Industry seeks MP support against government spending cuts

The UK Contractors Group and the Construction Products Association has written to all MPs and requested pressure on the government to limit its capital spending cuts.

The letter, sent on 9 August, is headed ‘Comprehensive Spending Review’ and starts by praising Vince Cable’s recognition that growth is important to get “this country back on track”. It continued with a warning over the impact on growth of large cuts.

It said: “It is critical therefore, that in preparing the country for long term sustainable economic prosperity we do not allow public sector capital investment to fall below 2.25% of GDP. Investment below this figure will lead to a deterioration in the condition of the country’s built assets, harm the international competitiveness of our business, and result in higher long term costs for the future maintenance and replacement of these assets.”

The letter, signed by CPA chief executive Michael Ankers and UKCG director Stephen Ratcliffe, said spending should be focused on transport, energy and education.

It also called for a “clear programme for the use of funds from the Green Investment Bank”, “clarity in what the different capital spending programmes are intended to deliver” and “constructive discussion with the industry”.

It ended: “I hope that in the next few weeks as the government prepares its Comprehensive Spending Review we will have the opportunity to discuss these issues further with you either in your constituency over the summer recess or at Westminster.”