A lack of long-term thinking coupled with material prices and supply chain disruption are limiting the construction industry’s recovery potential, warn the Federation of Master Builders in response to the Construction PMI data published today. 

Brian Berry, Chief Executive of the FMB, said: “Construction’s slow recovery will stall without clear action to inject greater certainty into the sector. This means tackling rising material prices and supply chains disruption, but also committing to long-term support for builders to build back better, and greener. The Stamp Duty holiday extension announced in yesterday’s Budget will help provide the boost house builders clearly need, as demonstrated by today’s PMI data. But the Chancellor did not go far enough.”

Berry continued: “It’s absolutely not too late for the Government to bring forward additional policies that unlock the potential of builders to support jobs and green growth. In the short term, a temporary cut in VAT on repair, maintenance and improvement (RMI) works would generate an economic stimulus worth £51 billion and create almost 345,000 new jobs in construction and the wider economy. For the long-term, the Government should bring forward a National Retrofit Strategy that provides an ambitious vision for what net-zero looks like, and local builders contribution to that goal.”

Notes to editors

The Federation of Master Builders (FMB) is the largest trade association in the UK construction industry representing thousands of firms in England, Scotland, Wales and Northern Ireland. Established in 1941 to protect the interests of small and medium-sized (SME) construction firms, the FMB is independent and non-profit making, lobbying for members’ interests at both the national and local level.

The FMB is a source of knowledge, professional advice and support for its members, providing a range of modern and relevant business building services to help them succeed. The FMB is committed to raising quality in the construction industry and offers a free Find a Builder service to consumers.