Don't let construction suffer from Iraq conflict, says NFB

The National Federation of Builders (NFB) has (today) called on Treasury to keep its capital investment across public sector construction projects in next week's Budget despite the war.

Growing fears of a prolonged war in Iraq has raised NFB fears that investment in infrastructure will be siphoned into funds for the conflict by chancellor Gordon Brown.

"Although the current level of public spending has given the industry stability, we are concerned that the chancellor is ultimately giving with one hand only to take away with the other," said NFB chief executive Barry Stephens.

"Public sector contracts are the life-blood for the majority of our members and a cut back could be disastrous," he added.

The NFB is also pushing hard for government to look at the spiralling cost of employers liability insurance.

Stephens added: "Many of the NFB's 3,000 members are seeing their margins eroded under the weight of insurance costs.

"According to the British Chambers of Commerce, the cumulative cost to British companies of new regulations introduced since 1998 soared by £6bn to £20.6bn last year."