Construction industry presses for further investment at regional level post-Brexit
David Hawkes of the Chartered Institute of Building, responds to a report by RICS which found construction firms had cut back their expectations of growth for the next 12 months.
While construction growth is expected to slow compared to estimates from earlier in the year, it’s important to note that workload and employment is still predicted to grow overall. We expect this is primarily because, in the short-term, companies will continue with the work already on their order books. The full effects of uncertainty as a result of Brexit might not become apparent until medium-term and beyond.
Having said that, the government has re-stated its commitment to major infrastructure projects such as HS2 and Crossrail 2, while the need to increase housing supply remains a top priority. In addition, the referendum result showed a stark dichotomy between London and areas of the country that many consider to have been neglected economically. Given the vital role construction has in driving local growth, the CIOB would actively press the case further for investment in construction and infrastructure at a regional level. Private investment and access to finance need both encouraging and protecting, so we would recommend that Government produces a timetable to provide answers and create a degree of certainty about doing business during and after Brexit.
Finally, from a labour force perspective it is imperative that the voice of the construction industry is heard clearly in the discussions about the UK’s withdrawal from the EU so it can help shape a sensible policy on migration that meets both its needs and those of wider society.
