GGF reacts to Spending Review

GGF reacts to Spending Review

On 25 November, Chancellor Rishi Sunak announced a one year Spending Review, covering the financial year from April 2021 to March 2022.

On seeing the Review in more detail, John Agnew, GGF Managing Director commented, “We appreciate the Government has been under incredible fiscal pressure in trying to deal with the pandemic, and we welcome the national infrastructure strategy and housebuilding investment, however it was very disappointing to see no significant investment or plans for the home improvement sector.”

In the Review, the Chancellor, set resource and capital budgets for the fiscal calendar for 2021-22. For the second successive year there was no announcement of a full three-year spending review, this delay is due to the fiscal uncertainty caused by the coronavirus but this lack of long term commitment is likely to cause uncertainty for many businesses who are planning beyond March 2022.

This year, the GGF made submissions to HM Treasury as part of the Comprehensive Spending Review consultation process, outlining the case for new and more increased government initiatives to assist and incentivise the glazing sector in its support for the drive to Net Zero. The GGF continues to make this case via the Department for Business, Energy & Industrial Strategy (BEIS) and environmentally focused Parliamentary bodies.

This Spending Review was accompanied by a relatively bleak economic projection by the Office for Budgetary responsibility. The focus of the Chancellor’s speech was protecting jobs, capital projects for hospitals and schools and, unsurprisingly, tackling the coronavirus pandemic. 

John Agnew added, “The glass and glazing industry has been devastated in 2020 and to their credit many companies in our industry have shown great resilience, innovation and spirit to try and come through these extremely difficult times. Given the Government’s green agenda and zero carbon 2050 targets, the Spending Review was an ideal opportunity to issue a statement of intent, by offering incentives to consumers and companies, to improve the energy efficiency in the UK’s existing housing stock. As it stands, outside of a few relatively small and unambitious energy efficient schemes, that will have little impact our sector, there is nothing in the Spending Review to support the glazing home improvement sector.”     

On new build, Chancellor Sunak did announce some positive news “To build housing, we’re introducing a £7.1 billion National Home Building Fund. On top of our £12.2 billion Affordable Homes Programme. As we invest billions in the building of new homes, we’re also simplifying our planning system to ensure homes are built where they are needed most.”

In addition to the spending commitment to new build and infrastructure the Government has also added addition funding to skills and apprenticeships. The Green Home Grant Scheme has been extended by 12 months and will receive an extra £1b but this will only improve 600k existing homes and only allows for single glazing upgrades to double or triple glazing.

To view the full spending review please click here

Click on link to view the new National Infrastructure Strategy