Posts tagged Private sector
The number of new homes started by private sector builders in the year to June 2012 was the highest recorded since the banking crisis started in 2008 according to official statistics.
Over that period, 10,827 new homes were started, a 24 per cent increase on the previous year. This increase follows three years of recorded annual decreases in private sector new build starts.
The statistics reflect new starts by house builders building for private sale, alongside other house building activity by construction companies throughout Scotland such as for RSL shared equity developments and self-build.
There was also a continued increase in the number of council houses across Scotland, with local authorities completing 1,206 new homes in the year to September 2012, the highest number since 1990.
Across all sectors 14,032 houses were started to June 2012, up by 4% compared to the same period last year.
Housing Minister Margaret Burgess said: “Scotland’s construction sector has faced the full force of the economic downturn.
“Times are still very tough, with high deposit requirements and reduced mortgage availability continuing to prove a barrier to recovery in the housing market.
“However, I welcome these latest statistics and hope this increased activity can spark an economic revival for the industry. Every house started supports jobs for bricklayers, joiners, plumbers and the wider supply chain.
“The Scottish Government is doing all it can to support the industry and boost supply. We plan to deliver at least 30,000 affordable homes during the lifetime of the Parliament, backed by investment of at least £760 million in the next three years.
“We have allocated almost £115 million to local authorities across Scotland, which is helping deliver over 4,400 council homes.
“And we are stimulating growth through the innovative National Housing Trust initiative and our shared equity schemes.
“We have also offered a guarantee to support up to 6,000 new build house purchases through a housing industry-led Mortgage Indemnity Scheme, to help address the banks’ requirements for high deposits.”
With the increased funding, the total amount available to firms that are looking to create new jobs will reach £2.4 billion. The scheme is expected to make a significant contribution to the manufacturing and construction industry.
Deputy Prime Minister Nick Clegg said the RGF is already having a huge impact on jobs’ creation because businesses across the UK now have the investment which will contribute to their local economy. The Liberal Democrat shared his enthusiasm about using the money for carbon cutting initiatives that will have positive effects on the environment and the renewable sector.
Mr Clegg said: “There have been over 170 successful bids to the fund, leveraging around £7.5 billion of private sector investment and set to create and protect 330,000 jobs. I want to see more businesses that are confident they can create jobs and get Britain building”
“Funding from rounds one and two has gone to some extraordinarily promising manufacturing projects. From Pirelli Tyres in Carlisle who’ll use the money to develop a new range of carbon-cutting tyres; to a Portsmouth based company which hopes to use theirs to create a cutting edge boat building college.
“These projects will lead their communities into brighter times, helping put industry at the heart of the UK’s economy. Businesses have until June to apply for a share of this extra £1 billion.”- Deputy Prime Minister Clegg added.
How would your business benefit from the £1 billion investment of the Regional Growth Fund? Share your thoughts by leaving a comment below:
Although the building construction sector remains one of the most stable industries in the UK, the CBI thinks greater investment is needed for infrastructure projects to encourage continual growth and business confidence.
The CBI has proposed a number of measures for the government as an opportunity to provide real boost for private sector investments in infrastructure schemes and give more support to small and medium businesses.
General Director at CBI, John Cridland, explained that the government should use Chancellor’s budget statement next month to deliver significant financial stimulus to make mortgages more affordable to the housing market.
Mr Cridland thinks future growth through reforms of the UK’s tax system is essential for businesses to invest in Britain. He is calling on the government to make some changes into the current system which will create new opportunities for growth.
Mr Cridland highlighted the significance of infrastructure investment as one of the most important priorities which the government needs to support in order to encourage industry’s growth and create permanent jobs.
He said: “Delivering private sector investment in infrastructure, supporting mid-sized businesses, hammering out the details on credit easing, extending the Youth Contract to 16 and 17-year-olds, and introducing the New Build Indemnity Scheme for mortgages at the earliest opportunity will all provide a real boost for UK growth and jobs.”
Do you agree with the CBI that the infrastructure industry is a key factor for economic growth and creating new jobs? Share your thoughts by leaving a comment below: