Building’s Charter 284 campaign aims to leave the political parties in no doubt as to the economic and social benefits of investing in construction work

•     Complete the renewal of the school estate
•     Don’t let spending on transport infrastructure fall more than 10% below current levels
•     Reduce the regulatory burden on the housing sector to encourage more development
•     Give householders incentives to green existing homes
•     Prioritise the development of renewable and nuclear energy through incentives for private sector investment

Spending on construction significantly benefits the UK economy, according to independent research by L.E.K. Consulting, the international strategy consultancy, commissioned by the construction industry body, UK Contractors Group (UKCG), in partnership with the CBI. The report, Construction in the UK economy: The Benefits of Investment, shows that construction is the best sector for stimulating employment.

It also shows that every £1 spent on construction leads to an increase in GDP of £2.84, as the spending not only creates construction output worth £1, but also stimulates growth elsewhere in the economy worth £1.84.

In some areas, such as building schools, the economic benefits of construction are even more pronounced. L.E.K. Consulting estimates that every £1 spent in this area leads to a total economic benefit of between £3.87 and £5.04, partly because of the direct benefit to the economy, but also because of improved education services that lead to a long-term benefit via a higher-skilled workforce.

The report follows figures last week showing that GDP fell by 0.4% in the third quarter of this year. It makes the case for continued investment in construction projects that are crucial to the long-term future of the UK economy.