The fall in construction activity of 1.4% in June, according to the Office of National Statistics latest figures, is a growing concern for small builders given the wider fall of 6.1% for private new housing and the continuing fall of 0.2% for repair, maintenance and improvement (RMI) work, says the Federation of Master Builders (FMB).      

Brian Berry Chief Executive of the Federation of Master Builders (FMB) said: “Costs are up across the board for both builders and consumers alike which is affecting business confidence. With 98% of FMB members experiencing material cost increases builders are inevitably having to pass on these costs to consumers. The result is that householders are starting to hold back with many households increasingly concerned about rising energy prices and the threat of a recession later in the year.”

Berry concluded: "With the Government at a standstill, we won’t see any ambitious announcements to help support the sector until September with the new Prime Minister will be announced. In the meantime, the Conservative leadership candidates need to be explaining what they intend to do help the construction sector boost economic growth. Cutting the rate of VAT from 20% to 5% or below on all repair, maintenance, and improvement work would be a welcome start to help boost building work all across the country and help people insulate their homes ahead of further rising energy bills.”

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.