Cut spending on military, not construction

Article Abstract:

Politicians appreciate the problems of the construction industry due to the recession but are unable to take action to remedy the situation. The government is trapped by its membership of the Exchange Rate Mechanism which, while it has reduced inflation, has also kept interest rates high. Public spending cuts are likely to be introduced but they must not be made at the expense of the construction sector. Cuts could be made in weapons development projects while other measures are taken to restore confidence in the domestic economy.

Political aspects

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Banking on a special Budget to produce growth

Article Abstract:

The British economy is in danger of worse recession and the government should take emergency measures to sitmulate growth. Confidence must be restored, particularly in the property market. Many property companies are on the edge of collapse and their demise is likely to seriously affect the rest of the economy. Value Added Tax should be reduced to 15%, interest rates lowered and construction projects started. Local authorities should be allowed to spend capital receipts on refurbishment and maintenance of housing.

Economic aspects

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Lobbying pays off as ministers go for growth

Article Abstract:

The stimulation of the construction industry is the key to the UK recession. Most other industry is linked to it. The construction industry has suffered the most; 400,000 jobs have been lost since 1990 and another 50,000 may go by the end of 1992. Continued lobbying by the construction industry has resulted in a change of policy by the government from zero inflation to growth. The change has come too late to save a lot of companies.

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