What the New Budget Means for the Construction Industry
- March 24, 2012
- Posted by: Lance Buchanan
- Category: Construction News
The new budget is out and the news is not very encouraging for the building and construction industry. Steve Murphy, Ucatt general secretary said that the government only offered a few crumbs to the industry by offering tax cuts to the wealthy while putting even more squeeze on the living standards of the workers.
The new budget is bad news for the industry. The government continues to be the biggest client for the construction industry. The industry needs significant investment from the government in new projects for helping the construction workers get work. However, the current budget does not provide much to be happy about.
Bob Crow, RMT general secretary even went one step further and predicted civil unrest. According to hi, the budget unleashed savage cuts to services, welfare, wages and job in the public sector. It also pandered to the greed of those who dragged the country into the economic crisis. Mr Crowe predicted that the budget will spark resistance and protest throughout the nation as the majority of the citizens realize that they have been mugged by the wealthy elite government.
The CPA stated that it welcomed the strong commitment of the chancellor to business in the budget statement. However, it also stated that this will only provide short term benefits to the construction industry which has been forecast to experience a 5% output fall this year. Due to the poor planning system and inferior quality infrastructure, there are major constraints on the nation’s economic growth. However, steps are not taken for bringing in private finance to aid road building. We are yet to see any revolutionary reforms in the industry as promised by the chancellor.
With the construction and building industry set to fall by 5% this year, the new budget does not help.