Reds10 puts plan on ice ahead of predicted slowdown in government spending
The chairman of London offsite specialist Reds10 has said it is delaying plans to invest in a new factory over fears the government will cut off public spending in the medium-term.
Paul Ruddick, who founded the firm in 2006, told 好色先生TV the business had been looking at opening a second facility but would not commit to 鈥渁ny large spend or investment鈥� right now because of the worsening economic situation.
鈥淚鈥檓 not saying we are not going to do it, but we have taken a step back and said we need to delay,鈥� he said.
The 拢63m turnover company, which has an offsite factory complex at Driffield in East Yorkshire, is heavily reliant on public sector work.
Ruddick said that while the short-term pipeline of work was secure, he was concerned about the government鈥檚 long term commitment to investment.
鈥淚 am actually more concerned about what is going to happen in two to four years鈥� time,鈥� he admitted.
鈥淲hen a new government comes on board, I think they will pull up the drawbridge and stop investing for a couple of years in terms of public infrastructure.鈥�
Chancellor Jeremy Hunt is set to announce the government鈥檚 immediate spending plans tomorrow (Thursday).
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Ruddick said major projects such as HS2 would likely survive any spending reductions 鈥� 鈥渋t is almost too big to stop now鈥� 鈥� but that smaller schemes would face the axe, leading to consolidation within the industry.
He said: 鈥淚 think a lot of the big contractors have got big government projects [鈥 so I think they are fine.
鈥淚 think it鈥檚 the small contractors that are going to be hollowed out again [鈥 and I think it is going to lead to even bigger consolidation of the bigger players in the industry.鈥�
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