Government cutbacks are continuing to have a negative effect on the construction sector, which could affect
supply chain transport planning.
Brian Berry, director of external affairs at the Federation of Master Builders, has highlighted the fact that rising numbers of projects being put on hold reflects the general downturn in the economy.
He said that cutbacks in capital investment projects such as the construction of new schools and hospitals has led to two years of falling workloads for the industry that have been exacerbated by a slump in the house building sector.
In 2010, the industry saw 100,000 new homes being completed rather than the 240,000 that was the year's target, he explained.
Mr Berry warned that cutbacks in terms of social house building and the low availability of mortgages are key problems that must be tackled in order to revitalise the sector's prospects.
He said: "For first-time buyers, they need a deposit of 25 per cent or more which, for most young people, is totally unaffordable. Because of that, what you are finding is that people can't move up the housing ladder."
Earlier this month, the Federation of Small Businesses called on the government to implement a VAT cut on construction in order to stimulate the industry.
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