INDUSTRY UPDATE NEWS
New plans for Welsh
construction S mall and medium-sized building firms in Wales have been urged to prepare for a shift in public-sector work after the Welsh Government published its new Built Environment Mission Statement alongside a Digital Action Plan for Construction . The strategy set out ambitions for “a resilient, innovative and socially responsible construction sector”, with clear signals that public contracts would prioritise retrofit over new build, adopt more offsite manufacturing, and require project bank accounts (PBAs) as standard – which should improve cashflow and support fair payment. Cabinet Secretary for Economy, Energy and Planning Rebecca Evans highlighted construction’s importance in supporting local supply chains and creating jobs across Wales. Evans said the government is commitment to PBAs, with commercial and procurement teams working to drive wider adoption. The plan promised better visibility of upcoming work, which many SMEs had long requested so they could plan resources, invest in skills and bid earlier. Evans pointed to new duties under the Social Partnership and Public Procurement (Wales) Act 2023, which required public bodies to pursue socially responsible procurement and engage with recognised unions or staff representatives on strategic decisions.
Retrofit on a cliff edge
S mall construction firms warned they faced a it would axe the Energy Company Obligation (ECO) scheme in March 2026, cutting off a major pipeline of retrofit work before a replacement programme was ready. Chancellor Rachel Reeves said ending the levy-funded scheme would shave around £150 a year from household energy bills across England, Scotland and Wales. But retrofit businesses argued the looming “cliff edge” after the government confirmed move risked stalling installations, undermining a decade of skills investment and pushing SMEs out of the market. ECO funds around £1.3 billion of energy-efficiency upgrades a year, retrofitting 5,000 homes a month. Ministers planned to migrate this activity to the new Warm Homes Plan, whose budget was recently boosted to £14.8 billion. But the scheme had already been delayed and its start date remained unclear. For builders and installers, their concern was that without
an orderly handover, the retrofit supply chain could unravel. Many in the sector called for ECO to be extended for 12 months to avoid a damaging hiatus. Anna Moore, Chief Executive and Founder of Domna, said suddenly cutting £1.3 billion in funding was “chaotic” and had created a “cliff edge for thousands of low-income households… as well as SMEs employing some 10,000 people”. She urged ministers to “bridge ECO to the Warm Homes Plan” to protect jobs and delivery capacity. Installers echoed those warnings. Joel Pearson, Director at Net Zero Renewables, said his firm had helped take more than 200 homes out of fuel poverty through ECO and urged the government to “at least extend this existing scheme by a year”. Lee Rix, Managing Director at Eco Approach, added that ending ECO without a transition plan risked “undermining the workforce” supporting vulnerable households. Industry leaders said clarity and continuity were essential to prevent SMEs being pushed to the brink.
Rebecca Evans
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Master Builder
www.fmb.org.uk
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