Construction giant Balfour Beatty has warned that a number of major infrastructure projects are under threat following the vote by the UK to leave the EU.
In its new report, Infrastructure 2050, published yesterday the contractor said it had a number of major concerns related to the UK’s infrastructure, mostly that firms will be increasingly faced with limited access to labour and finance following Brexit.
The report, which was written by Balfour Beatty head of public affairs Veena Hudson, said “uncertainty around the free movement of labour… may increase costs where demand for labour outstrips supply, with the subsequent risk of project delays”.
It added: “This will be particularly relevant for mega projects such as HS2 and the nuclear new build programme.
“In our view, this requires an early and integrated policy response to both retain the skills of those who have migrated here and to ensure that the UK remains an attractive place for talented people to move to. The country must maintain its skills base.”
Balfour Beatty warns that there may not be the funding or labour for large infrastructure work post Brexit
The document also warns that private investment is likely to be slow while the UK’s exit from the EU is negotiated.
The contractor called on the government to come up with a timetable for the UK’s exit from the EU to protect private infrastructure investment, and has recommended the government produce “early answers to the many practical questions about doing business during and after Brexit”.
The firm also urged the government to investigate borrowing more cash to make up any funding shortfalls for the major infrastructure projects. Balfour said the shortfall could be made up by attracting more private investment as well as increasing borrowing.
The report states: “Now is an ideal time for government to borrow money in order to finance infrastructure projects.
“This is far from being an irresponsible course of action as some maintain.”
