At a Glance
Infrastructure and commercial work are set to drive growth in 2026, while residential remains constrained by affordability and delayed investment. (Source: Arcadis)
The UK government’s infrastructure pipeline now lists 734 projects worth £718bn over the next decade, with energy and transport dominating spend. (Source: Arcadis)
Forthcoming policy changes in 2026 include a Building Safety Levy, construction products regulatory reform and tougher HMRC enforcement on CIS. (Source: PBC Today, UK Government)
Wales is preparing to bring in its higher-risk building regime from July 2026, adding a devolved layer to building safety compliance. (Source: Liz Male Consulting)
Today’s update: the Spring 2026 market view points to an uneven recovery, with public infrastructure and commercial work offsetting a subdued housing sector, against the backdrop of a £718bn project pipeline. At the same time, a dense wave of regulatory and tax changes through 2026 is set to reshape risk allocation, compliance costs and delivery models across the industry. Here’s what you need to know to stay ahead today.
Ongoing Stories
Returning to the theme of pipeline resilience flagged in earlier issues, the latest Arcadis outlook puts new numbers on the UK’s workload, with a £718bn, 734-project infrastructure pipeline that will test capacity and delivery models across energy, transport, nuclear, water and flood management. (Source: Arcadis)
Following our recent coverage of planning and infrastructure reform, today’s policy round‑up adds detail on the 2026 Building Safety Levy timetable, construction products regulation changes and HMRC’s tougher stance on the CIS, all of which will sit alongside the Planning and Infrastructure Bill changes already in train. (Source: PBC Today, UK Government)
Top 5 Headlines
🌱 £718bn UK infrastructure pipeline underpins uneven 2026 recovery
Arcadis’ Spring 2026 UK Construction Market View reports that the sector has entered 2026 in an “uneven recovery”, with subdued residential output contrasted by stronger momentum in infrastructure and commercial work. The government infrastructure pipeline now comprises 734 projects worth £718bn over the next decade, with £365bn earmarked for energy, alongside major transport schemes such as RIS3 roads, rail upgrades and HS2 Euston, plus nuclear, water and flood programmes. New central government units and reforms are being deployed to accelerate project delivery and cut planning delays. The scale and skew of this pipeline mean contractors, consultants and investors will be increasingly reliant on infrastructure and energy work while navigating capacity, planning and policy risks. (Returning today as a continuation of our recent pipeline coverage.) (Source: Arcadis)
🏗️ Residential stuck in affordability trap as other sectors pull ahead
Arcadis highlights that residential construction is lagging the wider recovery due to affordability pressures and delayed investment decisions, even as infrastructure and commercial markets gather pace. The divergence reflects higher financing costs for developers and buyers, tighter regulations and slower planning for housing compared with policy‑backed infrastructure programmes. For housebuilders, residential investors and their supply chains, this points to continued caution on starts and a need to align products and pricing with constrained household budgets. (Source: Arcadis)
🏛️ 2026 Building Safety Levy to reshape economics of new housing
Government is planning to introduce the Building Safety Levy in October 2026, applying to new residential developments to help fund remediation of existing building safety defects. The measure forms part of a broader post‑Grenfell regime and will sit alongside gateway processes under the Building Safety Act and emerging higher‑risk building rules. The levy will add a new cost line for developers and investors, particularly in high‑rise and complex residential schemes, requiring early pricing into land bids, appraisals and funding structures. (Source: PBC Today, Liz Male Consulting)
🏛️ Construction Products Reform White Paper nears consultation deadline
The consultation on the Construction Products Reform White Paper closes in mid‑March 2026, setting out proposals for a new regulatory architecture governing how construction products are tested, certified and placed on the UK market. The package seeks to address gaps exposed by Grenfell and subsequent inquiries, potentially reshaping responsibilities across manufacturers, importers, designers and contractors. Depending on final outcomes, businesses face more stringent product assurance obligations and the need to review specifications, supply chains and contractual risk allocation. (Source: UK Government)
🏛️ HMRC to tighten Construction Industry Scheme enforcement from April 2026
HMRC is set to increase enforcement activity around the Construction Industry Scheme (CIS) from April 2026, with a focus on compliance and tackling abuse. The move comes as part of a wider tightening of fiscal and regulatory scrutiny on the sector. Contractors, subcontractors and their advisers will need to review CIS processes, status assessments and record‑keeping to avoid cash‑flow disruption and penalties. (Source: PBC Today)
🏛️ Wales prepares to roll out higher‑risk building regime from July 2026
Wales is working towards implementation of its higher‑risk building regime from July 2026, extending post‑Grenfell building safety reforms into the devolved context. The regime will create new compliance and oversight requirements for certain multi‑occupied residential and other higher‑risk buildings. Developers, landlords and dutyholders active in Wales will need to track divergence from the English framework and adapt their governance, design and asset‑management strategies accordingly. (Source: Liz Male Consulting)
Also in the news
🚆 Barbour ABI’s latest top projects listing shows major schemes such as the Cottam and Sunnica solar farms, each around £500m, moving towards construction starts this spring, reinforcing the strong energy slice of the national pipeline. (Source: Barbour ABI)
⚙️ Industry awards programmes including the British Construction & Infrastructure Awards and Construction Awards of Excellence 2026 have opened or shortlisted entries, offering a platform for best‑practice case studies in delivery and innovation. (Source: Geomechanics, National Federation of Builders)
🏛️ Broader 2026 policy updates compiled this week underline a “slow but optimistic” growth outlook, with planning reforms and regulatory changes seen as key levers for unlocking stalled investment. (Source: Liz Male Consulting)
🌱 The government’s £365bn energy investment pipeline, spanning renewables and nuclear including Sizewell C, is highlighted as a major driver of long‑term workload and supply‑chain restructuring. (Source: Arcadis)
🚆 Transport investment plans covering RIS3 roads and rail upgrades, alongside HS2 Euston, remain central pillars of the decade‑long infrastructure programme now mapped by government. (Source: Arcadis)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If this briefing is useful for an upcoming bid, investment committee or project review, feel free to forward it to your team.