20 March 2013 12:45 [Source: ICIS news]
LONDON (ICIS)--The UK government must prioritise investment in the construction industry in its latest budget review, private sector lobbyist the Confederation for British Industry (CBI) said on Wednesday.
Speaking ahead of UK Chancellor of the Exchequer George Osborne’s budget announcement at 12:30GMT today, the CBI said that the investment in the construction industry – a crucial end market for the chemicals sector – was vital to aiding the UK’s flagging recovery.
“There were fewer houses built in 2010 than in any year since the Second World War – which is simply not good enough,“ said CBI director general John Cridland.
According to the CBI, construction investment generates an average return of £2.84 (€3.32, $4.29) per pound spent, without the long lead times that often affect infrastructure investment.
Infrastructure, another significant customer industry for chemicals producers, is expected to be one of the key topics in Osborne’s budget announcement, but the feasibility and procurement stages of infrastructure projects can take several years.
“The government needs to put its shoulder to the wheel on upping supply – investing £1.25bn to build 50,000 new affordable homes; introducing new incentives for refurbishing empty houses; and extending the housing guarantee scheme to all housing,” Cridland added.
(£1 = €1.17, £1 = $1.51, $1=€0.78)
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