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Government cuts show 10% decline in the construction industry
The study for the TUC carried out by the National Institute for Economic and Social Research shows that a £30bn investment in infrastructure would boost growth immediately and increase economic output by 0.5% a year on a permanent basis.
It reveals that had construction output remained the same over the past five quarters economic growth would have increased by 1.2%, instead of a meagre 0.4%.
TUC General Secretary Frances O’Grady: “This research shows what happens to the economy when you cut back on vital state funding and why we need urgent investment in new affordable housing and infrastructure projects.”
The government’s refusal to borrow to invest, and instead wait for private money that isn’t arriving, is preventing projects getting off the ground, says the TUC.
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