The shortage of big projects is already hitting main contractors and prompted bosses to review future workloads and overheads at firms like Balfour Beatty and Morgan Sindall.

New research from industry information specialist Glenigan shows that for the year to October, the total value of £100m-plus project starts fell a fifth to £7.5bn.

Major road and rail projects hit a new post-crisis low, running at nearly half the levels seen in 2010 as government ideas fail to translate into new work on the ground.

“The continued slowdown in major projects that we have seen this year is the result of reduced capital budgets across Government departments, uncertainty regarding the PFI scheme and hesitation by the private sector to invest in large and often long term projects.” said Glenigan Economist Andrew Whiffin.

“Despite government attempts to promote infrastructure investment with UK Guarantees, private sector investors are unwilling to commit in the current climate when it comes complex large scale road and rail projects, and it is this that is constraining starts of major projects in the sector.” warned Whiffin.

Major utilities projects have held up well for the year to October, reaching £3.1bn only marginally short of last year’s total of £3.3bn.