At a Glance

Today’s update: the Spring Statement has landed with a thud for construction leaders, who see macro stability but little targeted support just as cost pressures, new regulation and skills constraints collide. At the same time, data and pipelines suggest a slow turn towards growth, especially in infrastructure and housing, if firms can navigate higher compliance and pricing complexity. Here’s what you need to know to stay ahead today.

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Top 5 Headlines

🏛️ Spring Statement 2026 branded a “missed opportunity” for construction
Industry bodies and contractors have reacted coolly to the Spring Statement, noting that while it emphasised economic stability and lower borrowing costs, it did not unveil significant new funding or policy levers aimed specifically at construction and infrastructure. Commentary highlights the gap between the sector’s role in delivering housing, net zero and growth, and the absence of targeted measures such as accelerated public investment or tax incentives. This matters because firms are being asked to ramp up delivery against national targets without additional fiscal or policy support to offset rising costs and regulatory burdens. (Source: Construction Wave, PBC Today)

💰 Construction downturn eases as PMI points to stabilisation
The S&P Global UK Construction PMI rose to 46.4 in January 2026 from 40.1 in December 2025, indicating the slowest fall in new orders for three months. Public sector workloads and increased client inquiries are helping to steady activity, even as overall output remains below the 50 expansion threshold. For contractors and suppliers, this suggests a gradual move away from the sharp contraction of late 2025, but with fragile demand that still requires disciplined bidding and cost control. (Source: Investing.com)

💰 Cost inflation set to add 15% to building costs over five years
Forecasts for 2026 indicate construction input prices will rise by around 3.6% this year, feeding into a projected 15% increase in overall building costs over the next five years. Analysts link the pressure to ongoing wage inflation, materials volatility and tighter regulation, despite some easing in energy prices. This will force developers, contractors and public clients to revisit budgets, value engineering strategies and risk allowances on both live and pipeline projects. (Source: Builders’ Merchants News, Pinsent Masons)

🚆🌱 £90bn+ infrastructure pipelines anchor medium-term workload
New analysis highlights a series of major programmes underpinning the medium-term market, including the £50bn water sector AMP8 investment for 2025–2030 and the £24bn National Highways RIS3 road strategy for 2026–2031, alongside continued backing for HS2, the Lower Thames Crossing and Sizewell C. These schemes are expected to be key drivers of demand through the second half of the decade. For the supply chain, this reinforces the need to gear up for civils, energy and transport work even as short-term market sentiment remains mixed. (Source: Pinsent Masons, Builders’ Merchants News)

🏛️ Single Construction Regulator and Building Safety Levy move closer
Government has opened consultation, running until 20 March 2026, on creating a Single Construction Regulator to oversee building safety and standards, with a formal response expected in summer 2026. In parallel, a new Building Safety Levy on new residential buildings in England is due to take effect in October 2026, aiming to raise £3.5bn over ten years to fund remediation. The proposals signal a tighter, more centralised compliance regime that developers, investors and principal contractors will need to factor into programme appraisals, pricing and design decisions. (Source: PBC Today, GOV.UK)

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The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline. If this briefing is useful for your next board, bid or investment review, consider forwarding it to your team.