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Until we get clarity on immigration policy, we鈥檙e fumbling in the dark

Brian Berry is chief executive of the Federation of Master Builders (FMB)

With one year to go until Brexit, the construction industry needs clarity from the government on what the post-Brexit immigration system will look like so employers can plan and prepare. Many small and medium-sized construction firms are upping the ante in terms of training on the assumption that there will be fewer migrant workers for hire post-Brexit. However, until employers know exactly what the new immigration system will look like, they are fumbling in the dark.

We cannot afford to lose any EU migrant workers now or post-Brexit

Currently the UK construction sector is heavily reliant on European migrant workers. Indeed, 9% of our construction workers are from the EU and in London, this rises to nearly one third. Existing skills shortages mean we cannot afford to lose any of these workers now or post-Brexit.

We have collected anecdotal evidence from FMB members that some of their EU tradespeople are returning to their country of origin or going to work elsewhere in Europe. In a bid to limit the heavy flow of migrant workers leaving this country, we must do all that we can to convince them to stay.

The government recently took a massive step forward by announcing that EU nationals who arrive in the UK during the transition period will be eligible to remain indefinitely. However, the FMB is urging the government to step up and do more to get this very positive message out. EU workers need to know 鈥� we need you!

The vote has left us exposed to the whims of international capital

Robin Nicholson of Cullinan Studio and the Edge

I want to consider the extent to which our long list of woes is attributable to our membership of the EU. My list would start with the failure to build enough low-energy, affordable housing in the right places, the state of our public health and low productivity linked to poor education. 

We will have to  work much harder at existing export opportunities

In each case, the performance of most EU countries greatly exceeds the UK鈥檚. By contrast much good regulation came from Europe such as CDM regulations 鈥� do Rees-Mogg & Co seriously want to go back to a pre-CDM situation? No, we must demand more and better regulation and a properly funded local state. 

Our industry is suffering from suicidal tendering and general economic jitters; as we become more exposed to the rootless whims of international capital, I fear this could get much worse. We will have to work much harder at existing export opportunities, including low-energy design and masterplanning, especially in China and Africa, while recognising China鈥檚 growing global control. 

Back home, we need to develop our skills base from nursery upwards and abolish 20% VAT on works to existing buildings so we can make much better use of the ones we have already got. After Brexit, the Treasury will no longer be able to hide behind the myth that the EU prevents us lowering this rate, but it raises the question as to whether the next prime minister can make the Treasury more accountable 鈥� to us!

 

It鈥檚 a year to the day until the UK is expected to officially exit the EU. Is construction in a position to thrive, whatever deal is agreed?

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鈥楰eeping calm and carrying on鈥� just won鈥檛 cut it

David Hansom is procurement and trade partner in Clyde & Co

The recent political progress in agreeing the broad basis for a transitional agreement between the EU and UK gives much needed breathing space for already busy construction contractors to think. But 鈥渒eeping calm and carrying on鈥� runs the risk of time running out to futureproof existing business structures. So, what can be done now? 

So, what can be done now to futureproof existing business structures?

• People: The transition agreement protects existing EU nationals鈥� free movement rights and seeks to ensure that any EU nationals exercising these rights during the transition period will be treated in the same way as now. But many contractors are already reporting a decline in numbers of such staff seeking roles. Employers can help now by assisting their key staff with securing permanent residency status in the UK, and many are also looking at recruitment from new sources including the UK government鈥檚 apprenticeship programme. 
• Supply chain: For business-critical contracts, it is sensible to start thinking now about 鈥淏rexit clauses鈥� to deal specifically with the consequences of price increases or taxes, or business interruption. A standard contract force majeure clause will not cover a Brexit-related impact on the ability of subcontractors to continue to supply on the same terms. 
• Partnerships and collaborations: Given the time that can be needed to set up, for example, local joint venture companies or subsidiaries, now is the time to look at what may be needed to continue to participate in your EU based projects after Brexit. This could involve, for example, access to EU funding such as ERDF or Horizon 2020 funding for construction projects, where it is still not clear whether UK-based contractors will continue to be able to apply for and draw down this type of infrastructure funding other than through an EU member state.