Resilience to recovery: The future of UK construction
Resilience to recovery: The future of UK construction
Shaping policy We asked firms what legislation would negatively impact their ability to progress projects this year.
So, what would construction businesses like to see the government prioritise to support its future prospects? Reflecting the diversity of the sector, firms have a lengthy wish list, led by investment in skills (16%) and modern methods of construction (MMC) (16%). And – in line with part of why political uncertainty is causing such widespread concern – clarity on future policy direction, which they can plan around, is key. Firms want a more defined national industrial strategy (16%) and national energy strategy (15%).
R&D Expenditure Credit/SME tax credit schemes 43% flagged the recent merger of the R&D Expenditure Credit and SME tax credit schemes. This was announced in 2023 as a move to simplify existing innovation support avenues, but there were concerns that the change was rushed through and came too soon after disruption caused by earlier reform – frustration that looks to be reflected in these findings.
Top measures construction firms would most like to see from government Increase in investment Strategy and support
Further clarity on national industrial strategy Further clarity on national energy strategy Further clarity on national transport strategy Greater / new support for first- time homebuyers
Greater investment in construction skills
16%
16%
Building Safety Act
New / greater investment in modern methods of construction Additional investment in housing development New / greater investment in digitalisation (including AI)
16%
15%
Over a third (37%) mentioned the Building Safety Act, which was implemented in the wake of the Grenfell Tower fire and adds a range of new design considerations for developers and delivery partners.
15%
14%
15%
12%
Funding and reformation
Tax reductions
Section 106/Section 75
Freeze / further reduction in Fuel Duty Tax credits for ‘green’ plant Zero VAT-rating for residential refurbishments More direct support for R&D / tax breaks for R&D spend
Greater funding of sector regulators
14%
15%
Similar numbers mentioned Section 106 (35%) and Section 75 (34%) obligations – the Scottish equivalent to Section 106 – which some firms feel challenge the financial viability of projects at a time when margins are already under pressure.
Reducing operational costs (other than through AI/automation) New / greater funding / support for retrofitting Additional infrastructure commitments
14%
15%
12%
14%
12%
14%
*Respondents were asked to select all that applied.
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