Consultants left wondering what impact Budget will have on unlocking pipelines of work
Arcadis has said that a promising pipeline is not converting into actual workload and that last month’s Budget was one for Labour backbenchers – not the country’s builders.
In its UK Market View report for winter 2025, the consultant said: “The UK construction market is closing 2025 on an uncertain note, as a promising project pipeline has failed to translate into consistent workload across the supply chain.
“The government’s Budget contained little support for non-public development, with the minor exception of supporting apprenticeships. With business rates increasing from April 2026 onwards and with returns on capital investment forecast to fall to 11% per annum over the next several years, this Budget added few incentives to invest.”
It said critical sectors including housing and infrastructure continue to lag, leaving many contractors and consultants concerned about future prospects.
Arcadis said subdued demand in the short term meant it was forecasting price inflation for 2026 and 2027 to now be lower than previously expected.
Simon Rawlinson, head of strategic research and insight at Arcadis, said: “Without decisive action to tackle bottlenecks and unlock stalled opportunities, 2026 risks becoming another year of missed potential for UK construction. This will have dire consequences for the construction market, especially in the privately led development, which sits at the heart of the government’s growth agenda.”
Meanwhile, RLB said the Budget had made “little impact on tender price forecasts for the sector”
The firm’s research and development manager Roger Hogg added: “Given many projects have been placed in a holding pattern waiting for the Budget, it is expected more schemes may now come to the market.
“But it will undoubtedly take effort for clients to navigate the economic headwinds that persist and as a result, we forecast project pipelines to remain constrained.”
No comments yet