Sam Howard, COO of Regentsmead, told Development Finance Today that confidence was needed in the construction industry following the decision to leave the EU and the Bank of England’s move to cut the base rate of interest. 

“The construction industry is faced with a confluence of headwinds, including the impending apprenticeship levy coming into force in April 2017, the uncertainty over Brexit and any impact on the access of skilled labour. 

“This has unfortunately been reflected in July’s PMI index. 

“Uncertainty is what people hate more than anything.”

The apprenticeship levy will require employers in the UK with a pay bill of over £3m each year to make an investment in apprenticeships. 

Meanwhile, construction output for July was reported to be suffering its steepest decline in seven years, while insolvency firm Begbies Traynor warned that Brexit could leave almost 50,000 property and construction firms at risk. 

The CITB has responded with the creation of a new industry relations director role, which will look to boost industrial engagement at a time of critical change.

The new director will lead on engagement with employers and federations across England, Scotland and Wales, as well as joining an executive team led by Adrian Belton, CEO of CITB.

“At a time of major change, we need to work effectively with the whole industry, from the smallest firms to the biggest,” explained Steve Radley, policy director at CITB. 

“This means putting even more effort into hearing employers’ views, helping them navigate the changing environment, and making clear how a modernised CITB will help them get the skills they need.

“Together with our ongoing reforms to improve our targeted funding, and [getting] CITB support to thousands more employers, this new role will help us meet the changing needs of our industry.”

Sam added: “The construction industry is facing a possible double levy when the apprenticeship levy comes into force and CITB has to show that it is providing what the industry needs and I think this is what this new role is about. 

“I suppose the hope is that CITB can show that it can help the industry to get the skills they need to cope in the post-Brexit landscape. Let us not forget that the construction industry employs about 2.1 million people, and of these almost 140,000 [come] from the European Union.”

Looking towards the future, Sam concluded: “We need to get the confidence back into the construction industry and that will require measures across the board, including [the] Bank of England’s actions last week, but also the government to boost the economy on the fiscal side. 

“At the same time it requires lenders of all sizes to be making credit available to get Britain building again.”

Recruitment for the position has begun with the appointment expected to be announced later this year.