Budget 2009 measures to boost construction sector

The Minister for Finance, Brian Lenihan, has announced a series of measures in Tuesday’s Budget 2009, including €889 million investment in education building along with €1.65 billion allocated to housing both of which area welcome boost to building industry.

Gross capital spending in 2009 will amount to over 5% of projected GNP in 2009, or €8.2 billion in absolute terms, which is to be allocated to areas including the following:

-€1.65 billion to be spent to housing programmes in 2009, with Government to take an equity share in affordable housing

-€889 million investment for capital education projects next year, €581 million, or two-thirds of the total education capital budget, will be devoted to the school building programme.

-€265 million capital investment for third level education projects

-€20 million for the Home Energy Saving Scheme in 2009, an increase of €15 million on 2008.

-€5 million for warmer homes scheme

In addition to the public housing scheme announced, tax relief for first-time buyers has also been increased from 20% to 25% in years 1 and 2, with years 3, 4, and 5 to be hiked to 22.5%.

The top rate of commercial property stamp duty is also cut from 9% to 6%.

In total the capital investment spend equates to €24.6 billion over the next three years until 2011.