Pre-budget Cuts in Capital Spending Disappoint Construction by nyut545e2


									26 Store Street, London WC1E 7BT Tel: 020 7323 3770 Fax: 020 7323 0307 Web: Email:

                 9 December 2009

                 Pre-budget Cuts in Capital Spending Disappoint Construction
                                                      Products Association

                 At a time when the country needs a stimulus to help the economy recover from the
                 sharpest economic downturn since the 1940s, it is disappointing that today’s Pre-
                 budget Report has reaffirmed there will be a dramatic cut in government capital
                 investment over the next four years.

                 Responding to today’s Report, Noble Francis, Economics Director at the
                 Construction Products Association said: ‘With the construction industry facing a
                 decline in output in 2009 of nearly 15%, the largest single year fall since the War, it is
                 extremely disappointing that the government has confirmed capital investment will fall
                 by 50% over the next four years, especially given its stated commitment to boost
                 investment in national infrastructure and skills. For every £1.00 of the investment now
                 being cut, an additional £2.84 would have been generated in economic activity
                 creating much needed jobs throughout the country, according to the recent high
                 profile report on the construction sector prepared by LEK Consulting.’

                 However, the Association welcomes measures to help improve the energy efficiency
                 of the built environment and in particular the widely trailed Boiler Scrappage Scheme,
                 which is a small step in the right direction. ‘Although tackling 125,000 boilers is a
                 welcome start, there are nearly five million boilers currently in use with a permanent
                 pilot light, so if the government is to live up to its ambition to maintain leadership in
                 the low-carbon sector, the scale of the problem that needs to be addressed remains

Other measures such as extending the warm front scheme and encouraging wider
use of renewables are also to be welcomed but unfortunately they do little to
enhance the government’s stated ambition to maintain leadership in the low-carbon


The Construction Products Association represents the UK’s manufacturers and suppliers of
construction products, components and fittings. The Association acts as the voice of the
construction products sector, representing the industry-wide view of its members. The sector
has an annual turnover of £40 billion and accounts for 40% of total construction output.


Simon Storer. Communications and External Affairs Director
Construction Products Association
Tel :           020 7323 3770
Fax :           020 7323 0307
Mobile :        0770 286 2257
E-mail :

Noble Francis, Economics Director
Construction Products Association
Tel :           020 7323 3770
Mobile:         0791 261 2882
Fax :           020 7323 0307
E-mail :


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