The construction sector has yet to benefit from a post-election boom, according to activity figures for July.
Analysis from construction data experts at Barbour ABI found the Labour Party’s victory has failed to boost the sector, despite an uptick in energy projects moving forward.
Across the board, contract awards were down by a fifth in July, in comparison with the prior year. Planning approvals were also down by 36 per cent in the housing sector on last July, and down 9 per cent on June.
In particular, Barbour ABI said civils and housing had underperformed expectations. Although planning applications in the infrastructure sector were up on June, overall they were down 9 per cent in July compared the same month last year.
Barbour ABI head of business and client analytics Ed Griffiths said: “Despite some promising energy projects, we have yet to see a significant increase in residential and infrastructure awards that we might expect with the new government in the coming year.”
But he did point to increases in residential and healthcare, after a few weaker months prior to July.
Activity in retail and commercial, according to Barbour, was almost entirely centred in London, with nearly three-quarters of all the contracts awarded during July on schemes in the capital.
Since it took office, the Labour government has focused substantial time and energy on proposed reforms to the planning system.
Housing secretary Angela Rayner last month announced plans to take planning decisions on digital infrastructure, laboratories, water infrastructure, onshore wind and housing away from local authorities.
She also said she would consult on revising planning guidance in a bid to boost building projects, including plans to encourage councils to release greenbelt land for construction.
In that vein, Griffiths said planning approvals for the infrastructure sector “will be of particular interest” looking forward, where the new government could have a “direct and immediate influence”.
“Ed Miliband’s headline grabbing approval of several large solar panel projects will likely have a big impact in next month’s figures.”
