Construction sector 'needs more support from Budget'

Published:  29 March, 2011

An industry figure in construction has expressed doubts over the Budget's positive impact.

An industry figure in construction has expressed doubts over the Budget's positive impact.

Jason Heath, construction specialist at invoice finance provider Bibby Financial Services suggested that the industry needed more support, considering it was "blamed for the 0.5 contraction in UK GDP (Gross Domestic Product) at the start of the year".

“In all, the latest Budget announcement provides some instant relief on costs for a small amount of those in the construction industry, with new opportunities on the horizon and positive changes to the tax regime.

"However, with the banks still apprehensive about lending to the industry and public sector spending still falling, a healthy cash flow will remain integral to performance in 2011 and it is this issue which the government needs to address for the sector.

"For now, construction firms certainly need to consider ways to improve cash flow by identifying funding bottlenecks and considering all viable options to securing funding, with a view to long-term security.”