9th December 2009 – FOR IMMEDIATE RELEASE
Today’s Pre-Budget Report doesn’t provide the tools to fulfil the Government’s ambition to makes the UK’s 26 million existing homes greener and more energy efficient, warns the Federation of Master Builders (FMB).
Brian Berry, Director of External Affairs at the FMB said:
“The Chancellor’s decision to increase VAT to 17.5 per cent is a serious blow for both householders and builders wanting to refurbish properties to make them greener and more energy efficient. Given the Government’s stated commitment to refurbish every single home by 2030 it is very disappointing that the Chancellor has decided to increase the VAT rate. The Chancellor has missed an important opportunity today to announce a comprehensive range of targeted incentives to kick start the retrofitting market which is worth at least £3.5 billion every year.”
Berry continued:
“What is encouraging in the short term is the fact that public spending will grow by 2.2 per cent in 2010/2011 as this will help to keep thousands of jobs in the construction sector. Public expenditure in construction is the most beneficial use of public expenditure because every £1 invested in construction generates £2.84 in total economic activity. Such investment should help to tackle the growing housing crisis. This year we are only likely to see about 100,000 new homes being built against a target of 240,000 which is bad news for the five million people on social housing waiting lists or those wanting to get on the first rung of the property ladder.”
Berry concluded:
“In short, today’s Pre-Budget Report is essentially a holding statement in the lead up to the general election because the difficult cuts in public expenditure that will have to be made have still to be announced.“
