CPA: Clarity on government spending cuts essential for construction
Responding to today’s announcement from the Chancellor of the Exchequer, the Construction Products Association has stressed the importance that government provides clarity urgently on where the £6.2 billion of savings will occur. It is equally important according to the Association, that these cuts do not harm the UK’s economic recovery or prolong the recession still being experienced by the construction sector.
Following the construction industry’s worst recession since 1974, the Chancellor stated today that the savings would be made across most government departments and that £1.7 billion of savings alone would be made from delaying and stopping contracts. Yet if these cuts in spending are made on capital expenditure, this would exacerbate problems for the construction industry, delaying any potential recovery for a sector that is still in recession and accounts for almost 10% of GDP. Falls in spending by government in this industry could hinder recovery for the UK economy as a whole.
The Association is pleased to see £170 million for the delivery of otherwise unfunded social homes especially at a time when we are building fewer houses per year than any time since 1945, although this will be, in the main, financed from savings from the existing housing budget.
Commenting on the Chancellor’s announcement, Construction Products Association Chief Executive Michael Ankers said; ‘Although it is clear that government will need to address its public borrowing, it is critical that government provides clarity on where potential spending cuts may occur and ensures that spending cuts do not occur in those areas that are key to facilitating the economic recovery such as in transport infrastructure and energy supply.’
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 £50 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
Mobile: 07887 897 581
Fax: 020 7323 0307
E-mail: michael.ankers@constructionproducts.org.uk
Noble Francis. Economics Director
Construction Products Association
Mobile: 07887 897 581
Fax: 020 7323 0307
E-mail: noble.francis@constructionproducts.org.uk
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