A shock election result last night that returned a hung Parliament has left many in the construction industry uncertain about the future.
Prime minister Theresa May suffered a major setback in a tumultuous election, losing her overall majority in Parliament and throwing her Tory government into uncertainty less than two weeks before it is scheduled to begin negotiations over withdrawing from the European Union.
In the election results the Conservatives secured 319 seats, down from 330 in 2015, while the Labour Party obtained 261 seats, up from 232 in 2015. The SNP failed to match the previous election performance, having kept only 34 seats, while the Liberal Democrats won 12 seats.
The results saw a number of high-profile causalities, most notably housing minster Gavin Barwell, who lost his seat in Croydon Central to Labour’s Sarah Jones. Former SNP leader Alex Salmond and former deputy prime minister Nick Clegg were also ousted.
At the time of writing it appeared that the prime minister had reached a deal with the Democratic Unionist Party (DUP) to form a government.
It is expected May will visit the Queen at Buckingham Palace in the early afternoon to inform Her Majesty that she intends to form a new government with the Northern Irish party after failing to secure an overall majority.
It is unclear whether it is a formal coalition or a supply and confidence arrangement which will be sought.
The DUP has said, however, that there can be no “special status” for Northern Ireland after the UK leaves the EU, which has implications for the forthcoming Brexit negotiations
The DUP fears that special status after Brexit – a key demand of Sinn Féin – would decouple Northern Ireland from the rest of the UK.
Industry leaders reacted with concern over the level of uncertainty the industry has been plunged into following the election results with most calling for the formation of a new government as soon as possible.
The CIOB stressed the importance of the construction industry to the UK economy and wider society with Eddie Tuttle, associate director for policy, research and public affairs at the CIOB, stating: “Whatever form the new government takes, the CIOB and its members are keen to engage with them to raise awareness of and address the issues currently facing the construction industry and built environment.
“Uncertainty that a hung parliament brings is not helpful to the industry, and we therefore hope a swift resolution will be found. Construction both benefits from economic growth and drives future growth, so there is a pressing need for stable investment, particularly on a regional level.
Scape chief executive Mark Robinson called the result “a shambles” and said infrastructure and construction projects could be put into “doubt or in jeopardy” without a clear leading party in place.
He said: “If you have an overall majority and clear decisive leadership, you have a vision of how [construction and infrastructure projects] will be taken forward. This uncertainty calls into doubt any preferred strategy in their manifesto to deliver this.”
He added that decisions around the delivery of controversial infrastructure projects such as Heathrow and HS2 could be questioned.
Law firm Clyde & Co said the result meant a big question mark remains over the widening skills gap.
Liz Jenkins, partner at Clyde & Co, said: “The result, like so many political incidents this year, was predictably unpredictable. A big question mark remains over the widening skills gap, Theresa May’s Brexit stance was very much anti-immigration from the EU. A newly formed government could take a more lenient view on this, which could help to ensure access to the European talent pool remains in place.”
Federation of Master Builders chief executive Brian Berry said the construction industry has been left “particularly vulnerable” by political uncertainty and that it is “crucial that this uncertainty is minimised.”
However, he added the prospect of a hard Brexit now seemed less likely, which offers a “potential silver lining” for the business community.
“Brexit is inevitable but the election result will surely have a significant impact on the shape of the Brexit deal we end up with,” he said.
Build UK chief executive Suzannah Nichol called for politicians to organise an “effective government to provide confidence and certainty both at home and abroad”.
She added: “Forging ahead with an Industrial Strategy, which includes the delivery of the country’s housing, economic, social and business infrastructure to meet the needs of the nation, will enable our industry to deliver growth and prosperity.”
