At a glance
UK construction sees a 14% rise in project starts, driven by civil engineering and ports, but housing and contract awards remain weak, underscoring a fragile recovery. (Source: BDC Magazine)
Ministers launch the biggest planning and housing policy reset in a decade, tying a revamped NPPF and new “call‑in” powers to the 1.5m homes target and a £725bn infrastructure strategy. (Source: GOV.UK)
Government doubles down on low‑carbon hydrogen and CCS after BP pulls its 600MW H2Teesside scheme, with Net Zero Teesside Power reaching FID and 2024 renewables hitting 50.4% of UK generation. (Source: S&P Global)
Today’s update: market data shows a rebound in civil engineering and ports just as Westminster and Cardiff roll out the most far‑reaching planning and infrastructure reforms since the Nationally Significant Infrastructure Projects regime. At the same time, energy transition projects are being reshuffled, with hydrogen, CCS and grid upgrades pulled tighter into the net zero delivery plan. Here’s what you need to know to stay ahead today.
Ongoing Stories
🏛️ Planning and Infrastructure Bill and ministerial override powers. Following earlier coverage of new central “override” tools, today’s updates confirm the Bill has cleared its final stages with Royal Assent expected around 18 December, firming the timeline for 2026‑onward changes to major project consenting. (Sources: Mayer Brown, GOV.UK)
🏛️ £725bn infrastructure pipeline under pressure. Returning after recent warnings on the £530bn–£725bn pipeline, the government now formally re‑commits to a 10‑Year Infrastructure Strategy at £725bn, but slowing housing starts and weaker contract awards highlight persistent delivery risk. (Sources: Project Plant, GOV.UK, BDC Magazine)
Top 5 Headlines
🏗️ Project starts rebound led by civils and ports, but housing stalls
UK construction project starts rose 14% in the latest review period, though activity remains 29% below 2024 levels. Civil engineering starts jumped 118%, helped by the 2025 Autumn Budget’s £13bn for metro mayors, highways and regional infrastructure, while ports work surged 267% year‑on‑year. However, main contract awards fell 26% and planning approvals slipped 9%, with new housing starts down 16.3% and adding pressure to the 1.5m homes pledge. This mixed picture suggests civils and logistics‑led work will carry order books into 2026 while resi pipelines and procurement risk need close watching. (Source: BDC Magazine)
🏛️ Housing Secretary launches decade’s biggest planning shake‑up
Government has opened consultation on a revamped National Planning Policy Framework aimed at accelerating delivery towards the 1.5m homes goal. Proposals include promoting higher‑density development, easing biodiversity rules on small sites and fast‑tracking projects that meet national energy standards, alongside late‑stage Planning Bill amendments giving Ministers new “call‑in” powers on housing, energy and water schemes. The package, underpinned by a reaffirmed £725bn 10‑Year Infrastructure Strategy and a proposed single Construction Regulator, signals more central intervention and tighter regulatory coherence across the built environment. For developers and contractors, this points to faster decisions on compliant schemes but greater strategic exposure to central government priorities. (Sources: GOV.UK, Mirage News)
🚆 Planning and Infrastructure Bill and Welsh Act reset consenting landscape
The Planning and Infrastructure Bill has completed its parliamentary stages, with Royal Assent expected around 18 December and implementation from early 2026, overhauling consent for major schemes in England and Wales. In parallel, the Infrastructure (Wales) Act 2024 came into force on 15 December, replacing multiple regimes with a single, streamlined process for large renewables, waste, water and transport projects. The shift is reinforced by a new Department for Transport Connectivity Tool and EV‑charging planning consultations. Together these moves will alter front‑end strategy, with promoters needing to recalibrate programmes, consultation and risk allocation around faster‑moving but more centrally defined regimes. (Sources: GOV.UK, TLT)
🌱 Ofgem backs early spend on ‘electricity superhighways’
Ofgem has agreed early investment and updated delivery dates for three major electricity transmission “superhighways”, expected to unlock £3–6bn in net consumer benefits. The projects, targeting completion in 2033–34, are designed to move large volumes of power from generation zones to demand centres in support of net zero. Returning today with firmer timelines, this endorsement gives network owners and supply chains greater visibility of long‑term grid work but also raises expectations on timely delivery and cost control. (Source: Ofgem)
🌱 UK doubles down on hydrogen and CCS after BP Teesside exit
BP has cancelled its 600MW H2Teesside hydrogen and CCS project citing site constraints and weaker near‑term demand, but ministers and industry leaders insist the UK remains committed to low‑carbon hydrogen. In the same industrial cluster, BP and Equinor have taken FID on the 742MW Net Zero Teesside Power gas plant with CCS, due online in 2028 and expected to capture up to 2m tonnes of CO2 a year. With renewables already supplying 50.4% of UK electricity in 2024 and a rapidly expanding global BESS market, the focus is shifting from single projects to system‑level resilience and demand creation. (Source: S&P Global)
Also in the news
🚆 The Department for Transport’s new Connectivity Tool is now live to support integrated land‑use and transport planning, intended to help local authorities and promoters test scheme impacts earlier in the process. (Source: GOV.UK)
🌱 Government has opened consultations on using planning freedoms to support electric vehicle charging roll‑out, signalling continued policy backing for grid‑adjacent infrastructure. (Source: GOV.UK)
🏗️ The proposed single Construction Regulator, trailed alongside Grenfell Inquiry Phase 2 recommendations, is being positioned to unify building, product and professional standards and strengthen enforcement. (Source: Mirage News)
🌱 Global forecasts suggest the Battery Energy Storage System market could reach USD 183.7bn by 2035, underlining a growing opportunity set for UK contractors active in grid and renewables balance‑of‑plant work. (Source: AltEnergyMag)
💰 Recent UK energy sector analysis highlights the need for sustained investment across offshore wind, solar, hydrogen and CCS to hit 2030 targets, reinforcing demand for specialist civils, marine and M&E capability. (Source: TMHCC)
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, consider forwarding it to a colleague working on planning, energy or major project strategy this week.