Spending plea as new work plummets

Construction experts are pleading with the government to stick to its spending promises following a grim set of new order figures.

Latest statistics show new orders dropped 25% on the previous year during the fourth quarter of 2008.

Figures for the year also show that new work won fell £6bn in 2008 compared to 2007.

RICS Chief economist Simon Rubinsohn said: "With new orders falling sharply, it is only a matter of time before this is reflected in a steep decline in the level of construction output and more job losses in the sector.

"This highlights the need for the government to ensure effective delivery of its enhanced capital spending programme. Bringing forward capital funding for vital projects will have the advantage of delivering much needed housing and infrastructure but will also go someway to preventing an employment crisis in the industry.

"As the UK enters a recession it is essential that skills are not lost to the construction sector as people leave and retrain to take up other jobs.”