Campaign demands action to ease building industry crisis

A coalition of construction trade organisations and MPs have launched a campaign to help all those involved in the UK construction industry survive the current economic downturn.

The Get Britain Building launch, which took place today at Westminster, outlined 10 key issues which need to be tackled in order to kickstart the building industry.

The 10 points outlined in the proposal are:

• Ensure responsible lending to prudent borrowers coupled with the reintroduction of mortgage interest tax relief;

• Cut VAT from 17.5% (15% for the next 13 months) to 5% for all building repair and maintenance work;

• Develop and implement a coherent strategy to deal with the UK’s existing housing stock both in terms of helping to create more homes and making the UK’s existing stock more energy efficient;

• Set targets for all local authorities to fast track the planning process to release and designate land for social housing;

• Simplify the planning system;

• Produce an implementation plan to show the precise timings and location of public spending on schools, hospitals and prisons to ensure that projects are completed in 2009 and 2010 respectively;

• Introduce a section 106 agreement holiday and then subsequently cap the value of section 106 agreements. Abandon the proposed Community Infrastructure Levy;

• Reduce the regulatory and fiscal burden;

• Reform stamp duty so that higher rates of stamp duty only apply to the proportion of the house price which is in the relevant band ie a graduated tax like income tax;

• Reintroduce empty property rate relief.

John Andrews, chief executive of the National Association of Professional Inspectors and Testers (NAPIT), which is backing the campaign, said: “It is vital that real action is taken, not just eye catching sound bites that sound good but achieve little.

“During the last recession the UK construction industry lost over 500 000 skilled jobs and this is a situation we just cannot allow to happen again”.

The campaign is being backed by a cross-party group of MPs including shadow construction minister Mark Frisk and Liberal democrat shadow business minister Lorely Burt.

Organisers are inviting companies to show their support by signing an online petition and contacting their local MPs.