Construction industry calls for infrastructure investment

The CBI and the UK Contractors Group (UKCG) have called on government to step up investment in construction jobs and infrastructure projects.

A report published by the two organisations, entitled “Construction in the UK economy: The Benefits of Investment”, shows how much the industry contributes to the economy. For every £1 spent on construction, GPD increases by £2.84.

While public sector spending cuts are imminent, the CBI and UKCG argue that without government support for building projects – including schools, hospitals and infrastructure – output in the sector will fall considerably and socio-economic recovery will be affected.

In addition to this, more than 60% of construction workers are low skilled. This means they are less likely to secure alternative employment should the construction industry contract.

According to business strategy specialists LEK Consulting, construction currently contributes to 8% of UK GDP. The industry’s 300,000 companies employ three million people, which amounts to 8% of the national workforce.

John Cridland, Deputy Director-General of the CBI, said his organisation would continue to call for protected capital spending on construction by government.

“A strong economy needs fit-for-purpose schools and hospitals and it will be the construction industry that builds the new transport and energy infrastructure needed to shift to a low-carbon economy,” he told The Times.