The budget announced on 17 April 2002 has failed the construction industry says the ECA and the Construction Products Association.
"This is a budget that taxes employment and provides little incentive to invest in training ...it does nothing to address fundamental tax distortions," stresses ECA director David Pollock.

Michael Ankers, chief executive of the Construction Products Association adds: "The Chancellor failed to respond to a number of key issues affecting the industry, particularly the extension of Climate Change Levy negotiated agreements and a lower rate of vat on domestic repair and maintenance."

Pollock agrees: "Reducing the rate of vat will limit the financial advantage that the unregulated rogue trader has over the professional contractor. The current high rate of vat is not the joined-up thinking that the Government professes to encourage...it is presiding over a tax system in which the cowboy builder thrives."

Some changes are welcomed by the ECA, in particular those to the Construction Industry Scheme, which will help to ease the cashflow problems of small contractors.