Budget response: APM urges Government do more to tackle issues impacting projects

Association for Project Management (APM) has welcomed measures in the UK Government’s new Budget aimed at addressing issues affecting project delivery, but has called for more to be done to help projects fulfil their intended economic and social benefits.

Research by APM has shown that the UK’s project management sector employs 2.13 million full-time equivalent workers and adds £156.5bn of value to the UK economy each year.

Ahead of the Budget, APM polled 100 senior project professionals about their concerns on issues that might impact the delivery of projects and programmes they’re working on. Nearly 9 out of 10 respondents (88%) said their main project was aligned to at least one government policy, highlighting the important role projects play in supporting government initiatives; both economic and social.

• 92% said they have concerns about the impact of supply chain issues on their main project.
• 91% said they’re concerned about the impact of ongoing economic instability.
• 87% said they’re concerned over shortages in the UK labour market.

In his Budget statement, Jeremy Hunt, Chancellor of the Exchequer, announced measures intended to tackle barriers to recruitment for UK businesses, and measures to grow the economy. However, there was little mention of supply chain-related issues, which are also significant to economic growth.

• APM welcomed the measures announced, but called on the government to do more to unlock the economic and social power of projects.
• Measures announced by the Chancellor include:
• Increasing the main rate of corporation tax paid by businesses on taxable profits over £250,000 from 19% to 25%.
• The creation of 12 new investment zones around the UK, which will each receive £80 million of investment support for ‘innovation clusters’.
• Funding for Levelling Up initiatives, including £200 million for regeneration projects across England and £8.8 bn for transport infrastructure.
• Launching Great British Nuclear (GBN) to address constraints in the nuclear market and support new nuclear builds.
• Measures to incentivise investment and research in artificial intelligence (AI).
• Providing 30 hours of free weekly childcare for working parents with children below the age of three, along with measures to help people aged over 50, people with disabilities and young people in the care system into work.

In his Budget statement, Jeremy Hunt said: “This is a budget for growth.

“We tackle the two biggest barriers that stop businesses growing – investment incentives and labour supply.

“An enterprise economy can only grow if it can hire the people it needs. This is a comprehensive plan to remove barriers to work.”

APM's response

Professor Adam Boddison OBE, Chief Executive at APM, said: “A healthy and stable economic environment is vital for the successful delivery of projects – especially those that are supporting government initiatives. And of course, people deliver projects, so having more people in the workforce will make it easier for project teams to recruit. We therefore welcome measures announced by the Chancellor today that support economic growth and tackle barriers people face when joining or re-joining the workforce. However, the most sustainable way to grow the economy is not merely by growing the size of the workforce, but by ensuring people have the skills and capabilities they need to succeed in areas like project management that bring financial benefits as well as social ones. We therefore urge the Government to commit to investing in the skills necessary for delivering projects that will help the UK address challenges such as climate change, infrastructure improvement and digital transformation.

“We would also have liked to have seen more detail on plans to address how post-Brexit supply chain issues might be addressed, as people in our profession tell us they’re concerned with the impacts of these issues on projects they’re working on.

“While most headlines will focus on the additional support for childcare costs – something we support as a way of helping women in our profession to progress in their careers – the success of this budget will be judged on how effectively it enables projects that will improve people’s lives and shape the future landscape of the UK.”