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Chancellor to detail £7bn spending pledge for local transport

Chancellor Rishi Sunak is planning to detail plans in the Autumn spending review on Wednesday to pump £7bn in local transport improvements in Midlands and Northern cities.

The pledge will amount to around £1.5bn or 20% of actual extra new cash to supplement previous spending commitments on infrastructure in the regions over the next five years.

It will be directed at areas outside of London to level up transport with new train and station upgrades and the expansion of trams, with £1.2bn also allocated to improve bus services.


Its forms part of a £26bn raft of spending commitments trailed over the weekend ahead of the Autumn spending review.

Local transport infrastructure commitments will see West Yorkshire given £830m while South Yorkshire receives £570m.

Around £1.05bn will be freshly committed in the West Midlands, £710m for the Liverpool City Region, £310m in Tees Valley and £540m granted to the West of England.


Rishi Sunak confirmed previously the Government had announced £4.2bn for regional transport, adding the Government would now top that up with an extra £1.5bn while giving out the precise allocation for where the cash will go within the oveall local transport infrastructure cash envelope

“Greate cities need great transport and that is why we’re investing billions to improve connections in our city regions as we level up opportunities across the country.

“This transport revolution will help redress that imbalance as we modernise our local transport networks so they are fit for our great cities and those people who live and work in them,” he said in briefings over the weekend.

 

 

 

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Cladding panels “dislodged” from McAlpine hotel job

Roads around a Hilton hotel being built by Sir Robert McAlpine in Woking were closed last week when cladding panels became “dislodged”.

Following the incident at the £540m Victoria Square development Cllr Ayesha Azad, Leader of Woking Borough Council, said on Friday: “I can confirm that following Wednesday’s incident, which saw a small number of exterior panels dislodged from the hotel development, senior officers from Woking Borough Council met with representatives of Victoria Square Woking Ltd and its contractor, Sir Robert McAlpine (SRM).

“Yesterday, a detailed inspection of the area of concern was undertaken by SRM’s sub-contractor, with further checks carried out today. As with any incident of this nature, SRM has mobilised their incident investigation team which includes independent advisers to fully scrutinise how and why this incident happened. With these investigations ongoing, it is inappropriate to speculate on the reasons why and how the panels became displaced.

“On the grounds of public safety, Sir Robert McAlpine took the decision to close Victoria Way on Wednesday afternoon in agreement with Surrey Police. Victoria Way will remain closed to traffic between the junctions with Goldsworth Road and Lockfield Drive until SRM is fully satisfied that there is no further risk to the public and construction site.

“Safety is my utmost concern and I would like to reassure members of the public that all partners involved fully understand the seriousness of the situation and are working collaboratively and expediently to resolve the matter.”

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Sheffield Hallam University’s £220m city campus gets nod

First phase plans to develop Sheffield Hallam University’s city campus with three new buildings have got the green light from planners.

Now BAM Construction will start construction work in early 2022 under its ground-breaking pain-gain sharing alliance model – the first genuine alliance to be used in the higher education building sector.

The Hallam Alliance is made up of the university, design-led consultancy BDP-Arup, contractor BAM and facilities manager CBRE and will use the new NEC4 alliance contract as a commercial template.

Over the next five years, the alliance aims to set a new benchmark for “best for project” delivery and building management.

The three new buildings in the £220m phase one will be four to seven storeys high. They will be erected around a new 400 sq m public area called University Green on Arundel Lane, on the recently demolished science park.

Designs include the latest technology and measures to make the new buildings zero carbon ready.

They include the use of sustainable energy solutions such as heat pumps, maximising the use of photo voltaic panels and provisions to support and promote sustainable travel.

BAM’s Paul Cleminson, Preconstruction Director in the North East, said: “The emphasis on sustainability and green spaces is very significant. By combining development, design, construction and long-term thinking about how the buildings are operated, we are all making a big difference to the future of how the buildings are used for generations to come.”

 

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London and North West labour rates rise for third month

Skilled self-employed labour rates have risen for the third month running in London and the North West.

Average weekly earnings for self-employed tradespeople in London increased by 1.8% to £938 during September while in the North West, earnings increased by 3.3% to £887.

According to the industry’s biggest employment contract services firm, Hudson Contract, the two areas have become pinch points for this skills shortage, while across the rest of country as a whole, pay rates actually dipped in September.


Across all regions average wages dipped by 1.7 % to £913 last month, while year-on-year earnings increased by 4.7%.

The East Midlands remained the region where self-employed trades commanded the highest pay despite a small fall last month.

Ian Anfield, managing director, said: “We estimate that through Covid the industry has been short of as many as 140,000 tradespeople, or 10% down on where we could have been, which has helped drive up labour rates in the face of high demand.


“Skills shortages – once an acute regional problem – has been exacerbated across the country by the Self-Employment Income Support Scheme (SEISS).”

Official statistics show construction workers claimed grants worth £966m in the last round of SEISS, which covered the period to September 15 2021.


In total, the sector has claimed grants worth nearly £11bn through the scheme which would amount to hundreds of millions of man hours.

Anfield added: “As SEISS ends, many will return to work but because huge infrastructure projects such as Hinkley Point and HS2 are in full swing, government departments have accelerated ‘shovel-ready’ projects and the ongoing housing and domestic work, demand will continue to outstrip supply.”

 

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Foreign investors to pump £10bn into UK green infrastructure

The Prime Minister will today announce the UK has secured £9.7bn of new foreign investment in UK green infrastructure at the Global Investment Summit.

He hailed 18 planned investment deals in wind and hydrogen energy, sustainable homes and carbon capture that will support green growth and create up to 30,000 jobs.

Among the headline commitments, Spanish electric utility giant Iberdrola confirmed it will invest £6bn in the East Anglia Hub through Scottish Power, subject to securing planning consent.

This will be Iberdrola’s biggest offshore wind development anywhere in the world and would supply enough green energy to power 2.7 million British homes, while creating 7,000 jobs.

While global logistics firm Prologis intends to invest £1.5bn over the next three years to develop net zero carbon warehouses across London, the south east and Midlands.

Malaysian conglomerate Petra Group will invest £30m in establishing its  Petra Modular business for production of sustainable modular homes, creating 225 jobs. It will also invest £30m in establishing Petra Group’s ‘Green Rubber’ business in the UK, which will see the development of a production facility creating 110 jobs.

 

Other deals announced at Global Investment Summit

US-owned waste specialist Viridor plans to invest up to £1bn in latest decarbonisation technology at its five UK sites to become the first net zero waste company by 2030.Turkish-owned Eren Paper is investing £500m to acquire a mill in Shotton, North Wales, and convert it to produce cardboard manufactured from paper waste. The mill will be powered by biomass fuel.Budweiser Brewing Group and green hydrogen energy services Protium have teamed up to invest more than £100m in a new hydrogen generation system to fuel the brewery’s production and also its key logistics assets, including heavy goods vehicles and forklift trucks.Jacobs will create over 150 jobs as it grows its high-tech Birchwood laboratory in Warrington, where Jacobs carries out research and development to support critical UK national infrastructure.Huaneng will invest in the 50MW Battery Storage project in StoneHill. This greenfield project is a major new milestone for energy storage in the UK and will employ local partners in construction and operationsHiPoint AG will invest £50m to create five new facilities for the recovery and processing of horse stall waste into reusable bedding, fertilizer & bio-fuels, creating 90 jobs across the UK.Ultimate Battery Company will invest £28m setting up a UK production plant for lightweight, eco-friendly batteries, creating 300 jobs.Global Marine will invest £10m in building hybrid engine crew transfer vessels and surface effect ships to service offshore wind infrastructure, creating 10 jobs in the East of England.HyPoint will invest £6.6m establishing a HQ in the South East for the development of their next generation hydrogen fuel cell system, creating 10 jobs.Treedom will establish a UK office in London for their online platform for planting trees, creating 10 jobs.Tes Amm is creating 15 new jobs in Scotland, doubling its electronic waste recycling solutions for lithium-ion batteries from electric vehicles, consumer electronics and IT & mobile technologies.Sumitomo Corporation are launching Presidio Ventures Europe, a venture arm of Sumitomo, focused on energy and mobility.Peer-to-peer lending firm Zopa has raised £220m, led by Softbank Vision Fund 2, to grow their responsible and sustainable banking and lending services in the UK.Getir plan to invest £100m to rapidly expand its sustainable and superfast grocery delivery service across the UK, creating 7,000 permanent jobs in 2022. The business utilises a 100% electric fleet of delivery vehicles.

Vast earthworks job out to bid for £150m rail testing facility

The race has started to find an earthworks contractor to prepare the way to build a £150m major rail testing facility at a former opencast mine site in South Wales.

The Global Centre for Rail Excellence will be the world’s first integrated testing facility for both rail infrastructure and rolling stock.

The ambitious project will see the redevelopment of the 500-hectare Nant Helen opencast site on the southern edge of the Brecon Beacons.

Advanced preparation work will require 3 million m³ of earth to be shifted before work on the permanent rail infrastructure can start.

The successful contractor will also provide temporary drainage during the construction phase as well as permanent drainage for the completed scheme.

The Global Centre for Rail Excellence will feature two looped test tracks, one being an electrified high speed rolling stock track (6.9km long) and the other being a low-speed infrastructure test track (4.5km).

There will also be a dual platform test environment, operations and control offices, staff accommodation, shunter cabins and facilities for research and development, education and training.

Following planning for the project this summer, the earthworks package will begin on site in spring 2022.

Click here for further information.

 

 

 

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Next phase of £650m Nottingham Island Quarter revised

Developer Conygar has submitted redrawn plans for phase 1B of Nottingham’s biggest regeneration scheme for decades, The Island Quarter scheme.

The proposals – which were initially submitted in January – include a 223-room hotel, 247 flats and an extensive food and beverage area in a 100m long forum.

As well as improving ventilation and access routes to the building, the changes build in extra flexibility during the construction process to face industry challenges, such as material shortages and labour availability.


Phase 1B will create up to 350 jobs during the construction phase

Tom Huffsmith, of Conygar, said: “Throughout the last year, we have worked closely with our design team to ensure that the plans for The Island Quarter have constantly been updated to meet the changing needs of a post-pandemic world.

“These alterations to 1B reflect those made to the overall masterplan for the site, which has been reimagined to include more green space, better routes for pedestrians and cyclists, and a focus on intergenerational living.

“1B is going to be a truly iconic building for the city, and we’re working closely with Nottingham City Council to ensure the plans will be approved and progress can continue to be made on this important site.”

David Jones, director at planning consultant AXIS, said: “While these changes will bring a positive impact to both the useability and buildability of 1B, the design intent is very much the same. The functions of the building itself remain as they were in the original planning submission – 1B will be a real flagship for The Island Quarter.

“The design changes are indicative of the impact of the pandemic, which is reflected more widely in Leonard Design and Studio Egret West’s emerging masterplan for the site as a whole.”

 

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London councils set out £98bn plan to retrofit 3.8m homes

All 33 of the London’s local authorities have signed up to a net zero carbon route map to retrofit 3.8m homes across all tenures in the capital to achieve an average EPC B rating by 2030.

The plan, which will be revealed in detail at the end of this month ahead of the Government spending review, could bring about a £98bn investment in the green economy in London, say councils.

The Retrofit London Housing Action Plan has been developed by the London Housing Directors’ Group with support from the London Environment Directors’ Network, the GLA, and Enfield and Waltham Forest as lead boroughs.

London boroughs are urging ministers to increase local government’s resources for this work.

They want the government to use the upcoming Spending Review to release £30m of funding for the next phase of the UK Cities Climate Investment Commission work.

Councils argue this is necessary to unlock over £200bn of private investment for delivering net zero across the UK’s 12 biggest cities.

The group also wants to see fresh financial incentives to encourage private retrofitting, such as green mortgages offering lower rates and a variable Stamp Duty Land Tax for more energy-efficient homes.

Key principles going forward

• Boroughs need to retrofit their own stock of 390,000 council homes and facilitate retrofit on the whole housing stock across London’s 3.8m homes.

• Planning decisions and guidance should support low-carbon retrofit activity, particularly in finding innovative ways to address the retrofit challenge in conservation areas.

• London needs to move away rapidly from gas heating.

• Boroughs will work collectively to develop skills and procurement models that can build capacity within the sector

The cross-party group London Councils warns the country’s retrofit market is highly unstable after serial failures of past green initiatives to tackle housing carbon emissions.

The National Audit Office slammed delivery standards in the government’s £1.5bn Green Homes Grant scheme as “rushed” and noted the scheme’s design failed to “sufficiently understand the challenges”.

Launched in September 2020 and scrapped in March 2021, the scheme was set up to help homeowners retrofit and insulate their homes.

It warns the industry cannot see a rerun of u-turns on the delivery of the £3.8bn Social Housing Decarbonisation Fund and £2.5bn Home Upgrade Grant.

London Councils says that boroughs’ ambitions for retrofitting the capital rely on targeted government investment, facilitating new private financing opportunities, and encouraging funding by landlords and individual households.

Joanne Drew, Co-Chair of the London Housing Directors’ Group, said: “Boroughs are fully committed to the home retrofit agenda and are proud to pioneer a new collaborative approach.

“Our plan identifies the steps needed to turn ambition into reality, setting out the costs involved and measures we will take to work with residents and landlords.”

 

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Mutiplex launches flexible working to attract more women to industry

Multiplex has adopted a new flexible working programme for its 825 UK staff in a bid to encourage more women into the industry

‘Multiplex Flex’ is designed to “shift the cultural dial of the construction industry” by addressing structurally related issues linked to gender equity alongside improving health and wellbeing and driving improved overall performance and productivity.

The contractor hopes more flexible working will help to attract and retain talent to support career progression and assist women into senior roles where the gender pay gap is highest.

A wide range of flexible working options will include flexitime, early Friday finishes, weekend time off in lieu, 9-day fortnight compressed hours working, teleworking and four-day weeks

The system has been trialed on sites in London and Glasgow with encouraging results.

Key findings from the three ‘Flex’ pilots were:

A significant improvement in the work life balance, helping to tackle construction’s long hour cultureA redistribution of care responsibilities within households as more men were able to support their partners with school runs, pickups, and evening choresLess stress and burnoutIncreased trust as more people working flexibly normalises flexible working practicesNo negative impact on project programme, productivity, or budgets, as well as improving Multiplex’s ability to meet client needs

Callum Tuckett, Managing Director of Multiplex’s Europe business, said: “It is well-documented that the construction industry is behind the curve in terms of creating opportunities for women, including pay equity and career progression.

“By enabling project directors to unlock formal and informal flexible ways of working and introducing more flexible options throughout the employee life cycle of recruitment, training and promotion, we are convinced we can create a working environment at Multiplex that is not only equitable and more diverse, but happy, healthy and productive.”

 

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Gallagher Group buys four Cemex ready-mix plants in Kent

Kent construction business Gallagher Group has more than doubled its ready-mix concrete operation buying four plants across Kent from Cemex UK.

It is the firm’s first external acquisition after almost 50 years of consistent organic growth, taking its total number of concrete plants from two to six.

New facilities at Tunbridge Wells, Sittingbourne, Margate and Dover join existing group operations at Maidstone and Ashford to give full coverage across Kent.

Sean Connor, Managing Director of Gallagher Aggregates, said: “For some years, our ready-mix concrete customers have been asking us to spread our net wider.

“These new acquisitions let us to do just that. We’re more than doubling our concrete production capacity.

“We’re investing significant sums in upgrading these sites, as well as adding to our mixer fleet and taking on additional staff.”

 

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