Construction Struggling As Recession Continues

It has never been more critical for the Government to recognise the value of the British construction industry and how it can be deployed to re-energise the UK economy – says the Get Britain Building (GBB) campaign.

The latest research published by the Construction Trade Survey (CTS) reveals the recession in the sector showing no signs of abating.

The CTS survey is reinforced by December figures from the Construction Purchasing Managers' Index (CPMI).

The CTS shows that all areas of the industry contracted during the last quarter of 2009; and prospects in most areas of the industry remain relatively bleak in the near term with orders and enquiries falling for civil engineering contractors, building contractors and specialist contractors.

In addition, sales of construction products are also anticipated to fall significantly. The CPMI for December was still showing a contraction in activity; signifying 22 continuous months of construction sector recession.


Get Britain Building is a pan-construction industry campaign determined to get Government – this or the next, regardless of party – to recognise the value of the sector to the nation and to use it to rebuild the UK economy.

"One wonders when the penny is going to drop that – instead of shoring up overseas car makers, for instance – urgent steps need to be taken to support a sector that represents 9% of GDP and employs approximately 7,000,000 people," said Chris Pateman, GBB spokesperson and managing director of Builders Merchants Federation.

"It’s a mystery that the UK motor industry warrants special treatment – largely favouring overseas manufacturers – when it only accounts for 0.8% of GDP."

Central to the GBB campaign is the proposal that the Government cuts VAT to 5% on domestic works that include an element of 'consequential improvements' which deliver sustainability benefits.

The initiative aims to not only generate activity in the domestic RMI environment, it would serve to improve the property asset base of the UK and assist the Government in meeting its challenging 2020 and 2050 carbon reduction commitments.

The campaign also believes that not only would the VAT reduction measure be, at least, cost-neutral but also revenue-positive through the increased activity and by bringing more contractors into the formal economy. It is currently undertaking in-depth costing research to reinforce this contention.

(GK/BMcC)