Construction Holds the Key to Economic Recovery, says FMB
1st May 2012

The Government needs to  introduce a wide range of reforms to stimulate the construction sector if it is to get growth back in the economy, says the Federation of Master Builders (FMB) in response to today’s disappointing Gross Domestic Product (GDP) figures issued by the Office for National Statistics.  

Brian Berry Chief Executive of the FMB said:
“The Government will find it very difficult to get sustained growth in the economy while the construction industry remains depressed. Construction is essential to the wellbeing of the wider economy because of the variety and quantity of job its creates from apprentice bricklayers to world leading architects. Every £1.00 spent on construction generates £2.84 in the wider economy which makes it the best investment the Government can make to get Britain back on its feet.”

Berry continued:
“Steps the Government could take now to stimulate construction to help create jobs in the economy should include abandoning its plans to introduce VAT on heritage building; cut VAT on property repairs; take action on banks that discriminate against construction firms and their clients; open up public sector procurement to small firms; and introduce meaningful incentives to drive private domestic retrofitting.”

Berry concluded:
“It’s a sad fact that the building industry has been in recession for four years with little hope of any immediate recovery. Until we get builders building again the economy is not going to recover. The construction industry holds the key to recovery which is why the Government needs to invest in capital projects rather than just focusing its attention on budget cuts.”