Michael Levack, chief executive of the Scottish Building Federation, says: “Whatever the scale of cuts we face, investment in capital projects must become a far greater priority if we are to avoid another year of construction in the doldrums.”
The latest construction purchasing managers index survey from the Chartered Institute of Purchasing & Supply shows the Scottish construction industry going back into decline. Levack says that this “should set alarm bells ringing in the corridors of the Scottish Parliament as negotiations intensify amongst MSPs over next year’s Scottish budget”.
Levack points out that the CIPS findings follow a Scottish Building Federation membership survey, published in December, which found 60% of construction firms reporting a reduced order book compared to the same time last year and more than 60% expecting to have to reduce the size of their workforce in the course of 2011.
He says: “With the Scottish Government’s draft budget for 2011-12 proposing a 21% cut to the capital heading of the budget, compared to a 2% cut in revenue spending, the construction sector is bearing the brunt of public funding cuts. Investment in housing, schools, hospitals and infrastructure will suffer, placing the fragile recovery of the Scottish economy at risk. “
Got a story? Email news@theconstructionindex.co.uk
