Scotland’s construction sector damaged by EU referendum

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The long term financial sustainability of the construction and property sector in Scotland is being damaged by the upcoming vote on the EU…

Business and financial adviser Grant Thornton has warned the vote on whether to stay or leave the European Union is having a significant impact on Scotland’s construction and property sector.

Recent research from the firm revealed nine out of 10 business leaders stand against leaving the EU, with 87 per cent of the 125 CEOs polled across Britain stating the case to remain. However, 90 per cent said there had to be a change in the relationship between the UK and the EU.

The firm is now warning the construction and property sector in Scotland is being compromised as uncertainty pushes investors to withhold funding.

Grant Thornton’s head of property and construction in Scotland Lorraine Macphail commented. She said: “We’re hearing increasing reports of significant commercial projects being placed on hold as major investors get nervous about the impending vote.

“There was similar economic fear in the lead up to the Scottish independence referendum, but the timing of the EU referendum has the potential to cause greater damage to the property and construction sector.

“Grant Thornton’s Scotland Ltd research carried out earlier this year highlighted an industry that was in a period of post-recovery growth, but much of that growth is extremely fragile.

“What the sector is in desperate need of is impartial knowledge and information to enable it to carry on its growth strategy, regardless of the outcome of the vote.

“The property and construction industry plays a significant role in the Scottish economy, contributing around 6 per cent of GDP. It’s vital that its voice is heard and its questions answered.”

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