Originally posted on my blog for Inside Housing on January 16.
On the face of it, housing seems set to escape relatively unscathed from the crisis at Carillion but there are still some important lessons to be learned.
The construction and outsourcing firm that sounds more like a heavy metal band went into liquidation on Monday leaving £1.5 billion owed to the banks, 19,000 workers facing an uncertain future and a £600 million hole in its pension fund.
That’s before we get to the egg on the faces of ministers who continued to award it lucrative contracts despite clear warning signs about its future, the controversy about executive pay and dividends and the awful knock-on effects on smaller companies and workers in the supply chain owed money that may not get paid at all.
Originally published on September 23 on Inside Edge 2, my blog for Inside Housing
If ‘Brexit means Brexit’ should it also mean a new programme of investment in social housing?
After a referendum that saw 63% of social tenants vote to leave the European Union, the attractions should be obvious. For ‘left behind’ voters it could mean both homes and jobs. For the government, now apparently edging away from an obsession with home ownership, it could offer a big pay-off from Philip Hammond’s ‘fiscal re-set’. For the purposes of this blog I’ll ignore all the other arguments in favour.
But it could also play into the wider politics of Brexit. Theresa May’s soundbite has yet to be translated into anything substantial but seems to be heading towards a ‘Hard Brexit’ outside the single market on the grounds that the referendum was a vote for controls on immigration.
That has huge implications for the housebuilding sector and the wider construction industry. Berkeley Homes boss Rob Perrins even claimed last weekend that a block on EU immigration could cut new homes by half. That is an exaggeration that could say more about his own workforce in London than the industry as a whole but this is still a huge issue. An alliance of construction organisations warned Brexit secretary David Davis earlier this month of a skills crisis if he does not make it a priority in the negotiations to come.