Prime Minister Theresa May recently announced that the newly-formed government will delay making any decisions about building a major nuclear power plant—the first in a generation—until the fall.
Economists reacted with alarm to the announcement, according to Bloomberg, since the deferral raises doubts about the future of £405 billion worth of infrastructural projects. The infrastructural projects would both improve productivity and provide much-needed economic stimulation as the country faces the possibility of a major recession.
Before the UK’s vote to leave the European Union, the UK planned major energy and infrastructure projects meant to improve the country’s crumbling infrastructure. These included a high-speed rail from London to northern England and a major expansion of either Heathrow or Gatwick airports’ capacity.
Some economists question whether the UK could afford these projects at all, as the country’s economy and credit rating remain uncertain following Brexit. Still, spending on infrastructure could provide much-needed jobs and keep the country competitive.
In any case, the effects of Brexit are already being felt in the construction industry. After Brexit, it experienced its worst contraction since the financial crisis.
For more on the fall-out from Brexit, check out these links:
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