London (PRWEB UK) 19 April 2013
Eden Brown announce continued growth in Construction employment today. Key inidicators remain positive, in line with the Government's stimulus, to help low-to-middle income families get on to the property ladder through the ‘Help to Buy’ scheme as well as releasing more funds for the building of affordable homes. This all bodes well for the Construction market, Eden Brown believes.
Other measures designed to stimulate house building include an additional allocation of £225m for 30,000 new affordable homes to be delivered through the Housing and Communities Agency and an additional £800m commitment to the Buy to Rent scheme.
Despite previous attempts to stimulate lending many SME contractors are still finding it hard to secure financial backing from lenders. David McLean-Reid, CEO of Construction Recruitment Specialist Eden Brown is hopeful that the ‘Help to Buy’ scheme will be a step in the right direction to encourage investment within the housing construction sector, stating;
"A strong construction industry is a key way to stimulate the economy and get people into work; it’s encouraging to see the government is recognising this in the new budget."
A proposal which is of particular interest to the recruitment industry is the new employment allowance which will offer a hiring incentive for companies in an attempt to boost employment. From April 2014, all businesses will be able to employ one worker on a salary of £22,400, or four employees on the minimum wage, without paying any employer NICs.
As well as additional funding for the housing sector, the Chancellor has released £3bn for building projects such as road, rail and energy schemes. One project that will benefit will be a £150m to provide mobile phone coverage in rural areas.
CEO of Resourcing Group - http://www.resourcinggroup.co.uk (part of the same Group as Eden Brown - HCIG), Jason Bowler comments, "It will remain to be seen what the impact of this commitment will be, funds will not be made available until 2015-16 and there is little indication of which projects will benefit. The government has consistently fallen short of fulfilling its infrastructure promises in recent years."
"Despite reservations from the industry, this new commitment to infrastructure is recognition from the Chancellor that recent capital spending cuts may have been too sharp."
David McLean-Reid, CEO of Eden Brown sums up, "although the commitment to investment in affordable housing and infrastructure projects is limited we are hopeful that the ‘Help to Buy’ scheme will offer a boost to the construction industry as a whole by stimulating lending within the housing industry.
"The new employment allowance will reward SMEs looking to expand in the construction sector, encouraging growth and job creation."
The budget has had mixed reactions from construction sector leaders including the National Housing Federation and the Federation of Master Builders however they should be optimistic that the March budget offers green shoots after a harsh winter.