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CPA demands clarity on construction cuts

The Construction Products Association wants clarity urgently on how construction will be affected by a proposed £6.2 billion of savings.
It is vital, the Association believes, that spending cuts do not harm the UK’s economic recovery or prolong the recession still affecting the construction sector.

George Osborne, Chancellor of the Exchequer, has said that £1.7 billion of savings alone would be made from delaying and stopping contracts. Yet, the CPA says that if these cuts are made on capital expenditure, it would exacerbate problems for the construction industry, delaying any potential recovery for a sector that is still in recession and accounts for almost 10% of GDP.

On a positive note, the CPA is pleased to see £170m for the delivery of otherwise unfunded social homes especially at a time when fewer houses per year are being built than any time since 1945, although this will be, in the main, financed from savings from the existing housing budget.

CPA chief executive Michael Ankers said: “Although it is clear that government will need to address its public borrowing, it is critical that government provides clarity on where potential spending cuts may occur and ensures that spending cuts do not occur in those areas that are key to facilitating the economic recovery such as in transport infrastructure and energy supply.”

About Fiona Russell-Horne

Group Managing Editor across the BMJ portfolio.

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