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With the 'Grexit' on the cards, what next?

With the industry looking good at the moment, bolstered by the Office for National Statistics's (ONS) review of the way that construction output is measured, the question can now be raised: What, if any, impact might there be following Greece's 'no' result this week and the country's potential exit from the euro?

Any exit from the European economy is going to have a knock on effect for the UK - a fact that has been acknowledged by the prime minister and the chancellor. Both men have been engaged in meetings to assess these very consequences and are undoubtedly preparing for the potential impact.

The shares market has already been affected with a significant fall in prices while commentators are forecasting that interest rates should either remain stable or fall in the face of this current uncertainty - but what about business overall?

The European Union is Britain's most significant trading partner; it accounts for almost half of all trade. What's happening in Greece will impact upon the European economy and, as the UK suffered when the Greek situation previously peeked in 2011 and 2012, we can almost definitely expect repercussions again. There'll probably be a change in future growth projections and businesses and banks may well stop lending. This would have a negative effect on the construction industry and its suppliers, along with a glut of other industries.

In other news from our own shores, the Chancellor delivered his budget cushioned somewhat by the situation in Greece, which, if nothing else, serves to give credence to his ongoing bid for continued deficit reduction.

There were some surprises: most notably, the announcement of a new national living wage for workers over 25 years old. This should go some way to promoting apprenticeships, targeting older individuals who are looking for a change in career, which is a boon for our industry where there is still a desperate skills shortage.

Good news also with plans for businesses to benefit from a slash in corporation tax to 19pc in 2017 and 18pc in 2020.

And what of future impact? As with most changes, it will take a little while for the effects of this week's budget and the vote in Greece to trickle down to us. What we can be assured of is that, when it comes to Greece, there will almost definitely be an impact; only time will tell on what scale.


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