At a glance
Construction output is forecast to return to growth in 2026, led by infrastructure, utilities, energy and housing, but depends on resolving severe labour shortages.
Government is tightening the post-Grenfell regulatory regime, with a new construction regulator, tougher product controls and a Building Safety Levy due this autumn.
Major public-sector procurements in Central Bedfordshire signal continued investment in highways and building safety compliance.
Ofgem’s next energy price cap and RIIO-3 investment signals will crystallise network cost impacts of grid upgrades and connections.
Hydrogen, offshore wind, nuclear and CCS schemes are moving from policy to delivery, anchoring the next wave of UK energy infrastructure work.
Today’s update: the forward workload picture for 2026 is improving, but capacity constraints, tighter regulation and network upgrade costs are hardening into the key delivery risks. At the same time, councils and central government are letting sizeable contracts in roads, safety and energy transition that will shape where resources need to flow. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following this week’s focus on the fragility of the UK’s £530bn project pipeline and skills gaps, new 2026 forecasts now point to 3–4% construction growth led by infrastructure and housing, provided a further 266,000 workers can be secured to meet demand. (Sources: RoofersCoffeeShop, Glenigan, Pinsent Masons)
Building on recent coverage of planning and safety reforms, the government’s May 2026 Grenfell progress report and the Construction Products Reform White Paper set out how a single construction regulator, stricter product oversight and the forthcoming Building Safety Levy will reshape compliance and cost baselines for new schemes. (Sources: GOV.UK, GOV.UK, GOV.UK)
Extending earlier discussion of clean energy and grid constraints, Ofgem’s confirmation of the Q3 2026 price cap timetable and RIIO-3 cost impacts, combined with ongoing grid connection reform, underline that network charging and queue management will be critical commercial drivers for renewables and industrial projects entering the 2026–27 delivery window. (Sources: Ofgem, Slaughter and May)
Top 5 Headlines
🏗️ UK construction tipped for 2026 rebound, but needs 266,000 extra workers
Sector outlook analysis from Glenigan, Pinsent Masons and RoofersCoffeeShop indicates UK construction is set to return to growth in 2026 after a weak 2025, with infrastructure, utilities, energy and housing leading the recovery. The market faces a critical skills crunch, with an estimated requirement for 266,000 additional workers to satisfy pipeline demand. This combination of renewed workload and acute labour shortage will drive competition for skills, pressure wage bills and intensify focus on productivity, MMC and immigration policy. (Sources: RoofersCoffeeShop, Glenigan, Pinsent Masons)
🏛️ Post-Grenfell reforms tighten grip on construction products and safety
The government’s May 2026 progress report on the Grenfell Tower Inquiry confirms ongoing safety reforms, including creation of a single construction regulator and tougher oversight of construction products. The Construction Products Reform White Paper consultation, which closed on 20 May, proposes stricter regulation and enforcement of materials, while the Building Safety Levy is scheduled to take effect in England from 1 October 2026. Together with further consultations on building safety and Approved Document B, this will hard-wire higher competency, documentation and potential cost into project planning and procurement. (Sources: GOV.UK, GOV.UK, GOV.UK, Shoosmiths)
🏛️ King’s Speech 2026 targets retentions and faster infrastructure delivery
The 2026 King’s Speech includes plans to ban retention payments in construction and to accelerate infrastructure delivery through changes to payment and procurement. Proposals aim to improve cashflow resilience in the supply chain and cut bottlenecks in bringing major schemes to site. If enacted, this will require wholesale adjustment of contracts, risk allocation and project finance structures across the sector. (Source: JD Supra)
🚆 Central Bedfordshire launches £473m-plus highways and safety procurement push
Central Bedfordshire Council has issued procurement notices for the CBC-2019 M1/A6 Link Road, valued at £108m, and the CBC-2021 Fire & Building Safety Equipment, Planned Preventative Maintenance and Repairs contract, forecast at over £365m including VAT. The M1/A6 scheme will deliver a key strategic link road, while the safety and maintenance framework underpins ongoing compliance across the council’s estate. These tenders present significant opportunities for civils, M&E and compliance specialists, and add to the medium-term local authority pipeline despite wider budget pressures. (Source: Find Tender Service)
🌱 Energy transition gathers pace across hydrogen, offshore wind, nuclear and CCS
A May 2026 horizon scan from Slaughter and May highlights continuing government focus on meeting 2030 offshore wind ambitions, advancing grid connection reform and supporting commercial-scale green hydrogen projects, including the HAR1 approvals and target timelines for HAR3 (2026) and HAR4 (2028). Carbon capture and storage plans centred on the Teesside East Coast Cluster are progressing, while DLA Piper notes that Sizewell C reached financial close in November 2025 and is now moving into construction. This wave of energy-transition schemes signals multi-decade workstreams for contractors and consultants across civils, process engineering, grid and port infrastructure. (Sources: Slaughter and May, DLA Piper)
Also in the news
⚙️ East Sussex County Council has awarded a roofing contract to Greenwood Flat Roofing worth around £55,000 excluding VAT, illustrating ongoing smaller-scale local authority investment despite wider fiscal constraints. (Source: Find Tender Service)
🚆 The UK’s infrastructure pipeline for 2026 remains anchored by mega-projects such as HS2, the Lower Thames Crossing and major road and rail programmes, reinforcing long-term civils and transport workload expectations. (Sources: Pinsent Masons, Glenigan)
🏛️ Further building safety consultations due through 2026, including on Approved Document B, will refine fire and life-safety standards and could affect design, material selection and build costs. (Source: GOV.UK)
🌱 Ofgem will confirm the Q3 2026 energy price cap by 27 May, with higher network costs attributed in part to infrastructure investments under the RIIO-3 framework. (Source: Ofgem)
🌱 Grid connection reform continues as updated offers are issued for 2026/27 connection dates and final notifications expected by Q3 2026, reshaping timelines and bankability for renewables developers. (Source: Slaughter and May)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If you find this useful, consider forwarding it to a colleague preparing bids, budgets or board papers this week.