The Construction Products Association has written to the Chancellor of the Exchequer Alistair Darling urging him not to cut capital spending on construction projects.
The Association has submitted a wish list ahead of his Pre-budget Report this month calling for spending to be maintained.
Along with maintaining capital investment, the Association has highlighted a number of other issues including:
- Further pressure on the banks to make credit more freely available to viable companies
- An extension of the credit insurance top up scheme for a further six months
- A commitment to ensure that net public investment does not fall below 2.25 per cent of GDP
- No further tax increases on business
- A commitment to tackle the regulatory burden on business and particularly to agree to review the impact of the planning system on business
- Agreement to undertake a review of the products and solutions which are eligible for a lower rate of VAT because they will help deliver improved energy and water efficiency in our homes
The Association’s submission recognises the need to tackle the huge levels of public finance debt, but insists that capital spending on construction should be maintained even during these challenging economic times.
Communications and external affairs director Simon Storer said: “Although there has been some fiscal stimulus in the UK, the amount compares very poorly to the massive injections of public funds into construction projects in other major western countries such as the USA, Germany and Australia, all of whom have come out of the recession sooner than the UK.
“Cuts to capital spending on construction have traditionally been seen as an easy way to address financial problems and yet, ironically, capital spending on construction projects provides the most immediate and beneficial way of stimulating economic recovery and leaving a beneficial legacy from the investment.”