Construction recovery 'has slowed'

Office design news from Morgan Lovell

Published on 11-01-2011

Recovery in the UK construction sector has "definitely slowed" in recent weeks, according to one sector expert.

A spokesman for the Union of Construction, Allied Trades and Technicians, said that office construction and other building work across the country has stalled in many cases as a result of the government's austerity measures that were announced last year.

The representative commented: "Since the government spending cuts have begun to affect construction, the recovery in spring 2010 has definitely slowed."

According to figures compiled by the Federation of Master Builders, 11,400 jobs will be lost in the construction sector over the next decade as a result of the VAT rise to 20 per cent this month.

The organisation claimed that the building industry will be badly affected by the VAT increase, as it is forecast to result in a two per cent decrease in repair, maintenance and improvement work due to higher costs for consumers.

Posted by Paul Kelly