At a Glance
UK construction costs are forecast to rise by around 3.6% in 2026, with tender prices revised up to roughly 3.45%, adding pressure to already tight project finances. (Source: Building)
A new government infrastructure unit has been announced to fast-track major schemes by unblocking planning issues in real time. (Source: ConstructionBuzz)
The updated UK Infrastructure Pipeline now totals £718bn across 734 projects, with detailed regional skills and workforce needs flagged for the next decade. (Source: GOV.UK)
Key elements of the Planning and Infrastructure Act 2025 are coming into force, narrowing judicial review routes and streamlining processes for nationally significant projects. (Source: GOV.UK)
Looking ahead to October 2026, major regulatory changes – from EPC reforms and the Building Safety Levy to new skills requirements for energy installations – are set to reshape project economics and compliance. (Source: Energy Advice Hub, PBC Today)
Today’s update: cost inflation and geopolitical risk are clouding the 2026 outlook just as government seeks to accelerate a £718bn infrastructure and construction pipeline through new delivery units and planning reforms. At the same time, a cluster of 2026 regulatory changes on energy performance, safety and products will reset compliance and skills expectations across the sector. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of strain in the UK construction and infrastructure pipeline, the latest Infrastructure Pipeline update now quantifies 734 projects worth £718bn and highlights where regional workforce pressures are likely to bite hardest over the next decade. (Source: GOV.UK)
Building on recent government moves to speed up planning and delivery, a new infrastructure unit has been created to intervene on major schemes where planning issues emerge, complementing the Planning and Infrastructure Act 2025 reforms already in train. (Source: ConstructionBuzz)
Continuing the theme of legal and regulatory change, implementation of the Planning and Infrastructure Act 2025 now confirms tighter limits on legal challenges and streamlined routes for nationally significant projects, reinforcing the centralising trend flagged in previous coverage. (Source: GOV.UK)
Top 5 Headlines
💰 UK construction costs set to rise 3.6% in 2026
Currie & Brown forecasts UK construction costs will increase by around 3.6% in 2026, with tender price inflation revised upwards to approximately 3.45% amid a backdrop of rising geopolitical risk and stalled development activity. The consultancy points to heightened uncertainty as a key drag on new schemes and investment decisions. For clients and contractors, this raises immediate pressure on budgeting, risk allowances and contract strategies for schemes moving through procurement. (Source: Building)
🚆 New UK infrastructure unit to fast-track major projects
Government has established a new infrastructure unit tasked with fast-tracking major projects by tackling planning blockages as they arise, rather than leaving schemes stalled in lengthy dispute cycles. The unit is designed to work across departments and with local authorities to reduce delays on nationally important programmes. This move signals a more interventionist stance on delivery and could materially shorten pre-construction timelines for large schemes if it delivers in practice. (Source: ConstructionBuzz)
🚆 Returning today: £718bn Infrastructure Pipeline sharpens skills focus
The March 2026 Infrastructure Pipeline update sets out 734 planned projects worth £718bn over the next decade, broken down by region and sector with associated workforce and skills demands. The data highlights where labour shortages are likely to be most acute as hospitals, housing, transport and energy schemes move forward. For contractors, consultants and training providers, the pipeline offers a clearer map of future demand to shape recruitment, capacity planning and regional investment. (Source: GOV.UK)
🏛️ Planning and Infrastructure Act 2025 implementation tightens legal challenge routes
Key provisions of the Planning and Infrastructure Act 2025 are now being implemented, including curbs on legal challenges and streamlined processes for nationally significant infrastructure projects. The reforms are aimed at reducing delay risk for major housing, onshore wind and other infrastructure schemes by simplifying consent routes and limiting judicial review exposure. Developers and promoters of large schemes will need to recalibrate their planning, consultation and litigation strategies to reflect the new framework. (Source: GOV.UK)
🌱 Major EPC reforms to reshape building performance obligations from October 2026
From October 2026, Energy Performance Certificates for both domestic and non-domestic buildings will be overhauled, with new metrics covering energy cost, fabric performance, heating systems and smart readiness, and extended requirements for marketing including HMOs and heritage buildings. The reforms remove some current exemptions and are intended to drive more meaningful performance improvements rather than box-ticking. This will push owners, developers and asset managers to re-examine design standards, retrofit strategies and data collection to avoid stranded or non-compliant assets. (Source: Energy Advice Hub, GOV.UK)
Also in the News
🏗️ Industry awards cycles are ramping up, with Constructing Excellence regional awards open until late March 2026 and the Construction Awards of Excellence scheduled for November, providing platforms to showcase innovation and delivery performance. (Source: Constructing Excellence, UK Construction Week, Highways.Today)
🌱 The Building Safety Levy on new residential developments in England is due in October 2026, with receipts earmarked for funding remediation of unsafe buildings, adding a new cost line to housing schemes. (Source: PBC Today)
⚙️ From October 2026, electrical operatives working on energy technology installations will require a Level 3 qualification, tightening competence standards for heat pump, solar and battery deployment. (Source: PBC Today)
🌱 The Warm Homes Plan, launched in January 2026, sets out substantial government investment in insulation, heat pumps, solar and batteries as part of efforts to tackle fuel poverty, creating a pipeline of retrofit and low-carbon installation work. (Source: PBC Today)
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