At a Glance
UK construction output is still falling in 2025 as delayed spending and budget uncertainty squeeze activity and investment. (Source: Building)
Government confirms further steps on post-Grenfell building safety reform, fire regulations and the Construction 2025 strategy. (Source: GOV.UK)
Renewables pipeline accelerates with record 16.1 GW of consented capacity, a £30bn grid upgrade plan and the UK’s largest battery project set to build. (Source: RWE)
Major schemes including East West Rail and Thames Tideway Tunnel feature in this year’s national construction awards shortlists. (Source: ICE)
New industrialised construction awards launch, signalling growing focus on MMC and offsite productivity. (Source: Home Designer & Architect)
Today’s update: output data confirms a difficult 2025 for contractors even as Whitehall leans on the Construction 2025 strategy and safety reform to reset the industry’s direction. At the same time, a fast-expanding renewables and grid pipeline is emerging as a rare bright spot, with major programmes demanding capacity just as margins weaken elsewhere. Here’s what you need to know to stay ahead today.
Ongoing Stories
Returning to this week’s focus on a stressed UK project pipeline, new data shows construction output continuing to fall in 2025 as delayed spending and budget uncertainty drag on activity, compounding earlier concerns around skills and investment. (Source: Building)
Following earlier coverage of planning and regulatory reform, the latest government progress report on post-Grenfell building safety sets out further moves on principal contractor licensing and fire safety guidance, tightening the compliance framework for higher-risk projects. (Source: GOV.UK)
Building on recent clean energy and infrastructure planning stories, a record 16.1 GW of renewables consents in Q2 2025 and National Grid’s £30bn upgrade plan underline that decarbonisation work is accelerating even as other segments soften. (Source: RWE)
Top 5 Headlines
⚙️ UK construction output slide extends into 2025
Latest figures reported by Building show UK construction output continuing to fall in 2025, with delayed client spending and persistent budget uncertainty cited as the key drivers. The ongoing decline is weighing on both current project activity and new investment decisions, suggesting a more cautious pipeline into 2026. For contractors, consultants and suppliers, this reinforces pressure on order books, pricing and cashflow planning across most subsectors. (Source: Building)
🏛️ Government advances Construction 2025 strategy and safety reforms
Updated government material and legal briefings confirm that the Construction 2025 industrial strategy remains a core framework, with continued emphasis on digital transformation (including BIM), planning reform and productivity-led growth. Alongside this, a fresh progress report on the post-Grenfell regime highlights ongoing work on principal contractor licensing for higher-risk buildings and further consultation on fire safety rules under Approved Document B. The package signals that clients and dutyholders will face tighter competence and documentation requirements while being pushed to adopt more digital, data-driven delivery models. (Source: GOV.UK, GOV.UK, LexisNexis)
🌱 Record 16.1 GW of renewables approved as grid readies £30bn upgrade
Industry reporting shows that a record 16.1 GW of renewable capacity was approved in Q2 2025, spanning offshore wind, large solar and pumped hydro storage. National Grid is planning £30bn of transmission upgrades between 2025 and 2029 to connect this capacity and support net zero targets. This scale of committed work points to a multiyear investment wave for civils, grid, marine and energy specialists, even as traditional building markets soften. (Source: RWE plus industry reports)
🌱 RWE to build UK’s largest battery at Pembroke from 2026
RWE has confirmed construction of its largest UK battery energy storage facility at Pembroke, with works due to start in early 2026. The project will form part of a wider programme of storage assets designed to support grid stability as renewable penetration rises. For contractors and technology providers, this offers a flagship reference for large-scale BESS delivery and signals growing demand for balance-of-plant civils and M&E capability in the storage market. (Source: RWE)
🚆 Flagship solar schemes, including Helios, move ahead across the UK
The government has issued a development consent decision for the Helios solar project in North Yorkshire, while other large solar farms such as Kingsway and Rosefield are also progressing. Together with the Q2 approvals surge, these schemes indicate a broad-based expansion of utility-scale solar nationwide. Developers, planners and contractors will see increasing opportunity in grid-scale solar EPC and balance-of-system work, particularly where aligned with storage and local network reinforcement. (Source: GOV.UK)
Also in the News
🚆 East West Rail and Thames Tideway Tunnel feature among the shortlisted schemes for the British Construction and Infrastructure Awards 2025, reflecting the prominence of major rail and water projects in current delivery pipelines. (Source: ICE)
⚙️ Building Awards 2025 coverage highlights Multiplex as Major Contractor of the Year and Turner & Townsend as top consultant, underlining which players are currently setting the benchmark on performance and delivery. (Source: Building)
⚙️ The new Industrialised Construction Awards have opened for entries, focusing on MMC and industrialised methods at a time when offsite business models are under scrutiny. (Source: Home Designer & Architect)
🏛️ Legal round-ups this week note that, despite macro headwinds, construction output in Q3 2025 showed some growth, suggesting a mixed picture beneath the headline 2025 decline. (Source: LexisNexis)
🏛️ Ongoing consultation on updates to Approved Document B is flagged as a key near-term change point for fire safety design across residential and mixed-use schemes. (Source: GOV.UK)
The Daily Build is written for people shaping the UK’s construction and infrastructure pipeline, from boardrooms to site offices. If this edition is useful, consider forwarding it to colleagues who are watching workload, regulation and energy opportunities going into 2026.