BCIS calls for action in the Autumn Budget

Confidence across the construction sector is closely tied to government signals on inflation, investment conditions and the stability of future workloads. A recent BCIS poll of more than 300 construction professionals showed that reducing business costs would do most to strengthen confidence over the next year, followed by support for housing, infrastructure and access to finance. With SMEs making up the vast majority of the industry, productivity already under pressure and skills shortages continuing to weigh on capacity, the Autumn Budget is a key moment for the government to set a clearer direction. Consistent pipelines and better operating conditions are essential if the sector is to improve efficiency, manage inflation and deliver the projects the UK needs.

Here are the 8 top possible moves by the Chancellor we’ll be keeping an eye out for…

1. Action on business costs 

Construction firms are carrying rising wages, energy bills, insurance and growing compliance requirements, from Building Safety Act duties to new environmental and information standards. Any move to ease these pressures would have an immediate impact. We’ll be looking out for changes to employer taxes, national insurance contributions or business rates, since these hit smaller firms hardest. With more than 100,000 construction businesses lost since 2020⁽¹⁾, stabilising costs could help restore confidence and support investment.

2. Pressure on resources and supply chain costs

While the direct cost of employing people sits under business expenditure, wider market pressures are contributing to labour being an increasingly significant cost driver on projects. Shortages in key trades, competition for specialist skills and limited workforce capacity are pushing labour rates higher and creating programme risks that are difficult to absorb. We’ll be watching for any Budget measures that help ease these pressures through skills funding and training support, but particularly for clearer long-term pipelines that give firms greater confidence to invest in people. While materials cost inflation has cooled considerably, prices remain elevated, and policy shifts on energy or trade can still affect steel, cement and other inputs.

3. Measures to improve access to finance

Financing conditions continue to hold projects back, particularly for smaller developers and contractors. The Budget is an ideal moment for the government to clarify private finance models for the Infrastructure Pipeline or expand guarantee schemes that reduce borrowing risk. Clearer funding mechanisms would help more projects move from concept to delivery at a time when workloads remain fragile.

4. Planning capacity and decision timelines

Despite the government’s renewed focus on improving the planning system through the Planning and Infrastructure Bill, capacity pressures remain a significant barrier to getting projects moving. The Royal Town Planning Institute has warned⁽²⁾ that an ageing workforce and an exodus of planners into the private sector are reducing local authority capability, and delays at the Building Safety Regulator, due to become a standalone public body in January⁽³⁾, have been creating further bottlenecks for higher-risk projects. We’ll be watching for any Budget commitments that help strengthen planning teams, support digital tools and improve the consistency of decision-making. Faster, clearer approvals make a significant difference to project pipelines and cost confidence, so any sign of progress here will be welcome.

5. Infrastructure commitments and pipeline visibility

The publication of the updated Infrastructure Pipeline was a welcome step, but its value to the sector is limited without clearer funding timetables and firmer investment signals. Demand across infrastructure remains healthy, yet labour capacity is tight and firms need confidence in future workloads to plan effectively. The Budget can’t resolve every bottleneck, but we’ll be looking out for confirmed departmental budgets, updates to planned spending and stronger indications of national priorities. Greater visibility helps reduce medium-term inflation risk and gives the supply chain a more stable footing at a time when resources are already stretched.

6. Support for boosting housing delivery

With national housing targets remaining firmly on the agenda, the Budget is a key moment for government to take steps that actually stimulate demand. The latest figures show growth in net additions falling for the third year in a row and delivery drifting far off the pace needed to reach 1.5 million homes this Parliament. On current trends, England is heading for something closer to 1 million. So we’ll be looking for measures that encourage people to buy and build again, such as support for first-time buyers or incentives that improve viability. Anything that gets more homes underway will make a difference to workloads and activity levels across the sector – though not in time to hit 1.5 million in this Parliament.

7. Future Homes Standard and Future Buildings Standard

The standards themselves won’t land in the Budget, but the government could offer clarity on timing or transitional arrangements. We’ll be watching for anything that helps the industry understand what it needs to prepare for and when. With housebuilders already facing rising compliance costs, including the upcoming Building Safety Levy, clear direction would help avoid unnecessary risk-loading and uncertainty across the supply chain.

8. Signals on whole life carbon and support for low-carbon materials

A full mandate for whole life carbon reporting is unlikely to come through a Budget, but we’ll be keeping an eye out for any indication that government is moving closer to the recommendations in AECOM’s impact assessment. We’ll also be watching for support for low-carbon industrial products, reuse and recycling efforts, and progress towards the forthcoming Circular Economy Strategy. These signals help shape expectations around embodied carbon and the long-term direction of material choices.

How will the government fare against our expectations?

Join our chief economist Dr David Crosthwaite, in a special one-off webinar, where he will share his expert reaction to the Autumn Budget. With BCIS executive director Richard MacLean, he’ll unpack the key announcements and explore what they mean across sectors. Register for our Autumn Budget webinar here.

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^{(1) GOV.UK – Business population estimates for the UK and regions 2025: statistical release – here}

^{(2) RTPI – One in five planners expected to leave the profession within three years, with no clear plan to replace them – here}

^{(3) legislation.gov.uk – The Building Safety Regulator (Establishment of New Body and Transfer of Functions etc.) Regulations 2026 – here}