Budget 2026: The industry reacts

Eoghan O’Lionaird, chief executive of Wates Group

The rising number of young people out of work and education is a challenge that could define a generation. Government is right to be delivering the Jobs Guarantee and investing £100m in local apprenticeship services.

The Government’s Your First Home scheme is a much-needed initiative that can help [owning a home] within reach for first-time buyers, while stimulating demand for new properties and making it more viable for the housebuilding sector to deliver.

Adam Daniels, chief executive, Vistry Group

We want to build homes and help people onto the housing ladder so are encouraged by the content in the Budget which brings much needed and welcome support for first-time buyers.

However, we would caution that the delivery of the Government’s wider housing agenda remains at risk unless the housing development viability challenge is urgently addressed. This must include reducing regulatory burdens, bearing down on construction costs, and backing innovation such as advanced modular manufacturing of new homes.

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Chris Ball, president UK & Ireland, AtkinsRéalis

The decision to deepen devolution through greater fiscal powers for mayors, alongside new borrowing flexibilities to support regional investment, reflects a growing recognition that local leaders have a critical role to play in shaping economic growth.

Combined with measures to accelerate the delivery of nationally significant infrastructure, strengthen public procurement and expand apprenticeship opportunities on major projects, today’s Budget contains several important building blocks for long-term growth.

Paul Reilly, president and managing director, WSPUK & Ireland

Today’s Budget puts regional growth and devolution more firmly at the centre of the UK’s economic agenda.

Greater retention of business rates, a future share of income tax receipts for mayors and new Good Growth Funds represent a meaningful shift in how local growth is funded and delivered.

Craig Carson, regional managing director, Barratt London

Rising costs and regulatory complexity continue to put pressure on [housing] viability. The commitment to no further changes to building regulations this Parliament is a welcome step. The industry has been calling for an end to shifting goalposts – now we have an opportunity to turn that certainty into investment and get more homes built.

Tanguy Guerer, head of preconstruction, Legendre UK

We welcome the Government’s ambition to accelerate brownfield development but removing biodiversity requirements is not the answer.

Rather than lowering environmental expectations, the Government should focus on tackling the inefficiencies that genuinely delay development, from lengthy planning decisions to duplicated submissions and disproportionate conditions.

Richard Whitehead, chief executive Europe & India, Aecom

While this Budget makes some positive moves, it also raises some questions. Further action on devolution will drive infrastructure delivery and, while moves on mayoral capacity are welcome, partnerships with the private sector will remain essential to deliver large-scale schemes.

The extra capital committed to the National Wealth Fund today is exactly the sort of stimulus that will boost investors’ and clients’ confidence to invest in new schemes, and the will there is to move quickly.

The sector’s attention has already turned to the 10-year plan that’s been promised before Christmas.

Noble Francis, economics director, Construction Products Association

It is extremely disappointing that the Your First Home scheme will not start until April 2027, meaning many potential first-time buyers and house builders will just sit and wait until spring next year at least, worsening the current downturn in house building in the near-term.

However, the Chancellor did announce measures to address the government’s rising cost burden on house building, which has badly damaged site viability in recent years, through no further changes to building regulations during Parliament unless they are building safety-related and removing Biodiversity Net Gain requirements for small brownfield developments.

Kieran Rushe, planning partner, Rapleys

The so-called Data Centre Covenant, announced in the Budget, seeks to do almost the impossible: set in place strict criteria to protect issues such as water supplies being protected in local communities, whilst hoping to deliver critical infrastructure that will get Grid connection priority. Whilst the position is understandable and we await the detail, this feels like a ‘keep everyone happy’ measure that will be difficult to realistically oversee and deliver.