The Construction Products Association (CPA) has responded cautiously to the recent Pre-Budget Report.
Commenting on the chancellor's statement, CPA chief executive, Michael Ankers says: "The industry is relieved the chancellor has re-affirmed the government's commitment to the spending plans announced in last year's Comprehensive Spending Review and that, in-line with our Pre-Budget Report submission, he is prepared to fund these by increasing borrowing rather than imposing higher taxes.

"There are however a number of areas where the chancellor has missed an opportunity to help the industry and support the government's own policies. In particular, he failed to embrace those manufacturers that wanted to commit to energy savings by extending negotiated agreements under the climate change levy. We were also disappointed that the new raft of environmental measures were not extended to cover the whole range of energy-efficient products eligible for 5% vat."

The CPA adds that it is pleased with the government's decision to base research and development tax credit for large companies on volume.