Featured Sector: Community & Amenity

The community and amenity sector has suffered as local authorities and government departments have diverted capital spending away to more politically sensitive areas. The value of underlying project starts fell by 27% in 2012 with sharp declines in underlying starts recorded in every quarter. The largest declines last year were seen in construction of local government buildings, such as council offices and town halls.

2013 saw a degree of a rebound in the sector, with starts rising by 7% over the year. These gains came as the type of work that led the decline last year; local government office and town halls, rebounded from low levels in 2012.

The outlook for continued growth in 2014 is insecure, with low levels of projects coming through the pipeline, and it is unlikely that the sector will see 2013’s rate of growth continue. The June Spending Round announced that the Department for Communities and Local Government capital budget would be subject to severe cuts in the 2015-16 spending year; the DCLG budget will be reduced to £3.1bn from £4.8bn in 2014/15. The planned reduction in capital spending does not bode well for the sectors longer term outlook and further declines are likely over the longer term horizon.