Builders downed tools as fears over Rachel Reeves’ Budget sparked the biggest fall for construction since the first Covid lockdown, according to new figures.

Economists said the feverish speculation about an array of tax rises ahead of the Budget had led to “catastrophic” conditions in the building sector.

The grim news will be a further blow to London where the delivery of new homes had already ground to a halt in many parts of the capital.

London Mayor Sir Sadiq Khan and Housing Secretary Steve Reed have cut the amount of social housing required in new schemes in the capital to kick-start development .

But latest figures showed the UK's construction sector shrunk last month at its fastest rate since the start of the coronavirus pandemic as firms were hit by pre-Budget

See Full Page