Construction Needed To Stimulate Economic Growth

Addressing an audience of more than 80 Parliamentarians and 150 construction industry leaders, civil servants and journalists at the House of Commons, Bill Bolsover, the Chairman of the Construction Products Association, identified the construction industry as a key driver of economic growth and suggested ways in which government should kick start the recovery.

Mr Bolsover said: "Government must stick to its spending plans, but rebalance the economy between current and capital spending. Government’s own figures show current expenditure rising from £632bn this year to £694bn in 2014/15, whilst capital spending is being cut from £61bn to £42bn over the same period. Rebalancing this could make way for the £5 billion package of essential infrastructure investment which is being widely talked about."


He also called upon government to do more to stimulate the new build housing

market. "Although recent announcements about the release of public sector land for private sector housing are welcome, what is really holding back first-time buyers is not development but access to finance. Government must examine and encourage ways to help first-time buyers get on the housing ladder through, for example, some kind of mortgage indemnity guarantee scheme, or through a government-backed savings scheme for first-time buyers."

However, the Association's Chairman also emphasised it was industry that would deliver the economic recovery and that the role of construction would be crucial in achieving this.

(CD)