Carillion's collapse rattles building industry

Construction activity falls for first time since immediately after EU referendum following company's liquidation

The collapse of Carillion has dragged the British construction industry to the brink of stagnation, as housebuilding activity fell last month for the first time since immediately after the EU referendum.

The slowdown in home construction is likely to embarrass the chancellor, Philip Hammond, after he unveiled tax cuts for first-time buyers and extra support for housebuilding at the budget in November.

Carillion relies on major contracts, some of which have proved much less lucrative than it thought.