Supply chain issues are becoming more apparent as they layer on top of one another. The removal (and repayment) of covid support at the tail end of last year, combined with labour and logistical constraints, and new VAT systems are causing cash-flow issues for smaller businesses. However, it is important to note that whilst insolvencies have increased, they are not historically high as throughout 2020 many firms were kept afloat by the extreme support measures put in place by the government to help firms.
It is welcome that construction’s reliance on foreign workers has been recognised and that there could be a temporary fix to some of the current pressures. This should not distract the industry from playing an active role in the plan for skills set out by the Construction Leadership Council last year.