Britain must build its way out of recession

Brian Berry, Chief Executive of the FMB, said: "It is clear from the Deputy Prime Minister’s recent comments that Government now realises the wider economic benefits that capital investment via construction can bring, however it must do more to unleash the potential in our industry by pulling the right levers.

"Our members are ready to help Britain build its way back to growth, in the process helping meet the spiraling housing crisis and improving energy efficiency in homes and businesses. But we can’t do this alone. Government must meet construction firms halfway, and find imaginative new ways of increasing activity in the sector, particularly for small, local builders who may not immediately benefit from major infrastructure investment.

"For example, the Treasury could incentivise domestic energy-efficiency improvements with a reduction in VAT on such work to 5% – home owners would then be more likely to improve insulation, fit high-performance glazing and more efficient boilers.

"Ministers and local authorities must also urgently look at bringing new housing online, by freeing up additional land for development and refurbishing empty or derelict stock. Easing planning red tape and pushing investment through the new Business Bank will help smaller construction companies begin to start providing the 250,000 new homes Britain needs every year to just to keep pace with demand."

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One thought on “Britain must build its way out of recession

  1. Edward Harkins

    Commendable that this article recognises that smaller firms will may not immediately benefit from major infrastructure projects. There are many powerful large interests across the UK who are lobbying for additional Government expenditure on large capital projects. But this lobbying is based on a false premise -m that extra expenditure on capital infrastructure is a way out of recession and into early growth. That Government expenditure may well suit those large powerful interests – but it is an expensive, ineffective and inefficient tool for recovery from recession. There is no proven case in all of modern economic history of additional expenditure on large capital infrastructure having led an economy out of recession or depression. We need cash injected into the economy and into the hands of those people who need to and want to spend it and those who want to make and sell the desired products and services here and now.

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