Construction ‘vital to UK’s fiscal recovery’

The construction sector ought to be a vital part of the UK’s economic recovery.

This is according to the Federation of Master Builders (FMB), which made this statement in response to figures from the Office for National Statistics revealing the UK has fallen into another technical recession.

Gross domestic product dropped by 0.2 per cent during the first three months of 2012, while construction sector output declined by three per cent in this timeframe.

FMB chief executive Brian Berry argued the industry is “essential to the wellbeing of the wider economy because of the variety and quantity of job it creates”.

He suggested that ministers implement steps to stimulate the sector, such as by reducing VAT on property repairs, scrapping VAT on heritage buildings, providing public sector procurement projects to smaller enterprises and taking action against banks and moneylenders that discriminate against building companies and their customers.

Parliament ought to “invest in capital projects rather than just focusing its attention on budget cuts”, the specialist remarked.

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