Opinion: If you build it, growth will come

Grant Prior 11 years ago
Share

It’s a sure sign the economy is in serious trouble when Ed Balls starts to sound plausible.

But the shadow chancellor is making the right noises when he calls for more housebuilding and infrastructure investment to stimulate the stagnant economy.

Balls wants to see construction lead the recovery.

And the feeling is growing that his views are shared in the Government who are looking at extra construction cash but have to disguise it in various ways.

George Osborne has pinned his reputation on deficit cutting so don’t expect a sudden splurge of public spending.

But money can be released in all manner of face-saving ways which can get Britain building again without spooking the credit-rating agencies.

The easiest trick is shifting current spending to capital spending to free up investment cash.

Osborne has talked a good fight on cutting public sector waste but anyone who deals with government departments on a regular basis knows the places are still riddled with inefficiencies.

Private investors like pension funds are also crying out for investment opportunities as the world loses faith in the ability of bankers to make us all rich.

Private cash needs to start flowing into infrastructure schemes again while a collective revamp of housing associations could see a new bond market created to plough billions of pounds into building much needed new homes.

Funding construction projects has the advantage of creating real jobs for people who are building something which will ultimately benefit the whole country.

The City has had its turn and left the whole country wondering who actually benefited.

An elite few became rich beyond the dreams of avarice while the rest of us have been left to foot the bill for their subsequent greedy blunders.

The economy has stalled and we are desperate for an upswing while we are suffering a housing crisis and our infrastructure is outdated.

Surely it doesn’t take a genius to put two and two together?

Latest news

Sellar unveils £1.5bn Liverpool Street station scheme

£450m station upgrade will be included in hotel and office at no extra cost to tax payers
1 day ago

London flyover needs £50m structural repairs

Safety checks force 7.5t weight restriction on 200m long Brent Cross flyover
14 hours ago

Firms called up for East London £1.3bn housing estates renewal

Barking and Dagenham Council aims to build extra 4,000 homes in ongoing estate renewal plan
13 hours ago

HS2 milestone as first London tunnel drive starts

First of six London TBMs launched for one of most complex tunnel drives
23 hours ago

Mace wins London’s “greenest” office tower

Construction to start in January on London’s most sustainable office tower
1 day ago

FM Conway revenue soars to near £500m

Pre-tax profit slips despite strong sales growth in 60th year in business
15 hours ago

Drop in domestic demand drags down Marshalls profit

Building Products division flying high but spending slows on domestic projects
14 hours ago

Construction buyers report return to growth

But optimism levels for future prospects drop to two-year low
1 day ago

Lee Marley Brickwork revenue soars to record £57m

Cost inflation erodes major brickwork contractor's margin
2 days ago

Tilbury Douglas £55m Catterick health campus job approved

Demolition underway for site start next Spring
2 days ago

Soaring costs see £10m Devon road project put on hold

Tiverton junction on A361 for 500-home scheme halted
2 days ago

SDC lands latest £26m Cambridge lab building

BioMed Realty to develop third building at Babraham Research Campus
2 days ago

University of Cumbria Barrow campus approved

Construction work for the educational facility is set to begin next year
2 days ago

More than 27,000 people now working on HS2 construction

Latest employment figures as project enters main building phase
2 days ago

Manchester arts centre running £100m over original budget

Extra cash call as inflation pushes The Factory project cost to £211m
3 days ago

Firms on alert for £1bn refit and refurb framework

Pagabo calls up firms for second generation refurbishment deal
3 days ago

Balfour targets next generation floating wind farms

Balfour teams up with Aker to build concrete gravity base floating wind turbines
3 days ago

Esh Group returns to profit after reducing risks

Major restructuring programme paying dividends at North of England contractor
3 days ago

Caddick acquires assets from failed facade specialist

Deal to save Speedpanel operation from Speedclad ensures continuity on projects
3 days ago

Fusion21 names winners for £250m repairs framework

Full list of 46 winning companies
3 days ago

RSK buys Scottish M&E specialist WGM Engineering

£45m turnover Glasgow contractor employs 365 mechanical, electrical, and civil engineering staff
3 days ago

Cladding and roofing specialist falls £9m into red

Lindner Prater runs into loss after remedial works needed on a major job
4 days ago

Ellmer propels growth at Byrne Group

Concrete specialist Byrne impacted by project start delays
4 days ago

Kobelco suspends some plant sales over engine scandal

Manufacturer stops selling some excavators and crawler cranes over emissions fear
4 days ago

Watkin Jones sounds profit warning

Higher borrowing costs for buyers starting to hit sale prices and margins
4 days ago

First nuclear fusion plant to be built in Nottinghamshire

£2bn-plus fusion energy plant to be built at West Burton coal power station site.
4 days ago

Peel sets up suburban build-to-rent developer

New Letta arm aims to build 1,000 private rental homes in the North West
4 days ago

Wates Pre-Construction Director joins rival Real

Matt Smith joins ambitious contractor and developer
4 days ago

L&G modular homes amassed loss deepens to £174m

Modular arm suffers sixth successive loss but books first revenue of £12m
5 days ago

Chancellor does U-turn on top rate tax cut

Plan to abolish 45p top rate a "distraction" from Growth Plan
5 days ago

Contractor services