Weekly Policy Update |
up to Friday 13th June 2025
Information provided by National Constructing Excellence
The week in policy
Chancellor Rachel Reeves sets out her 2025 Spending Review
Chancellor Rachel Reeves set out her Spending Review in the House of Commons. The key aspects for the built environment include:
- £113 billion increase in capital spending compared to the previous government’s plans.
- £14.2 billion for Sizewell C, £2.5 billion for small modular reactors and £2.5 billion for nuclear fusion technology
- £9.4 billion for carbon capture and storage
- £4.2 billion over three years to build and maintain flood defences across England
- £15.6 billion to city region transport settlements including East West Rail (£2.5 billion), Transpennine Route Upgrade (£3.5 billion) and the Liverpool Manchester Railway
- £39bn of grants will be distributed over the next ten years as part of a new Affordable Homes Programme
- £13.2bn of funding for the flagship Warm Homes Plan was protected from rumoured cuts.
- The government is increasing R&D funding to £22.6 billion per year by 2029‑30.
Government confirms solar panels for new homes and Future Homes Standard timing
The government announced the “vast majority” of new homes will have solar panels by default as part of the long-awaited Future Homes Standard (FHS) to be published this autumn. The FHS will comprise the latest version of Part L, energy, and carbon regulations for new homes in English building regulations. Ed Miliband, the Energy Secretary, said “solar panels can save hundreds of pounds off energy bills” with industry stakeholders including Chris O’Shea, CEO of Centrica, and Charles Wood, Deputy Director of Policy (Systems) at Energy UK, praising the announcement.
Scottish government publishes Building Safety Levy Bill
The Scottish government published its Building Safety Levy (Scotland) Bill. This aims to raise approximately £30m every year by taxing certain new residential properties to fund the Scottish Government’s Cladding Remediation Programme. This programme is estimated to cost £1.7bn over 15 years. If passed, the levy will be implemented in April 2027, with exemptions for social and affordable housing, and will be regularly reviewed to adjust revenue targets based on market conditions.
New Scottish government consultations on energy efficiency
The Scottish government published two consultations this week:
- On implementing a minimum energy efficiency standard from 2028 in the private rented sector. It proposes that regulations would be brought forward under existing powers requiring privately rented properties, as far as possible, to reach the reformed Energy Performance Certificate (EPC) Heat Retention Rating band C from 2028 for new tenancies and by 2033 for all privately rented homes. The consultation is open until Friday 29 August. Find out more.
- On the Heat & Energy Efficiency Technical Suitability Assessment (HEETSA), seeking views on how the HEETSA relates to the EPC, current assessment methodologies that could be used to underpin HEETSA, the skills and qualifications needed to ensure that assessors are able to offer detailed advice to building owners and the circumstances in which HEETSA could be needed.
NAO publishes report on Improving Local Areas through developer led funding: Improving local areas through developer funding
Monthly Construction Output is Estimated to have Grown by 0.9% in April 2025
The Office for National Statistics published estimates of Construction Output for April 2025 this morning.
Main points:
- Monthly construction output is estimated to have grown by 0.9% in April 2025; this is the third consecutive period of positive growth, following an increase of 0.5% in March 2025.
- The increase in monthly output in April 2025 came from increases in both new work and repair and maintenance, which grew by 1.4% and 0.3%, respectively.
- At the sector level, six out of the nine sectors grew in April 2025; the main contributors to the monthly increase were infrastructure new work and private housing repair and maintenance, which rose by 2.0% and 1.5%, respectively.
- Total construction output is estimated to have grown by 0.5% in the three months to April 2025; new work increased by 0.9%, and repair and maintenance grew by 0.1%.
Read the full DBT report here.
Download the ONS Construction update here.
Construction technical excellence colleges: selection criteria
Criteria further education providers must meet to be eligible to apply for technical excellence college status. Construction technical excellence colleges: selection criteria – GOV.UK
New Chair for the Conflict Avoidance Coalition
The Conflict Avoidance Coalition is pleased to announce the appointment of Richard Bayfield, Vice President of the Institution of Civil Engineers (ICE), as its new Chair. A seasoned professional in construction and engineering, Richard brings decades of expertise to this leadership role. Established in 2018, the Coalition’s mission is to reduce the financial and relational costs of disputes in construction and engineering by promoting collaborative practices and encouraging widespread adoption of the Conflict Avoidance Pledge. Find out more: https://conflictavoidance.org/
In the news
Home Office steps-up immigration raids on construction sites | Construction Enquirer News
NHS England develops new private finance model to fund capital projects
Whitehall AI tool could help get UK building faster and smarter
Rachel Reeves plans ‘housing bank’ to deliver cheaper financing for builders
Sizewell C nuclear plant backed with £14.2bn government investment | The Independent
Inside Housing – Insight – The road to decarbonising social housing
Coming up next week
Tuesday 17 June: There will be oral questions in the House of Lords on the removal of cladding from high-rise buildings.
Tuesday 17 June: The Built Environment Committee will hear oral evidence for their New Towns: Practical Delivery Inquiry