Construction industry needs stability post-Brexit

Being selfish for a change, let’s recognise the importance of construction to the North East economy and its close links to almost all sectors.

Around 10 per cent of SMEs come from the construction sector and overall around eight per cent are employed through construction.

While the private for sale market seems strong, it’s the social, affordable area that is suffering and this has a major impact on construction.

The problem is grants for affordable new homes have been slashed by the Government, with the focus being on supporting housing for sale.

That is fine but we need a mixed tenure offering - let’s hope the new Government looks at this again.

While everyone gets to grips with Brexit , it’s important European Funding for Infrastructure and Build projects continues, then is replaced by government money.

The North East gained massively from European funding - once it disappears, that gap must be filled by our government.

Another massive source of workload for the industry is education and in particular the Universities. Often research projects funded by Europe spin off into construction work and again this gap must be filled.

The issue is aside from European funding. Central Government spend in the North East is very low compared to the South, and London in particular.

This is going to need a sea change to compensate for Brexit but the money is there from the membership savings or so we are told.

This is where Devolution can only help the regions case, it’s more important than ever that this is sorted and we get more control on our own destiny in the region.

Another massive factor is consumer confidence this is a driver of the economy and we look eagerly at all monitors to detect any change in sentiment.

While high level indicators immediately postBrexit were concerning, they are beginning to settle and confidence can be maintained.

The construction industry is resilient but it needs a sustainable supply of work to thrive.