Nearly nine out of ten UK construction firms expect public spending cuts to act as a drag on operating conditions, the CBI has said.

Responding to the first CBI/Speedy Services national construction survey, close to two-thirds of firms described the UK’s planning system as an obstacle to business, while four out of ten have seen a deterioration in the availability of finance over the past year.

However, the Chancellor’s autumn statement contained encouraging news for the sector, including details of the Funded Construction Pipeline and infrastructure spending.

The survey portrays a sector well-placed to boost skills and create jobs, with more than three-quarters of firms planning to maintain or increase spending levels on training and investment in apprentices in the coming year.

The survey saw responses from CEOs, managing directors, and senior managers from firms across the UK.

Of the 635 construction leaders who took part, 40 per cent responded that the availability of finance had deteriorated in the past 12 months, 52 per cent reported no change, and only eight per cent said they had seen an improvement, resulting in a negative balance of -32 per cent.

Firms expect credit conditions to deteriorate further in the next twelve months.

Small and medium-sized businesses have been particularly affected by a lack of finance, with nearly half (45 per cent) reporting a deterioration in availability in the past 12 months, and more than a third (37 per cent) expecting a further deterioration in the coming year.

Over the next five years, a large majority (86 per cent) of firms expect public spending cuts to have a significant or very significant impact on their business.

Given these tough operating conditions, a quarter (24 per cent) of firms expect business to decline in 2012. While two-fifths (42 per cent) expect growth, the vast majority of these (38 per cent) anticipate growth will be weak.

Dr Neil Bentley, CBI deputy director-general, said: “Construction firms are facing tough operating conditions, and they are clear about what can be done to give the sector a boost. Firms want certainty, and they need guaranteed infrastructure spending to deliver it.

“Now the sector has grounds for optimism. The Chancellor’s autumn statement outlined the Construction Pipeline and increased the Government’s commitment to housing, and spending on roads, rail, energy and other crucial infrastructure.

“The Government has recognised the role construction can play in building a path to the recovery, and the sector is more than ready to play its part in generating economic growth. But the Government must now move quickly to bring infrastructure projects to market so the sector can gear up and create jobs.”