The boss of an Oxford building firm fears Government cuts in public spending will be far more severe than is being predicted.

Mark Beard, managing director of Beard, based at Cumnor Hill, said: “The Government has got to cut its capital expenditure and that was not really debated in the election.

“Construction is an easy target and I am really worried the cuts are going to be more severe than anyone has taken on board.”

Mr Beard was speaking after the family firm revealed a pre-tax profit of £850,000 for the year to the end of 2009, down 19 per cent from £1.05m recorded in 2008. Turnover also fell from £55.8m to £50m.

Trading has been “difficult but manageable,” according to Mr Beard but he is forecasting 2011-12 will be even harder for the industry as a whole.

“We are focusing on customer service and really trying to deliver a good product on time while continuing to prosper. Some firms will fall by the wayside and others will have to scale back significantly to survive.”

Despite the impact of the recession, Beard has maintained its 85 staff in Oxford with a further 70 employed in Swindon.

Mr Beard believes the company will be insulated from the worst effects of the downturn by its work for Oxford colleges which are continuing major projects and says the order book is healthier now than it has been for nine months.

“There have been a lot of orders coming in during the last two months with work for private schools, colleges and the county council and we are doing a lot of work for smaller firms looking to modernise existing buildings rather than moving into new ones.”

Contract wins include a new auditorium at Corpus Christi College in Oxford; a new entrance way for the city’s Pitt Rivers Museum; improvements at RAF Benson; rehabilitation facilities for Thames Valley Police at Flinthouse, Goring and refurbished eco-barns at Tubney House for Oxford University.