£7bn of construction at risk if Scots vote ‘yes’

Aaron Morby 3 years ago
Share

Over £7 billion of planned construction works could be in jeopardy if Scotland votes for independence next Thursday.

Scottish independence

Scotland is presently benefitting from a work boom with more than £38bn of construction projects planned.

But, according to research by construction intelligence specialist Barbour ABI a fifth of these are being funded by investors based outside of Scotland.

Researchers warn that the likelihood of these projects going ahead as intended may hang in the balance depending on next week’s result.

Scotland has a higher prevalence of contracts in the infrastructure, healthcare, education and industrial sectors compared to the wider UK market. It is under-represented in the commercial, retail, residential, hotel and leisure sectors.

Michael Dall, lead economist at Barbour ABI, said:  “There are a large number of projects in the pipeline in the renewable energy sector which is subsidised by the UK-wide renewable obligation, calling these into question.

“If Scotland does choose independence, it’s likely that negotiations between UK and Scottish Governments will be prolonged and complex, posing a potential risk to both public and private sector contracts.

“With the lion’s share of planned works being funded by non-Scottish businesses, the currency question will also have a direct impact.”

Contracts research company Glenigan has seen a sharp fall in the value of projects securing planning approvals so far this year.

The value of  industrial, office and retail projects granted planning dropped by £230m.

The utilities sector has also suffered a notable decline in the first seven months of this year, with the value of approvals falling 26% compared to the same period in 2013 – a £100m deficit.

Allan Wilén, Economics Director at Glenigan, said: “The drop in activity, which follows a relative positive performance in 2013, appears to reflect investors’ temporarily deferring decisions.

“The danger is that these uncertainties persist following the referendum.

“Commenters have raised concerns that firms headquartered outside of Scotland may reassess their investment plans in the event of a yes vote next week.

“However, construction product manufactures supplying the UK market from Scotland face similar pressures.

“In the event of a yes vote it will be important that the key economic issues, from the currency to the operation of energy markets, are quickly resolved in order to provide the private sector with the confidence to press ahead with planned investments.”

Latest news

Nine firms win places on £225m modular framework

Fusion 21 picks winners for education authorities to use
5 hours ago

Developers scale down plans for Wylfa nuclear plant

Number of construction workers needed falls to 8,500 from 10,000
8 hours ago

Facebook snub prompts refurb rethink on Oxford Street

Great Portland Estates considers more extensive revamp at Oxford House
7 hours ago

McLaren lands deal to fit-out new home of the FT

Newspaper staff will have a running track on the roof of New Bracken House
1 day ago

Skanska appoints new head of building business

Katy Dowding promoted as contractor unveils management reshuffle
1 day ago

Bid race begins for £20m mega car park

Port of Southampton plans largest car storage facility yet
9 hours ago

MVS Group lands M&E deal at new Spurs stadium

Midlands specialist boosts turnover and opens new North West office
16 hours ago

BAM wins £20m Sheffield school

Mercia secondary school will open late next year
1 day ago

Sparks down tools on Skanska Crossrail sites

Electricians "cabin-up" in row over bonus pay and union recognition
1 day ago

Renew pulls out of low pressure gas mains work

Forefront Utilities business to focus on medium pressure replacement schemes
1 day ago

Wonky crane gets Multiplex out of a tight fix

Ingenious crane design at London's tallest tower site
1 day ago

200 Quadrant Construction staff face restructure

L&Q to close Quadrant Construction brand in big shake-up of development activities
1 day ago

Construction to start on £100m Bath resi scheme

Investment fund buys former Bath Press site
1 day ago

Three bosses jailed after fatal roof fall

Court hears how safety measures were ignored to save money
2 days ago

Property firm merges with main contractor

Wigley Building and Development will target projects up to £12m
2 days ago

Go Interiors acquires cladding specialist FGF

Deal creates £65m distribution business
2 days ago

Revamp of world’s first factory trials novel procurement

Derby Silk Mill project to test integrated project insurance
2 days ago

Manslaughter verdict after double site death

Two Polish workers killed after site lift goes horribly wrong
2 days ago

Bidding starts on £30m Warwick School

Work to start this summer on new King's High school
2 days ago

Race to start in June for £26m Preston student gateway

The University of Central Lancashire is planning to build a landmark centre and new square
2 days ago

Chigwell gets green light for homes at show jumping centre

Latest new build resi scheme for repair and maintenance specialist
2 days ago

Detailed plans in for £1.4bn Brent Cross scheme

If approved, enabling works set to start next summer
5 days ago

Balfour Beatty fends off revolt over chief’s pay

Balfour chief Leo Quinn's bonus raised from 120% to 150% of salary
5 days ago

Manchester fit out specialist goes under

Sustainability Inc now in the hands of liquidators
5 days ago

Plan for £90m Ascot hospital rebuild

NHS trust says new plan is only way to secure hospital services in Ascot
5 days ago

Grainger to build PRS project every two months

UK's largest residential landlord races to deliver PRS building programme
5 days ago

City Airport to build digital air traffic control tower

50-metre high tower will beam pictures to air traffic controllers miles away
5 days ago

L&G strengthens housing delivery team

Former Skanska and BAM managers sign up to L&G housing drive
5 days ago

Mace Nova site finishes late and busts budget

Developer Land Securities confirms cost and time overruns
6 days ago

Glencar seals deal for major warehouse revamp

Contractor founded by ex-McLaren directors bags distribution centre job
6 days ago

Contractor services