Scottish cuts will cost construction 47,000 jobs

Grant Prior 14 years ago

Planned cuts to capital investment in Scotland will cost 47,000 construction jobs north of the border.

Leaders of the Scottish Building Federation have issued a last minute plea to Chancellor George Osborne to consider the huge impact on construction employment ahead of next week’s spending review.

In a letter to the Chancellor, the Federation’s Chief Executive Michael Levack suggests the effects of a projected 40% cut in Scotland’s capital budget between 2009/10 and 20014/15 would be ‘highly counterproductive’ and could undermine attempts to build a sustainable economic recovery.

The letter highlights official statistics from the past two years which show that between 2008 and 2009 Scottish construction industry output fell by £1.7bn while 42,000 people directly employed in the industry lost their jobs.

Over that period, the Federation estimates that a further 8,000 Scottish jobs dependent on the industry would also have been lost.

Recent estimates predict that Scotland’s capital expenditure is likely to fall by 40% or £1.6bn over the next five years.

The federation’s analysis of official statistics on industry employment and output suggests that for every percentage point reduction in capital investment an additional 1,200 jobs could be lost.

The letter to the Chancellor also warns that any signs of recovery in private sector construction remain “fragile” and urges the introduction of “targeted measures to stimulate private sector construction activity” to compensate for “any cuts in capital investment that are deemed to be unavoidable”.

Levack said: “We remain extremely concerned about the potential impact of such significant cuts in Scotland’s capital budget on employment in the construction industry.

“By analysing recent official statistics, we have attempted to quantify what that impact is likely to be. It amounts to a loss of jobs equivalent to roughly one quarter of the current workforce. Clearly, the hope must be that a proportion of this loss will be compensated by a rise in investment from the private sector.

“At the moment, however, our concern is that any recovery in private sector construction activity remains very fragile.

“Therefore, if the Government is telling us that funding cuts of the scale predicted are unavoidable, incentives must be introduced to stimulate recovery in the private sector. Otherwise, we could see a net loss in total industry employment dangerously close to the 47,000 job figure we have highlighted to the Chancellor.”

Latest news

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
3 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
2 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
2 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
2 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
2 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
3 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
3 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
3 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
3 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
3 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
3 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
3 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
4 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
4 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
4 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
4 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
4 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
4 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
5 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
5 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
5 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
5 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
5 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
5 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
5 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
5 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
5 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
5 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
6 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
6 days ago

Contractor services