Analysis by construction payroll specialist Hudson Contract showed average weekly earnings increased by 1.8% to £944 in November – the highest pay levels on record.

Compared with the same period last year, earnings increased by 4.7% while earnings in the capital rose 6.1% to hit £962 a week.

Ian Anfield, managing director, said: “Our analysis shows we are back in the normal cycle where the industry as a whole works more hours in the run-up to Christmas.

“Storm Barra may have lost us a few days and contractors are fighting to get the materials they need but we are still within the most productive time of the year. The festive season is coming up and people know January will be slow with bad weather.

“The strong performance in the South West and Wales reflects the increasing investment in housing and infrastructure as part of the government’s ‘levelling up’ agenda.

“In London and the South East, growing demand for new housing and home improvements is feeding through to labour requirements and rates are catching up.

“Looking ahead, the removal of the red diesel rebate in April will hit groundworks contractors and quarrying companies the hardest and likely drive up material prices across the construction industry.

“The smaller and more agile firms on short-term contracts are able to react quickly and put their rates up as are the self-employed.”