Call for investment to tackle
construction slump
2nd August 2016

The Government has been called on to create ‘a significant programme of capital investment’ in response to the news that the construction industry has gone into recession.

Brian Berry, Chief Executive of the Federation of Master Builders, said: “The construction industry has grown steadily over the past few years and for the sector to experience two consecutive quarters of negative growth demonstrates the powerful effect uncertainty and a lack of confidence can have. The Government must now take bold action and do everything in its power to prevent these preliminary estimates by the ONS from becoming more concrete or sustained.

“A firm commitment to invest public funds in capital projects such as house building and infrastructure would go a long way to assuaging fears that demand will dive in the wake of Brexit. The country’s housing crisis and the enormous skills shortage our sector faces owe much to how the construction industry suffered during the last economic downturn – it’s pivotal that we learn from those mistakes and find a way to keep Britain building.”

Figures released by the Office of National Statistics show that construction declined by 0.3% and 0.4% in the first two quarters after only one other period of negative growth (Q3, 2015) since 2014.