MHA Construction and Real Estate Report 2020

The latest MHA Construction Sector Report shows a stark divide in today’s Construction sector, between those who were able to capitalise on the opportunities presented by COVID-19, and those who struggled to finance their way through lock down.

To compile the report, the national Construction team at UK accountancy association MHA benchmarked construction businesses across the UK to paint a national picture of the sector entering lockdown in March. It also revealed the results of the survey taken this summer to gauge the response of businesses currently responding to COVID-19. Finally, the Report highlights any regional projects or significant issues that may shape local responses.

Key findings

  • The industry entered 2020 with strong balance sheets, increased turnover (8.3%and low debt risk. The largest businesses saw the greatest increase in revenue from the previous year.
  • Employment across the sector grew by 3.6%.
  • The industry is evenly split between businesses with a substantial or critical impact due to COVID-19 (54%), and those with little to no impact (46%).
  • More than half of those surveyed said infrastructure spending should be the Government’s top priority for the sector.
  • Nearly 4 out of 5 respondents said the single biggest factor holding back growth was economic uncertainty.

By providing this snapshot into the sector’s conditions, we aim to showcase ways in which the Government can provide the financial and other support the sector needs to not just survive but thrive in 2020 and beyond.

Click here to download a copy of the report.

Further information

However, if you have any questions in the meantime, or would like to discuss the results in more detail, please contact our sector head Joe Sullivan.

Other blogs in this series

MHA Construction Sector Survey Results: Technology

What impact has COVID had on technology and innovation in the UK construction industry?

MHA undertook a survey into the Construction & Real Estate sector focusing on the impact of COVID-19, and how this is affecting construction firms.

The results report on 2 key areas including:

  1. Technology used prior to COVID-19
  2. Claiming R&D Tax Relief
Implementation of new technology

We have summarised the results into easy to read infographics which can be found on the MHA website link attached

Further information

However, if you have any questions in the meantime, or would like to discuss the results in more detail, please contact our sector head Joe Sullivan.

Other blogs in this series

MHA Construction Sector Survey Results: Employment

Do construction businesses have access to the labour they need?

MHA undertook a survey into the Construction & Real Estate sector focusing on the impact of COVID-19, and how this is affecting construction firms.

The results report on 4 key areas including:

  1. COVID-19 workforce reduction,
  2. Percentage of EU citizens for on-site workforce,
  3. Will IR35 impact employment,
  4. Increase in labour requirements within the year,

We have summarised the results into easy to read infographics which can be found on the MHA website link attached


Further information

However, if you have any questions in the meantime, or would like to discuss the results in more detail, please contact our sector head Joe Sullivan.

Other blogs in this series

MHA Construction Sector Survey Results: Funding

MHA undertook a survey into the Construction & Real Estate sector focusing on the impact of COVID-19, and how this is affecting construction firms.

The results report on 6 key areas including:

  1. Sources of funding,
  2. Ease of accessing funding today compared to pre-COVID,
  3. Applying for CBILS and CLBILS funding,
  4. Accessibility of Government funding,
  5. Lack of funding impacting
  6. Work capacity, Need for sector specific funding scheme
Finding funding in Covid-19 Pandemic

We have summarised the results into easy to read infographics which can be found on the MHA website link attached


Further information

However, if you have any questions in the meantime, or would like to discuss the results in more detail, please contact our sector head Joe Sullivan.

Other blogs in this series

MHA Construction Sector Survey Results: COVID-19

What impact has COVID-19 had on construction businesses in the UK?

Our MHA Construction & Real Estate team recently undertook a nationwide survey into the Construction & Real Estate sector focusing on the impact of COVID-19, and how this is affecting UK construction firms. The results report on 5 key areas including the impact of COVID, Changes in activity levels, Challenges faced, Government support and staffing levels.

We have summarised the results into easy to read infographics which can be found on our MHA website here.

These findings will be explored further in a special state of the UK construction industry in the Report, due out at the end of September. The report will look at the state of the construction sector going into the COVID pandemic, analyse how the sector is responding to current challenges, and anticipate the way forward for the industry.


Further information

However, if you have any questions in the meantime, or would like to discuss the results in more detail, please contact our sector head Joe Sullivan.

Other blogs in this series:

Real Estate Matters – Issue 16 now available

We have worked together with our colleagues across MHA to provide a national outlook on the issues facing the construction market. The series of informative articles are designed to help you better understand the changes happening within the Construction and Real Estate sectors, which is particularly important during these unprecedented times.

The impact of COVID-19 continues to impact the national and international economy, with major implications for construction and real estate businesses across the UK. Earlier in the summer, Chancellor Rishi Sunak announced further measures to support the economy in his Economic Update, with a number of initiatives designed to boost the construction sector.

This edition focuses on:

  • Economic update overview
  • Green Homes Grant and VAT
  • Success with long-term contracts
  • Determining compensation for land
  • Property pensions
  • Latest construction news

To download a copy of the report please click here.

If you would like any further information on any of the topics, please contact Joe Sullivan on 01772 821021.

Summer Economic Update

Summer Economic Update

8 July 2020

The key points and changes from Rishi Sunak’s summer statement

Summer Economic Update

The 2020 Summer Economic Update is unique for both its timing and its focus on what measures will be implemented to help the economy bounce back from the impact of Covid-19.

Summer Economic latest updates

Our new blog details the changes from a Tax perspective, including VAT, Eat Out to Help Out scheme, Job Retention bonus and much more.

This easy to read infographic summarises the key points from the recent economic update.

Tony Medcalf Video Review

Tony Medcalf, head of Tax gives a short five minute overview of what the Summer Economic update means for you and your business.

Sector specific news

Some of the measures announced yesterday directly impacted the leisure and tourism sector. Here is our overview of what it means for businesses operating in the sector.




Summer Economic Webinar

Professor Joe Nellis, Global Economist from Cranfield University will be providing his view on the future outlook for the UK and global economy post-Covid-19, and also the longer term impact of the Government’s unprecedented stimulus packages. He will also be taking live questions afterwards.

Summer Economic VAT Update Webinar

In our latest VAT Webinar, Jonathan Main analyses the recent Summer Economic Update from Rishi Sunak, focusing on how the update mainly affects the Leisure and Tourism sector. As well as other pressing VAT issues and news including, Time To Pay (TTP), Trapped VAT, VAT Accruals, Bad Debt Relief and much more.

Contact Us

Rishi’s Summer Statement

It is a sign of these unusual times that the Chancellor of the Exchequer has made more Financial Statements in four months than most Chancellors make in their full term of office. And in today’s financial statement, the measures announced by Mr Sunak were more dramatic than we would normally see in a full Budget.

The Chancellor’s focus was on jobs, and he made a series of
announcements designed to minimise unemployment when the furlough scheme ends
at the end of October.

We summarise below the main changes that will be of
relevance to businesses and charities.

VAT

From 15 July 2020 to 12 January 2021, the rate of VAT will be reduced from 20% to 5% on food and non-alcoholic drinks from restaurants, pubs, bars, cafés and similar premises across the UK. Further guidance on the scope of this relief will be published by HMRC in the coming days.

Over the same period, the VAT will be reduced to 5% on
tourist accommodation and attractions including cinemas, theatres and zoos.

Eat Out to Help Out scheme

The Eat Out to Help Out scheme will entitle diners a 50%
discount, capped at £10 per head, on eat-in meals in participating restaurants.
The scheme will apply to meals taken on Mondays to Wednesdays throughout
August, and will include the cost of non-alcoholic drinks. Participating
restaurants will be reimbursed by the government for the 50% discount.

We await detail on how VAT will be accounted for on the
discount.

Job Retention bonus

The government will make a £1,000 payment to businesses for
every furloughed employee that they bring back to work. To qualify, the
employee must be continuously employed until 31 January 2021 at a wage of at
least £520 per month. Payments will be made from February 2021. It is unclear
whether employees will qualify if they have already returned to work, and further
detail will be announced by the end of July.

Kickstart Scheme

The government will fund the cost of wages of newly created
jobs for 16-24 year olds who are on universal credit. The subsidy will cover
100% of the national minimum wage plus NIC and auto enrolment pension
contributions, for a six-month period.

Traineeships

The government will pay a £1,000 subsidy to businesses who provide
young trainees with work experience. These will be offered for 16-24 year olds
with Level 3 qualifications and below.

Apprentices

The government will pay £2,000 to employers in England for
each new apprentice they hire aged under 25, and £1,500 for apprentices aged 25
and over. The payments will be made for apprentices hired from 1 August 2020 to
31 January 2021.

Stamp Duty Land Tax

From 8 July 2020 to 31 March 2021, no SDLT will be payable
on residential property purchases up to £500,000. This measure applies to
England and Northern Ireland.

Green Homes Grant

The government will introduce a Green Homes Grant to subsidise
two thirds of the costs incurred by homeowners and landlords on making their
properties more energy efficient. The grant is capped at £5,000. For the lowest
income households, the scheme will fully subsidise these improvements, up to
£10,000 per household.

What next?

The Chancellor promised a Budget and Expenditure Review in November,
and stated that he wanted to put back the nation’s finances on a “sustainable
footing.” Whether this translates into tax rises in the short term remains to
be seen.

The Chancellor has previously signalled that he wants to
review the tax landscape for self-employed workers. The launch of the
Coronavirus Job Retention Scheme highlighted to Mr Sunak the difference in the
tax and NIC treatment of employed and self-employed workers, together with the system
of  taxation of dividends which is seen
as anomalous in certain quarters. He had nothing further to add to the subject
today, but a wide-ranging review would seem to be on the cards.

Calls have been made for a Wealth Tax by the Shadow
Chancellor, Anneliese Dodds. It is not clear how much tax would be raised by
such a measure, nor whether it would be embraced by Mr Sunak.

Our Construction and Real Estate Survey is now open!

The MHA Construction & Real Estate specialist team works closely together to ensure our clients in the sector are supported during these challenging times.

We are running a Construction & Real Estate Survey to help us compile a nationwide picture of the state of the sector. Your feedback will help our specialist advisers gauge where the sector is and what can be done to respond to current challenges.

The survey focuses on several core areas: the impact of COVID-19, access to funding, employment in the sector, technology and your outlook on the sector.  

The survey should take no longer than 10 minutes. It will form the foundation of a national Report which will detail the findings with case studies and commentary from industry experts.

Take part in the survey now.

If you have any queries about the survey or would like to know more about the services MHA members provide, please contact Joe Sullivan on: 01772 821 021 or joe.sullivan@mooreandsmalley.co.uk