One of the ways in which the government will motivate the construction sector is by making the UK the best place in Europe to start, finance and grow a business. The multiplier effect this has on the local economy Is that people who want to open a business In the UK will demand a new shop this Is where the construction sector will have a higher demand meaning ore sales. Another way In which the government has proposed to stimulate the construction sector is by creating a more competitive tax system.
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This policy will lead to businesses moving to the UK in order to get a cheaper tax rate, for the UK it will attract businesses to start in the UK meaning a stronger economy for the ASK. When these businesses move to the UK they would want a place to operate in this is where the construction industry will become more needed. It will also create more Jobs for he local economy. The government also aim to make a 33% reduction in both the initial cost of construction and the whole life cost of assets.
This has multiple affects and one of those are that the construction companies will have a reduction in cost which will Increase the chances of making profit. The government also want to make sure they maximize the economies return In money for their people, this policy also has multiple affects as the government will be working hard to ensure businesses are successful this Is the stimulation it will have on the local economy.
It will help the construction sector as they will be able to receive support from the government in order to make profit. To create a more educated workforce that is the most flexible in Europe, this way the government will encourage every sector as well as the construction sector to have more skilled employees, therefore it will make the local economy to start educating themselves more in order to be employed making a very educated workforce.See More on Economics