Weekly Policy Update |
up to Friday 27th March 2026
Information provided by National Constructing Excellence
Policy Updates
The Future Homes and Building Standards
The UK government launched the Future Homes and Buildings Standards – a major upgrade to energy, carbon and ventilation requirements in England’s building regulations. Colleagues at BRE have contributed extensively to the development of these regulations, particularly through its work on the SAP and Home Energy Model methodologies that will be used to check compliance with these standards.
See a summary of the Future Homes Standard changes, including links to the key documents.
Government selects seven new towns and launch National Housing Bank
The government has reduced the list of potential sites that could be developed as new towns, after six sites were deprioritised from the scheme. Each proposed location is expected to deliver at least 10,000 homes and will progress to further consultation with the final locations to be confirmed later this year. In addition, theNational Housing Bankwill launch on Wednesday 1 April, a government-backed financial institution that will make it easier, faster and less risky for developers to build homes.
Liverpool City Region to lead first pilot for construction challenge
Liverpool City Region has been selected to host the first pilot of the £85m Industrialising and Digitalising Construction Challenge, a UK-wide programme aimed at standardising construction through digital manufacturing. The pilot will test a ‘kit-of-parts’ approach, improved digital co-ordination and more consistent demand pipelines across two social housing schemes.
MHCLG publishes Demolition and Redevelopment for Retrofit Report
MHCLG has published research commissioned to understand how national planning policy and guidance supports decision-making on the demolition or retrofit of buildings, how it is interpreted and how it is being applied in practice. These findings come from 13 qualitative interviews and 988 survey responses.
Government opens consultation on Industry Training Board reform
The government has opened a consultation seeking views on the proposal to bring together the Engineering Construction Industry Training Board and the Construction Industry Training Board to create a single, unified Industry Training Board. The consultation closes on 14 June 2026.
Government announces local government reorganisation (LGR) decision
In a written ministerial statement, Communities Secretary Steve Reed confirmed plans to replace two-tier council structures with new unitary authorities, backing three councils in each of Suffolk and Norfolk and five in each of Essex and Hampshire. The government said no decision has yet been taken on proposals for East and West Sussex and Brighton and Hove due to concerns about the proposals submitted. The reforms form part of a wider program to streamline local government structures and support service delivery and housing growth, with elections to the new authorities expected in May 2027 ahead of full implementation in April 2028.
Late Payments: Tackling Poor Payment Practices
The Department for Business and Trade has published a response to the Late Payments Consultation, which sets out the legislative measures the Government intends to take forward. Late payments cost the UK economy £11bn per year and closes 38 UK businesses every day.
Measures include:
- Small Business Commissioner (SBC) powers
- Power to investigate: to provide the SBC with the power to investigate businesses suspected of poor payment practices or inaccurately reporting payment performance.
- Power to adjudicate: to provide the SBC with the power to settle payment disputes outside of the court process.
- Power to fine: to provide the SBC with the power to fine businesses, including significant potential fines for large companies that persistently pay their suppliers late or fail to comply with late payment legislation.
- Wider later payment measures
- Board-level scrutiny of payment practices: to introduce a requirement for the boards or audit committees of any persistently late-paying large company to publish commentary on why payment performance is poor and what actions they are taking to fix this.
- Maximum payment terms: to impose maximum payment terms of 60 days, with strictly limited exemptions, to ensure that smaller businesses are paid in a maximum of 60 days.
- Deadline for disputing invoices: to introduce a statutory time limit for raising disputes. Businesses that do not raise disputes within the time limit will need to pay compensation to their supplier.
- Mandatory interest on late payments: to make it a requirement that all commercial contracts will contain a right to statutory interest at 8% above the Bank of England base rate.
- Retention payments under construction contracts
- Prohibition of retention payments: to ban the practice of deducting and withholding of retention payments under the terms of a construction contract, consulting on its implementation.
The consultation response and supporting impact assessment can be found here.
Construction Leadership Council publishes its Biennial Report
The Construction Leadership Council today published its biennial report, setting out its key priorities for 2026 and detailing the significant progress made during 2025 under each of the CLC’s four strategic pillars: building safety; net zero, resilience and circular economy; people and skills; and next generation delivery.
Over the past year highlights include:
- Establishing the Construction Skills Mission Board to support the delivery of the £625m Construction Skills Mission, and developing over 40 competency frameworks through the Industry Competence Steering Group;
- Working closely with the Building Safety Regulator, the Ministry of Housing, Communities and Local Government and the Health and Safety Executive to implement the Building Safety Act across the industry;
- Responding to the consultation on tackling late payment and to reform the practice of retentions;
- Growing the CO2nstructZero programme to involve over 300 companies;
- Continuing to embed the use of the Information Management Initiative Framework across the industry and Government.
Read the full report here.
Read the accompanying press release here.
Industrialised Construction Conference 20-22 April
Constructing Excellence is delighted to be a partner on the Industrialised Construction Conference 21-22 April. Spread across two days, the event agenda moves from the big-picture questions around UK productivity and sector performance into the real mechanics of delivery – procurement reform, skills and culture change, low carbon application, integrated project delivery and the digital workflows that drive certainty and coordination at scale. Tickets are limited and selling fast. Secure yours today.
Government must not sacrifice quality in drive to build 1.5 million homes, say MPs
The All Party Parliamentary Group for Excellence in the Built Environment has released a report which sets out recommendations for government and industry to raise standards in the design and construction of new homes. BRE contributed to this report.
In the news
Retrofit or ruin: Why decarbonising our heritage buildings can’t wait – edie
Can the Future Homes and Buildings Standard deliver on its promise? | Comment | Building
Tender prices to rise 15% by 2031, says BCIS | Construction News
Alexander announces slimmed-down major roads programme | Construction News
Profit and VAT rules favouring demolition over retrofit, study shows | Construction News