The UK's Cost of Construction is Soaring

An emerging economic crisis in the UK has led to builders being forced to down tools amid what is being described as a “perfect storm for construction”. As the latest figures from the Department for Business, Energy & Industrial Strategy show, material prices for all construction work have risen by 20 percent from July 2020 to July 2021.

As the Independent reports, "worker shortages and delayed deliveries within the UK, coupled with a global supply crunch and new Brexit red tape, are already crippling construction projects across the UK and feeding into the price rises.". The implications for the wider economy are potentially devastating, with Andrew Goodwin, chief UK economist at Oxford Economics warning of a “knock-on effect on the recovery if construction companies aren’t completing projects quickly” adding “If people stop doing building work because they know they’ll face delays, that will start to have a real effect on the wider economy”.