The Construction Products Association has written to the Chancellor of the Exchequer urging him to focus future investment on the areas most likely to stimulate economic growth.
CPA chief executive Michael Ankers said: “We strongly support the need to address the country’s huge budget deficit. However, spending cuts and tax rises alone will not secure the long-term sustainable economic growth which must be the government’s ultimate goal.
“We accept that reductions in capital spending have to play their part in helping to reduce the deficit, but we believe that the proposed cuts in capital spending whilst current spending continues to grow, are not consistent with the government’s stated aim of ensuring public spending is focused on where it will do most to stimulate a private sector led economic recovery.”
In its letter the Association argues that public sector net investment should not fall below 2.25% of GDP, the level below which the quality of the country’s built assets will start to deteriorate. The CPA says that investment should be focused on:
The Association also emphasises the importance of the government setting the right framework to encourage private sector investment particularly to help meet the country’s energy needs.