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The Federation of Master Builders wants changes to Government lending policies
FINANCIAL schemes aimed at helping construction firms must be simplified to support the economic recovery, building bosses have warned.
The Federation of Master Builders (FMB) says the Government must change its lending policies, which it says are hindering small and medium-sized construction companies, and needs to lower VAT on domestic building work.
Brian Berry, FMB chief executive, said: “Programmes such as Funding for Lending and the Business Bank, which are designed to make financing more accessible for small businesses, are failing to help construction companies because banks remain reluctant to lend.
“Construction firms need to able to secure financing to grow in line with demand, which is why it's so important to remove any barriers preventing this from happening.”
Mr Berry said small business owners are confused over accessing finance schemes, and claims banks are discriminating against companies in the construction sector.
He said: “This is hampering house building, because two thirds of our house builders are citing difficulty in accessing business finance as a major barrier to their ability to build more new homes.
“Unless the Government acts now to unify and simplify the schemes on offer, as well as stamp out discrimination against building firms applying for loans and overdrafts to buy materials, hire plant, or take on staff, the opportunities presented by the improving economic conditions will be lost.
“We also need a reduction in VAT on domestic building work to five per cent, which can secure the recovery and rescue the Green Deal.”
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