Fall in construction activity affecting small builders, says FMB

The fall in construction activity of 1.4% in June, according to the Office of National Statistics latest figures, is a growing concern for small builders, says the Federation of Master Builders (FMB).

This is the case given the wider fall of 6.1% for private new housing and the continuing fall of 0.2% for repair, maintenance and improvement (RMI) work.

Brian Berry, Chief Executive of the FMB, said:

“Costs are up across the board for both builders and consumers alike which is affecting business confidence.

“With 98% of FMB members experiencing material cost increases builders are inevitably having to pass on these costs to consumers.

“The result is that householders are starting to hold back with many households increasingly concerned about rising energy prices and the threat of a recession later in the year.”

Berry concluded:

“With the Government at a standstill, we won’t see any ambitious announcements to help support the sector until September with the new Prime Minister will be announced.

“In the meantime, the Conservative leadership candidates need to be explaining what they intend to do help the construction sector boost economic growth.

“Cutting the rate of VAT from 20% to 5% or below on all repair, maintenance, and improvement work would be a welcome start to help boost building work all across the country and help people insulate their homes ahead of further rising energy bills.”  

Kindly shared by Federation of Master Builders (FMB)

Main article photo courtesy of Pixabay