Budget 2003: the view from Grant Thornton

Kathryn Hiddleston, partner at Grant Thornton, noted that while the Chancellor was keen not to rock the boat, he did address some construction topics.

"It appears that the government has taken notice of the ever increasing skill shortages in the industry and some useful measures are to be introduced or expanded  to help with the issue. On a very positive note the Chancellor announced that he would double the financial encouragement to employers to get their own workforce trained.

"Ironically he also announced that he will be expanding the UK work permit scheme specifically for the industry and followed this promise with the comment that this would help meet "the challenge of  combating illegal immigration". A cynical reader might suggest that he is merely bowing to the inevitable!

"Probably one of the most exciting of the Chancellor's proposals is that the Confederation of British Industry and Institute of Directors, among others, are to be invited to help in considering ways of removing unnecessary regulations for the industry. This must be a sign that the government recognises that the level of red tape is severely detrimental to the industry.

"Unfortunately such a promising proposal is somewhat marred by the government's last attempt at helping the industry by restructuring the CIS scheme. It is to be hoped that the new proposals to reduce red tape are more practical and workable than the CIS proposals and also that they do not take as long to implement as it is currently suggested for the new CIS rules."

She welcomed the Chancellor's statement on housebuilding and noted that this "should be good news for domestic housing suppliers".