Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Government must protect small contractors during credit squeeze

Government action is needed to protect civil engineering contractors from redundancies and closure, the Civil Engineering Contractors Association (CECA) said yesterday.

CECA said increasing numbers of contractors are reporting a squeeze on their credit facilities by banks despite the fact that the Government has offered a £37bn bailout on the condition that they return lending to 2007 levels.

Small civil engineering contractors would be at greatest risk of redundancies and closure with cash flow being squeezed and the volume of work available reducing rapidly, it added.

CECA director Rosemary Beales said: “We want to see today’s meeting between the chancellor and bank chiefs having a positive impact on the plight of contractors, particularly the smaller businesses.

"The Government has spent £37bn of taxpayers’ money bailing out banks who are failing to keep their part of the bargain by not lending at 2007 levels. If the cost of this is the loss of some of the most enterprising small firms in the country, with the knock-on losses in employment and skills and the future cost of construction with the absence of a vibrant SME market, then the cost to the taxpayer will be far greater than the initial bailout."

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.