Business leaders request homebuilding and infrastructure spending boost

Business leaders urged the government to get building projects started, particularly on housing.

16:34 12 March 2013

Employers group CBI, The British Chambers of Commerce (BCC), and manufacturer organization, the EEF,have demanded radical measures from the government to boost growth and confidence by stepping up efforts to start building projects as soon as possible. 

The CBI and BCC also asked for a cut in business rates and new efforts to back Britain’s exporters. 

 

“Although the BCC continues to support deficit reduction, a point may come soon where deficit reduction becomes impossible in the absence of sustained growth,” it said, as quoted by The Telegraph.

 

The business group also said that it’s important for the government to shift spending from unproductive areas but declined to be more specific. 

 

CBI plans to build 50,000 affordable homes that will help create 75,000 jobs in hard-hit construction industry. It also suggested extending the NewBuy mortgage guarantee scheme for first time buyers to second-steppers to keep housing market liquid.

 

BCC on the other hand, called for 100,000 new homes in the next two to three years as well as renewal fund and new road repairs. It demands “frozen” business rates for the next three years and for the scheduled 2.6per cent increase in April cancelled.