More than £7bn of planned construction works could be in jeopardy if Scotland votes to leave the UK next week, it has been suggested.

According to a report by Barbour ABI, Scottish Construction: A Bright Future?, there are currently £38bn of construction projects planned throughout the country. However, as the investors have their headquarters outside of Scotland, the report says the likelihood of work going ahead as intended could be dependent on the results of the poll.

It added that as a significant number of planned projects are focused on the renewable energy sector, which benefits from a UK-wide subsidy, these projects could be particularly at risk.


Michael Dall, lead economist at Barbour ABI, explained: "In the past 12 months, construction in Scotland has outperformed other areas of the UK, with it having the third highest volume of contract value, only behind London and the South East.

"But with around a fifth of the planned £38 billion of construction contracts in the pipeline being projects proposed by companies outside of Scotland, it's unsure what will actually come to fruition if it's a yes vote.

"In addition, there are a large number of projects in the pipeline in the renewable energy sector which is subsidised by the UK-wide renewable obligation, calling these into question."

He continued: "If Scotland does choose independence, it's likely that negotiations between UK and Scottish Governments will be prolonged and complex, posing a potential risk to both public and private sector contracts and with the lion's share of planned works being funded by non-Scottish businesses, the currency question will also have a direct impact."

"Next Thursday's result will certainly lead the construction industry into uncharted territory with potential implications for firms and employees in Scotland and the rest of the UK," Mr Dall concluded.

(JP/MH)