PRESS RELEASE: Spending Review gets lukewarm response from joinery sector

Joinery and woodworking firms are struggling to find the positives in last week’s Spending Review, according to the British Woodworking Federation (BWF).

The Chancellor’s Spending Review outlined the Government’s latest thoughts on economic recovery and set out the departmental budgets for the financial year 2014/15 to 2015/16. 

Iain McIlwee, chief executive of the BWF, said:

“Yet again we see a lack of real focus on growth. In the run-up to the Spending Review, home building was being heralded as a driver for economic recovery. The IMF has also made it clear that the path to growth is housing investment.

“So a promise of £3.3bn of capital investment in social housing over three years looked initially like good news – it’s similar to the investment put into the 2011 affordable homes programme.  But the difference this time is that the other changes to housing association rent revenues will impact hugely on viability, so it’s certain we will not see anything like the same number of new homes being built.

“Similarly, NHBC reports strong increases in new home registrations, but registrations are not the same as actual starts. We need building activity now – every week’s delay impacts heavily on the key suppliers to the home building industry. Our members are ready and waiting; the joinery industry has the capacity and skills to meet demand, now it just needs the orders.”

There was one positive message coming through on apprenticeships, said Dave Campbell, manager of the BWF’s Woodworking Industry Training Forum.

Dave Campbell said:

“It is good news that the Spending Review restated the Government’s commitment to support apprenticeships, and it is encouraging that more is being done to support those aged over 19. On-the-job training through apprenticeships is the best way for the woodworking industry to build a skilled workforce and gives individuals the opportunity to gain qualifications while earning.

“We urge the Government to maintain this support for apprenticeships in the long-term, but we also need to see further financial support for 24+ learners that doesn’t place the burden on them through adult learning loans. We don’t believe that the loan system will work for the vocational sector and will only serve as a barrier to bringing in the best and brightest to industry. An employer’s only concern should be hiring the best person for the job and not having to consider the financial implications based on a candidate’s age.”

Keep up to date with BWF news and comment at https://www.bwf.org.uk/news/latest-news