Featured Region: Scotland

The first half of 2014 saw a 13% rise in underlying project starts in Scotland, as the region pushed on after a 3% rise in 2013. However progress over the full year was negative, with starts falling back by 4% over the year. Political and economic uncertainty appears to have prompted some private sector investors to defer commitments in the run-up to the referendum.

The first quarter of 2015 saw starts 2% lower than a year earlier. While not a sharp rebound after the referendum result, this is an improvement from an average 17% decline during the second half of last year, and 2015 is likely to see activity accelerate as deferred projects proceed to start on site. Similarly a recent cooling in private sector projects securing detailed planning approval will hopefully reverse over the coming months.

Scotland’s growth has strong foundations; growth in the second half of 2013 and first half of 2014 was fuelled by a strong private sector, rather than the housing led recovery seen in many other parts of the UK. In addition the country’s growing reputation as a renewable energy hub will see sustained levels of investment into civil engineering works.

Official statistics show that output continued to expand during 2014, though slowdowns recorded in project starts and approvals may hold this back in the short term.