Scaffolding Matters - Spring 2021

Page 4

NEWS FROM THE REGIONS

LONDON AND SOUTH EAST Mike Lloyd, LTC Scaffolding Limited

The last 12 months have been well documented by others and I am sure will be adequately covered by my fellow regional chairs, but to sum up we have had a year of continual adjustment to the changes in the economic and social environment, whether due to Covid-19 and the various lockdowns we have been subjected to or the realisation of the ramifications of Brexit. Initial fears of an economic meltdown were not realised by our sector as most of us ended up having a pretty good year aided by the Central Government push to keep construction going. What about the challenges ahead:

1. We need more of the same from Central Government as we forge into 2021. Economic forecasts from the Bank of England look promising, however early signs are of a slowdown in some areas of public sector expenditure, but we must as a body exert pressure and influence to avert that slowdown which could have a negative impact on the construction industry, and thereby the whole economy if allowed to come to fruition. 2. The roll out of the Covid-19 vaccine seems to be the foundation from which our hope springs but this will need to be supported by successful treatments for the symptoms as the length of immunity seems unsure at the moment. We must be alert and respectful to our clients’ concerns and requirements regarding Covid-19 but also be respectfully mindful of over eager safety officers adding to risk. 3. The end of the furlough scheme seems imminent. This might have an impact on the short-term economic outlook, and we must be live to any impact to the economy as a whole, but recovery and re-employment should follow. 4. Covid-19 and the measures introduced have served to increase our costs on multiple fronts: - Reduced productivity as we seek to adhere to social distancing. - Increase in costs and amount of PPE.

- The increase in congestion charge and the introduction of the ULEZ scheme amount to no more than a tax on our businesses.

- We now have the onset of increased import charges resulting in the cost of our materials rising by as much as 15% in a short period of time.

- All have served to increase our costs whilst the rates being charged have been suppressed, thus eroding our margins.

5. In light of the recent case of The FSA v Hiscox and RSA, it might be worth checking your business interruption insurance with reference to notable diseases, the government having inferred Covid-19 to be a notable disease. This could be an avenue for bona fide loss recovery as a result of the impact of Covid-19.

6. The exploitation and manipulation of self employment by non NASC members is a challenge we have to overcome. The onset of IR35 will hopefully serve to close that avenue and level the playing field thus enabling NASC members to differentiate solely by the quality of their service and work. IR35 will place the construction industry under greater scrutiny by HMRC. NASC members should fare well, as this is one of the variables we are audited on. 7. Reverse Charge VAT has been introduced to weed out VAT fraud from the construction industry. The initial impact on our businesses will be to cash flow as we will not have the benefit of relying on VAT funds. This will work its way through very quickly for those exercising sensible financial planning and management. 8. Recruitment and training will continue to be key to the development of our industry, as we look to recruit fresh and enthusiastic individuals to strengthen our image and reputation. I urge all members to take advantage of the recruitment facility now incorporated into our NASC website and to spread the word about its existence especially with regard to opportunities for new entrants into the industry and apprenticeships, especially those of a more traditional route. Please post your apprenticeships adverts on the website as we will look to expand its exposure to other careers forums. 9. The next few months will offer more than the usual challenges. Nurturing existing client relationships will be essential as we strive to give customer focused service at all times. There is much great guidance and advice offered through the NASC so please take full advantage of what is available. Good luck to you all for the months to follow. 4


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