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Construction leaders call on PM to ‘do duty’ and avoid no-deal Brexit
The construction sector’s biggest trade bodies have called on the government and MPs to agree a deal with the European Union, warning a no-deal Brexit could lead to a 4% drop in construction output.
In an open letter to prime minister Theresa May, the construction industry’s five biggest trade bodies warned against an “unplanned no-deal exit” and said the inability to agree a way forward was leaving the whole industry – from multinationals to small and medium-sized builders – struggling to overcome market uncertainty.
It said that leaving without a deal could lead to a fall of at least 4% in construction output this year and a further 2% drop next year. Housebuilding and commercial sectors are expected to be the worse hit with falls of at least 10% in 2019.
Signatories of the letter include the Civil Engineering Contractors Association, the Federation of Master Builders, the Association for Consultancy and Engineering, the Construction Products Association and Build UK.
The UK is set to leave the EU on 29 March but it is still unclear whether the UK will agree a trade deal with EU before that point, or whether the date for the UK’s exit will be delayed.
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The letter said that currently construction companies were preparing for an unknown future, and spending “valuable time and resources” stockpiling materials, organising transportation alternatives for goods and auditing and guaranteeing the resilience of their supply chains.
It added that the immediate impact of a no deal would lead to many firms not knowing the costs and materials needed on projects or if they will arrive on site at all, which could lead to delays on a range of projects from bridge maintenance to housebuilding.
The impact of Brexit on the construction sector is already starting to be seen, with construction output in December hitting its lowest level since 2012.
The letter said: “With the impact of the previous financial crisis not forgotten in an industry that experienced countless business failures, plant closings and nearly half a million job losses, the resilience of our industry has its limits.
“The construction sector is urging the government and parliamentarians to do their duty and agree the arrangements for trading with the EU as a matter of urgency.”
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