Half of the 2,500 small manufacturers of houses in Great Britain could collapse in insolvency by the end of this Parliament due to the cost of industry regulations, will notify a report this week.
Sky News saw a document to publish on Tuesday – before examining government spending – which will refer to “a perfect cost storm” which threatens to erase the profits from the manufacturers of the House of SMEs.
Dark forecast is the main conclusion of a report produced jointly by the public affairs company WPI Strategy and Chamberlainwalker, an economy consulting company specializing in housing and planning.
He threw a new shadow on the government’s goal of building 1.5 million houses during this parliament – one of his most important manifesto commitments before last year’s victory.
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Monday, ministers said that using a new artificial intelligence tool would facilitate the acceleration of planning authorizations by reducing dependence on paper documents.
“For too long, our obsolete planning system has retained our country – slowing down the development of vital infrastructure and making the construction of the houses we need more difficult,” said Sir Keir Starmer.
“This government works hand in hand with business to change this. With the extract (new AI tool), we exploit the power of AI to help planning agents to reduce administrative formalities, speed up decisions and unlock new houses for people who work hard as part of our change plan.
“It is a daring step in our mission to build 1.5 million additional houses and deliver a planning system adapted to the 21st century.”
The WPI / Chamberlainwalker report will however warn that at the current failure rate among SME manufacturers, up to 75,000 less houses would be built by smaller house manufacturers before the next general elections were held in 2029.
He will say that recently introduced regulations such as building safety tax have added nearly 5 billion pounds of annual fees for house manufacturers.
The standard of future houses, the net gain in biodiversity, accessibility rules and the billing requirements for electric vehicles are among the other additional costs that the sector is confronted.
The costs of the workforce and materials also increase, while the prices of the accommodation have a flat line, adding to the pressure on the industry, with smaller actors affected in a disproportionate manner, will add the report.
Sean Worth, director of WPI Strategy, said: “A diverse range of house manufacturers is important to ensure that the country is able to reach its title of reigning housing.
“It is also essential to maintain a competitive market.”
“The government has rightly recognized the importance of supporting medium -sized small and medium -sized manufacturers.
“However, a perfect cost storm inherited from recent years as well as additional regulatory charges means that without urgent assistance, we could see half of all SME manufacturers starting insolvency procedures at the end of Parliament.”