星空传媒

The recent budget has produced mixed feelings throughout the construction industry. While it was broadly welcomed for having no significant negative impacts on the industry, it was also criticised for not tackling existing problems.

David Pollock, ECA director, commented: "While the Chancellor's focus on flexibility, productivity and investment was welcome, nevertheless, the 2003 budget is a disappointing one for the electrical contracting industry."

The long-standing debate on vat for domestic repair, maintenance and improvement has been sidestepped, with the Treasury resisting widespread calls to reduce the level of vat to 5%. The problem of retention abuse, which is inherent in construction procurement, was also untackled.

"To a large extent this is a missed opportunity that does little to address the problems facing our industry," said Pollock.

On a positive note, increases in public sector spending have been welcomed at a time when the industry is beginning to experience a downturn. There were also promises of help with training initiatives. However, here the industry will have to wait until the publication of the Government's Skills Strategy in June to find out whether there will be any significant financial support forthcoming to help with the training of adults.

There are measures to assist small-to-medium-sized enterprises, such an extension of the Small Business Loan Guarantee Scheme, raising of the turnover threshold to 拢20 million, and the abolishing of fines for the late payment of vat.

Manufacturers and the environment also benefit, with proposed additions and amendments to the enhanced capital allowance (eca) scheme.