Outlook brightens for building firms

The study, which is published today, concluded that 90 per cent of UK construction firms expect public spending cuts to act as a drag on their business.

Almost two thirds of the respondents to the first CBI/Speedy Services national construction survey, described the UK’s planning system as an obstacle to business.

Forty per cent reported a deterioration in the availability of finance over the past year.

However, the Chancellor’s Autumn Statement contained encouraging news for the sector, including details of the Funded Construction Pipeline and infrastructure spending.

Dr Neil Bentley, CBI Deputy Director-General, said: “Construction firms are facing tough operating conditions, and they are clear about what can be done to give the sector a boost.

“Firms want certainty, and they need guaranteed infrastructure spending to deliver it. Now the sector has grounds for optimism.”