Project-starts, main contract awards and detailed planning approvals in the three months to January all experienced sharp declines on the previous year.
Health overview
Adding up to £672m, underlying health work starting on-site (less than £100m in value) during the three months to January, increased 16 per cent against the preceding three months on a seasonally adjusted (SA) basis, but fell by a quarter against the previous year. Unlike the preceding three months, major projects (£100m or more) starting on-site totalled £105m, which was 25 per cent down on the previous year. Overall, health project-starts increased 1 per cent against the previous three-month period but decreased 25 per cent against last year.
Totalling £496m, main contract awards were down 62 per cent against the preceding three months and 46 per cent against a year ago. There was an absence of major projects reaching the contract awarded stage, differing from the preceding three months but unchanged against the previous year. Underlying contract awards fell 29 per cent (SA) against the preceding three months and 46 per cent against the previous year to total £496m.
Detailed planning approvals, totalling £954m, decreased 55 per cent against the preceding three months, and fell 2 per cent on the previous year. Major project approvals, totalling £228m, experienced a stronger period than a year ago when there were no health projects approved, but the value decreased 82 per cent compared with the preceding three months. Underlying approvals at £726m experienced a 25 per cent decline compared with the preceding three months and the previous year.
Types of projects started
Unsurprisingly, hospitals accounted for the greatest proportion (59 per cent) of health work starting on-site during the three months to January, despite the value falling 21 per cent against the previous year’s levels to total £462m.
Nursing Home project-starts performed poorly during the period, falling 34 per cent against the previous year to total £131m, which accounted for 17 per cent of starts.
Dental, health and veterinary centre project-starts, accounting for 4 per cent of the sector, performed even worse, having declined 68 per cent compared with the previous year to total £31m.
There were no Day Centre project-starts during this period, in contrast with last year.
Regional
Most regions in the UK experienced a decrease in health work starting on-site, but some bucked the trend, including the North West where the value increased 169 per cent against the previous year to total £276m. The region was the most active for sector starts, accounting for 36 per cent of the total value, and was boosted by a £105m adult mental health inpatient unit in Manchester. Health starts in the South East increased by 79 per cent compared with the previous year’s levels to total £178m, accounting for a 23 per cent share of the total value.
In contrast, project-starts in the South West performed poorly, with the value falling 88 per cent against the previous year to total £37m, accounting for a 5 per cent share of sector starts. The East of England at £64m experienced the second sharpest decline of any region with project-starts having decreased by 67 per cent against the previous year to account for 8 per cent of the total value.
The North East experienced a strong period for detailed planning approvals, with the value jumping 170 per cent against the previous year to total £256m, accounting for 27 per cent of the total value. Growth was significantly boosted by a £128m hospital building development in Newcastle. The East of England was another strong performer, with project approvals growing 70 per cent and experiencing the second sharpest increase of any region compared with last year’s levels to total £223m, accounting for 23 per cent of the sector.
Project approvals in Scotland also performed well, increasing 25 per cent against the previous year to total £44m, accounting for a 5 per cent share. The South East had the third largest regional share (21 per cent) despite a 4 per cent decline in the value of approvals against the previous year to total £197m. A greater decline was prevented by approval of a £57m extra care retirement community development in Kent. Many areas of the UK experienced poor periods for health approvals, including Northern Ireland where the value fell 96 per cent against the previous year to total £2m. The East Midlands also experienced a relatively sharp decline (-74 per cent) on last year’s levels, totalling £17m.
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