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Government urged to improve support for small construction firms

Construction

24th June 2009

The government is "ignoring" the interests of smaller firms in the construction sector, according to the Federation of Master Builders (FMB).

Ministers have blocked a proposed amendment to the local democracy, economic development and construction bill that would have helped small businesses to gain greater access to local authority contracts.

The organisation suggested that the move will leave many small companies struggling in the current economic climate, with the number of job losses in the construction industry "heading towards 450,000".

Brian Berry, FMB director of external affairs, said: "Sadly, the government seem more than happy to support other ailing industries but consistently ignores the plight of small construction firms."

He added that the government must take action or face further unemployment in the sector.

Reuters has reported that over 2,500 jobs in the construction industry could be created as a result of plans by pub operator Marston's to invest £140 million in new buildings over the next three years.

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