A Goldilocks recovery?

3 May 2021

Occasionally since launching the blog nearly a year ago, a story has raised the question of when more details will be given about the government’s plans for the economic recovery. 

The blog post back on 20 June discussed the first reports that Boris Johnson would announce plans to put construction at the heart of the recovery under the slogan ‘Build, build, build’. 

With the vaccination programme maintaining its astonishing pace and suggestions that the one metre-plus social distancing requirement might be lifted entirely on 21 June, it could be that more details will be announced soon. 

The Queen’s Speech at the State Opening of Parliament next week (11 May) is expected to set out the government’s plans. 

According to reports over the weekend, these might include bills to overhaul planning rules and to stimulate housebuilding in the Midlands and the North. This is aimed at fulfilling former prime minister David Cameron’s 2017 pledge to build 300,000 homes a year. 

Such a stimulus would be welcomed by hirers and the wider construction industry. However, given the pace of building activity already under way, plus reports of raw material shortages and lengthening equipment lead times, this would again call for careful management. 

The ideal scenario could perhaps be described as a Goldilocks recovery – not too hot, not too cold.

Let's see what happens.

● The current situation of rising demand and shortages of equipment was discussed recently on the blog here.