Six in 10 local authorities are planning to cancel construction projects, according to research.
Pre-qualification registration firm Constructionline found that almost 62 per cent of councils were expecting to scrap schemes in light of public sector cuts.
An overwhelming 98 per cent of these scrapped schemes will be new build projects, with just 2 per cent refurbishment jobs.
But more than half of health authorities have not been forced to shelve construction work due to the cuts. About half of the health jobs that have been scrapped are new build, and half refurbishment.
Constructionline director Philip Prince said: “With a great deal of essential maintenance work still available as well as projects in the health sector there are still some bright spots for contractors.
“Suppliers will need to be alert to opportunities both inside and outside buying consortiums, and be prepared to deal with multiple or single procurement departments while all the time proving that they’re able to balance the books.”