“Once again the Spending Review and infrastructure announcements are blunted by a sense of being from the school of Microwave economics rather than Macro- economics. We have seen a selection of re-heated and re-hashed announcements.
It is good news that HS2 to is going ahead, £3 billion on affordable housing is to be welcomed but the Chancellor’s claim that the economy is “out of intensive care” will seem somewhat hollow for those working in the North of the country where things are still really tough for the construction industry.
Infrastructure spending should always have been seen as an investment, not an expenditure item; investment in our sector creates jobs and provides for a greater tax take. For the Coalition this realisation seems to have come too late to effect real change in the foreseeable future.
Recovery for the construction industry will be more like a marathon than a sprint and it will take a long time for the promised expenditure to filter through and produce the desired effect”.
David Stevenson, Managing Director