The Federation of Master Builders (FMB) has said that the government must take action in order to prevent a recession for the construction industry.
The group wants to see a significant capital investment programme put in place by the government immediately to tackle the construction recession threat.
The comments from the association have come after it was revealed that the construction sector has suffered negative growth in the last two quarters, as reflected in this week’s latest numbers from the Office for National Statistics (ONS).
FMB Chief Executive, Brian Berry, explained that the construction industry has enjoyed steady growth over the last few years and the last two negative growth quarters show how powerful uncertainty and a lack of confidence can be on the sector.
Berry added: “The government must now take bold action and do everything in its power to prevent these preliminary estimates by the ONS from becoming more concrete or sustained.
“A firm commitment to invest public funds in capital projects such as house building and infrastructure would go a long way to assuaging fears that demand will dive in the wake of Brexit.”
Berry also believes that the huge skills shortage in the sector, along with the UK’s housing crisis, has contributed massively to the suffering of the construction industry during the most recent economic downturn, adding that it is crucial for the sector to learn from past mistakes and ensure that Britain carries on building.
Meanwhile, earlier this month the FMB said that Theresa May was wrong to scrap the Department of Energy and Climate Change (DECC).
The group believes that the decision is worrying as it shows that improving the energy efficiency of our existing buildings has been relegated down the list of government priorities.
Berry said that Ms May should focus on existing buildings as there are huge benefits for jobs and growth.