UK construction and a Conservative majority: A positive result providing Brexit does get done
Following the Conservative victory in the general election, Brendan Sharkey, Head of Construction and Real Estate at MHA MacIntyre Hudson, believes confidence will return to the ailing sector but that it could prove fleeting:
“Construction and Real Estate should feel relieved following the Conservative win. Work has been drying up, especially for civil engineering and the construction sector, dependent as it is on government infrastructure projects, was suffering due to political drift.
“Now fruitful reforms, such as changes to Stamp Duty and general business rates, should come to the fore. Worryingly the larger infrastructure projects such as Heathrow airport and HS2 have no political head wind, but investment in schools and hospitals should now see funding move through the pipeline and this will provide a much-needed stimulus to the sector. The industry is crying out for commitment, the larger the better.
“The great unknown will be whether the next stage of the Brexit negotiations will suck up political energy and sap confidence, just as the ratification of the Withdrawal Bill has. If so, the economy will get closer to a recession and business confidence will suffer, and the situation in one or two years’ time might look very similar to the malaise and drift we are experiencing now.”