Builders warn of tough times ahead

Published:  26 July, 2010

CRAWLEY: Builders have warned of tough times ahead despite the unexpected second quarter growth in GPD with a surge in construction activity.

The National Federation of Builders said other factors that will have an impact on future growth. "Mortgage lending remains modest, lending to businesses has fallen and major, national construction projects such as Building Schools for the Future are being re-thought," it said in a statement.

The federation, which represents small to medium-sized builder and contractors, warned too of the consequences of the "uncoordinated suspension of much of the planning system will put this tentative growth at risk as investment in housing projects is shelved".

Julia Evans, chief executive of the NFB said: "Any increase in the contribution that construction can make to the UK economy is always good news.

"We hope that the government takes into account the resulting benefit to the wider economy of a sustained investment in construction when it makes further decisions on spending."

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