Michael Ankers: Government must spend more on transport and infrastructure
CPA calls for growth stimulus
Published: 06 October, 2010
LONDON: The Construction Products Association has called on the Government to use the Comprehensive Spending Review for investment.
Michael Ankers, chief executive of the CPA said spending cuts and tax rises alone will not secure the long-term sustainable economic growth.
He said: "We accept that reductions in capital spending have to play their part in helping to reduce the deficit. But we believe that the proposed cuts in capital spending while current spending continues to grow, are not consistent with the Government's stated aim of ensuring public spending is focused on where it will do most to stimulate a private sector-led economic recovery."
The association argued in its letter to the Chancellor that public sector net investment should not fall below 2.25% of GDP, the level below which the quality of the country's built assets will start to deteriorate. Investment, CPA said, should focus on transport infrastructure, education facilities and housing.