UK
Ireland
Scotland
London
Construction News
31/05/2013
Study Reveals UK Construction Industry Has Shrunk By 10%
The UK economy would have grown three times faster over the last year if the government had stopped the decline of the UK construction industry, according to new analysis of official figures published by the TUC today .
The analysis shows that had construction output remained the same over the past five quarters economic growth would have increased by 1.2 per cent instead of just 0.4 per cent.
The UK construction industry has shrunk, overall, by ten per cent since the government came to power, the study reveals. Construction output is now at its lowest level since 1998.
The main reason for this fall has been recent cuts to publicly-funded construction projects, which account for a fifth of total construction output, says the TUC.
Since the election the government has slashed Treasury support for public construction works by over a quarter (27.3 per cent). During this period public money for house building has been cut by a fifth (20 per cent) and spending on school, hospital and transport building projects cut by over a third (37.8 per cent).
The fall in public sector construction projects has not been made up by the private sector, the study shows. Private sector funded construction works have declined by 4.5 per cent since the government took office.
The government's failure to support the construction industry has also resulted in huge job losses, says the TUC. The research highlights how construction employment has fallen by 70,000 over the last year and by 89,000 since the coalition took office.
In addition, wages for those workers who have managed to survive the cull have shrunk in real terms by over £3,000 a year over the course of this parliament.
Unless the government provides more public funding the construction industry will continue to be a drag on economic growth, says the TUC.
The TUC wants the government to kick-start an ambitious programme of affordable house building and investment in infrastructure projects. The government's refusal to borrow to invest, and instead wait for private money that isn't arriving, is preventing projects getting off the ground, says the TUC.
(CD)
The analysis shows that had construction output remained the same over the past five quarters economic growth would have increased by 1.2 per cent instead of just 0.4 per cent.
The UK construction industry has shrunk, overall, by ten per cent since the government came to power, the study reveals. Construction output is now at its lowest level since 1998.
The main reason for this fall has been recent cuts to publicly-funded construction projects, which account for a fifth of total construction output, says the TUC.
-- Advertisement --
Since the election the government has slashed Treasury support for public construction works by over a quarter (27.3 per cent). During this period public money for house building has been cut by a fifth (20 per cent) and spending on school, hospital and transport building projects cut by over a third (37.8 per cent).
The fall in public sector construction projects has not been made up by the private sector, the study shows. Private sector funded construction works have declined by 4.5 per cent since the government took office.
The government's failure to support the construction industry has also resulted in huge job losses, says the TUC. The research highlights how construction employment has fallen by 70,000 over the last year and by 89,000 since the coalition took office.
In addition, wages for those workers who have managed to survive the cull have shrunk in real terms by over £3,000 a year over the course of this parliament.
Unless the government provides more public funding the construction industry will continue to be a drag on economic growth, says the TUC.
The TUC wants the government to kick-start an ambitious programme of affordable house building and investment in infrastructure projects. The government's refusal to borrow to invest, and instead wait for private money that isn't arriving, is preventing projects getting off the ground, says the TUC.
(CD)
Latest Construction News
17/01/2025
Leeds Trinity University has officially opened its newly refurbished City Campus at 1 Trevelyan Square in Leeds.
Completed by GRAHAM Interior Fit-Out, the transformation of the central Leeds site introduces state-of-the-art facilities designed to improve learning and collaborate with industry partn
17/01/2025
Trammell Crow Company (TCC) has secured planning permission for a Grade A logistics scheme in Heywood, Greater Manchester, following a successful planning appeal.
The development will feature two state-of-the-art industrial and logistics buildings. One building will house two units measuring 4,796
17/01/2025
Poole-based developer AJC Group has celebrated a record-breaking 2024, delivering 100 affordable homes, a significant increase from the 72 units completed in the previous year.
Since 2023, AJC Group has completed and handed over 172 affordable homes across five sites.
In 2024 alone, the developer
17/01/2025
Plans for one of the most ambitious parks projects in London have taken a significant step forward, with Haringey Council securing nearly two additional acres of land around The Paddock nature reserve in Tottenham Hale.
The agreement with Thames Water marks a major milestone in the transformation o
17/01/2025
Islington Council has unveiled two draft guidance documents aimed at helping residents, businesses, and developers combat climate change by making buildings more energy efficient and fostering a greener, healthier borough.
The consultation seeks feedback on the draft Climate Action Supplementary Pl
17/01/2025
The City of Wolverhampton Council has unveiled a £98 million investment plan over the next five years to develop around 500 new homes across the city.
The proposal, part of the Housing Revenue Account (HRA) Business Plan, received Cabinet approval this week and now moves to Full Council for final
17/01/2025
Croydon Council has announced a significant milestone in the redevelopment of the Purley Pool site, with revised proposals submitted for a new leisure centre, later living housing, and the regeneration of the surrounding area.
A planning application for the site was initially submitted in 2024, pro
17/01/2025
The City of Wolverhampton Council has announced that demolition work has commenced on the New Park Village estate, marking the start of a major £40 million redevelopment project to transform outdated council housing.
Contractor DSM Demolition has begun pulling down poor-quality bungalows on Valley
17/01/2025
Hillingdon Council has acquired 12 new homes at Carpenters Court in Uxbridge.
Leader of Hillingdon Council, Cllr Ian Edwards and Cllr Steve Tuckwell, Cabinet Member for Planning, Housing and Growth, visited the site to officially mark the handover of the properties from local developer Kearns Devel
17/01/2025
Organisers of UK Construction Week (UKCW) have announced another major coup for the show's 10th anniversary year, with the news that UKCW London will be co-locating with the 14th edition of The Stone Show & Hard Surfaces, the principal industry event for surface design.
Established 26 years ago, th
