At a glance
🏛️ New planning regulations taking effect today overhaul local plan-making in England and introduce regional spatial development strategies.
🏗️ A 2026 policy reset tightens building safety, water efficiency and tax compliance, while a Single Construction Regulator is under consultation.
🚆 The updated national infrastructure pipeline now totals £718bn across 734 projects, with energy and rail driving long-term demand.
🌱 Volatile energy prices and new grid links like Eastern Green Link 3 are sharpening debate over the UK’s mix of oil, gas and renewables.
💰 Deal volumes remain muted so far in 2026, but advisers expect construction and infrastructure M&A to pick up as financing conditions ease.
Today’s update: a major reset of England’s plan-making framework lands just as regulators, tax authorities and safety bodies tighten their grip on construction activity. Against that backdrop, a £718bn infrastructure pipeline and ongoing energy market volatility are shaping where capital and delivery capacity will be needed most. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of planning reform and central intervention, today’s commencement of the Town and Country Planning (Local Planning) (England) Regulations 2026 and progress on national development management policies confirm the shift to faster, more centralised plan-making that developers will now have to navigate in practice. (Sources: Gov.uk, Homebuilding.co.uk)
Building on recent discussion of delivery risks in the £530bn-plus infrastructure pipeline, the latest £718bn national pipeline update adds clearer figures on where spend is concentrated over the next decade, particularly energy and rail, sharpening visibility for contractors’ bidding and capacity planning. (Sources: Open Access Government, Gov.uk)
Returning to the theme of energy security and the transition, the new NKT contract for Eastern Green Link 3 and the government’s extended retail energy bill cap show how grid expansion and short-term consumer support are moving in parallel as wholesale prices remain volatile. (Sources: Marine Technology News, TheJournal.ie)
Top 5 headlines
🏛️ New planning regulations reshape England’s local plans from today
The Town and Country Planning (Local Planning) (England) Regulations 2026 come into force today, replacing the 2012 regime and embedding the government’s planning reforms. A key innovation is the introduction of spatial development strategies (SDSs), enabling groups of authorities to distribute housing need at a regional level, with a duty to prepare SDSs starting in summer 2026. Councils have been instructed to commence plan-making under the new system by the end of June 2026. This will reset the planning context for major housing and mixed-use schemes, with developers needing to track emerging SDSs and new national development management policies closely. (Source: Gov.uk)
🏛️ CPO reforms and Section 106 changes tighten land and affordable housing delivery
Section 183 of the Levelling-up and Regeneration Act 2023 is now in force, enabling conditional confirmation of compulsory purchase orders, supported by new regulations on prescribed forms and vesting declarations. In parallel, government has introduced changes to Section 106 processes aimed at improving transparency and addressing delays linked to uncontracted affordable units. Further CPO guidance is expected in spring 2026. The package materially affects land assembly and affordable housing negotiations on large schemes, with local authorities and promoters needing to reassess acquisition and phasing strategies. (Sources: Gov.uk, Shojin)
⚙️ 2026 construction rulebook: safety, water and tax enforcement tighten
A suite of regulatory changes is reshaping construction delivery through 2026, including the Building Safety Regulator becoming a standalone body in January to oversee higher-risk buildings and the upcoming requirement for a second staircase in residential buildings of 18m+ from 30 September 2026. New Part G standards will cut allowable water use in new homes from 125 to 105 litres per person per day, while HMRC will intensify Construction Industry Scheme (CIS) enforcement from 6 April 2026. Together with the building safety levy and potential creation of a Single Construction Regulator, this points to higher compliance costs and programme risk but also clearer expectations on design, product selection and site practice. (Sources: Gowling WLG, Sharpe Pritchard)
🚆 £718bn national infrastructure pipeline sharpens sector visibility
The latest national infrastructure pipeline sets out 734 projects worth £718bn through 2036, with around £365bn earmarked for energy, including nuclear such as Hinkley Point C targeting first power in 2027. Rail spend of £25.3bn between 2026 and 2030 will support HS2 test sections, East West Rail acceleration and station upgrades, while the £10bn Lower Thames Crossing and a new fast-track planning unit sit alongside other major road and grid schemes. This scale of committed and prospective work underpins medium-term demand for civils, M&E and professional services, but delivery will depend on resolving planning, skills and supply-chain constraints highlighted in recent industry reports. (Sources: Open Access Government, Gov.uk)
🌱 Energy price shock and EGL3 deal intensify UK energy transition debate
Geopolitical tensions linked to conflicts involving the US, Israel and Iran have driven UK energy prices higher in March, prompting the government to extend the retail energy bill cap to June 2026 and announce a £53m subsidy package for heating oil-reliant households. In parallel, Danish manufacturer NKT has signed a $2.5bn contract to deliver the Eastern Green Link 3 HVDC cable, expected to move 2GW of Scottish renewables to demand centres by 2033. The combination of short-term support measures and long-term grid investment underscores competing pressures to back domestic oil and gas while accelerating renewables, storage and retrofit markets. (Sources: University of Oxford, Marine Technology News, OEUK, TheJournal.ie)
Also in the news
💰 Despite no major UK construction M&A announced in the last 48 hours, advisers report that sector deal activity, which surged in late 2025, is expected to remain strong through 2026 as corporates reshape portfolios and debt markets stabilise. (Source: NatLawReview)
💰 Early 2026 has seen relatively few significant UK merger control cases in construction and infrastructure, reflecting a post-reset competition regime that still demands close scrutiny of larger or more complex combinations. (Source: Compass Lexecon)
💰 Public M&A in the UK remains selective, with practitioners highlighting that boardrooms are focusing on strategic, synergy-driven transactions rather than volume plays. (Source: White & Case)
🚆 The Institution of Civil Engineers’ State of the Nation 2026 report reiterates that cost escalation, fragmented supply chains and skills shortages are key risks to delivering the enlarged infrastructure pipeline. (Source: ICE)
⚙️ PBCToday notes that the 2026 Spring Statement was largely neutral for construction, with existing infrastructure spending plans rather than new fiscal measures expected to drive the sector’s modest 1.6% growth outlook. (Source: PBCToday)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline. If this briefing is useful, consider forwarding it to colleagues who need to stay sharp on regulation, risk and upcoming opportunities.