workinproperty News

Eric Pickles puts stop to flawed Regional Strategies

2010-07-06T15:40:00.002+01:00

Local Government Secretary Eric Pickles is scrapping Regional Strategies and their centrally imposed building targets that failed to increase housebuilding.

Regional targets intended to build 3 million homes nationally by 2020 were put in place by the previous Government despite fears that they would force councils to cut into the Greenbelt. However, the reality is that construction has slowed down so much the country is facing the lowest peacetime housebuilding rates since 1924.

An order laid in parliament today will revoke Regional Strategies with immediate effect. Councils will now have the freedom to prepare their local plans without having to follow top-down targets from regional quangos and bureaucrats that prescribe exactly what, where and when to build.

Communities and Local Government Secretary Eric Pickles said:

"Communities will no longer have to endure the previous government's failed Soviet tractor style top-down planning targets - they were a terrible, expensive, time-consuming way to impose house building and worst of all threatened the destruction of the Green Belt.

"Today I'm revoking regional plans with immediate effect - hammering another nail in the coffin of unwanted and an unaccountable regional bureaucracy."

"I promised to get rid of them and today I'm revoking regional plans with immediate effect - hammering another nail in the coffin of unwanted and an unaccountable regional bureaucracy. They were a national disaster that robbed local people of their democratic voice, alienating them and entrenching opposition against new development.

"Regional Strategies built nothing but resentment - we want to build houses. So instead we will introduce powerful new incentives for local people so they support the construction of new homes in the right places and receive direct rewards from the proceeds of growth to improve their local area."

Mr Pickles also pledged that direct and substantial benefits for councils who support construction would be the centrepiece of this radical restoration of local power. The money will be used to help ensure more new homes are built for local people, and matched with more new jobs and investment.

From today, power will be handed back to councils and communities to make their own decisions on planning that can get the country building again. Communities will, once again, be able to solve local housing challenges in a way that makes sense for them. In return councils will be offered powerful new incentives that ensure they benefit from development they welcome.

Travis Perkins buys BSS for £557m

2010-07-06T15:31:00.001+01:00

Travis Perkins has agreed to acquire BSS Group for £557m which will see it become the UK's biggest plumbing and heating distributor.

Robert Walker, the chairman of Travis Perkins, said: "We are confident this transaction can deliver significant value for the shareholders in the enlarged group."

Travis Perkins is paying 435.4p for each BSS share, split between 232.9p in cash and 196.4p in new shares, based on Travis Perkins' closing price yesterday of 753p. It also includes 6.09p to pay the final dividend on BSS's shares. BSS shares closed at 427p.

The takeover price is 34 per cent above the closing price of 325p of BSS's shares on 27 May, the day before Travis Perkins revealed it was in "advanced discussions" about acquiring BSS. Travis Perkins said the enlarged group would have the scale to purchase products more "competitively" and would benefit from global sourcing. Along with other efficiencies, such as combined distribution routes, it expects to make annual pre-tax cost savings of at least £25m in 2013.

Major review of Building Schools for the Future Planned

2010-07-05T15:43:00.000+01:00

Education Secretary Michael Gove has set out a complete overhaul of capital investment in England’s schools. Bringing an end to Building Schools for the Future (BSF), he said ‘In the light of the public finances, it would have been irresponsible to carry on regardless with an inflexible, and needlessly complex programme.’

The key elements of the announcement to Parliament are:

706 schools will be opened under new arrangements being agreed today, of which nearly 386 schools are projected to be new build; 262 to be remodelled or refurbished; 26 to be ICT-only. The building programme in 32 further schools is yet to be confirmed.
715 schools will no longer be rebuilt or refurbished through BSF of which nearly 180 schools are projected to be new build, over 319 to be remodelled or refurbished and 63 to be ICT-only. The building programme in 153 schools has not yet been confirmed.
That 123 academy projects in development which have not reached financial close will be reviewed on a case-by-case basis.
That in 14 cases, prioritised locally as 'sample' projects - the first taken forward in the area - will be reviewed on a case-by-case basis in recognition of local need. Although financial close has not been reached, very significant work has been undertaken to the point of appointing a preferred bidder at 'close of dialogue'.
That the Government is launching a comprehensive Review of all capital investment in schools, early years, colleges and sixth forms. Led by Sebastian James, Group Operations Director of DSG international plc, the Review team includes Kevin Grace, Tesco - Director of Property Services, Barry Quirk, Chief Executive of Lewisham, John Hood former Vice-Chancellor of University of Oxford and Sir John Egan, former Chief Executive of Jaguar and BAA.
The review will guide future spending decisions over the next Spending Review period (2011-12 to 2014-15). It will look at how best to meet parental demand; make current design and procurement cost-effective and efficient; and overhaul how capital is allocated and targeted.
That the department is reducing its End Year Flexibility (EYF) requirements by £1bn to help ensure no additional borrowing this year. This is in line with the Government’s plan to reduce the deficit, and the Treasury’s announcement today that Departments have agreed to address unrealistic inherited spending commitments for 2010-11, where funding was reliant on underspends through the (EYF) system or additional funding from the Government’s Reserve. The Department expects to be able to manage most of this through better financial management and tighter controls. Because of the size of the reduction, however, the Department will have to make £169.5m savings from capital budgets where commitments are no longer affordable.

The Secretary of State also announced that he will be ending funding for the Commission for Architecture and the Built Environment (CABE) design advice service associated with the BSF programme.

Call to cut planning and consents red tape

2010-07-05T15:37:00.000+01:00

Proposals for simplifying the planning and consents environment, encouraging development and growth and cutting the amount of red tape faced by business and government, has been published today by the Penfold Review.

The Review recommends measures that could free up resources, save time and money, and deliver real benefits not only to developers and investors, but also to consenting bodies in England. Local communities in towns and villages could also benefit from greater transparency and clarity about how decisions are made.

The Review recommends:

• Simplifying the non-planning consents landscape by removing some individual consents and rationalising other groups of related consents;

• Giving developers easy access to clear, accurate and up-to-date information;

• Delivering greater certainty for developers and removing duplication by improving the way planning and non-planning consents operate together;

• Improve the co-ordination and governance around decisions involving multiple decision makers;

• Strengthening the service culture of decision-making bodies by, for example, setting timetables for the determination of non-planning consents; and

• Creating a clear system for oversight of the planning and non-planning landscape.

Mark Prisk, Minister for Business, said:

“Businesses involved in construction and development should not have to deal with a regime made more complicated through needless red tape and procedure”.

“We need innovative solutions that simplify how government can deliver real benefits for business, saving time and money and encouraging growth.”

“Across government we need to carefully consider this report and I thank Adrian Penfold for his valuable contribution to our work on cutting down the burden on business.”

Adrian Penfold said;

“My Review presents a package of measures that would deliver real benefits to developers by removing unnecessary burdens and speeding up processes."

"The proposed changes should also give people more influence over what happens in their local communities, thanks to more efficient, transparent and accountable processes.”

"Decision-making bodies also stand to benefit by making changes that enable them to free up resource and redirect it towards their highest priorities."

“Establishing non-planning consents regimes that are more responsive to the needs of all users and that effectively interact with the planning process is very important in helping to drive sustainable economic growth"

The Government will consider the recommendations from the Penfold Review in detail and will publish a formal response in the autumn.

Lovell maintenance business expands with Powerminster Gleeson Services acquisition

2010-07-01T16:19:00.001+01:00

Morgan Sindall Group’s affordable housing division Lovell is set for a major expansion of its housing maintenance business with the acquisition of Powerminster Gleeson Services (“Powerminster”) from MJ Gleeson Group plc.

All Powerminster’s contracts, and the company’s 178-strong workforce, will transfer to Lovell Respond, the Lovell response maintenance business. The move brings together the two businesses’ complementary expertise and geographical presence to significantly enhance the range of services offered by Lovell to its social housing partners.

Powerminster delivers comprehensive planned and reactive maintenance solutions, including a 24/7 responsive service, to the social housing sector. It specialises in providing long-term estate management services on Private Finance Initiative (PFI) schemes. Lovell Respond’s current business is mainly focussed on the Midlands, whilst Powerminster has a strong presence in the North West, North East and South East of England. Bringing the two together creates a leading reactive maintenance and estates management services business.

“This is an important strategic acquisition for the Group,” says Paul Smith, chief executive of Morgan Sindall Group plc. “It gives our existing response maintenance business significant critical mass, creating a nationwide offering and substantially enhancing the range of services we provide. It also leaves us better placed to take advantage of the response maintenance element of future social housing PFI schemes.

“Social housing contracts are increasingly being tendered on a combined planned and responsive maintenance basis. This acquisition ensures that we can continue to meet our clients’ needs and further builds on the strong position we hold in the social housing market.”

Your Freedom

2010-07-01T16:12:00.002+01:00

The Government will today ask the public for their ideas to reduce pointless regulation and unnecessary bureaucracy.

Deputy Prime Minister Nick Clegg has launched the Your Freedom website giving people the opportunity to suggest ideas on restoring liberties that have been lost, repealing unnecessary laws and stripping away excessive regulation on businesses.

Mr Clegg urged people to use the site to make their voices heard. He said:

“For too long new laws have taken away your freedom, interfered in everyday life and made it difficult for businesses to get on. We want your ideas on how to change that, ideas on how we restore hard-won freedoms that have been lost, on how we repeal unnecessary laws that have amassed onto the statute book, on how we strip away the restrictive regulations that stop businesses from innovating. This debate isn’t new – people are already talking about it around kitchen tables, in staff rooms, online – but what is new is that for the first time in a long time, Government is listening and we’ll put the best suggestions into practice. It’s a totally new way of making policy – a totally new way of putting you in charge.”

The public will be asked to consider three questions:

Restoring civil liberties: which current laws would you like to remove or change because they restrict your civil liberties?
Cutting business and charity regulations: which regulations do you think should be removed or changed to make running your business or organisation as simple as possible?
Repealing unnecessary laws: which offences do you think we should remove or change and why?

Users of the site will be able to comment on and rate their favourite ideas and relevant departments will then respond to the most popular workable ideas.

The views expressed on Your Freedom will be taken into account in the Freedom Bill later this year.

Worker deaths in Britain fall to record low

2010-06-30T14:47:00.001+01:00

New figures released today reveal that the number of people killed at work in Britain fell last year to a record low.

The Health and Safety Executive (HSE) has released the provisional data, which shows that 151 workers were killed between 1 April 2009 and 31 March 2010 compared to 178 deaths in the previous year and an average number over the last 5 years of 220 deaths per year.

Judith Hackitt, the HSE Chair said:

"It's really very encouraging to see a further reduction in workplace fatalities in the past year. This is performance which owes much to good practice, leadership and employee engagement. No doubt the recession has resulted in lower levels of activity in some sectors and a decrease in the numbers of new inexperienced recruits has also contributed to this fall in fatalities.

"We should also remember that 151 families are mourning the loss of someone who last year went out to work and never came home. Being one of the best health and safety performers in the world means continuing to strive to drive these numbers down further - not getting complacent about what we've collectively achieved and recognising the new challenges as we emerge from the recession.

"As with all health and safety statistics, today's announcement is a combination of encouraging news about improvement but also a salutary reminder of the tragedies of lives lost at work."

Despite the overall improvement, agriculture, the most dangerous industry in Britain, has recorded a sizeable increase in deaths. 38 workers died on farms in the last year, marking a disappointing return to levels of earlier years after a record low of 25 deaths in 2008/09.

Judith Hackitt added:

"We are especially concerned to see the continuing high levels of fatalities in agriculture.

"The fact that many of these lives have been lost in family businesses is a double tragedy. Not only have families been ripped apart, but businesses that have been handed down through generations have been ruined.

"No industry can or should regard high levels of workplace death and injury as being 'part of the job'. It doesn't have to be this way as many other sectors have shown by their improvement."

Large falls have been recorded in some of the other historically most dangerous industries in Britain:

41 fatal injuries to construction workers were recorded - a rate of 2.0 deaths per 100,000 workers, compared to an average of 66 deaths in the past five years and a fall from the 52 deaths (and rate of 2.4) recorded in 2008/09.
42 fatal injuries to services workers were recorded, a rate of 0.2 deaths per 100,000, compared to an average of 72 deaths in the past five years and a fall from the 62 deaths (and rate of 0.3) recorded in 2008/09.
24 fatal injuries to manufacturing workers were recorded, a rate of 0.9 deaths per 100,000, compared to an average of 38 deaths in the past five years and a fall from 33 deaths (and rate of 1.1) in 2008/09.

Judith Hackitt said:

"We need the agriculture industry to recognise that it can address the problem and learn the lessons from these sectors. Improvements can be achieved even in any industry sector with leadership and by focusing on the priority issues."

The new figures show that compared with the latest data available for the four other leading industrial nations in Europe - Germany, France, Spain and Italy - Great Britain has, for more than the last six years, had the lowest rate of fatal injuries.

£1 billion fund to help regional business

2010-06-29T14:49:00.000+01:00

Deputy Prime Minister Nick Clegg today launched a £1 billion Regional Growth Fund to help areas and communities at risk of being particularly affected by public spending cuts.

The fund, which will operate in 2011/2012 and 2012/2013 will help areas most dependent on public sector employment as the country makes the transition to private sector-led growth and prosperity. Both private bodies and public-private partnerships will be able to bid for funding by demonstrating that their proposal will bring in private investment and support sustainable increases in private sector jobs and growth in their area.

Speaking in Bradford after the first Coalition Cabinet meeting outside of London today, Nick Clegg said:

"While we sort out the nation's finances we can also help to foster a thriving and more balanced economy so that no region or community gets left behind.

"The Regional Growth Fund will create the conditions for growth and enterprise in the regions by stimulating investment and create sustainable private sector jobs.

“Alongside our commitment to waive some employment taxes for new businesses starting up in targeted regions of the country, this fund can make a real difference to companies during difficult times."

Nick Clegg also set out plans for local enterprise partnerships that will bring together councils and business on an equal footing with one voice, replacing the current Regional Development Agencies (RDAs). In a joint letter sent to councils and business leaders today, Business Secretary Vince Cable and Communities Secretary Eric Pickles have asked them to consider forming new local enterprise partnerships that can provide strategic leadership in their local areas and create the right environment for business success and economic growth.

Vince Cable, the Business Secretary said:

“We are determined to rebalance the economy towards the private sector, so it’s important we create a more effective structure to drive economic growth and development across the country.

“We want a structure that reflects the genuine interests and commitment of enterprise, local councils and other stakeholders like universities and colleges. Local enterprise partnerships will provide that vision and then take on the task of renewing local economies and tackling local barriers to growth. Today we are asking them to tell us about their vision and I’m looking forward to what they’ve got to say.“

Balfour Beatty appointed preferred bidder for Oldham Building Schools for the Future project

2010-06-29T14:46:00.000+01:00

Balfour Beatty, the international infrastructure group, announced that it has been appointed as preferred bidder by Oldham Council for their Building Schools for the Future (BSF) programme, which is worth up to £175 million.

This BSF Programme involves the delivery of new buildings and upgrades to eight of the Borough’s schools, a pupil referral unit and the construction of a new school in Chadderton. The initial phase of construction, which will commence in January 2011, will involve the delivery of the new-build Oldham Roman Catholic School at its new site and the partial rebuild and remodelling of North Chadderton School. Upgrades, expansions and new buildings for the other schools will commence between 2012 and 2014, with all construction work completed by 2015.

All construction and facilities management will be carried out by Balfour Beatty. ICT services across all the schools will be delivered in conjunction with Northgate, a leading provider of ICT educational solutions.

Commenting today Balfour Beatty Chief Executive, Ian Tyler, said:

“We are delighted to have been awarded preferred bidder status for Oldham Council’s BSF scheme. We look forward to developing a Local Education Partnership with the Council and Partnerships for Schools to deliver excellent design and value for all schools in the programme, as well as maximising the economic benefit to the Borough.”

Balfour Beatty will invest equity of £3.2 million into the delivery of the first sample school, Oldham Roman Catholic School,

Six companies awarded contracts to develop more energy efficient lighting for homes

2010-06-28T14:54:00.000+01:00

Six British companies have won support for carrying out technical feasibility studies in the first phase of a major initiative to develop more energy efficient lighting for our homes.

The £1.2m research fund, from the Technology Strategy Board and the Department for Environment, Food and Rural Affairs (Defra), will help the companies to become market leaders in the best ultra energy-efficient lighting, which will contribute to reduced energy consumption in our homes.

The companies have been awarded up to £40,000 each to carry out work, over the next three months, to show the technical feasibility of their proposed concepts. The feasibility studies will then be assessed and the proposals with the most promising technologies will receive up to £450,000 to develop and evaluate prototypes or demonstration units, which will then be subjected to a vigorous 6-month field trial.

Environment Minister Lord Henley said:

“It is vital that all aspects of society think about what they can do to live more sustainable lives and help to preserve the natural resources we have. Efficient lighting can also help consumers make significant savings on their energy bills. This exciting competition gives six companies the opportunity to put Britain at the forefront of the global effort to produce new innovative and low-energy products.”

The contracts have been awarded through the Small Business Research Initiative (SBRI). Mark Glover, the Head of SBRI, said:

“Ultra energy efficient lighting could transform Britain’s homes and energy use. The more efficient the lighting, the more money we save on our energy bills. At the end of the demonstration period, we want to see high-quality, compact ultra-efficient lighting that everyone would be happy to use at home. We have the opportunity to become a world leader in the manufacture of this technology, which would create new jobs and boost the British economy.”

The six British companies awarded the feasibility study contacts are: Cambridge Consultants Ltd, Juice Technology Ltd, Marl International Ltd, PhotonStar LED Ltd, Tridonic Atco (UK) Ltd and Zeta Controls Ltd.

The companies have until 9 September 2010 to submit their feasibility study reports and they will be notified of the decision regarding full development contracts in early October 2010.

May house prices down 0.2 per cent since April

2010-06-28T14:52:00.000+01:00

The May data from Land Registry's flagship House Price Index shows an annual price increase of 8.2 per cent.

This is the seventh month in a row in which the annual figure has been positive and takes the average property value in England and Wales to £165,314. It is also the first time since March 2009 that the annual change figure has not increased from the month before.

The monthly change from April to May is a decrease of -0.2 per cent. This is the first negative monthly movement since April 2009.

All regions in England and Wales experienced increases in their average property values over the last 12 months. The region with the highest annual price change is London with an increase of 14.2 per cent. The region with the smallest annual price rise is the North East with a movement of 1.8 per cent.

The South East experienced the greatest monthly rise with a movement of 0.9 per cent. The East Midlands region experienced the most significant monthly price fall with a movement of -3.6 per cent.

The most up-to-date figures available show that during March 2010, the number of completed house sales in England and Wales rose by 37 per cent to 48,577 from 35,449 in March 2009.

Anglian Water Renews Special Projects Framework with Galliford Try

2010-06-28T14:42:00.000+01:00

Galliford Try plc, the housebuilding and construction Group, announced that its Water business has, in a joint venture with Imtech, known as GTM, been awarded a five-year special projects framework worth up to £90 million by Anglian Water.

The framework will consist of one-off large schemes during AMP5. Large schemes completed by Galliford Try and Imtech during the previous AMP included biosolids treatment plants at King’s Lynn and Great Billing and a water treatment plant at Wing in Rutland.

Greg Fitzgerald, Chief Executive of Galliford Try plc, commented:

“We are delighted to renew our longstanding relationship with Anglian Water, underlining our leading market position in long term frameworks for the water sector.”

Carillion awarded £306m Toronto Public Private Partnership

2010-06-24T14:53:00.001+01:00

A Carillion Joint Venture, Carillion Secure Solutions, has been selected to design, build, finance and maintain Toronto’s Forensic Services and Coroner’s Complex (FSCC).

The FSCC will house Ontario’s Centre of Forensic Sciences and its Office of the Chief Coroner in a single facility that will include forensic laboratories, offices, autopsy suites and two courtrooms for coroners’ inquests. The 30-month construction period will begin on site in August 2010.

The project will be delivered using an Alternative Financing and Procurement model, which is similar to the UK’s Public Private Partnership model. As well as arranging debt finance to meet the costs of construction, Carillion will invest £11.8 million of equity in the project.

Carillion will also carry out the construction work and provide facility management and life-cycle repair services over the 30-year concession period that together are expected to generate £306 million of revenue for Carillion.

Chief Executive John McDonough said: “We are delighted to have achieved financial close on this prestigious project, which further reinforces our leading position in the PPP market for social infrastructure in Canada, where we have established a very strong track record. We look forward to working with Ontario’s Ministry of Community Safety and Correctional Services and its stakeholders to provide Ontario with one of the most modern facilities of this kind in the world.”

Carillion is one of the leading providers of privately financed social infrastructure facilities in Canada. In addition to the FSCC project, Carillion is currently building and financing Toronto’s Centre for Addiction and Mental Health, the Sault Area Hospital and the Royal Victoria Hospital in Barrie, having successfully delivered two of the first major Public Private Partnership hospitals in Canada – the new William Osler Hospital in Toronto and the Royal Ottawa Hospital.

Laing O'Rourke wins £270 m BSF deal

2010-06-24T14:50:00.001+01:00

Laing O'Rourke has been appointed by Barking & Dagenham Council to deliver its £270million Building Schools for the Future Programme (BSF). Laing O'Rourke will rebuild or renew every secondary school in the borough, and Trinity Special School, to create inspirational 21st century learning environments.

This decision follows a ten month procurement and selection process.

The initial phase of construction which will commence in February 2011, will involve the renewal of Dagenham Park Church of England School and The Sydney Russell School. Upgrades of other schools will commence between January 2012 and June 2013 with all construction work completed by April 2015.

All construction and facilities management will be carried out by Laing O'Rourke. Information Communications Technology (ICT) services across all the schools will be delivered in conjunction with RM, a leading provider of ICT educational solutions.

Cllr Rocky Gill, Deputy Leader and Cabinet Member for Education and Children, said: "I am delighted that we have been able to make this announcement today. We are entering into a partnership committed to improving the way secondary education is delivered in Barking and Dagenham. We have selected our Preferred Partner through a very stringent selection and scoring process. Building Schools for the Future represents the best opportunity to invest in our schools for generations. Not only will it transform buildings but will enable us to improve the educational curriculum for young people, providing them with more opportunities to access education, training and employment as well providing opportunities to the wider community."

Barking and Dagenham Council will now form a Local Education Partnership (LEP) with Laing O'Rourke. This will be the body responsible for delivering the BSF programme in Barking and Dagenham.

Mark Richardson, Business Unit Leader, Laing O'Rourke Construction South, said: "We are of course delighted to have been selected as preferred bidder, and this is also great news for the residents of Barking and Dagenham. We look forward to cementing a close partnership with the Borough through the Local Education Partnership, supporting their aspirations for more prosperous communities, and delivering outstanding designs and value for all schools in the programme."

Coalitions Governments First Budget

2010-06-23T09:31:00.002+01:00

The Chancellor, George Osborne, today presented the first Budget of the Coalition Government. Here are the key points:

Taxes:

-VAT rises to 20pc from 17.5pc from January 4 2011.

-Food, children's clothing and other VAT-free items remain exempt from VAT for current Parliament

-Capital gains tax (CGT) to rise for higher-rate taxpayers to 28pc from midnight

-Capital gains tax to remain at 18pc for basic-rate taxpayers

-CGT exempt amount remains at £10,100 this year

-Personal income tax allowance increased by £1,000 in April to £7,475

-Higher rate income tax rate remains frozen to 2013/14

-National Insurance threshold rises by £21 next year

Public sector cuts and benefit reform:

-Child benefit to be frozen for next three years

-Benefits to rise in line with consumer prices

-Tax credits reduced for families earning more than £40,000

-Child element of child tax credit increased by £150 above inflation

-Housing benefit restricted to maximum £400 a week

-Medical assessment for Disability Living Allowance from 2013 for new and existing claimants

-Two year pay freeze for public sector workers

-Public sector workers earning less than £21,000 to be paid £250 extra each year for two years

-Basic state pension linked to earnings from April next year

-Pensions guaranteed to rise in line with with earnings, prices or 2.5pc, whichever is greatest

-The Government will accelerate the increase in state pension age to 66

Deficit and debt:

-Deficit to fall to 1.1pc of gross domestic product (GDP) by 2015/16 vs 10.1pc in 2011

-Budget deficit to be £149bn in 2010/11, lower than forecast at the last Budget

-Budget deficit to fall to £116bn in 2011/12

Business:

-Corporation tax cut to 27pc next year

-Corporation tax cut by 1pc point a year for next three years to 24pc

-Small companies tax rate cut to 20pc

-Tax relief for video games industry scrapped

-UK bank and building society levy from 2011

-Levy also on UK operations of foreign banks

-Smaller banks not liable for a levy

-Banks levy expected to raise more than £2bn a year

-10pc CGT rate for entrepreneurs extended to first £5m of qualifying gains

-Government looks to sell shareholding in air traffic control agency Nats, the student loan book will be sold and the future of the Tote bookmaker will be resolved

Spending:

-Government spending will be £637bn in 2010/11

-Government spending will be £711bn in 2015/16

Growth:

-UK economy to grow by 1.2pc in 2010

-UK economy to grow by 2.3pc in 2011

-UK economy to grow by 2.8pc in 2012

Unemployment:

-Unemployment to peak at 8.1pc in 2010/11

-Unemployment to fall each year to 6.1pc in 2015

£1 Billion Upgrade For Gatwick Airport

2010-06-22T09:45:00.001+01:00

Gatwick Airport has revealed its new brand identity, heralding the start of a £1 billion plan to transform the airport.

Fittingly unveiled on the first day of summer, the new Gatwick will put passengers at the heart of its drive to provide the best possible service.The £1 billion development plan will be rolled out over the next two years, delivering new, modern facilities at every step of the journey through Gatwick.

From July, passengers flying through Gatwick can enjoy the new state-of-the-art inter-terminal shuttle, two months ahead of schedule in time for the busy summer period. At the same time, a brand new multi-million pound extension to the airport’s North Terminal will provide a world-class welcome for passengers.

At check-in there are already more self-service facilities, at security there’s a new Fast Track security service and assistance lanes for families and passengers who need extra help. And there’s great shopping with new brands such as Superdry, Hugo Boss and Jo Malone, all with up to 30% off high street prices.

Looking ahead, the £1 billion investment will see improvements to almost every part of the airport, including the South Terminal departure lounge, entrance forecourts, immigration hall, baggage systems and the North Terminal Interchange.

Global Infrastructure Partners completed its purchase of Gatwick from BAA in December 2009 and as an independent airport, the investment programme is an opportunity for Gatwick to bring real competition to the London airports market. With a focus on quality of service and investment in world-class facilities, the new Gatwick will present a unique offer to passengers and airlines.

Stewart Wingate, CEO of Gatwick Airport, said: “Today is an important milestone as we compete to make Gatwick, London’s airport of choice for passengers and airlines. Gatwick has long been recognised as London’s favourite airport, a more friendly and enjoyable place to travel. It’s by building on these qualities and investing in new facilities that Gatwick will go from strength to strength.”

The launch of the new Gatwick comes the week after the Government announced it is establishing the South East Airports Taskforce which will seek to improve the passenger experience at the UK’s three busiest airports.

“We welcome the introduction of the South East Airports Taskforce and look forward to working with the new Government, airlines and industry partners to deliver a great experience for Gatwick passengers now and in the future. The quality of service we provide to passengers and airlines is central to our future growth and development strategy,” added Stewart.

Balfour Beatty appointed preferred bidder for £231 million Derby Building Schools for the Future project

2010-06-22T09:31:00.001+01:00

Balfour Beatty, the international infrastructure group, announced that it has been appointed as preferred bidder by Derby City Council for their £231 million Building Schools for the Future (BSF) programme.

This BSF Programme involves the design and new build or refurbishment of 14 schools in the city with funding for three schools to be raised through a Balfour Beatty led PPP concession. All construction and facilities management will be carried out by Balfour Beatty. ICT services across all the schools will be delivered in conjunction with RM, a leading provider of ICT educational solutions.

The initial phase of the scheme will begin in November of this year with the new build of Noel-Baker Community School and Language College and St Martins School, together with the major refurbishment of Derby Moor Community Sports College. All of these schools are scheduled to open for the new academic year in September 2012. Upgrades and new builds of the other schools will commence once financial close has been achieved with all work to be completed for the new academic year in September 2014.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

"We are delighted by this preferred bidder award and the opportunity to further strengthen our relationship with the City of Derby. We look forward to developing a Local Education Partnership with the Council and Partnerships for Schools to deliver excellent design and value for all schools in the programme, as well as maximising the economic benefit to the City."

Balfour Beatty will invest equity of £6.6 million into the 25-year concession to operate and maintain the school facilities and provide related services for the three PPP schools.

Morgan Sindall wins £95.4m health job

2010-06-21T09:28:00.000+01:00

Morgan Sindall Group plc, the construction and regeneration group,has been awarded a £95.4 million contract to design and build the Tayside Acute Adult Mental Health Developments scheme in Scotland.

Morgan Sindall, the Group's construction and infrastructure division, working with Morgan Sindall Investments Limited and Robertson Capital Projects, on behalf of NHS Tayside and the North of Scotland Planning Group, will design and build new mental healthcare facilities at Murray Royal Hospital in Perth and Stracathro Hospital in Angus.

The inpatient facilities provided will create 183 new bed spaces at Murray Royal Hospital, with an additional 52 at Stracathro Hospital. Work at Stracathro Hospital in Angus is scheduled to complete in September 2011 and at Murray Royal Hospital in April 2013.

Paul Smith, Chief Executive of Morgan Sindall Group plc, said:

"We are very pleased the scheme has reached financial close and we have been chosen to deliver these major healthcare projects. This appointment recognises our expertise in the design and delivery of high-value, complex facilities, particularly PPP and PFI hospitals. This contract demonstrates how the combined skills of the new Morgan Sindall construction and infrastructure division, supported by Morgan Sindall Investments, enables us to provide state-of-the-art facilities. It also enhances our position as one of the leading construction groups in the health sector."

ISG Acquire Moscow Fit Out company

2010-06-21T09:23:00.000+01:00

ISG , a provider of Construction , Fit Out and Management Services, announced that it has acquired Olson Enterprises CJSC (“Olson”), a specialist Fit Out company based in Moscow, Russia.

Olson, established in 1992, delivers high quality fit out and M&E maintenance services primarily to international companies. Olson was formerly a subsidiary of Skanska, the international construction group, before being sold to private investors in 2006.

ISG signed a joint venture agreement with Olson in March 2009 to expand its delivery capability in Eastern Europe and to date has successfully collaborated with Olson on three projects for multinational clients. This heritage and that many of Olson’s clients are also clients of ISG are the key reasons behind this acquisition. Olson’s turnover in 2009 was £6m and it employs 125 people.

ISG has acquired the entire share capital of Olson for a nominal amount and agreed to invest up to £800,000 (R40m) in working capital to refinance existing vendor loans and to support Olson’s future growth
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David Lawther, Chief Executive of ISG, said: “Acquiring Olson demonstrates ISG’s commitment to provide a high quality service to our multinational clients in Moscow, an important and expanding market for them. Olson’s considerable experience and knowledge of the local supply chain has already benefited clients and we plan to be able to expand the depth and range of their services.”

Details of Government support for business published

2010-06-17T13:22:00.002+01:00

Business Secretary Vince Cable today confirmed Government support for multi million pound investments to secure low carbon and science projects in the UK and the Post Office Network.

This followed the Treasury concluding a review of significant projects announced since January to check they were affordable, value for money and that they fitted in with the priorities of the Coalition Government.

Government will continue with BIS projects for:

Bristol and Bath Science Park - £2.6 million;
International Space Innovation Centre in Harwell - £12 million;
Discovery Research Ship - £75 million;
National Renewable Energy Centre (NAREC) Offshore Wind Blade Test Site, Blyth - £11.5 million;
NAREC Offshore Wind Turbine Test Site - £18.5 million;
Offshore Wind Demonstration and Development - £12.4 million;
Offshore Wind, Mitsubishi Collaborative R&D to support Mitsubishi and partners - £30 million;
Support for the Post Office Network - £180 million ;and
Spectrum clearance costs.

However, two previously announced projects are no longer to receive funding from Government. These are:

Sheffield Forgemasters ;and
Outokumpu – Sheffield

Dr Cable said the Government had both to reduce the deficit and help create growth. It was essential to strike the right balance between the two to lock in the recovery.

Business Secretary Vince Cable said:

“In the economic climate that we find ourselves in some of the commitments previously made by Government can now no longer go ahead.

“This is why it is so important that there is support for skills, science and entrepreneurship through more apprenticeships, spending on gold standard science research and slashing burdensome red tape.

“It is clear that Government can not simply continue to commit money to every project, but there are other things that government can do to secure the recovery.”

All of the projects which have not met the criteria will now be wound up or Government will seek alternative ways to ensure that they go ahead.

Dr Cable said Sheffield Forgemasters was a worthwhile project but the money had run out.

Business Secretary Vince Cable said:

“Sheffield Forgemasters is an important part of the UK’s ability to develop a civil nuclear supply chain and its specialist forging skills are in demand globally.

“However, we have to find a balance between reducing the deficit while helping the economy to grow. Against a backdrop of reduced public spending, the Government’s role is to create the right business environment and the right skills base. The Government cannot simply keep writing out cheques.

“The Government hopes the company secures private investment for this worthwhile project.”

He said the Post Office plays a hugely important social and economic role in communities throughout the UK.

“We will protect the £180m of Government funding for the Post Office in 2011/12 to maintain the network at around its current size.”

Balfour Beatty selected for construction of Eagle commuter rail project in Denver, United States

2010-06-17T13:18:00.001+01:00

Balfour Beatty, the international infrastructure group, announces today that it has been selected, as part of the Denver Transit Partners (DTP) team, to construct the Eagle P3 commuter rail project in the Denver metropolitan area of the United States.

As well as Balfour Beatty Rail and Parsons Brinckerhoff, Balfour Beatty’s professional services arm, the DTP team includes Ames Construction, Hyundai-Rotem USA (Hyundai), Alternative Concepts, Inc. (ACI), Fluor/HDR Global Design Consultants, PBS&J, Interfleet Technology, Systra, Wabtec and many others. The DTP venture is led by Fluor Corporation and Macquarie Capital Group Limited.

The DTP team has been selected as preferred bidder by the Denver Regional Transportation District (Denver RTD) and will design, build, finance, operate and maintain the multi-billion dollar Eagle project which includes:

East Corridor: a new 23.6 mile commuter rail line from Union Station to Denver International Airport;
Gold Line: a new 11.2 mile commuter rail line from Union Station to Wheat Ridge;
A two-mile initial segment of the Northwest Rail Corridor;
Approximately 50 new electric-powered commuter railcars; and
A new commuter rail maintenance facility.

Once financial close is achieved, Balfour Beatty will be responsible for a 50% share of the engineering, procurement and construction contract and a 33% share of the operations and maintenance contract.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

“We are delighted to be a key part of the DTP team for this transformational project for the citizens of Denver. This project demonstrates the capabilities the Balfour Beatty Group can deliver for major infrastructure owners. We look forward to continuing our successful relationship with our partners and the community to deliver this prestigious project.”

The Eagle Project is part of RTD’s FasTracks Plan, a 12-year multi-billion dollar transit expansion programme to build and operate new commuter and light rail services and expand transportation offerings throughout the eight-county Denver area.

The final contract and financing of the Eagle P3 project is expected to be concluded before the end of 2010.

Unemployment rises to 2.47m

2010-06-16T13:25:00.001+01:00

The number of people unemployed in the UK rose by 23,000 to 2.47m during the quarter to April, according to the Office for National Statistics (ONS).

However, jobseekers allowance claimant numbers dropped last month by 30,900 to 1.48m.

Minister for employment Chris Grayling said: “The figures also demonstrate why our planned Work Programme is so important. With nearly five million people on out of work benefits and record numbers of people who are economically inactive, we have to make sure that as the economy grows and jobs are created in the next few years that we learn from the mistakes of the past, and ensure that we provide real help and support for people on benefits so they can take advantage of employment opportunities and make the move into work.”

Morgan Sindall chosen for £18.5 million Lowestoft Sixth Form College scheme

2010-06-16T13:15:00.000+01:00

Morgan Sindall Group plc’s construction, infrastructure and design business Morgan Sindall has been selected by Suffolk County Council for an £18.5 million contract to design and build East Anglia’s first purpose-built sixth form college in Lowestoft.

Morgan Sindall will construct the new Lowestoft Sixth Form College at the Lowestoft College campus in St Peter’s Street. The state-of-the-art facility will accommodate around 950 pupils and will replace the existing sixth forms at three high schools in the town.

The four-storey building will house a large performing arts space, specialist teaching facilities equipped with the latest information technology systems, and learning pods suspended from a central atrium. Morgan Sindall will also create new car parking facilities and carry out additional landscaping works.

The new sixth form building will achieve a BREEAM rating of ‘Excellent’ and will incorporate a number of sustainable features including high levels of insulation, rainwater harvesting and photovoltaic technology which converts sunlight to energy. In addition, Morgan Sindall will create a series of concrete ducts beneath the building to supplement its heating supply with natural thermal energy from the earth’s core.

The project is due to be completed in August 2011.

MTR awards £100m Hong Kong Rail Express Link contract to Laing O’Rourke/Bachy Soletanche JV

2010-06-15T15:58:00.002+01:00

MTR Corporation, the operator of the mass transit rail system in Hong Kong, has awarded a £100m (HK$1039m) contract to a Laing O’Rourke/Bachy Soletanche joint venture, for the underground construction of a section of the approach tunnels for the station complex in West Kowloon.

The award, Contract 811a, is part of MTR’s massive Guangzhou-Shenzhen-Hong Kong Express Rail Link (Hong Kong Section) Project, and is for the West Kowloon Terminus Approach Tunnels (North). The work will comprise the construction of tunnels using cut & cover techniques on the station’s approach.

The 26-km long Hong Kong Section of Guangzhou-Shenzhen-Hong Kong Express Rail Link (The Express Rail Link) starts from West Kowloon, Hong Kong to the boundary of Hong Kong and Shenzhen, and will connect with the 16,000 km Chinese National High-speed Railway Network. Construction works for the Express Rail Link commenced in January 2010 with target completion by 2015.

Mike Robins, Laing O’Rourke’s Managing Director, Hong Kong said, “The Express Rail Link project is part of a major investment programme in rail infrastructure in Hong Kong, and we are delighted to be appointed with our partner to one of the initial sections of this complex and challenging rail infrastructure development.”

Laing O'Rourke has already established a presence in Hong Kong's fiercely competitive railway construction market. It has worked with the MTR Corporation to construct and maintain the Tseung Kwan O extension line, with technicians and engineers carrying out infrastructure improvement and maintenance programmes to support the line’s 24/7 operation. Other Laing O’Rourke teams deliver major multi-disciplinary rail projects and maintenance services in the UK, Australasia and Saudi Arabia.

Interserve consortium preferred bidder for £150m St Helens schools programme

2010-06-15T15:53:00.000+01:00

The Interserve-led consortium Environments for Learning (E4L) has been named preferred bidder to undertake a major schools development programme for St Helens Council worth provisionally £150 million.

The programme will operate under the Building Schools for the Future (BSF) initiative. Interserve will construct two schools, with a capital cost of £47 million, in the first phase: Rainford High Technology College and De La Salle School. Rainford will be financed using the private finance initiative (PFI) and Interserve will provide facilities management services worth £8 million to the school over a 25-year period once complete.

Six further schools, worth an aggregate of over £100 million in construction costs, have been identified for subsequent development. Two of these will be procured through PFI.

E4L and St Helens Council will, together with BSF Investments, become partners in St Helens’s Local Education Partnership (LEP). We anticipate reaching financial close on the contract in the autumn this year; construction will begin immediately afterwards, leading to the first schools being ready to accept pupils for the start of the academic year in September 2012.

Interserve’s Chief Executive, Adrian Ringrose, commented, “St Helens Council has clearly shown its commitment to providing children in the area with the latest educational facilities, and we will play our part in ensuring that the schools we build will deliver the benefits the community needs. Interserve is one of the country’s most experienced and successful companies in creating schools through BSF. This is our third such development programme, alongside Sandwell in the West Midlands and our award-winning partnership at Leeds.”