The construction industry has suffered in the recent economic climate, but is vital for the UK’s economic growth. It underpins the housing market and is a major contributor to GDP, responsible for 6% directly.

We asked Chloe Baker, a Sage Cover member and director at Kingsmen Construction Services in Reading, about the future of building in Britain.

How did the recession effect your business?

We've had to change a lot, and the direction in which we’re now marketing ourselves is to a place that is more recession proof. Building regulations have got tighter and materials and transport costs have gone up a lot, so we find it hard to be competitive on smaller jobs. That’s why we now specialise in high-end domestic jobs, such as extensions and refurbishments. Although we’re doing well and we’re very busy, we used to tender against one to two other companies, we now tender against about eight. It’s massively competitive.

Have programmes like Grand Designs had a positive effect on your business?

No, in fact I think the media can be very negative about contractors. We’re constantly faced with the opinion that the architect and the engineer know best, and as builders we will try to rip them off or do sub-standard work, which is completely opposite to our ethos. We employ all our tradesman because we have real value on the team. We use Investors in People and we try very hard to bring in people as apprentices and move them up to supervisory roles.

Do you think the Government can do more to help the construction industry?

For starters VAT on construction needs to be looked at- it’s very hazy. For example, if we fit green items such as solar panels or rainwater harvesting as part of a job then we have to charge at the standard VAT rate. But if we are commissioned separately, we can charge 5% – there are some discrepancies there. A general cut in VAT would massively stimulate the industry. If you’re spending £60,000, to add an extra 20% to this is an awful lot of money. The construction industry has a big effect on the economy. It would create so many jobs if it was supported a bit more.

Investment to transform UK construction sector

Interestingly, after this chat with Chloe, the government announced that the construction industry in the UK is set for a boost of up to £150 million over the next five years to help reduce construction times, improve quality and make buildings more efficient. So it’ll be interesting to see how businesses like Kingsmen will benefit

Are you in the construction industry? Do you have an opinion on a business issue that you’d like to share?