Resilience to recovery: The future of UK construction
Resilience to recovery: The future of UK construction
Section 1
The year ahead Against a backdrop of long-term challenges that saw thousands of construction firms collapse during 2023, concern naturally continues to prevail across the sector.
Only under two thirds (64%) 4 were able to say they are confident in their ability to survive the next 12 months. 64% Firms in the South West (80%) and North West (76%) report higher confidence about their resilience. 80% Businesses in the East Midlands (36%) and the North East (55%) are particularly pessimistic about their prospects. 36%
Percentage of firms confident in their ability to trade through the next 12 months 4 :
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Scotland | 64% North West | 76% North East | 55% Yorkshire & The Humber | 62%
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West Midlands | 62% East Midlands| 36% South West | 80% East of England | 62% London | 75% South East | 68%
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8 9 10
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Active enforcement
This concern likely lies in the industry’s tax burden, which is in many cases heightened in the post-Covid era. Almost two thirds (65%) of the businesses we surveyed said they were concerned that they might struggle to pay their tax liabilities this year. This rises to 76% in Scotland, Yorkshire, and the East of England. These fears will no doubt be heightened by a far more aggressive approach to enforcement by HMRC, which has recruited significantly as it works to re-build public finances in the wake of the pandemic. In the first three quarters of 2023 alone, for example, there was a four- fold increase in the number of winding up petitions issued by the tax authority against businesses compared to the same period in 2022.
4 ‘Very confident’ and ‘Somewhat confident’ answers combined
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