NFB says construction growth makes the case for continued investment
Despite renewed confidence in the sector, figures from the Office for National Statistics show that construction output fell by 0.5 per cent in Q2 2013 compared with the same period in 2012.
A breakdown of the figures shows that some parts of the industry are performing more strongly than others and that there are signs for greater optimism.
Much of the period’s growth comes from new work – private new housing, boosted by Funding for Lending and Help to Buy, rose by 8.2 per cent year on year. New work as a whole increased by 0.3 per cent. The repair and maintenance sector showed a 2.4 per cent decline, showing signs that the government’s Green Deal programme of energy efficient refurbishment is yet to have a measurable effect on the industry’s output. Cutting VAT from 20 percent to 5 per cent on repair and maintenance work would be a quick and effective way of stimulating the market and ensuring this sector does not drag overall construction growth.
Julia Evans, chief executive of the National Federation of Builders, said:
"Since the middle of 2012, the rate of decline in the construction industry has been slowing. Government intervention in the form of Help to Buy has had a significant effect on house builders’ output. Funding for major projects is dependent on further spending cuts, but I believe the figures being reported make a strong case for continued investment, at a sustainable level, in construction.”
