By Bradley Bennette
The cost-of-living crisis is an economic plague haunting the economy of the United Kingdom. Many businesses and organisations have declared bankruptcy and have been left in alarming debt, following Covid and the current financial situation.
Construction is one of the many industries which has faced the crisis up front, and felt the effect first-hand.
According to Fix Radio, which advertises itself as “The Builders Station”, prices of construction materials have skyrocketed “more in the UK than the EU” since Brexit.
The cost of materials, including timber, cement and steel have escalated 60 percent since 2015, it said, while labour has dramatically increased by 30 percent.
“Prices of materials have gone up at least 50%. We’ve had clients come up to us and say to us ‘we can’t pay’, but we’ve already spent the money on the materials, I’ve lost around £22,000 which cost me my business,” said construction worker George Grunnel, 27.
Governmental schemes such as loans have been initiated to help raise finance for growth. But people in the industry such as Grunnel says it won’t make a different – too little, too late.
“Doesn’t take away the fact that materials are still too high,” he said. “People don’t have money how am I supposed to take money if I can’t make money?”
In September, it was reported that construction materials had gone up by 25 percent, according to a report by Barbour ABI. Despite that, it quoted the Office for National Statistics as saying that growth in the sector is still going up, employing about 2.65 million people.
“This data is set to deepen growing concerns over labour shortages in the UK. The Office for National Statistics show that more than one in three construction businesses experienced a shortage of workers at the end of last year. The value of construction material exports decreased by £514 million in the third quarter of last year – down 8.2% on the previous quarter,” Fix Radio said.
“All of these factors, are set to continue the slowing rate of growth in the construction sector, eventually causing growth in the industry to grind to a halt.”
Struggling to pay bills
Factors such as Covid and the war in Ukraine can all be contributing factors to the wound inflicted on
the construction industry.
Nicky Edges, 27, said: “You have to get through it, I get back at 2am and then an emergency call at 6am. Your mental (health) goes through it but. But you have to go through it.”
Two thirds (66%) of therapists say cost of living concerns are causing a decline in people’s mental health according bacp. Mental issues such as insomnia has arise as 52% therapist are losing sleep due to money problems.
Edges added: “We lost our businesses, and were not the only ones, during the peak crisis.
“I was paying at least £1,000 a month for fuel, our work vans and equipment have been stolen, it’s happening everywhere it’s hard but I have to pay the bills.”
Surrey Police are warning van owners to be on their guard following multiple thefts from vehicles throughout Tandridge, and such acts of theft and vandalism of cars and vans is occurring throughout the country.
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