At a Glance
UK construction output is set to fall 2.5% in 2026, with April’s PMI dropping to 39.7 and signalling a sharp contraction in activity. (Source: The Daily Build)
The UK’s refreshed 10-Year Infrastructure Strategy confirms a £718bn pipeline across 734 projects, underpinned by a narrowed Government Major Projects Portfolio. (Source: projectdelivery.gov.uk)
Planning reforms targeting 1.5m homes are moving into implementation, backed by £48m to recruit 1,400 additional planners in 2026. (Source: Homebuilding & Renovating)
Ofgem’s 2026 review hands the regulator stronger growth and net‑zero mandates, as government consults on a scheme to cut business power costs by up to 25%. (Source: GOV.UK)
Entries for the British Construction & Infrastructure Awards 2026 close on 15 May, with innovation and sustainability in delivery a core focus. (Source: New Civil Engineer)
Today’s update: sector data now shows a sharper and more broad-based contraction in UK construction, even as the official infrastructure and housing pipelines are restated at record levels. Policy moves on planning, regulation and energy costs are increasingly about unlocking delivery and investment rather than announcing new programmes. Here’s what you need to know to stay ahead today.
Ongoing Stories
Following earlier coverage of pressure on the UK construction pipeline, new PMI data for April (39.7) and a CPA forecast of a 2.5% output fall in 2026 confirm that civil engineering and housebuilding are bearing the brunt of the downturn, intensifying delivery risk on major programmes. (Source: The Daily Build)
Building on recent attention to planning reform, implementation of the Planning and Infrastructure Act 2025 is now centred on brownfield-first policies, expanded permitted development rights and new resourcing for local planning teams, shifting the focus from legislation to on‑the‑ground capacity. (Source: Homebuilding & Renovating)
Returning to the theme of regulatory change, Ofgem’s 2026 review and the proposed British Industrial Competitiveness Scheme add concrete mechanisms—growth and net‑zero duties plus lower industrial power tariffs—that could reshape business cases for energy‑intensive assets and clean infrastructure. (Source: GOV.UK)
Top 5 Headlines
⚙️ UK construction PMI plunges as 2026 output forecast turns negative
April’s S&P Global UK Construction PMI fell to 39.7, down from 45.6 in March and below expectations, indicating a “sharp fall” in activity. Civil engineering and housebuilding saw particularly steep declines, with firms reporting intense cost pressures. The Construction Products Association now expects overall construction output to contract by 2.5% in 2026. This deterioration hardens the outlook for contractors and suppliers just as major public programmes ramp up, increasing the likelihood of reprioritisation, margin pressure and delivery strain across the pipeline. (Source: The Daily Build; Bricks & Bytes)
🚆 £718bn 10-Year Infrastructure Strategy and refocused major projects portfolio bed in
The UK’s 10-Year Infrastructure Strategy, updated in early 2026 and referenced again on 10 May, details £718bn of planned investment across 734 schemes including hospitals, schools, railways, reservoirs and clean energy projects. From April 2026, reforms to the Government Major Projects Portfolio reduced its scope to around 80 high‑impact projects to sharpen delivery oversight. For the market, a more tightly curated portfolio within a large overall pipeline means competition will centre on a smaller set of flagship schemes, with scrutiny on performance and capability likely to intensify. (Source: projectdelivery.gov.uk; GOV.UK)
🏗️ Planning and Infrastructure Act shifts from design to delivery on 1.5m homes
The Planning and Infrastructure Act 2025, which received Royal Assent in December, is now in the implementation phase, targeting delivery of 1.5m homes via a presumption in favour of brownfield, streamlined approvals and expanded permitted development rights. Combined authorities are taking on strengthened strategic spatial planning roles, while £48m has been earmarked in 2026 to recruit 1,400 additional planners to cut delays. Developers and local authorities will need to adapt quickly to a more permissive but centrally driven regime, with resourced planning teams able to move schemes through the system faster than in previous cycles. (Source: Homebuilding & Renovating; GOV.UK)
🌱 Ofgem review and BICS consultation tighten link between energy regulation, growth and net zero
Ofgem’s 2026 review, updated on 10 May, strengthens the regulator’s statutory focus on supporting economic growth and accelerating the net‑zero transition. In parallel, government is consulting on the British Industrial Competitiveness Scheme, which aims to cut electricity costs for eligible businesses by up to 25% while backing decarbonisation. These changes could materially improve the economics of energy‑intensive manufacturing, data centres and low‑carbon industrial projects, influencing siting decisions and power procurement strategies. (Source: GOV.UK; SLR Consulting)
🌱 Fusion strategy advances with £1.3bn STEP phase and planning policy on the horizon
The UK’s fusion energy strategy continues to move forward, with £1.3bn committed to the STEP demonstration programme and a draft National Policy Statement for fusion expected around mid‑2026. Policy commentary highlights that oil and gas will remain important for energy security during the transition, even as fusion and other low‑carbon technologies are scaled. For infrastructure and energy players, this emerging policy framework signals a future pipeline of specialised nuclear‑adjacent projects and associated grid, skills and supply‑chain requirements. (Source: GOV.UK; IIGCC)
Also in the news
🌱 Data centres are facing intensified environmental scrutiny but are being granted fast‑tracked infrastructure status, signalling both regulatory pressure and policy support for continued capacity expansion. (Source: SLR Consulting)
🚆 The Third Road Investment Strategy, launched in March 2026, confirms £27bn over five years for England’s major roads, maintaining a substantial pipeline for highways contractors and supply chains. (Source: projectdelivery.gov.uk)
🏗️ Implementation of secondary legislation under the Planning and Infrastructure Act is progressing through 2026, with further detail on brownfield and permitted development changes emerging for local planning authorities. (Source: Shojin)
🌱 UK energy policy updates emphasise that domestic oil and gas production will continue to underpin security of supply while clean energy and net‑zero measures are scaled. (Source: IIGCC)
💰 The British Construction & Infrastructure Awards 2026 close for entries on 15 May, spotlighting best practice in innovation, project delivery and sustainability across the sector. (Source: New Civil Engineer)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If this briefing is useful to your team’s decisions this week, consider forwarding it to a colleague.