Construction Products Association: Some Relief for Construction Industry as Transport Investment Maintained
There was some relief for the construction industry given the Chancellor’s decision to maintain transport investment over the next four years. Public sector capital spending which had been expected to fall by 35% over the period of the Comprehensive Spending Review will now fall by just over 30%. As a result the cuts to public sector construction spend are expected to be £3.5bn less than was announced at the time of the Emergency Budget.
Commenting on the Chancellor’s Statement, Michael Ankers, Chief Executive of the Construction Products Association said: ‘We knew this was going to be a difficult Review as far as construction was concerned. However, the Chancellor has acknowledged the important role that capital spending on construction can play in helping to provide for a private sector-led economic recovery. In particular maintaining transport investment at £30bn over the next four years will sustain employment and help encourage private sector investment.’
‘Nevertheless, public sector investment in construction over the next four years will be more than £20bn less than in the last four years and that will have significant consequences for the construction industry.’
‘We hope that following today’s announcement there will be a recovery in confidence in the private sector now the uncertainty surrounding the CSR is out of the way. A commitment to Crossrail ends speculation about the long term prospects for that scheme and we welcome the support for the Renewable Heat Incentive as a contribution to improving the energy efficiency of our existing building stock. Where we urgently need greater clarity, however, is the mechanism to encourage investment in private housing and this will not happen until we have agreement over the New Homes Bonus incentive and reforms to the planning system.’
Kind Regards,
Avani Raval
External Affairs Executive
Construction Products Association
26 Store Street
London WC1E 7BT
Tel: 020 7323 3770
Fax: 020 7323 0307
avani.raval@constructionproducts.org.uk
www.constructionproducts.org.uk
-01.png){kind=spacer}