| Desperate times call for desperate measures, and the | | | | recession that everyone is predicting, recruitment firms |
| Chancellor's Pre-Budget Report (PBR) delivered | | | | will be able to claim a tax rebate, giving them more |
| recently could herald a new era of co-operation | | | | capital to invest in filling high level construction jobs. |
| between the Government and the construction | | | | This all bodes well for those looking for jobs in |
| industry. The PBR announced that £3billion | | | | construction or engineering jobs, as a more stable |
| worth of investment that was due to be carried out in | | | | construction industry is better able to bend and flex to |
| 2010-11 is to be brought forward - news that has been | | | | market influences. The overall investment cited by the |
| welcomed by the Civil Engineering Contractors | | | | Government is a huge £20billion. Combined with |
| Association (CECA). Some of that investment will go | | | | a cut in the VAT rate to 15% and the £3billion |
| towards road projects, flood defence schemes and | | | | spend on infrastructure, it seems that for the first time |
| the necessary infrastructure for new social housing | | | | in a very long period the Government is looking to |
| projects also announced in the PBR. | | | | invest substantially in UK PLC. The CECA itself has |
| In addition to this injection of capital into construction | | | | drawn up a ten-point plan to keep the construction |
| projects, Chancellor Alistair Darling also announced a | | | | industry out of recession and the Chancellor's PBR |
| raft of initiatives designed to take the pressure off | | | | certainly seems to have addressed some of the |
| small and medium sized companies, including | | | | concerns they raise. The CECA hopes that the |
| temporary rate relief on some properties and the | | | | fast-tracking of infrastructure projects such as |
| relaxation of tax payment periods for struggling | | | | Crossrail, Olympics-related developments and various |
| companies. The aim of the PBR was to stabilize a | | | | road projects will mean that jobs in construction are |
| shaky economy and get businesses moving again, | | | | secured for the foreseeable future. They also hope |
| particularly in the battered and bruised construction | | | | that projects already in an advanced stage of design |
| industry. | | | | will be brought forward, boosting the job market |
| The announcement was roundly welcomed by the | | | | further. |
| leading construction organizations, which see the plan | | | | This flurry of activity has been perfectly timed, |
| as an attempt to give a little more breathing space to | | | | according to experts in the industry. Without this |
| an industry that has been savaged by the economic | | | | investment in the UK's infrastructure - investment that |
| downturn. Many companies also see the | | | | has long been fought for and is needed - the |
| Government's plans as good news for jobs in | | | | economic slowdown could have led to hundreds of |
| construction and engineering, motivating the market out | | | | thousands of jobs being lost throughout construction, |
| of stagnation and back into active recruitment and | | | | engineering and the outlying businesses that service |
| gearing up for the mother of all fightbacks. | | | | the sector. This doesn't just have implications for the |
| Recruiters will now be able to breathe a little easier as | | | | UK economy, but for global prospects too. The UK |
| the Chancellor gives them the room they need to | | | | seems to be setting a precedent in tackling the effects |
| spread their tax obligations (including corporation tax, | | | | of a worldwide economic crisis, and for the first time in |
| VAT, national insurance and income tax) across | | | | many years, where the UK leads, the rest of Europe |
| monthly installments rather than making large, one-off | | | | and the USA seems to be following. The readjustment |
| payments. This means that companies have more | | | | of exchange rates will make imports and exports |
| floating capital to invest in recruitment and projects | | | | more viable on an international market, again helping to |
| that, a few months ago, looked as if they were at risk | | | | stabilize company's order books. This stabilization, |
| of being completely mothballed. The plans also allow | | | | despite companies having to tighten their belts in the |
| recruiters to offset losses against profits from the last | | | | short term, should bode well for the economy |
| three years, rather than only the previous year as | | | | post-2009. |
| before. This means that if 2009 turns into the | | | | |