CJ Construction Blog

In the next few weeks we will hear a lot about what Alistair Darling should be doing to stimulate construction work in his Budget.

Yet with growing consensus in the business world that Britain is already spending too much, it is foolish to expect anything more than flesh on the bones of the £3bn stimulus package unveiled in November.

Now the debate is whether to channel this into refurbishment for a fast boost, or into new-build work to deliver planned projects. Although it is an important decision for those concerned, it detracts from the big issue.

For construction the real problem remains the banks. Let's not forget that the government supported the banks as a means of bolstering the wider economy. Yet, even though construction represents around 8% of output and is a vital cog in the delivery mechanism for government policies on healthcare, education, transport and housing policies, it is being forsaken.

The banks are saying they will not support construction firms because the industry is too risky. This is utter nonsense.

The bank bail-out is supposed to prevent key economic sectors from failing. Unlike the car industry, contractors have not asked for charity - firms just want access to reasonable amounts of credit.

The chancellor must ensure the banks it now owns support a wide portfolio of risk covering essential parts of the economy like construction and not be allowed to pick and choose.