Alistair Darling, Chancellor of the Exchequer delivered his first budget yesterday in the House of Commons. There were few surprises as Darling sought to raise taxes in order to support the likely economic downturn however it was slated by the opposition as a “bad news budget”.

The Construction Centre issued a statement saying that it was clear that this year’s budget was a strategy to replenish funds which would not be generated due to the slowing of the UK’s economic growth. Taxes on petrol, alcohol and cigarettes were to be expected and although a 2 percent reduction in income tax was announced, the abolishment of the tax free 10 percent band simply cancelled any benefit to the individual.

The Construction Centre highlighted Darling’s focus on housing as he reiterated the governments commitment to 3 million new homes by 2020 announcing 40,000 already under construction and another 70,000 on public sector land. It was disappointing there was no reference to the Code for Sustainable Homes or any tax incentives to encourage private developers to start building in accordance with the guidelines.

However one of the main announcements affecting the building industry was Darling’s commitment to non domestic new builds which he said would need to become zero carbon from 2019. The Construction Centre said that although the enforcement was not for another 10 years, the construction industry would need to prepare and change its building methods in order to achieve zero carbon status. The government would also need to issue new building regulations and guidelines for the industry to follow and adhere to. In the light of this The Construction Centre said the governments plans were proactive but ambitious, having seen the lack of take up in the private sector for the Code for Sustainable Homes the Centre warned that introducing the same regulations for non domestic buildings would prove even harder.

The Construction Centre also commented that the government had yet to consider the refurbishment market as a way of creating low or zero carbon homes as it has been widely publicised that it is currently the existing stock which creates more carbon emissions for the UK. Richard Simmons, Managing Director at The Construction Centre said “If the government is to commit to a green policy it should do so across the board to include the refurbishment sector where we possibly have millions of houses with no loft insulation at all. The construction industry continues to be one of the most buoyant sectors in the UK economy and could, I believe, withstand the cost implications which are associated with building zero carbon domestic or non domestic properties whether from the ground up or as a refurbishment.”

The Construction Centre said that the building industry had faired relatively well in this years budget but with the introduction of a carbon budget in 2009, changes and restrictions affecting the building industry would inevitably come into force.

Despite being slated for issuing a “bad news budget” Alistair Darling maintained he would make “no apology” for referring to stability and that the "underlying strength" of the UK economy would ensure "we can get through this difficult period".

The Construction Centre reiterated its commitment to promoting all UK businesses within the building industry in order to help support the sector while ensuring the delivery of accurate and valid information on the issues and politics which affect it.

More information can be found at

http://www.theconstructioncentre.co.uk

http://www.theconstructioncentre.co.uk/news/press-room/

Notes for Editors:

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