Five of the
industry's leading trade bodies have added their voices to those of business
colleagues across the UK and called upon Government and all opposition parties
to work together and agree the arrangements for trading with the EU as a matter
of urgency.
The five - Build UK,
the CPA, FMB, CECA and ACE - have written to Prime Minister Theresa May
outlining their concerns about the impact of a no deal Brexit on the
construction industry.
The letter states:
"Whether a
leaver or remainer, we all rely on the construction industry to provide and
maintain our built environment, and leaving the EU without considered
arrangements in place for the UK to trade across Europe is already damaging and
hampering our ability to do business.
"The immediate
effect of leaving without a deal in place is not knowing the cost of the
materials and goods that construction projects rely on, or if they will arrive
on sites across the four nations to keep projects of all shapes and sizes on
track. Delays in completing building and infrastructure projects impacts
our lives in so many ways; it may be the new hospital in a community which will
speed up lifesaving treatments, the homes desperately required, urgent
maintenance to our heritage buildings or vital repairs to bridges and roads
that will keep Britain moving.
"The UK economy
mirrors the construction economy and the lack of knowledge and information
around the UK’s exit from the EU has already reduced investment and output
which will not be recovered.
"Even now, the
continuing inability of policy-makers to agree a way forward has left the vast
majority of our members – multinationals and SMEs alike – struggling to
overcome the market uncertainty impacting their businesses. Data from the
ONS and Markit/CIPS make clear the worsening erosion in recent construction
activity; contracts for new major offices projects, for example, have fallen
sharply since the EU Referendum due to concerns from investors over long-term
economic prospects and returns.
"This comes
whilst our members seek to properly prepare for an unknown future after March
29th. As in other sectors, they
are spending valuable time and resources on stockpiling; transportation and
logistics alternatives; auditing and guaranteeing the resilience of their
supply chains; and vetting contractual risks and obligations. Leaving in
an unplanned way on March 29th with a
No Deal Brexit could lead to a fall of at least 4% this year and 2% next year
in the £163 billion construction industry, and the greatest impacts felt on the
house building and commercial sectors, which would both be expected to fall by
at least 10% in 2019.
"With the
impact of the previous financial crisis not forgotten in an industry that
experienced countless business failures, plant closings and nearly half a
million job losses, the resilience of our industry has its limits. The
construction sector is urging the Government and parliamentarians to do their
duty and agree the arrangements for trading with the EU as a matter of
urgency."
