Brexit vote leads to warnings for construction industry
The Prime Minister Theresa May suffered the largest Commons defeat ever recorded this week after her Brexit deal was rejected. The continued uncertainty has led construction industry experts to issue warnings about the effect on the sector.
The proposed Brexit deal was rejected by 230 votes and was followed by a no-confidence vote that May narrowly won. This has meant that the country could see a No Deal Brexit or possibly a delay to the entire process.
Industry experts have suggested that this could lead to a fall in the pound, impacting material costs for construction firms. Mark Robinson from procurement specialist Scape has stated that construction growth could be stalled due to the uncertainty and that industry needs clarity on access to construction talent from the EU to be able to deliver much-needed house building.
Melanie Leech from the British Property Federation agrees. She points out that a No Deal Brexit will be harmful to investment that could deliver new homes, build on economic growth and regenerate towns and cities.
The Royal Institute of British Architects has also said that they would like to see an extension to Article 50, essentially delaying Brexit, but increasing the chances of a deal being struck.
It also emerged this week that the Construction Leadership Council has convened a high-level emergency meeting regarding Brexit and the possibility of a No Deal exit. This will take place at the end of the month and will bring together 100 industry chief executives.