The conversation surrounding immigration in the UK has shifted dramatically, and with it, concerns have mounted regarding the construction sector in Scotland. According to the Building Cost Information Service (BCIS) Scottish Contractors Panel, plans to limit immigration could exacerbate existing skills shortages in this pivotal industry.
The UK Government’s recent white paper proposing a reduction in immigration has led the panel to voice their concerns, especially as construction costs in Scotland have surged by an average of 4.65% over the year leading up to Q2 2025. The rise in costs is attributed to increased employer National Insurance contributions and a tightening supply chain that makes it more challenging to recruit skilled workers.
Dr. David Crosthwaite, BCIS chief economist, highlighted that the depletion of migrant labor in Scotland, especially post-Brexit, is a critical factor affecting the availability of workers. Specifically, cities like Aberdeen have reported a marked decline in migrant labor, coupled with the trend of skilled workers relocating abroad for job opportunities that offer better incentives, such as tax-free employment.
The demographic challenge is also undeniable. Many workers in the construction sector are aging, and as older employees retire, the workforce diminishes without adequate replacement. Further complicating matters, some seasoned workers are opting to leave the industry rather than navigate the qualifications required for a CSCS card, often seen as a barrier rather than a necessity.
One significant proposal in the immigration white paper is the elevation of the skilled worker visa threshold to RQF 6, equivalent to a graduate level qualification. This could hinder access for numerous essential construction workers, as data shows that most recent visa approvals have been for applicants below this threshold. Dr. Crosthwaite remarked on the implications of such a change, stating that it would exclude a large number of workers that the industry critically needs.
Both the construction and care sectors have historically depended on migrant labor to fill gaps in domestic supply. However, a troubling reality is that both are grappling with ongoing challenges in attracting UK workers. It’s not merely about pay and working conditions; perceptions of job status, career longevity, and growth opportunities significantly deter potential candidates from considering these vital roles.
Panel member Alan Wilson, who is also the Managing Director of the electrical trade body SELECT, expressed concern that these immigration reforms could disproportionately impact the Scottish construction industry. He pointed out that an anticipated surge in work demand in England, particularly in housebuilding, may compel Scottish workers to migrate south, further exhausting the labor pool in Scotland.
The government’s approach includes allowing a restricted list of occupations deemed in critical shortage to qualify for temporary work visas, favoring an increase in training and participation among domestic workers. Dr. Crosthwaite acknowledged the intent to bolster the UK workforce but raised alarms about the possible gap this creates. With current demand levels far outstripping available local labor, the ramp-up period required for adequate training and apprenticeships could lead to significant skill shortages.
The BCIS Scottish Tender Price Assessment Panel confirmed an annual increment of 3.4% in tender prices leading to Q2 2025. This reflects the pressing need for skilled labor amid rising costs, forming a complex picture as the industry navigates immigration reforms while striving to meet the challenges of a growing economy.
