The Chancellor also recognised the need to divert current expenditure savings into capital investment and announced an additional £5 billion investment over three years; however there is little evidence that this will have much impact, as the industry is currently contracting by more than double that amount every year.
Responding to this announcement, the Construction Product Association's Chief Executive, Diana Montgomery said: "The Chancellor clearly recognises the need to stimulate growth through construction activity and has made several announcements that are a step in the right direction. However if you put these announcements into context, the benefits to our sector are less clear. Throughout this year, construction has been contracting by £1 billion each month, so his announcement that there will be an additional £5 billion added to the capital budget over three years, will do very little to offset the losses we are already experiencing, especially as that £5 billion is not just for construction but includes IT, exports and skills.
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"Although the Autumn Statement included a number of re-announcements we do welcome the emphasis on road maintenance and repair which will benefit from £725 million from April next year. This was something we called for in our letter to the Chancellor last month and we are pleased he has heeded our request.
"It is also very welcome that UKTI will have its budget increased by 25 per cent. Export activity to both existing and emerging markets must play an increasingly important role for the country over the coming years and this increase is an important recognition that the government is serious about supporting UK companies in their drive to succeed in new markets abroad."
Steve Murphy, General Secretary of UCATT, said: "The promised investment in construction is to be welcomed but it in no way replaces the money Government cuts have removed from the industry, policies which have forced construction into recession and damaged the entire economy. For example the investment in new schools is totally dwarfed by the cuts made to the Building Schools for the Future programme.”
"There will be a significant delay between today’s promise of new investment and work actually starting on sites. Major infrastructure projects take a long time to organise, much of the new investment promised last year still has not resulted in any new work being undertaken."
(CD/GK)
