Over £7 billion of planned construction works could be in jeopardy if Scotland votes to leave the United Kingdom this week
Data from construction intelligence specialist, Barbour ABI, declares 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’.
With a significant proportion of Scottish projects in the pipeline focusing on the renewable energy sector, which benefits from a UK wide subsidy, the report warns that these projects may be particularly at risk, should Scotland vote for independence.
“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,” commented Michael Dall, lead economist at Barbour ABI, on the findings taken from its report, Scottish Construction: A Bright Future?. “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.”
However, Mr Dall went on to state that if Scotland chooses independence, it was likely that negotiations between UK and Scottish governments would be prolonged and complex. He believed that there could be 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 would also have a direct impact.
Caption Barbour’s report on construction projects in Scotland may make grim reading for Yes defenders.