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Public sector cutbacks stoke builders’ recession fears
12 Jul 2010A sharp drop in public sector building activity caused UK commercial development to fall to the lowest monthly level in nearly a year in June.
Property adviser Savills said the figures stoked fear of a double-dip recession in the sector after the Government's austerity Budget.
Savills' Commercial Development Activity Index showed a net balance of minus 2.8% in June, the lowest reading in 11 months, down from a rise of 4.1% in May.
“Austerity measures are now firmly impacting on the development market, with activity for public sector clients now in double-dip territory,” said Savills building consultancy head Michael Pillow.
Reader views (11)
I'm sorry Peter Rowlings, but the fact that you have had to lay off 37 workers just shows that those 37 jobs were non-jobs.
If you could only afford to employ these people because of the public sector work that your company was doing then these jobs were never secure in the first place.
These workers were being employed at the taxpayers' expense to do jobs that the country could not afford. The fact that they are now no longer paying tax is irrelevant, because they were simply feeding the taxpayers' money that they were paid with back into the system.
Their missing taxes will be easily covered by the money saved in not employing them at the taxpayers' expense in the first place.
Hopefully now those men will have an opportunity to find employment at a company that earns its' money/contracts through private revenue and help to genuinely stimulate the economy.
And I assume you, as the owner of the company, rake in a healthy profit from any works that your company undertakes; so for every public sector contract you took on you were earning a healthy profit from taxpayers' money.
So don't give me your bleeding heart stories, you're just disappointed that the gravy train has come to an end.
- Dan, London, 12/07/2010 15:28
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Relax everyone. There won't be a double dip recession. Dave and George said so.
- sceptic, London, 12/07/2010 12:40
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Peter - I am saying that public buildings should be repaired when the country can afford it. but it cannot at the moment. And also, if private firms were to run schools, they would generate their own funds to refurbish these buildings and the liability would not fall on the taxpayer.
Caroline - 37 unemployed people on £60 a month expenditure Vs the million (if not billions) of £s saved from cutting these costs. Which is preferable. You do the maths!
- Paul, London, 12/07/2010 12:27
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DC - spot on. I wonder how long social unrest can be avoided? The bankers totally screwed us - twice - and we are expected to take it?
The problem is that we have a political elite (Tory, Labour and Lib Dem) who are totally in thrall to the City. It's depressing.
- Mike, London, 12/07/2010 11:58
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The Tories have only just started cutting! Right or Wrong it doesn't matter how big unemployment will become they don't care. If unemployment costs to much they will also cut dole money. Pete & Paul Believe this is OK? It's only time and they will cut something that hurts you.
The schools that require the refurbishing are still there, the children that go to these schools, are damaged by working and living in poor buildings, the teachers do not want to work in these poor conditions, and then we wonder why our children have no respect no education no skills no future. No Vote.
- Frederick, London, 12/07/2010 11:21
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Paul - so it's good that Peter has laid off 37 workers who have now presumably joined the dole queue? The taxpayer you will now be funding these 37 people so actually cutting public spending doesn't help does it?!
- Caroline, London, 12/07/2010 10:51
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Paul,my company works in both Public,and Private sectors,are you saying that buildings owned by the tax payer (you and I) should be allowed to fall into disrepair? These 37 men are no longer paying tax,and I expect in the current climate You and I will now be paying them job seeker's allowanc.
- Peter Rowlings, London SW, 12/07/2010 10:46
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Peter....good. You should be refurbishing private companies' premises who pay for it out of their own pocket and not the taxpayer. They owe you nothing!
- Paul, London, 12/07/2010 10:28
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You know what they say, there are always winners and losers, i.e the losers are the public, the winners the bankers. Next time the losers will be the public and the winners will be the bankers, in the next dip, the losers will be the public and the winners will be the bankers..And so on....
- DC, Ealing, 12/07/2010 10:17
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I have been informed that due to Public Spending cuts,the building company I own will not now be required to refubish two schools in South west London,last Friday I layed off 37 worker's,I believe this to be the norm nation wide.
- Peter Rowlings, London SW, 12/07/2010 10:02
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So sorry to hear that public fundinmg gravy train is coming to an end....not. If you can't create private wealth you should not be reciving any public funds! Public workers take note!
- Paul, London, 12/07/2010 09:42
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