24th May 2010 – FOR IMMEDIATE RELEASE
Today’s Government spending cuts amounting to over £6 billion combined with targeted investments for growth will help restore business confidence through economic recovery says the Federation of Master Builders (FMB).
Richard Diment, Director-General of the FMB said:
“The new Government is quickly facing up to the difficult financial challenges that this country faces and the need to get public debt back under control. Spending decisions over the coming months will inevitably have an impact on the construction sector but it is encouraging that the Government recognises the need to invest in growth and the importance of training and housing in delivering this.”
Diment continued:
“The reallocation of £150 million for adult apprenticeships and the £170million for social housing from the overall savings announced, demonstrates that the Government understand that these issues remain a priority even in such difficult economic circumstances. It further shows that the Government understand that construction is the most efficient industry for the public sector to invest in, with every £1 spent generating £2.84 in wider economic benefit.”
Diment concluded:
“We will be looking closely at the details of the spending cuts and the reallocation of growth funds but the initial direction is encouraging and we hope that the Government will continue to recognise the importance of targeted investment when the wider departmental spending reviews take place in the autumn. A government keen on maximizing the economic benefits of precious public sector spend should remember that a targeted cut in the VAT rate on just the labour element of housing repair and maintenance work could create an extra 55,000 jobs and £1.4bn of extra economic activity in this year alone.”
