Help to Buy ISA takes centre stage: Budget 2015 reaction

Last Updated:

18th March 2015

Commenting on today’s (18 March) Budget announcement by the Chancellor of the Exchequer, George Osborne, Glenigan Economics Director Allan Wilén said:

“Inevitably 50 days before the general election, the Chancellor’s attention has been on short-term political priorities rather than long term investment needs. However, there has been no big pre-election give away, with the government choosing to use better than expected public revenues to tackle the deficit more quickly than previously planned.

“Nevertheless, the forecasted faster growth in the UK economy and household incomes should bolster private housing and non-residential construction activity.

“The Chancellor’s Budget proposals are centred upon supporting and encouraging private sector investment and economic growth. This includes his ‘surprise’ move to create a Help to Buy ISA that will include a government contribution of up to £3,000 for savers to help bolster their deposit. Additional support for increasing new housing supply is being provided though the creation of the first 20 housing zones outside London, with the potential to deliver 34,000 new homes.

“Elsewhere, direct government support is limited. An expected £13 billion of planned departmental cuts during the next Parliament indicates that publicly funded construction work would remain under pressure under a future Conservative government.

“While funding support has been pledged for a few projects such as the Brent Cross regeneration scheme, the Croxely rail link and the Swansea Bay tidal lagoon, the Chancellor’s focus was more on the government’s enabling role. This includes the promised release of public sector land with capacity for up to 150,000 new homes between 2015 and 2020.

"Additional planning powers are promised for the London Mayor to accelerate new housing provision, while pilot schemes in Greater Manchester and Cambridge and Peterborough will incentivise local authorities to support economic growth by allowing them to retain any additional growth in business rates.”

Further expert comment and analysis on which aspects of the Chancellor’s announcement will have an impact on the UK construction industry can be found in a special Budget 2015 report, produced by Glenigan’s economics team. Click here to download it.

Notes to editors:

Glenigan is the trusted provider of UK construction project data, market analysis and company intelligence. Combining comprehensive information gathering with expert analysis, it delivers timely insight into UK construction activity. Glenigan customers include government agencies, construction companies and suppliers of materials and services to the industry.

PR contacts:

Kirsty Maclagan (Marketing and Communications Manager)

T: +44 (0)1202 786 842│E: kirsty.maclagan@glenigan-old.thrv.uk

Allan Wilén (Economics Director)

T: +44 (0)751 579 4625| E: allan.wilen@glenigan-old.thrv.uk