Construction companies have said they are closing their offices in the UK for the 2019-20 financial year, following pressure from the government to ease up on the burden of planning and procurement and reduce the cost of building.
The companies include KPMG, CMI and PWC, which all have offices in south London.
They said they had reached the decision after a review of the business environment.
“The UK’s economic recovery is at its peak, and there is a clear need to ensure that UK-based businesses can continue to grow and create jobs,” said the UK’s finance secretary, George Osborne.
“In order to do that, it is necessary that businesses are able to move their activities from the UK to the UK as quickly as possible.”
The firms said that they were also facing increasing pressures to meet the UK government’s “building-building-build” strategy, which aims to reduce the number of buildings that need to be built every year.
“We know that building in the capital is an essential part of our economy,” said CMI’s chief executive, Ian Johnson.
“The Government has committed to increasing the number and size of UK-built buildings by a further 50% over the next four years.
The government is also working to increase the UK supply of UK building materials.”KPMG has its offices in Canary Wharf in London.
The Government said it would be putting the onus on private contractors to make the changes, which will be reviewed in 2020-21.
“If the UK Government wants to ensure there is more flexibility in how the UK develops and builds infrastructure, then it needs to ensure private companies have the tools and resources to be able to make this change, said Mr Osborne.”
Building and building infrastructure are essential parts of the UK economy and, as such, should not be left to private companies.
“In order for private firms to have the necessary support to make these changes, the UK should make sure that UK firms are allowed to have their own business plans for new or refurbished buildings.”PWC said it planned to cut up to 20 jobs, or roughly one in every four jobs, in the next three years, and was looking to reduce its workforce from 250 to 100.”PWC has taken a number of measures in the past 12 months to reduce costs and scale back its business.
These measures include: reducing the size of its London headquarters, reducing its workforce by about 40% in the coming year, reducing capital expenditure, reducing labour costs and reducing the number in London,” said a statement.
“We have also made significant progress in recent months in reducing costs through a process called the “fiber-financing” strategy.
The government said it was also looking to ensure “significant new supply chains can be created”.””
Over the coming years, we will also continue to reduce our workforce, which we believe is one of the key factors in sustaining the business, and we are taking steps to do so.”
The government said it was also looking to ensure “significant new supply chains can be created”.
“The Government’s plan will ensure that a significant new supply chain can be built for infrastructure and supply chain management,” said Mr Johnson.
“This will enable the UK, by 2020, to have more than 50% of the world’s infrastructure, compared to less than 15% today.”
In a statement, CWM said it had cut the number, and would be closing its offices by 2020.”CWM has recently announced plans to reduce by 50 to 100 positions across its London offices in 2019,” the statement said.
“These changes are part of the Government’s building-building and build strategy.
These plans will have an impact on the UK workforce.”