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CPA: Government’s Autumn Statement must Stimulate Economy with Construction Activity

CPA: Government’s Autumn Statement must Stimulate Economy with Construction Activity

The Construction Products Association is urging the Chancellor to use his Autumn Statement on next week to kick start economic growth and has identified three ways in which construction can deliver both short-term and long-term benefits for the UK economy as a whole.

The Association calls on the government to;

  • Re-balance the economy between current and capital budgets, without increasing overall public spending. Government should focus more on capital expenditure, as this will provide the most benefit for economic growth

  • Encourage take-up of the Green Deal by ensuring that a 5% rate of VAT is applied to all Green Deal compliant work. At a time when government is trying to reduce energy use, it is perverse that energy saving work is subject to 20% rate of VAT while fuel itself is subject to the 5% rate

  • Make greater use of private finance streams from cash-rich corporations that are looking to invest in areas that are relatively low-risk. This could occur through government backed bonds or Tax Increment Finance (TIF)


Michael Ankers, Chief Executive of the Construction Products Association, said: ‘We are at a critical turning point in our economic recovery and it is essential that the Chancellor uses the Autumn Statement to set out practical ways in which government can encourage a private-sector led economy.

Government has indentified construction as being one of the key industries that can boost economic growth and help drive the UK economic recovery. Yet, at present, our forecasts show that the industry will experience no growth until 2014.

Our proposals for the Autumn Statement are sensible measures that will greatly improve the prospects both for our industry and the economy as a whole, without undermining the government’s plan for reducing the fiscal deficit. The government’s housing strategy, published today, goes some way to addressing the failing housing market yet it is merely a small step in the right direction and more must be done to boost construction and the wider economy.’

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 : 0770 286 2257
E-mail : simon.storer@constructionproducts.org.uk

Noble Francis Economics Director
Construction Products Association
Tel : 020 7323 3770
Fax : 020 7323 0307
Mobile : 0791 261 2882
E-mail : noble.francis@constructionproducts.org.uk

Kind Regards,

Nicola

Nicola Smith
External Affairs Executive
Construction Products Association
26 Store Street
London WC1E 7BT
Tel: 020 7323 3770
Fax: 020 7323 0307
nicola.smith@construtionproducts.org.uk
www.constructionproducts.org.uk