After Scottish voters rejected independence from the UK, the business and construction communities have called for greater certainty on a new political settlement for Scotland as a platform to build business opportunities and economic growth.
The “No” vote also removes the threat of disruption to the Scottish construction industry, where private sector investment in major projects would have been likely to stall – Barbour ABI last week suggested that there would be a question mark over £7bn of contracts, many in the renewables sector.
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And 55% support for the No campaign also removes uncertainty for UK-wide contractors, particularly firms such as Balfour Beatty, Morgan Sindall and Galliford Try that win a significant portion of their work in Scotland.
But after a campaign that brought a new dimension to the UK political debate, David Melhuish, director of the Scottish Property Federation, commented: “The uncertainty over Scotland’s constitutional future is now settled and it is important that political certainty is now regained if market confidence is to be secured in the commercial property sector.
“Certainty on the content and substance of the UK political parties’ proposals to enhance the powers of Holyrood and a commitment by the Scottish Government to work constructively with this process is vital if we are to ensure normal business and investment activity in the wake of the uncertainties expressed during the referendum campaign.”
Kevin Bradley, head of Scotland for programme cost consulting at Aecom said the the “no” vote should ensure public and private investment flows into the Scottish construction sector, but he also hoped that Scotland would not enter a Canadian-style “neverendum” mood.
“Now that Scotland has voted to remain in the Union and provided the result is accepted as permanent and the risk of any ongoing campaign is removed it takes away uncertainty for investors, we are likely to see a significant increase in commercial property transactions over the coming months.
“The government is committed to investment in public infrastructure to secure long term economic growth, so we would anticipate an announcement of this pipeline in the autumn to prime the market for delivery.”
And Phil Orford MBE, chief executive of the Forum of Private Business, called for supporters in both sides of the debate to look ahead. “The fact that Scotland’s business owners and leaders spoke out on both sides of the debate highlighted the difficulty faced by many employers and employees when deciding on which way to vote.
“Many of our members, and other small businesses owners, will be relieved with the outcome, given the uncertainty for business which has been created throughout the campaign, which would have surely continued in the event of a yes vote. Others will be frustrated having seen business opportunities in an independent Scotland.
“For all business owners, regardless of the way they voted, it is now vital that they focus on growing their businesses over the coming years with a relative platform of stability. The Forum of Private Business will ensure their voice is heard by Scotland’s leaders to help positively influence the use of additional powers that Westminster has already promised to grant them.”
A statement from the Association for Consultancy and Engineering Scotland called upon “all parts of the UK and Scottish governments, agencies, public bodies, business, industry, and academia, to continue to work collaboratively to secure excellent quality, value for money, and successful social and economic outcomes from construction and infrastructure investment, which are in the long term interests of the Scottish people and economy”.
According to the recent CIOB report, The Real Face of Construction, 162,300 people were employed in the Scottish construction industry in 2013, compared to 230 900 in 2007. But it is currently enjoying a boost in infrastructure work, with major projects in the pipeline including the carbon capture project at Peterhead Power Station, offshore windfarms worth more than £4bn, and the new Forth Road Bridge.
Major commercial contracts to be awarded include the £650m Heartlands development at former Polkemmet Colliery, and the £850m reconstruction of Edinburgh’s St James Centre.
The CITB Construction Skills Network reports forecasts average Scottish construction growth over the next four years of 2% against a UK average of 2.2%, leading to a need to of 6,000 new people in construction each year between 2014 and 2018.
Main image: Flick/Dave McLear
