“A sustained decline in construction output risks small firms leaving construction altogether, as they struggle to absorb higher costs in an industry notorious for tight margins,” said Brian Berry, FMB chief executive.

“If we want local builders to deliver the high-quality homes our country needs, to upgrade people’s homes to modern standards and to form the supply chain for key national infrastructure projects that are essential to helping our economy move forward, then we certainly can’t afford for building companies to go to the wall due to uncertainty.

“The Government must secure a new deal with the EU which Parliament can accept to deliver certainty, and give an injection of confidence to the sector.”

FMB research in July found that more than half of small construction companies believe that leaving the EU without a deal would cause material prices to sky-rocket, and just under a third believe it would lead to lower workloads.

“The Government must negotiate a deal that Parliament can pass in order to avoid a recession,” concluded Mr Berry.