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Construction contracts indicate North-South divide

World Cement,

Barbour ABI’s latest Economic and Construction Market Review indicates that the value of construction contracts in London in November 2014 came in at £1.2 billion. This represents 25% of the UK’s total, with the North West trailing in at second place with 14%. Indeed, the value of contracts in London in November was the same as the North East, North West and Yorkshire combined.

“This month’s figures will come as no surprise to industry professionals in the North of the country, who have long lamented the disproportionate share of construction activity that London holds,” commented Michael Dall, Lead Economist at Barbour ABI.

“Our recent report clearly shows that the North would benefit greatly from investment in infrastructure, both in terms of boosting construction output and improving wider economic prosperity.”

“While there was much talk around the Chancellor backing plans for a ‘northern powerhouse’ in his Autumn Statement last week, it is yet to be seen whether any of the planned infrastructure projects – such as HS2 and the Trans-Pennine high-speed rail link – will be given the green light.”

“Looking ahead, the construction pipeline for the top 25 most valuable infrastructure projects in London and the South East totals £47.8 billion, outweighing the North’s by five-to-one. It’s crucial that these key projects in the North are given full backing in order to bridge the North-South divide,” concluded Dall.

Adapted from press release by

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