Government to appoint Chief Adviser on Construction

Ministers today announced the Government’s response to the recent consultation exercise on the appointment of a Chief Construction Officer.

The Government plans to appoint a Chief Adviser to Government on Construction to equip Britain's construction industry with the skills and knowledge to become competitive in the 21st century. He/she will chair the Board responsible for securing value for money from the Government’s procurement of construction, promote innovation and sustainability in the industry, and be responsible for ensuring Government takes full account of the impacts of the regulatory regime on the construction industry.

The Chief Construction Adviser will be independent and report to BIS and HM Treasury Ministers. The successful individual will:-

Chair a new Construction Category Board, which will build on the existing Public Sector Construction Clients Forum (PSCCF), to oversee the implementation and further development of best value Government construction procurement.

Chair an enhanced sustainable construction strategy delivery board to help ensure policy regarding the industry is effectively co-ordinated.

Assess the key barriers to growth in the UK’s Low Carbon construction sector to ensure the UK industry is well placed to serve developing needs and markets

Work with the industry, through the Strategic Forum for Construction, to deliver the industry improvement agenda, including the Construction Commitments.

Promote innovation in the sector, working closely with the Technology Strategy Board and other funding bodies.

Co-ordinate the Whitehall response to reports featuring construction.

Ian Lucas, the Business Minister with responsibility for construction, said:

“We have taken our time to get the role right to ensure that it fits well with a range of new and existing initiatives. But I have heard the calls from the Construction Industry loud and clear since my appointment in June. We are now pressing hard ahead with recruiting. I want to see a high quality individual in place by November”.

Ian Pearson, the Economic Secretary, said:

“This role will provide a central “focal point” for the construction sector acknowledging the value of this sector and the importance of delivering a sustainable and low carbon economy that remains competitive. The Chief Construction Adviser will help ensure that Government secures maximum value for money in its procurement of construction and thus support the aims of the Operational Efficiency Programme”.

UK secures long-term European backing for key small business tax break

The Government has secured the long-term future of a tax break designed to help small, high-growth companies to recruit and retain highly skilled employees by gaining State Aid approval from the European Commission.

The Government convinced the European Commission that the Enterprise Management Incentives (EMI), which provide a tax break on share options offered by small and medium sized companies to their employees, play a crucial role in enabling small firms to recruit and retain the highly skilled employees they need to thrive.

The Government is also widening the eligibility criteria so that companies based in the UK which carry out considerable overseas activity can use EMI to recruit key UK-based staff.

The certainty provided by the granting of European Commission approval – which lasts until 2018 – together with the new eligibility criteria will provide a boost to the 9,000 companies that currently offer share options to their employees under EMI, and is likely to encourage take-up amongst the high growth small firms that will play a vital role in the return to growth in the UK economy

The Economic Secretary to the Treasury, Ian Pearson, said:

“This is excellent news for small and medium-sized companies, particularly at a time when their success will be crucial to economic recovery. Long-term State Aid approval of EMI provides certainty over the future of the scheme, whilst the relaxation of eligibility requirements will help SMEs with substantial international activities to recruit highly-skilled UK-based staff. We are confident that EMI will continue to act as a valuable tool in ensuring the growth of SMEs in the UK.”

(BERR) Budget delivers real help for personal finances

Savers, pensioners, homeowners and people struggling with debt are to benefit from Budget measures to help people take control of their finances.

The Government is delivering a range of measures to provide real help to tackle the pressures people are facing as a result of the global economic downturn.

Welcoming the Budget boost to personal finances, Consumer Affairs Minister Gareth Thomas said:

"We understand that money is tight for a lot of people at this time. This Budget will help put money back in people's pockets, help them to take control of their finances and, for those in difficulty, get back on their feet again.

"We are helping people to get their foot on the property ladder and meet their mortgage payments, helping pensioners and people who rely on savings income, and putting real help in place for people struggling with debts and on low incomes."

Minister for Pensions and the Ageing Society Rt Hon Rosie Winterton MP said:

"It is important that we continue to support the poorest pensioners through the economic downturn. The changes we have made to Pension Credit will benefit half a million pensioners by ensuring that any savings up to £10,000 will not affect their benefit entitlement."

Ian Pearson MP, Economic Secretary to the Treasury said:

"The Government wants to help all savers get the best possible income from their savings by shopping around to secure the best interest rate.

"To help with this the Financial Services Authority's Money Made Clear service offers comparative tables of savings accounts and has recently introduced a telephone helpline where people can get free and impartial guidance on all aspects of personal finance."

Measures include:

* Tax-free ISAs - on the tenth anniversary of their introduction, the annual tax-free savings limit will be increased from £7,200 to £10,200 for over-50s this year, including half in cash, and available to other savers from next year.

* In response to the potential impact of falling interest rates on pensioners with savings the capital threshold in Pension Credit will be increased from £6,000 to £10,000. The £10,000 limit will also be implemented for pensioners entitled to Housing and Council Tax Benefit.

* Social Fund - an additional £260million in total over two years to meet demand for interest free loans for people in times of financial difficulty, available through Jobcentre Plus.

* Growth Fund - a further £18.75m to help people on low incomes obtain affordable credit and banking services through credit unions and other community-based institutions. This will help to prevent people sinking into a spiral of debt and being driven into the hands of loan sharks.

* Car scrappage - the scheme will be introduced next month enabling people to get £2,000 towards a new, less polluting car or van under 3.5 tonnes.

* White Paper on consumer rights - this will set out proposals to:

* provide further help to people in difficulty with their finances;

* strengthen the UK's credit regime; promote responsible lending and borrowing;

* raise standards in debt collection;

* and set a longer-term direction for the sector and its regulation that will deliver continuing access to affordable credit, enhanced consumer protection and financial stability.

* State pensions - the increase in Winter Fuel Payments announced in Budget 2008 will continue next year so that households with someone over 60 will receive £250 and over-80s households £400 in winter 2009-10. The State Pension is guaranteed to increase by at least 2.5 per cent next year.

* Mortgage Rescue Scheme - the scheme, which helps vulnerable households facing repossession, will be expanded from May 1 to also cover those in negative equity as a result of a fall in house prices.

* Repossessions' Prevention Fund - a new fund which will provide small loans to homeowners or tenants facing repossession, administered by Local Authorities.

* Stamp Duty - the holiday on stamp duty on purchases of properties under £175,000 to help first-time buyers is to be extended to the end of the year.

* £400 million to unblock stalled private sector house building. The new funding will help restart stalled construction sites by creating new partnerships with the private sector. This will help to deliver 9,000 additional homes, all of which will start on site in 2009-10. This will include up to 5,000 homes to help first time buyers, including the option to rent now and buy later, and up to 1,000 social rented homes.

The housing measures follow this week's announcement of support for homeowners to stay in their home through the Homeowners Mortgage Support (HMS) initiative. HMS will enable eligible borrowers who suffer a temporary loss of income to cut their mortgage interest payments for up to two years to help them get back on track with their finances.