The Confederation of British Industry (CBI) is urging the Chancellor to use next month's Budget to deliver on a pledge to speed up public sector building in order to support the construction industry and safeguard jobs.

Unveiling its Budget submission today, the CBI says it welcomed the announcement in November's Pre-Budget Report that £3bn of capital spending was to be brought forward from 2010/11, and recent measures announced to safeguard infrastructure investment, including financial support for PFI projects. But given evidence of projects stalling or being delayed, the CBI is calling for:

• existing plans to be fully and speedily delivered to allow key projects to progress and to protect jobs in the construction and service industries, including SMEs
• plans to freeze public sector capital spending at the 2010/11 level should be reversed and the previous policy of holding net public investment at 2.25% of GDP re-established
• the government to maintain its commitment to the partnership model, citing the many benefits of PFI in delivering projects on time and within budget

CBI Deputy-Director General John Cridland said: "A strong economy requires fit-for-purpose schools, hospitals, communications and transport. A failure to maintain and renew the nation’s essential infrastructure would be short-sighted."


John McDonough, CBI Construction Council Chairman, added: "We need to see action on the ground to get public sector projects moving quickly as delays put jobs at risk.

"A strong and influential Chief Construction Officer would have a major impact on navigating the procurement maze and the bureaucratic delays that so often beset projects.

"A CCO would, therefore, help to ensure that the government delivers the £44bn of capital expenditure already planned this year, on time and within budget, as well as bringing forward the additional £3bn of investment."

As part of a targeted package of confidence-building measures, the CBI is calling on the Chancellor to shape his budget around supporting jobs, investment and competitiveness through the recession and beyond. It is also urging him to come up with a clear and credible strategy to get the public finances back under control and warning that a further significant fiscal stimulus is unaffordable.

(CD/JM)