A combination of Brexit, a decline in bank lending and a “race to the bottom” on pricing is leading to crisis in the UK’s construction sector, according to an unusually stern warning from the accountancy profession that follows high-profile collapses such as Carillion.

Conditions in the sector are so perilous that more companies could go bust, according to the report from the Institute of Chartered Accountants in England and Wales, published on March 27.