Construction still reliant on public sector

Published:  08 March, 2011

LONDON: Construction is still dependent upon public sector spending on social housing, education, health and infrastructure with little sign of a recovery in the private sector said the Construction Products Association.

 

The warning comes after ONS data last week showing an improvement in new orders.

Noble Francis, economics director of association said: "Given the extent of the public sector cuts it is essential that private sector construction picks up."

"Although the final quarter highlighted an 18% rise in new orders, the extent to which this is reliant on the public sector is still extremely concerning given the sharp cuts in public spending outlined in the Comprehensive Spending Review that will occur after April," he said.

The Association recommends reducing VAT on repair and maintenance work valued less than £10 000 and work that improves the Energy Performance Certificate rating of a property by 10 points.

"Measures such as this clearly indicate how construction can help to drive economic growth and rebalance the economy at a time when public finances are constrained," Mr Francis said.

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