The Construction Products Association (CPA) has written to the Chancellor in advance of his Budget statement next month, encouraging him to introduce a range of measures that will help deliver the government's growth strategy and speed the country's economic recovery.

Amongst the proposals, the Association has highlighted an opportunity to stimulate domestic refurbishment as part of the government’s carbon reduction target ahead of the Green Deal, which comes into effect after 2012. It has also called on the government to stimulate the housing market and abandon its proposed fuel duty increase on 1 April.

Speaking about the Association's proposals, Michael Ankers, Chief Executive of the CPA said: "The Green Deal will provide a framework for people to invest in certain energy efficient measures at no upfront cost to themselves. However, as the Green Deal will not come into effect until 2012 and we are currently well behind our refurbishment targets, there is an urgent need to encourage a higher level of domestic refurbishment before the Green Deal becomes available. The Budget could provide a real opportunity by allowing all work, up to the value of £10k on a domestic property, to be eligible for a 5% rate of VAT, as long as it improves the Energy Performance Certificate rating of the house by more than 10


points. By doing this the Chancellor could stimulate much needed refurbishment work."

Mr Ankers continued: "We welcome the commitment of the government to make this a 'Budget for Growth' as the long term economic recovery of this country depends in equal measure on a strategy to reduce public spending and stimulate balanced private sector economic growth. However, this will require a commitment from all government Departments working together and although each Department has its own specialised agenda, an individual objective from one Department must not undermine the overarching growth objective for the country, but be complementary towards it.

"The Budget also needs to do more to stimulate the housing market as, according to DCLG, the number of houses being built is still less than half the annual growth in the number of new households. First time buyers in particular are struggling to access the necessary finance and this is having a serious detrimental effect across the housing market.

"The government needs to continue to put pressure on the mortgage financiers to make more money available for house purchase and introduce some form of mortgage indemnity scheme for first time purchasers which will encourage the banks and building societies to lend to a greater number of first time buyers so as to help rejuvenate this very important sector of the housing market."

(CD/GK)