At a glance
Royal Assent for the Planning and Infrastructure Act 2025 rewires NSIP, housing and environmental consenting, with ministers targeting 150 fast-tracked major projects this parliament.
Latest data shows October construction output down 0.6% but Q3 orders sharply higher, as profit warnings and financial stress highlight widening divergence across the supply chain.
Major residential schemes in London and the South East continue to move through the pipeline, underpinning demand despite weak near-term output.
UK energy production has fallen to a record low as renewables pass 54% of power generation, reshaping future infrastructure priorities and cost profiles.
New EV and industrial energy support in the Autumn Budget will influence location and viability of manufacturing and logistics-led projects from 2027.
Today’s update: planning reform has finally landed in statute just as construction output softens, order books rebuild and financial risk pushes more firms to the edge. In parallel, the energy transition is accelerating, with falling fossil output and fresh budget support for low‑carbon infrastructure reshaping long-term workloads and costs. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of the Planning and Infrastructure Bill, the now‑enacted Planning and Infrastructure Act 2025 confirms NSIP reforms, spatial development strategies and planning fee flexibilities, giving developers clearer levers and timetables for major schemes.
Returning to the theme of planning and clean energy policy, the latest Energy Trends data and Autumn Budget measures show renewables’ share rising above 54% while £2.5bn of EV infrastructure funding and new industrial energy support will frame future grid, generation and manufacturing investments.
Building on recent insights into UK development pipelines, December analysis highlights specific large housing‑led schemes in London and the South East, adding detail on volume and value where the market remains most active.
Top 5 Headlines
🏛️ Planning and Infrastructure Act 2025 becomes law, overhauling major project approvals
Royal Assent on 18 December brings into force the Planning and Infrastructure Act 2025, aimed at accelerating delivery of housing, reservoirs, energy schemes such as Sizewell C, and nationally significant transport projects including the Lower Thames Crossing. The Act extends the NSIP regime to large reservoirs promoted by non‑water companies, allows councils to set planning fees to fully recover costs, introduces cross‑boundary spatial development strategies, and reforms pre‑application and Development Consent Order processes to cut average timelines by around 12 months. Updated environmental delivery plans seek to strengthen nature protection while formalising payment mechanisms for developers. For the sector, this is a step‑change in the rules of engagement on large projects, with faster consenting targeted for 150 schemes but also new local and environmental obligations to navigate. (Source: GOV.UK; legislation.gov.uk; CECA; Pinsent Masons; Centre for Policy Studies)
⚙️ Construction output dips but order books and confidence point to 2026 rebound
ONS data show UK construction output fell 0.6% in October 2025, with modest growth in new work offset by a decline in repair and maintenance. However, new orders in Q3 rose strongly, led by private commercial work up 48.6% and gains in private industrial, while business confidence in construction in December hit its highest level this year. Against this, 64 profit warnings from listed construction firms in Q3 and 104,000 companies under significant financial stress underline severe margin pressure. The picture for 2026 is one of growing pipelines but heightened insolvency and pricing risk, demanding tighter risk management and selective bidding. (Source: ONS; Tokio Marine HCC; EY; Lloyds Bank)
🌱 UK energy production hits record low as renewables exceed half of generation
Government Energy Trends data for Q3 2025 show overall UK energy production at a record low, down 2% year on year, largely due to declines in oil, gas and nuclear output. Renewables generation grew 7%, taking the renewables share of electricity to 54.7% as wind, solar and hydro all increased their contribution. Market commentators expect consumer bills to remain stable or fall over the next five years despite ongoing investment needs, supported by the North Sea Future Plan’s focus on managed fossil decline and investment in offshore wind and CCUS. This accelerates the shift in capital towards grid, storage and low‑carbon generation assets, with knock‑on implications for traditional hydrocarbons work. (Source: GOV.UK – Energy Trends; Bryt Energy; Dyce Energy)
🌱 Autumn Budget 2025 steers infrastructure towards EV and energy‑intensive industry
Analysis of the Autumn Budget confirms a £2.5bn commitment to electric vehicle charging infrastructure alongside the creation of the British Industrial Competitiveness Scheme, which will cut energy bills for eligible manufacturers from 2027. Taken together with the North Sea Future Plan, the package signals continued support for decarbonisation of transport and heavy industry while managing the fossil fuel decline. For project sponsors, these measures will shape site selection, power strategies and the business case for associated grid and industrial infrastructure over the next decade. (Source: Osborne Clarke)
🏗️ Large housing-led schemes reinforce London and South East development focus
December project intelligence highlights several major schemes including the £450m Peckham Regeneration (850 homes with 35% affordable and 25% social housing, designed by dRMM), the £260m 84 Manor Road scheme in London (453 homes plus retail), the £230m Strode Farm Phases C & D (296 homes and flats) and the £200m Broad Street Mall redevelopment (644 flats). While there were no new planning application announcements on 22–23 December, these projects illustrate the depth of the committed residential pipeline in key markets. For contractors and investors, this underpins medium‑term workload in high‑value regions even as near‑term output softens. (Source: Osborne Clarke; Barbour ABI; Place North West)
Also in the news
⚙️ The Health and Safety Executive has appointed NRC Services Limited to a £290,000 contract to upgrade low-voltage electrical infrastructure from 23 December 2025 to April 2026, adding to a steady trickle of year‑end public sector works. (Source: Find a Tender)
⚙️ Costain has been selected to build new baggage infrastructure facilities at Heathrow Terminal 2 under a contract awarded on 19 December, reinforcing aviation as a niche but active infrastructure sub‑sector going into 2026. (Source: Costain)
🚆 Northern Ireland’s Department for Infrastructure continues to award DfI TRAM framework contracts for 2025–26, sustaining a pipeline of highways and water sector work across the region. (Source: Department for Infrastructure NI)
🌱 Commentary on the nuclear sector highlights regulatory complexity as a drag on new build, even as policy pushes for offshore wind and CCUS within the North Sea Future Plan. (Source: Osborne Clarke)
💰 Market analysts note that, despite elevated profit warnings and distress across construction, expectations of stable or falling energy bills over five years could ease some cost pressure on energy‑intensive materials and manufacturing supply chains. (Source: Bryt Energy; Dyce Energy)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If this briefing sharpened your view of 2026 risks and opportunities, consider forwarding it before your next project review.