Skills crisis to hit costs

The cost of big building projects will be driven up by a sklls crisis, the boss of Balfour Beatty has warned.

Leo Quinn said a shortage of trained engineers, in particular, will be a huge challenge in the years ahead.

It comes as the UK gears up for a wave of major infrastructure projects, such as the High Speed 2 rail line, Hinkley Point nuclear power station and the proposed Heathrow Airport expansion.

Brexit could worsen the skills shortage as EU workers are deterred from coming here, or head home.

Quinn said: “The cost of labour will go up”, with an impact on the final bill for projects.

It came as Balfour announced it had swung back into the black in the six months to end of June, going from a £15million loss to a £12m profit, triggering a 6% jump in its share price.