions and late payment taking a heavy toll on the firms most needed to deliver many of the low carbon solutions needed to meet the government’s target.”
Brian Berry, chief executive of the Federation of Master Builders (FMB), said: “Boris the builder must build columns instead of writing them if he is to fix the housing crisis and restore the hope of home ownership to a generation. We will only reach the number of good quality homes we need, and at the rate we need them, if local house builders are freed up to build as many homes as the large house builders. We want to see Boris bring down the barriers facing construction SMEs, including those who repair and maintain our homes. If Boris is looking to cut taxes, then we suggest slashing VAT on home improvement works, as nine in ten builders believe this is the single best tool in Boris the builder’s toolkit to prevent an economic downturn post-Brexit.”
