The UK Government "must respond quickly" to damage in investor confidence by giving the go-ahead for a third £17.6 billion runway at Heathrow, according to the Trade Unions Congress (TUC).

The call was made following the release of new UK building sector figures yesterday, 04 July, which showed the biggest decline in UK construction for seven years.

However, the Government has ruled out a decision on expanding airport until October due to the fallout over Brexit.

TUC General Secretary, Frances O'Grady, while the Brexit vote is likely to "further damage" investor confidence in the construction sector, the Government must respond with an emergency programme of public investment.

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"The government must give the go-ahead for a third runway at Heathrow, bring forward major new infrastructure projects like high-speed rail and announce a big expansion in housebuilding," he said.

In a new economic action report, the TUC sets out an action plan the Government should use to increase infrastructure spending urgently.

This includes:

• A construction programme for affordable homes to rent and buy

• Announcing further expansion of high-speed rail, including detailed plans for Crossrail 2 and HS3, and additional support for HS2

• Giving the go-ahead to a new runway at Heathrow, in line with the recommendation of the Airports Commission.

• Support for a new generation of nuclear power stations

• Rolling-out ultra-fast broadband across the UK and other spending on information and communication infrastructure

• A full-scale carbon sequestration programme for power and industry, focussed on carbon capture pipeline and storage infrastructure (CCS) in key industrial regions.

• Increase in the proportion of UK expenditure on renewable energy sources, likewise aimed at the industrial heartlands.

• An expansion of domestic energy efficiency programmes, including community energy projects.

(LM)