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Building industry in nose dive

Richard Diment, Director-General of the FMB said:

"When the Chancellor delivers his speech today to the Conservative Party conference he needs to be mindful that the building industry is in a dire state with little hope in the immediate future that things are going to get better. It is hard to think of another period in living memory when the building industry has been so badly hit by an economic crisis. The Chancellor needs to understand that a recovery in the construction sector is essential if it is to deliver economic growth in the wider economy.”
Diment continued:

“44% of FMB members have reported falling levels of enquiries and the number expecting to increase employment has now fallen to just 16% which is depressing news for young people wanting an apprenticeship or a job in the construction sector. The rising cost of materials is also a serious concern to builders with 88% expecting them to increase over the next six months.”

Diment concluded:

“The Government’s home energy efficiency improvement programme, the Green Deal, which will be launched next year offers a glimmer of hope but without a reduced rate of VAT to help boost consumer demand it is difficult to see any real upturn in building work. A targeted reduced rate of VAT in the Chancellor’s Autumn Statement would create tens of thousands of much needed jobs in the building industry as well as stimulating more job creation in the wider economy."

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