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Last Updated:
15th March 2021
Following the investment and opportunities for the construction industry announced in the budget last week, here we dive into the detail of what some the investment will actually deliver and provide unique Glenigan insight into the detail of projects that we know about now.
The Chancellor also confirmed:
Freeports
Subject to agreeing their governance arrangements and successfully completing their business cases, these Freeports will begin operations from late 2021.
The Freeports will contain areas where businesses will benefit from more generous tax reliefs, customs benefits and wider government support, bringing investment, trade and jobs to regenerate regions across the country that need it most.
An enhanced 10% rate of Structures and Buildings Allowance for constructing or renovating non-residential structures and buildings within Freeport tax sites in Great Britain, once designated. This means firms’ investments will be fully relieved after 10 years compared with the standard 33 ¹/³ years at the 3% rate available nationwide. This will be made available for corporation tax and income tax purposes.
To qualify, the structure or building must be brought into use on or before 30 September 2026.
Full relief from Stamp Duty Land Tax on the purchase of land or property within Freeport tax sites in England, once designated. Land or property must be purchased and used for a qualifying commercial purpose.
The relief will be available until 30 September 2026.
Freeport locations in England
Freeports in the devolved administrations
Discussions continue between the UK Government and the devolved administrations to ensure the delivery of Freeports in Scotland (Project ID: 21099329), Wales (Project ID: 21099330) and Northern Ireland (Project ID: 21099331) as soon as possible.
City and Growth Deals – The government is accelerating investment in three City and Growth Deals in Scotland:
Three City and Growth Deals in Wales:
The government also welcomes the signing of Heads of Terms for the Derry-Londonderry and Strabane City Deal on 24 February, to which it is contributing £105 million. The project proposals for this Deal focus on inclusive and sustainable growth and have the potential to create an additional 7,000 jobs. (Project ID: 21099336)
Towns Fund
The government is confirming over £1 billion from the Towns Fund for a further 45 Town Deals across England. This will help to level up regional towns, giving them the tools to design and implement a growth strategy for their area and aiding local recovery from the impacts of COVID-19. This is also known as the Levelling Up Fund and current details can be found on (Project ID: 20469842).
New Deal for Northern Ireland
The government will allocate almost half of the £400 million New Deal for Northern Ireland funding package to four areas, subject to business cases: new systems for supermarkets and small traders to manage new trading arrangements; building greater resilience in medicine supply chains; promoting Northern Ireland’s goods and services
Modern Methods of Construction (MMC) Taskforce
The Ministry of Housing, Communities and Local Government (MHCLG) will establish an MMC Taskforce, backed by £10 million of seed funding, to accelerate the delivery of MMC homes in the UK. The Taskforce will consist of world-leading experts from across government and industry to fast-track the adoption of modern methods of construction. It will be headquartered in MHCLG’s new office in Wolverhampton. The Taskforce will work closely with local authorities and Mayoral Combined Authorities, including the West Midlands Combined Authority and the Liverpool City Region who have already brought forward ambitious proposals.
Infrastructure
National Infrastructure Commission (NIC) Towns and Regeneration study
The government will commission a new NIC study on towns and regeneration, which will consider how to maximise the benefits of infrastructure policy and investment for towns in England. Any recommendations in reserved areas will be relevant to the whole of the UK.
Regional cultural infrastructure – The government will invest £18.8 million in local cultural infrastructure projects in:
Intra-city transport plans
The Budget announced a range of transport measures to support regions across the UK.
Last year’s Budget committed the government to invest £4.2bn in intra-city transport settlements from 2022-23, through five-year consolidated funding settlements for eight city regions, including Greater Manchester, Liverpool City Region, West Midlands, West Yorkshire, Sheffield City Region, West of England and Tees Valley, subject to the creation of appropriate governance arrangements to agree and deliver funding.
This years Budget takes the first step towards implementing that commitment – confirming capacity funding in 2021-22 to support those city regions with appropriate governance arrangements already in place to begin preparations for settlements. This will enable them to develop integrated investment-ready transport plans that will deliver on local priorities such as tackling congestion and driving productivity. This will provide
The government will also provide £135 million to accelerate the start of construction on the A66 Trans-Pennine upgrade to 2024. This builds on the Spending Review 2020 announcement that the construction phase will be halved from 10 to 5 years as part of Project Speed (Project ID: 17343745)
Birmingham Interchange Station
£50 million to develop proposals for transport improvements around the High Speed 2 Birmingham Interchange Station (Project ID: 17142809). This will help support regeneration at Arden Cross in Solihull.
Investments in local railways and stations
£59 million towards the construction of five new stations in the West Midlands, cutting journey times from Willenhall, Darlaston and south-west Birmingham into the city centre. Moseley, Kings Heath and Hazelwell stations (Project ID: 19373359). Willenhall and Darlaston stations (Project ID: 19079637)
This Budget will also unlock more than £40 million of funding to reinstate passenger services on the Okehampton-Exeter line, subject to final approval of costs and contracts.
Global Centre for Rail Excellence
The government will match funds up to £30 million, subject to business case, towards the construction of a rolling stock and infrastructure testing complex in Wales (Project ID: 18224175). Alongside contributions from the Welsh Government and the private sector, this would create a world class train testing facility on a former coal-mining site. The Global Centre for Rail Excellence would support innovation in the UK’s rail industry, including the testing of cutting-edge, green technology.
Flood schemes
The £5.2 billion flood and coastal defence programme for England announced at Budget 2020 will start in April this year, expected to start construction in 2021-22. These schemes will better protect over 3,700 homes from flooding with schemes in:
Offshore wind ports infrastructure
The government will make an offer of support, in principle, the Able Marine Energy Park on Humberside (Project ID: 12017258) following the conclusion of the competition to upgrade ports infrastructure for the next generation of offshore wind. The government will also sign a memorandum of understanding with Teesworks Offshore Manufacturing Centre on Teesside to support the development of another offshore wind port hub( Project ID: 18157590)
Aberdeen Energy Transition Zone
£27 million, subject to business case, for the Aberdeen Energy Transition Zone (Project ID: 21096758), helping to support North East Scotland to play a leading role in meeting the UK’s net zero ambitions.
Global Underwater Hub
£5 million for the Global Underwater Hub (Project ID: 21096762), subject to business case, on top of the £1.3 million committed last year
North Sea Transition Deal
£2 million to further develop industry proposals as part of the government’s support for the North Sea Transition Deal (NSTD) (Project ID: 21096758). Taken together, these proposals will support areas like Aberdeen transition to a low-carbon future.
Holyhead hydrogen hub
£4.8 million, subject to business case, to support the development of a hydrogen hub in Holyhead (Project ID: 21096755) which will pilot the creation of hydrogen from renewable energy and its use as a zero emission fuel in HGVs.
Glenigan customers can view all new and ongoing opportunities if part of their subscription.
Not a Glenigan customer but would like to take advantage of this new investment or other construction opportunities? Please request a free demo where we can show you more details on projects of interest to your business.
PR contact: Rhys Gadsby (Economic Analyst) T: 01202 786 714 │ E: rhys.gadsby@glenigan-old.thrv.uk
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