Local authority construction grows despite austerity cuts

In spite of a faltering pipeline of local authority construction projects in recent times, as a direct consequence of austerity cuts, the value of underlying starts within the local authority construction subsector has increased by a proportion of three per cent.

According to construction market analysis by Glenigan, this increase in local authority construction value is a result of much wider spending within certain regions, with said region specifically being Northern Ireland, Wales, and the West Midlands, as well as the appointment of various contractor companies onto local authority frameworks.

One example the West Midlands displaying a willingness to spend money within this niche subsector is the commissioning of a new Civic Centre by the Wolverhampton City Council, costing a total sum of £38M for the contractor Willmott Dixon, after the original contractor Shaylor went into administration, to deliver the building.

Furthermore, city, borough, and county councils have recently set about processes of establishing construction and maintenance frameworks which have kept the local authority construction sector afloat in a time where the core Government has drastically reduced the amounts of funding being allocated to councils.

Some key examples of this type of savvy business strategy include the fiver-year Southampton City Council Framework, the Sandwell Metropolitan Borough Council Lift Maintenance Framework, and the Staffordshire County Council Window and Door Replacement Framework.

A recent statement by the Local Government Association revealed that local authorities actually spend approximately £18Bn per year on construction projects across the country, with a surprising number of said projects being for crematoriums.

Some other examples, but of this spike in crematorium construction by local authorities, include the new £2.7M Horizon Crematorium at New Cannock, the new £3.5M crematorium in Blackwood, and the Coventry City Council’s recent allocation of £2.1M towards the refurbishment of the Lodge Cemetery.

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