Public spending cuts will have a major impact on commercial development, but the real effects will not be seen for two years, it is claimed.
The government's plans for cutting spending will have an "incredibly big" impact on the
commercial development sector, it has been claimed.
As the Conservative-Liberal Democrats coalition seeks to reduce Britain's crippling fiscal debt, the number of projects undertaken by
property investment firms will decrease, according to Dave Lowery, reporter at Construction News.
The Construction Products Association, which represents those who supply materials to the commercial development sector, claims that sales of construction products have increased in the second quarter of 2010 to reach their highest point in three years.
However, while this is indeed good news, in reality it is just a small increase from what was already an extremely low level, according to Mr Lowery.
He concluded that public spending cuts will hit hardest in around two years-time, when existing contracts are completed.
"You are still going to get that growth in the short-term because [it is] against particularly weak comparatives, but it is in a year or two when it could hit the hardest," Mr Lowery said.
Posted by Tess Nelson
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