LONDON, September 11, 2014 /PRNewswire/ --
Over £7 billion of planned construction works could be in jeopardy if Scotland votes to leave the United Kingdom next Thursday.
New data from construction intelligence specialists Barbour ABI shows that currently £38 billion of construction projects are planned across Scotland; however, with the investors funding these projects headquartered outside of Scotland, the likelihood of activity going ahead as intended may hang in the balance depending on next week's result.
With a significant proportion of Scottish projects in the pipeline focusing on the renewable energy sector, which benefits from a UK-wide subsidy, these projects may be particularly at risk should Scotland vote for independence.
Commenting on the findings taken from its report, Scottish Construction: A Bright Future?, Michael Dall, lead economist at Barbour ABI, said: "In the past 12 months, construction in Scotland has outperformed other areas of the UK, with it having the third highest volume of contract value, only behind London and the South East.
"But with around a fifth of the planned £38 billion of construction contracts in the pipeline being projects proposed by companies outside of Scotland, it's unsure what will actually come to fruition if it's a yes vote. In addition, there are a large number of projects in the pipeline in the renewable energy sector, which is subsidised by the UK-wide renewable obligation, calling these into question.
"If Scotland does choose independence, it's likely that negotiations between UK and Scottish Governments will be prolonged and complex, posing a potential risk to both public and private sector contracts, and with the lion's share of planned works being funded by non-Scottish businesses, the currency question will also have a direct impact.
"Next Thursday's result will certainly lead the construction industry into unchartered territory with potential implications for firms and employees in Scotland and the rest of the UK."
About Barbour ABI
Barbour ABI is an expert provider of market intelligence for the Built Environment sector, having a long history in helping the community to grow its business. Its reputation is built and maintained by the in-house team of market researchers who have excellent working relationships with planning authorities and other relevant information providers, including Government departments.
The company was recently appointed by the Office for National Statistics (ONS) to provide Construction New Orders data, a key indicator of the health of the Built Environment industry for the UK economy. Last year, the firm was appointed to collate, maintain and publish the UK Government's Construction and Infrastructure Pipeline, the forward programme of publicly-funded construction. Barbour ABI also produces the CPA/Barbour ABI Index monthly alongside the Construction Products Association (CPA), and is the chosen data provider for the CPA Forecasting Panel.
Barbour ABI is part of UBM. UBM plc is a global events-led marketing services and communications company.
SOURCE Barbour ABI