22nd April 2009 – FOR IMMEDIATE RELEASE
Today’s Budget was a timid response to build the homes that are desperately needed and to make our existing homes greener and more energy efficient, says the Federation of Master Builders (FMB).
Brian Berry, Director of External Affairs at the FMB said:
“The Chancellor had an opportunity today to invest in our housing but instead has offered a lukewarm package of financial measures that will do little to increase the housing supply or to make our homes more energy efficient. The amounts on offer of £500 million to support the construction industry and kick start stalled construction projects of new homes, coupled with the £100 million for local authorities to invest in energy efficient improvements are a drop in the ocean.”
Berry continued:
“The Chancellor has missed a golden opportunity to help build Britain out of the recession. A £5 billion package would have created 55,000 new jobs as well as help increase the supply of much needed homes. A cut in VAT to five percent would have helped to bring the 300,000 empty homes back into use. Instead the Chancellor has let the opportunity slip by and those wanting an affordable home will be forced to wait even longer.”
Berry concluded:
“The decision to extend the Stamp Duty holiday on properties sold for less than £175,000 until the end of the year merely reflects the Chancellor’s timidity to take decisive action. A bolder step would have been to raise the threshold on a permanent basis to £205,000, representing the average price of a house in the UK, if the Chancellor was serious about helping kick start the housing market. Instead the Chancellor lacked the courage and conviction to do what is needed to get the housing market back on its feet and a result we are not going to see a marked increase in market activity.”
