Reacting to the Government’s ‘planning overhaul’, announced today, Tina McKenzie, Policy Chair at the Federation of Small Businesses, said: “Today’s planning announcements to support the ambitious target to build 1.5m new homes are welcome – but are just one part of the puzzle. Government now needs to seriously consider how these homes are going to be built.
“It simply cannot happen with a focus purely on larger volume builders, who cannot efficiently address the smaller sites needed to achieve the target number of new homes. The only way Government can hit these targets is to involve and utilise the nation’s army of small housebuilders.
“We’re calling on Government to publish a Small Housebuilder Strategy that includes a long-term plan and programme of support for the sector, so they can achieve their potential in contributing to the targets.
“We’re keen to work with Government to ensure small construction firms are brought into the fold, which would not only help reach their ambition, but also give the sector a much needed helping hand. FSB's latest Small Business Index showed confidence amongst construction firms is critically low at -26.6 – one of the lowest of the main sectors.
“This targeted strategy needs to include support to build on brownfield and grey belt sites via a development relief fund; moving Community Infrastructure Levy funding costs to later in the project to protect cash flow; and protections against the scourge of late payments made worse by retention payments in the sector. Supporting the increased use of project bank accounts would be beneficial, getting small firms paid quickly once the job is complete.
“Now is the time to build a durable approach to help small housebuilders deliver.”