That scuppers the investment and employment growth plans that underpin George Osborne’s forecasts for the next five years. Then add this:
According to a poll of UK contractors by Aecom, an infrastructure and support services group, labour shortages are driving up costs so much that contractors are putting up prices and turning down work from projects and clients they perceive to be high risk.
Aecom [also] said that parts of the industry are already cutting their exposure to the residential market because of fears the capital’s house price boom may be starting to falter.
If manufacturing and both residential and commercial building are in trouble that’s a triple blow for the UK.
In the light of all this if we survive 2016 without a significant downturn I will be surprised. We might, but I cannot see how right now. And that is worrying for us all, most especially when we have no plan for how to deal with it.
And we’ll only have that when People’s Quantitative Easing is accepted as a necessary step to manage such a situation.
So the construction industry is facing severe capacity constraints. And our genius, the Murphaloon, says the solution is to pump £50 billion more demand into that industry facing the capacity constraints.
There’s nothing quite like joined up thinking, is there, and this isn’t anything like it.