CPA: Additional support for housing, only Budget bright spot for beleaguered construction industry

CPA: Additional support for housing, only Budget bright spot for beleaguered construction industry

CPA: Additional support for housing, only Budget bright spot for beleaguered construction industry

There was little comfort for the beleaguered construction products industry in today’s Budget Statement, despite the Chancellor’s stated desire to invest and grow our way out of recession.

Commenting on the Budget, Michael Ankers, Chief Executive of the Construction Products Association, said: ‘Whilst welcoming the additional measures to stimulate the private housing market and improve the condition of the public sector housing stock, there is little else in the Budget to comfort a construction industry that is facing a decline in output this year in excess of 12% – the largest fall the industry has experienced in a single year since the Second World War. The additional £300m for the Building Colleges programme will support only about 10% of the projects that the Learning and Skills Council have indicated are up and ready to go.’

‘More disappointing still is the failure to include any measures that will encourage improvement to the existing private sector housing stock, and yet again the government has ignored the united voice of the construction industry to reduce VAT to 5% on domestic repair and maintenance. This really is a missed opportunity, particularly given the very strong encouragement last month to Member States from the European Council to take this step. This failure to act is even more surprising given the announcement in parallel to the Budget that the government will be seeking to reduce carbon emissions by 34% by 2020 – a target that critically depends on making our existing housing stock more energy efficient.’

‘Product manufacturers and suppliers do welcome the announcement of a top up scheme to support credit insurance. However, we have been pressing for this since before Christmas and it will only help companies who have found credit withdrawn since 1 April. The real damage was done before then and for those many companies that have had credit insurance reduced in the early part of the year, it is of no value at all.

‘Despite widespread calls from across the whole of manufacturing, the Chancellor has failed to do anything further to reduce the burden of empty property rates on manufacturing companies that have been forced to mothball operations because of the recession. This will do nothing to help these companies through these difficult times and ensure that UK product manufacturers are in a strong position to take advantage of the upturn which the government is so confident is just around the corner.

‘Looking to the future, the Chancellor confirmed the dramatic scale of public borrowing that will take years to bring back into balance. Beyond the current year and the next Election, net investment is set to fall very significantly to1.25% of GDP and this will have significant implications for the construction industry, particularly if private sector investment has not recovered sufficiently to take up the inevitable slack.’

The government has acknowledged that the construction industry is key to leading the economy out of recession unfortunately this government aspiration has not been reflected in the proposals set out in today’s Budget.

ENDS

NOTE TO EDITORS:

The Construction Products Association represents the UK’s manufacturers and suppliers of construction products, components and fittings. The Association acts as the voice of the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of £40 billion and accounts for 40% of total construction output.

FOR FURTHER INFORMATION CONTACT:

Simon Storer. Communications and External Affairs Director
Construction Products Association
Tel : 020 7323 3770
Fax : 020 7323 0307
Mobile : 07702 862 257
E-mail : simon.storer@constructionproducts.org.uk

Michael Ankers Chief Executive
Construction Products Association
Tel : 020 7323 3770
Fax : 020 7323 0307
E-mail: michael.ankers@constructionproducts.org.uk