Construction union UCATT has called on the Government to urgently invest in social housing in order to kickstart the struggling construction industry and help return the UK economy to growth.

The latest statistics have revealed that the UK economy shrank by 0.7% in the second quarter of this year and this was primarily due to a 5.2% fall in output in the construction industry. The fall in construction output has been attributed to the Government cutting spending on social housing and infrastructure projects.

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Steve Murphy, General Secretary of UCATT, said: "We are now witnessing the grim results of the Government’s economic policies. The Government is by far the construction industry’s largest client. By starving it of funding they are wrecking the industry and damaging the economy as a whole."

An immediate increase in social housing funding would be the quickest and best way to assist the construction industry. Unlike major infrastructure projects, social housing projects have shorter lead in times and many planned projects have been mothballed due to cuts in Government funding.

Mr Murphy, said: "The Government must take their heads out of the sand and invest in social housing. It is economic common sense. It will kickstart the construction industry by returning confidence to the sector, providing jobs for construction workers and those employed in the supply chain and it will provide homes for families who desperately need them."

(CD)