Clearview Midlands October 2013 - Issue 143 | Page 24

industrynews

Essential for Prosperity
CAB Chief Executive, Justin Ratcliffe reflects on the recent Government Construction
Summit and argues that we need both Investment and Fair Payment…
“The long awaited Government Spending
Review and Government Construction
Summit in August both gave some new
insight into the government’s construction
strategy to 2025.
“The Review saw £20 billion committed to
schools and £3.3 billion to affordable housing
during the life of the next Parliament. The
Strategy document that followed set some bold
targets to 2025 such as a 33% reduction in the
initial cost of construction and the whole life
cost of built assets. A little lost in the launch
headlines was the promise that there would
be a new Government Fair Payment Charter
before the end of 2013, an issue on which
CAB has lobbied hard for over the years.
I felt, however, that there was a complete
lack of assessment of the construction sector
as it is now and while 2025 is not far away,
for some businesses just getting to 2015 will

‘The industry is failing to
create the conditions for
its supply chains to thrive.
This needs to change.’

24

OCT 2013

be a challenge after at least 5 to 6 very tough
years where volumes have held up but margins
have taken a battering. The announcements
or should I say clarifications of a number
of infrastructure projects did provide some
excellent forward planning information but
the government strategy document does make
the following admission in that, ‘Construction
has been hard hit by the economic downturn.
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