CPA sets out recommendations to the Chancellor

With the Autumn budget on the horizon, Dr Diana Montgomery, Chief Executive of the Construction Products Association, has written to the Chancellor. Whilst welcoming the renewed commitment to an Industrial Strategy, she acknowledges industry’s responsibility to work with government to ensure the competitiveness of UK plc on a new global stage.

Outlining the contribution the construction products industry makes to the UK economy; directly providing employment for almost 300,000 people across 22,000 companies; the letter urges the Chancellor to consider a range of short and long-term measures covering housing, infrastructure, and investment and UK competitiveness.

She says: “Approximately 78% of construction products used in the UK are made here, reflecting a sector that plays a central role in nearly every construction project in the country. In addition, manufacturers in many of our sub-sectors have invested heavily here to establish a competitive global advantage with advanced manufacturing and innovative products. As we prepare for Brexit, we recognise industry’s responsibility for working in partnership with government to address key issues and ensure the competitiveness of UK plc on a new global stage.”

The letter outlines the industry’s readiness to support government initiatives with tools and resources.

The CPA also suggests a range of measures the government could adopt back this growth:

Housing: In order to meet the government’s house building ambition, the CPA therefore recommends the government commit to Help to Buy beyond 2020/21.

Infrastructure: The government’s National Infrastructure Delivery Plan (NIDP) and National Infrastructure and Construction Pipeline must be commended for encouraging longer-term planning for skills, materials and plant investment in the infrastructure sector. However, without major projects coming through in the short-term, total construction output will contract in 2017, 2018 and 2019, consequently adversely impacting on UK economic activity and productivity.

Investment and UK Competitiveness: The vast majority of our largest construction product manufacturers are foreign-headquartered, with overseas boards making major investment decisions. It is imperative that the UK is viewed as an attractive, competitive place to do business. Policies must offer our industry a level playing field with international competitors to ensure further investment in new plant and machinery.

 

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