The Construction Products Association has expressed concern that the government is taking funds away from maintenance programmes in order to minimise council tax increases.

In a bid to avoid council tax rises in 2005/06, the chancellor announced in his pre-budget statement that £360 million of local authority expenditure will be removed from ring fencing constraints. The CPA believes this is likely to divert funding away from repair, maintenance and improvement spending on schools and social housing, as well as roads.

Allan Wilen, economics director of the CPA, comments: “We are also concerned that £512 million has been re-allocated away from central government departments. It is not yet clear which departments will be affected, but to ensure delivery of the government’s programme of capital investment in public services it is vital that capital allocations made in the spending review are not reduced.”

The CPA also expressed disappointment that other issues were omitted from the chancellor’s announcement. These include an assurance that the UK allocations under the EU emissions trading scheme do not place UK companies at a competitive disadvantage; and maximisation of the opportunity for firms to participate in negotiated agreements under the Climate Change Levy.

Source

Building Sustainable Design