Builders' Merchants News

Michael Ankers: warning to government.

Construction must look beyond a short-term fix

Published:  11 June, 2010

LONDON: The Government must focus public spending to benefit the whole economy said the Construction Products Association.

It also called on the Chancellor to use his Budget to accelerate progress towards making the UK a low-carbon economy.

Michael Ankers, chief executive of the Construction Products Association said: "the Government must ensure that future public spending is focused on delivering economic growth through the provision of essential energy and transport infrastructure, education facilities and housing.

"The Government should ensure that net public sector investment does not fall below 2.25% of GDP. "This investment in itself will also generate significant short term benefits," he said.

"The Government must also provide incentives to help the creation of a low carbon economy, especially with regard to the energy efficiency of the existing housing stock, Mr Ankers said.

"We welcome the 'Green Deal' and the proposed early legislation to implement this, however, this alone will not be enough."

Government currently allows a lower rate of VAT on installation of certain energy-saving products, but this list must be updated to take account of new products and solutions such as energy efficient boilers, glazing systems, water/liquid source heat pumps, solar shading, window films (internal and external), photovoltaics, green roofs, and rainwater harvesting, he said.