The call comes in the wake of depressing figures from construction buyers which saw the sharpest drop in construction output for two-and-a-half years.

Richard Threlfall, KPMG’s head of infrastructure, building and construction, said: “The disappointing construction figures come as no surprise.

“We have seen in recent months failures of some of the biggest construction players such as the 150 year old firm Killby & Gayford. More recently we have seen the equally well-respected construction firm Doyle go into administration.

“This is the start of a new phase in the downturn for the construction industry in the UK, driven by a waning pipeline, evaporating margins and lengthening payment periods.

“The pressure on the indutsry is now becoming acute. The government needs to act now to support UK’s struggling construction industry.”