1

Uncertainty delays decisions

Global economic uncertainty, driven partly by new US tariffs and shifting policies, is shaking confidence. The UK Government still backs construction, but tight budgets and potential tax changes are causing many projects to stall.

2

Cautious growth returns

New orders rose sharply in Q1 2025. Projects that were paused are starting to move again. But progress is steady, not fast. Efficient gateway reviews and investment checks matter more than ever.

3

Stability takes time

Interest rates have been lowered but remain above pre-pandemic levels. Inflation also rose, driven mostly by labour costs. Both are expected to come down over time, but more slowly than hoped. Until that happens, big public and private investments are likely to wait.

4

Labour and supply issues continue

Higher employer National Insurance and ongoing labour shortages are driving up tender prices. At the same time, supply chains remain fragile and need careful planning.

5

Materials cost less and firms adapt

Material prices are falling. Contractors are staying flexible, finding better ways to buy and avoiding tariff impacts when possible.

6

Regulation tightens, but support is growing

The Building Safety Act remains a challenge. But regulators are now working more closely with the industry to reduce delays.