Budget won't help construction
The cuts to public spending announced in the emergency Budget should come as no surprise and are something the construction sector has been bracing itself for.
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But the chancellor’s announcement contained little to stimulate the promised enterprise-led recovery. The Scottish Building Federation’s latest membership survey has found confidence in the construction sector slipping into reverse, with many firms blaming a lack of bank lending for our industry’s sluggish performance.
Sadly, I can find nothing in the Budget that would help ease the availability of affordable credit to building firms or to expanding businesses and homebuyers that should be driving future construction demand.
What’s more, for the construction sector, increasing VAT to 20 per cent plays into the hands of cash-in-hand cowboys by increasing their competitive advantage over legitimate building firms. It will be a further setback to sustainable recovery in the construction industry.
Michael Levack, chief executive, Scottish Building Federation