Construction Products Association chairman Bill Bolsover led the call to kick-start the economy at a House of Commons reception.

Bolsover said: “Government must stick to its spending plans, but rebalance the economy between current and capital spending.

“Government’s own figures show current expenditure rising from £632bn this year to £694bn in 2014/15, whilst capital spending is being cut from £61bn to £42bn over the same period.

“Rebalancing this could make way for the £5 billion package of essential infrastructure investment which is being widely talked about.’

He also called for more radical action to stimulate the new build housing market.

Bolsover said: “Although recent announcements about the release of public sector land for private sector housing are welcome, what is really holding back first-time buyers is not development but access to finance.

“Government must examine and encourage ways to help first-time buyers get on the housing ladder through, for example, some kind of mortgage indemnity guarantee scheme, or through a government-backed savings scheme for first-time buyers.

“Finally government must do more to support the proposed Green Deal programme.

“Through this scheme it is hoped that some 14 million homes across the UK will be improved by the early 2020s.

“The stimulus to the economy and the benefits to our industry would be huge, however without some fiscal incentive this will not happen.

“Government must ensure that all Green Deal compliant measures pay the lower 5% rate of VAT as it is perverse to charge 5% tax on a product, i.e. energy, that we want people to use less of, but 20% on the measures which help them stop using it.”