UK construction investment earnings from EU fall

The UK construction sector has seen earnings on its investments in the EU fall off a cliff since the Brexit vote with profits plummeting 95%, analysis of the latest ONS data has revealed.

UK construction companies’ earnings on its EU investment positions went from £24million in 2015 to a measly £4million in 2018 – down 83%. The drop is even larger when compared with the sector’s £77million earnings in 2016.

Construction firms had £638million invested in the EU in 2015, the year before the Brexit referendum, while this was reduced to £552million three years on, according to analysis of the latest statistics1 by R&D tax relief specialist Catax.

Over the same period, EU inward investment remained broadly level, going from £4.4billion in 2015, to £4.9billion in 2017, the last year for which figures are available.

Mark Tighe, chief executive of R&D tax relief specialists Catax, said: “The construction industry has seen investment positions hold firm on both sides of the Channel, despite earnings taking a tumble.

“But UK firms still have huge amounts invested in the EU, and vice versa, showing that both sides see the relationship continuing.”