Aside from commitments to spend on infrastructure and affordable housing, the Chancellor offered little in the way of incentives to growth in the private sector, leaving many small building companies stuck on the economic critical list.
Despite welcoming funding for more apprenticeships and the indication that Local Authority borrowing caps could be lifted, which would allow councils to sell or borrow against assets to build or refurbish affordable housing, the FMB says the Chancellor missed an open goal by not making a major long-term investment in low-carbon refurbishment, which could have helped the Government meet tough emissions reduction targets and made the UK's 26 million houses greener and cheaper to heat.
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Brian Berry, the FMB's Chief Executive, said: "George Osborne's claim that the economy is 'leaving intensive care' may ring hollow for many construction SMEs – the FMB's State of Trade Survey of members, many of which work in the domestic repair, maintenance and improvement market, showed workloads in this sector still falling in the first quarter of the year.
"The Government clearly now recognises the importance of investing in Britain’s infrastructure. Our housing stock is a vital part of that infrastructure; it is ageing and inefficient, yet the refurbishment sector remains a Cinderella in terms of public investment. The Government can expect to raise an average of £4 billion a year over the next 15 years from the European Emissions Trading Scheme and the Carbon Floor Price, but its flagship refurbishment programme, the Green Deal, has seen only £125 million invested in incentives for homeowners to carry out this kind of work."
(CD/JP)
