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Latest News

BCSA Calls for Government Review of Reverse Charge VAT Decision

Reverse VAT could send countless construction sub-contractors out of business as their cash flow is sent into negative territory on 1 October this year under government rules that will impose reverse charge VAT on the construction industry.

The British Constructional Steelwork Association (BCSA) joins the 15 UK construction bodies in calling for a six month delay to the implementation of reverse VAT.

BCSA is also asking the government to use this time to review its decision to impose reverse VAT.

BCSA has calculated that for an average subcontractor turning over £15 million, reverse VAT will mean increasing negative cash flows, peaking at £262,500 in month three of the change.

‘This could be the end for many subcontractors who are already experiencing late payment, difficulties in agreeing final payment amounts and other additional costs such as the apprenticeship levy and increased pension contributions’, said Sarah McCann-Bartlett, Director General of the BCSA.

BCSA believes that the government does not fully understand the implications of yet another financial blow to subcontractors and has not communicated the changes sufficiently to industry. This is borne out by data collected by the Federation of Master Builders that shows that over two-thirds of construction SMEs (69%) have not even heard of reverse charge VAT.

‘The potential damage to subcontractors’ cash flow is significant, which is why BCSA is calling for the delay plus a review of the actual decision to impose reverse VAT’, said Sarah McCann-Bartlett.

9th August 2019 Lorraine MacKinder
Presidents Column (July 2019)

I often use this column as a soapbox for issues facing the structural steelwork sector, who wouldn’t? But this month’s column is all about celebration. Celebration of the incredible industry that is structural steelwork. An industry that I’ve worked in for 15 years. When I’m walking around the City of London and look up to see one of the many great buildings I’ve worked on over the years, I feel a rush of pride as I tell myself , I helped create that. And happily for me, I’m able to travel the length and breadth of the UK and more often than not, I will come across one of ‘my’ projects. Of course, these projects aren’t really mine. They belong to the whole team; from the client to the designers to the specialists who took a concept and made something out of it. They also belong to the people who live, work or play in that building or structure. Every time I cross the Forth, I look at those three beautiful bridges lined up one next to the other. The grandfather, the father and the son. I think of the people who designed them, who built them, and those who maintain them today. All of them servicing a need, and each of them a fantastic piece of engineering and construction in their own right. And they will all still be there, serving our community long after I’m gone. Of course, it would have been far better for UK Plc if the main span of the Queensferry Crossing had been made by a UK steelwork contractor, see I really can’t keep off my soapbox, because UK steelwork contractors, and in particular, BCSA members, really are the best in the world. Continue reading →

12th July 2019 Lorraine MacKinder
Presidents Column (June 2019)

I often use this column as a soapbox for issues facing the structural steelwork sector – who wouldn’t? But this month’s column is all about celebration.
Celebration of the incredible industry that is structural steelwork. An industry that I’ve worked in for 15 years. When I’m walking around the City of
London and look up to see one of the many great buildings I’ve worked on over the years, I feel a rush of pride as I tell myself – I helped create that. And happily for me, I’m able to travel the length and breadth of the UK and more often than not, I will come across one of ‘my’ projects.

Of course, these projects aren’t really mine. They belong to the whole team; from the client to the designers to the specialists who took a concept and
made something out of it. They also belong to the people who live, work or play in that building or structure.

Continue reading →

14th June 2019 Lorraine MacKinder
New BCSA Steelwork Contractor Member

BCSA is pleased to welcome the following steelwork contractor company into membership:

G.R. Carr (Essex) Ltd

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30th May 2019 Lorraine MacKinder
British Steel Statement

It has been announced that British Steel has gone into compulsory liquidation. The company continues with business as usual while the Official Receiver looks for a buyer. The appointment of the Official Receiver creates a period of stability while a new buyer is sought for the trading business. BCSA’s first thoughts are with British Steel employees. We are hopeful that this key part of the UK’s proud industrial heritage can be saved.

The UK structural steelwork sector is in good shape. Demand for structural steelwork is steady, and UK steelwork contractors have the capacity and capability to deliver the future pipeline of work.

The UK has an efficient and mature stockholder and distribution sector, and steel stocks in the UK remain healthy as stockholders had already been preparing for a no deal Brexit.

The Official Receiver has said that British Steel will continue to trade as normal; taking orders, producing steel and despatching while they look for a buyer. Notwithstanding the current challenges, British Steel continues to be a key supplier to the UK construction sector and the company could return to profitability and have a long-term future should a buyer be found, or necessary funding be secured.

The major European mills supplying steel to the UK, along with other high quality international mills, have the capacity to fully service the needs of the UK structural steelwork market, if required. There are also other UK steel mills producing a variety of other products for the UK construction sector.

The structural steelwork sector and its supply chain will continue to offer the construction sector the high level of service they expect.

23rd May 2019 Lorraine MacKinder

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