Growth in United Kingdom job creation is expected to be driven by the private commercial sector, primarily through demand for office space, PFI schemes and 2012 Olympics work, says a new UK report.

Rise in Private Finance Initiative (PFI) and Olympic works will see tender prices grow 2.5 times faster than inflation. The price of construction work is expected to surge ahead of inflation over the next five years. Tender prices are forecast to rise 34 per cent compared to an expected inflation rate of 13 per cent according to a report published by the Building Cost Information Service (BCIS).
With more and more schemes being procured through PFIs and the industry expecting the government to tighten public funding in its Comprehensive Spending Review 2007, reliance for output growth is likely to lie more heavily on the private sector over the next few years.”