Products group dismay at threat to maintenance spending

The Construction Products Association has expressed its concern at the Chancellor's decision to raid nearly one billion pounds from previously allocated funds in order to stave off council tax increases. 

However, it welcomed plans in the Pre-Budget statement to freeze road fuel duties and to reduce unnecessary red tape and gold-plating of EU legislation.

Allan Wilén, economics director, said: "In a bid to avoid large-scale increases in council tax in 2005/06, the Chancellor has announced that £360m of local authority expenditure will be removed from ring-fencing constraints. 

"This is likely to result in the diversion of funding away from repair, maintenance and improvement spending on schools, social housing and local roads, as councils seek to address more immediate political priorities. We are also concerned that £512m has been reallocated away from central government departments." 

The Association also applauded the Chancellor's commitment to publish reviews of Climate Change Levy and Aggregates Levy next spring - reviews for which the Association has long been pressing.