At a Glance
UK construction output continues to contract, with March project starts down 18% year-on-year and insolvencies still accounting for 17% of all business failures.
The government has refreshed a £718bn, 10-year infrastructure pipeline and launched NISTA to tackle delays and accelerate approvals across 734 schemes.
Development land values are holding up and strategic land deals for nearly 4,900 plots signal renewed activity despite wider housing market headwinds.
Contract awards hit £7.18bn in March, led by residential and key regeneration schemes, even as site starts and planning approvals weaken.
Energy infrastructure remains a bright spot, with grid reform, storage build-out and fusion investment underpinning long-term opportunities.
Today’s update: a sharper inflation shock and persistent insolvencies are colliding with an expanded £718bn infrastructure ambition and early signs of a housing land reset. Energy, infrastructure and strategic land are pulling away from weaker commercial and private housing delivery, while skills and digital capability are moving centre stage in policy debates. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of skills and delivery risks, new sector data shows UK construction project starts falling 18% year-on-year in March 2026, with input price inflation hitting its fastest monthly acceleration since 1997 and insolvencies still comprising 17% of all business failures. (Source: Tokio Marine HCC; BDC Magazine)
Building on recent discussion of planning and delivery reform, government has now set out a detailed £718bn, 10-year infrastructure pipeline and created NISTA to reduce delays and give clearer long-term signals on skills and workforce planning. (Source: UK Government; ICE)
Top 5 Headlines
🏗️ Construction contraction deepens as inflation spikes and war disrupts supply chains
New analysis indicates the UK construction market remains in contraction, with infrastructure, energy, water and industrial work holding up better than private housing, commercial and retail. Project starts dropped 18% year-on-year in March 2026, while construction firms represented 17% of all business insolvencies in February. Input prices surged, with the relevant index hitting 70.5 in March – the sharpest monthly acceleration since 1997 – driven in part by supply chain disruptions linked to the US–Iran war. The figures underline mounting delivery risk and pricing uncertainty for live bids and fixed-price contracts across the sector. (Source: Tokio Marine HCC; BDC Magazine)
🚆🏛️ Government unveils refreshed £718bn infrastructure pipeline and new delivery agency
The UK government has updated its infrastructure pipeline to 734 projects worth £718bn over the next decade, spanning economic assets such as roads, rail, energy and water, alongside housing, schools and hospitals. A new agency, NISTA, has been created to improve delivery, cut delays and support faster approvals, with a specific focus on long-term funding certainty and workforce and skills planning. Accelerated schemes include the Lower Thames Crossing, East West Rail (Bletchley–Cambridge), Gatwick expansion, HS2 and bridge maintenance programmes. Returning today as a core theme, the package signals that clients and contractors can expect greater clarity on future workloads but also sharper scrutiny of delivery performance and capacity. (Source: UK Government; ICE)
🏗️ UK land market shows resilience as strategic housing plots change hands
Development land values are reported to be holding firm, with activity picking up in 2026 after a slow end to 2025. Recent strategic land agreements cover capacity for nearly 4,900 plots across key regions, pointing to renewed housebuilder and investor interest in longer-term pipeline. The FOOTPRINT+ built environment conference in London on 13–14 May is focusing on resilience and future development trends against this backdrop. The divergence between land transactions and weaker immediate housing output suggests developers are positioning for the next cycle even as near-term delivery remains constrained. (Source: UK Property Forums; FOOTPRINT+)
⚙️ Contract awards climb to £7.18bn despite weaker starts and permissions
UK construction contract awards reached £7.18bn in March 2026, with residential-led work accounting for £2.57bn and major infrastructure awards totalling £1.52bn. Notable schemes include the £148m Penvose Student Village, the £120m Selby Urban Village and the £105m City Link House project in Croydon. Glenigan’s May 2026 Construction Index points to a mixed picture of stronger awards but weaker site starts and planning approvals. The data suggests workload is rebuilding in the pipeline, but delivery teams face a lag before awards convert into on-site activity. (Source: PropertyWire)
🌱⚡ Energy infrastructure pipeline strengthens around storage, grid and fusion
Grid reform and connection system changes are advancing, with more than 283GW of projects allocated connection offers as the system operator seeks to manage demand for capacity. Battery storage build-out is continuing, with operational capacity reaching 7GW/10GWh in 2025, while a cap and floor support scheme for long-duration energy storage is progressing towards investment decisions expected in summer 2026. Alongside £1.3bn of funding for the STEP fusion programme and strong investment in renewables, data centres and eHGV charging, the UK is increasingly exporting its energy expertise through international partnerships and acquisitions. The breadth of this pipeline reinforces energy and grid-related work as one of the most reliable long-term markets for contractors, consultants and investors. (Source: UK Government; techUK; Slaughter and May)
Also in the news
🏗️ Industry commentators highlight digital skills and lifelong learning as emerging “critical infrastructure”, seen as essential to lifting productivity and resilience across UK construction. (Source: Tokio Marine HCC)
🏗️ The Glenigan May 2026 Construction Index notes that while contract awards are improving, the combination of weaker site starts and subdued planning approvals continues to weigh on near-term workload. (Source: PropertyWire)
🏗️ Entries for the British Construction & Infrastructure Awards 2026 remain open until 15 May, offering a platform for clients, contractors and consultants to showcase project delivery and innovation. (Source: ICE)
🚆 Infrastructure priorities in the refreshed pipeline include accelerated programmes for the Lower Thames Crossing, East West Rail, Gatwick expansion and HS2, together with ongoing bridges and maintenance work. (Source: UK Government)
🌱 techUK notes that continued investment in renewables, data centres and eHGV charging is occurring despite supply chain pressures, reinforcing long-term demand for specialist civils and M&E capability. (Source: techUK)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline. If this briefing sharpens a decision on workload, risk or investment, consider forwarding it to your team.
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