At a Glance
UK construction output is at its strongest in nearly three years, underpinned by rising infrastructure work and public orders.
A £530bn, 780-project government infrastructure pipeline and £120bn Budget uplift are resetting long-term opportunities for contractors and investors.
Planning and Infrastructure Bill reforms, new energy National Policy Statements and Clean Power 2030 are reshaping the policy and consenting landscape.
Housing delivery is constrained by falling permissions, environmental caps and data centre land-use conflicts despite rising starts and rents.
Labour shortages, inflation and grid constraints risk blunting the benefits of record infrastructure and energy investment.
Today’s update: demand indicators and public capital commitments are moving sharply positive, with a £530bn infrastructure pipeline, new Budget allocations and marginal growth in output and orders across construction. At the same time, planning reform, energy policy, environmental regulation and grid capacity are pulling in different directions for housing and low-carbon infrastructure. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of the £530bn UK construction and infrastructure pipeline, today’s government update confirms 780 live projects over the next decade, with £285bn expected from public schemes and a new £120bn Budget capital boost including £15.6bn for city-region transport and nearly £900m for the Lower Thames Crossing. (Source: gov.uk, infrastructure-ni.gov.uk, instituteforgovernment.org.uk)
Returning to the Planning and Infrastructure Bill discussed in recent issues, today’s material highlights the introduction of Spatial Development Strategies, strengthened development corporation powers, Environmental Delivery Plans and a Nature Restoration Fund, signalling a wider environmental governance layer alongside faster consenting aims. (Source: instituteforgovernment.org.uk, ice.org.uk)
Building on previous analysis of skills and insolvency risk, new sector data shows construction output at a near three-year high but flags workforce shortages driven by ageing labour, training gaps and immigration limits as a primary brake on delivering the expanding pipeline. (Source: directorsstalkinterviews.com, pbctoday.co.uk)
Top 5 Headlines
💰 £530bn UK infrastructure pipeline detailed with 780 live projects
Government’s Infrastructure Pipeline sets out 780 live projects worth £530bn over the next 10 years, with around £285bn expected to come from public schemes. Budget 2025 adds a further £120bn of infrastructure capital, including £15.6bn for city-region transport and almost £900m to complete the Lower Thames Crossing. For the supply chain, this firmed-up programme and funding profile gives clearer visibility of demand but raises questions over capacity, skills and inflation management across the decade. (Returning today as part of our ongoing coverage of the national pipeline.) (Source: gov.uk, instituteforgovernment.org.uk)
⚙️ Construction output near three‑year high but labour bottlenecks loom
UK construction output is at its strongest in nearly three years, driven by a 3.2% rise in infrastructure work in Q2 2025 and a 15% jump in public non-housing orders. However, analysts warn that an ageing workforce, training shortfalls and tighter immigration rules could curb growth just as orders start to recover. Firms will need to balance bidding for new public work with investment in skills, productivity and delivery models to avoid overheating and programme slippage. (Source: directorsstalkinterviews.com)
🏛️ Planning and Infrastructure Bill to reshape strategic development and nature policy
The Planning and Infrastructure Bill will introduce new Spatial Development Strategies, enhanced development corporation powers, Environmental Delivery Plans and a Nature Restoration Fund. Alongside previously signalled ministerial override powers, the Bill is intended to accelerate major housing, energy and water schemes while embedding biodiversity and nature recovery objectives. Sponsors will face a more centralised yet more environmentally conditioned planning framework, demanding earlier alignment of design, mitigation and land strategies. (Returning today with detail on environmental measures.) (Source: instituteforgovernment.org.uk, ice.org.uk)
🏗️ Housing delivery squeezed by permissions drop and infrastructure constraints
From April to September 2025, Homes England-backed schemes started around 15,581 homes and completed 13,500, including 10,309 affordable units (76% of completions but 3% down year-on-year). Planning permissions have fallen 5% to around 234,000 units – the lowest since 2014 and only 63% of government targets – while environmental rules and infrastructure moratoriums are delaying about 180,000 homes, and data centre expansion in London is intensifying grid and land‑use conflicts. For residential developers, the combination of constrained consents, grid capacity and rising rents points to continued upward pressure on values but more complex routes to securing build‑out. (Source: gov.uk, hbf.co.uk, london.gov.uk, ons.gov.uk)
🌱 New energy National Policy Statements and Clean Power 2030 reset consenting
Government has updated key energy National Policy Statements EN‑1, EN‑3 and EN‑5 to reflect new offshore wind planning rules and to bring onshore wind within the Nationally Significant Infrastructure Project regime, and has issued a new EN‑7 Nuclear Policy Statement for next-generation nuclear projects post‑2025. These sit alongside the Clean Power 2030 Plan, aiming for 95% of Great Britain’s electricity to come from clean sources by 2030, and Local Nature Recovery Strategies due by end‑2025 to steer nature restoration interventions. Developers in renewables, grid and nuclear will see clearer – but more ambitious – policy tests, with consenting risk shifting toward deliverability, environmental integration and grid connection timings. (Source: gov.uk, jdsupra.com, iucn-uk-peatlandprogramme.org)
Also in the news
⚙️ Government has launched a multimillion-pound research fund to make construction cheaper and faster, signalling continued backing for productivity, modern methods and digital innovation. (Source: building.co.uk)
⚙️ Construction new orders grew 9.8% (£1.078bn) in Q3 2025, led by private commercial and industrial work, while private new housing orders slipped 1.9%, underscoring diverging market momentum across sectors. (Source: ons.gov.uk)
🏗️ Residential building output is estimated at £100.5bn within an overall UK construction market of about £330bn, with tender price inflation forecast at 2–4% for buildings and 4–6% for infrastructure on the back of labour and capacity constraints. (Source: arcadis.com, bcis.co.uk, gminsights.com, ibisworld.com)
🏗️ Homes England data shows housing starts up 25% in Q1 2025 versus 2024, supported by an August 2025 base rate cut, but rents in England have risen 5% to an average £1,416 a year, keeping affordability under pressure. (Source: gov.uk, ons.gov.uk, bcis.co.uk)
🌱 Holcim has expanded its circular construction footprint with three acquisitions, including Thames Materials in Greater London, targeting over 20m tonnes of construction materials recycling annually by 2030, while a €2m Shared Island fund supports cross-border greenways and flood response in Northern Ireland. (Source: holcim.com, infrastructure-ni.gov.uk)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline. If today’s briefing is useful, consider forwarding it to your project teams or bid leads. Staying aligned on policy, pipeline and delivery risks is now critical to winning and delivering work.