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The Construction Leadership Council (CLC) has written to prime minister Boris Johnson to warn that the construction industry faces “unprecedented challenges” in the event of a shutdown to slow the spread of coronavirus.
The CLC has urged Johnson to provide a package of support measures to support construction firms, which it points out, is responsible for 12-14% of GDP and employs 3.3 million people.
It has requested that the government:
- Ensures all construction sites across the UK are able to remain open, as long as they are able to do so responsibly.
- Instructs all public sector construction clients to continue to pay their contractors and supply chain.
- Consider implementing financial measures, such as the deferral of VAT & PAYE payments, that will reduce the burden on business and keep cash moving as long as possible.
The letter, signed by CLC co-chair Andy Mitchell and co-signed by the chief executives of the Civil Engineering Contractors Association, Build UK, the Federation of Master Builders, and fully supported by the Chartered Institute of Building (CIOB) said: “Our requirement is that we are able to keep our construction sites operational during this time, in order to avoid many thousands of job losses, the closure of thousands of businesses and delays and cost increases on crucial programmes and projects.
“If construction activity comes to halt, given the scale of employment provided by our sector, there would be an immediate need for the government to provide emergency financing to keep the construction industry operational and prevent irreversible damage to the economic security of millions of people. To minimise the requirement for any government support, it is critical that our supply chain is able to stay in place and keep working as long as is possible – and that will in turn maintain readiness and help to drive recovery efforts.”
And it warned: “Should the coronavirus cause a ‘shut down’ of the construction sector, we will face unprecedented challenges that we know from previous downturns will cause many companies and individuals to face significant financial repercussions. Many construction companies will not have enough cash available to continue to pay suppliers and wages, even if there is a relatively limited period of economic inactivity.”
The letter came after Johnson announced new social distancing measures on Monday, as well as urging people to avoid non-essential travel and to work from home where possible.
