{"id":167091,"date":"2026-10-28T14:36:46","date_gmt":"2026-10-28T14:36:46","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=167091"},"modified":"2026-10-28T14:41:13","modified_gmt":"2026-10-28T14:41:13","slug":"what-2026-autumn-budget-means-for-construction","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/what-2026-autumn-budget-means-for-construction\/167091\/","title":{"rendered":"What the 2026 Autumn Budget means for construction"},"content":{"rendered":"

Chancellor John Healey has finished delivering his Autumn Budget<\/a> in the Commons. PBC Today explores policies announced for housing, energy prices, devolution and development, as well as commentary from experts in the sector<\/h2>\n

Further commitments to a huge council housebuilding programme<\/h3>\n

“Since the 1980s, Britain has lost over two million council homes. Tonight, more than 170,000 children will go to sleep in temporary accommodation,” the chancellor said.<\/p>\n

\u201cLabour is now building back,\u201d he concluded.<\/p>\n

Commenting on this policy, Matthew Jones, founder at Open ECX, said: \u201cIncreased investment in council and affordable housing<\/a> represents a significant opportunity for the construction sector, but the bigger question is whether businesses are ready to meet the challenge.<\/p>\n

\u201cThe sector has already taken a major hit from geopolitical disruption and inflationary pressures, so while we can of course get behind building more homes, the flip side is making sure construction firms are actually in a position to deliver them.\u201d<\/p>\n

Alex Read, CEO and Founder at Portman Finance Group, added: \u201cAmbitious housebuilding targets will only translate into economic growth if construction firms have the capacity to deliver them.<\/p>\n

\u201cThe sector has been hit by the double whammy of rising energy costs and a shortage of skilled workers, so if the government is serious about the programme, it needs to back these targets with investment in training schemes and the next generation of skilled tradespeople.\u201d<\/p>\n

New First Time Buyer ISA to replace Lifetime ISA<\/h3>\n

Healey announced that a First Time Buyer ISA will replace the Lifetime ISA. He also pledged to address the LISA penalty, so if the home you want costs more than the limit, you’ll get back \u201cat least what you put in\u201d.<\/p>\n

More on the Your First Home scheme<\/h3>\n

The chancellor also formally announced the Your First Home scheme<\/a>, aimed at first-time buyers who are unable to rely on financial support to buy their first home.<\/p>\n

From next Spring, the scheme will offer an equity loan, funded by \u00a34.7bn of government-backed lending.<\/p>\n

It is expected to be open to first-time buyers with a 2.5% deposit and to provide an equity loan worth 20% of the new build property’s value.<\/p>\n

Clive Docwra, managing director of McBains, explained: \u201cThis first-time buyer measure could improve reservations, sales rates and cash flow for eligible new-build schemes. However, the effect will depend on eligibility, mortgage affordability, lender participation, price limits, regional coverage and launch date none of which is yet confirmed.”<\/span><\/p>\n

Standing gas charges will be scrapped<\/h3>\n

The chancellor has announced that standing charges will be removed from household gas bills<\/a> for tens of millions of people.<\/p>\n

Instead, fixed costs will be paid on the unit rate, with the government estimating that 60% of households will save an average of \u00a345 per year.<\/p>\n

Standing charges are fixed daily fees applied separately to gas and electricity bills, which customers pay regardless of usage.<\/p>\n

Millions of households will get \u00a3100 energy payment this winter<\/h3>\n

Twenty million households in council tax bands A-D will receive a \u00a3100 household energy payment this winter \u2013 paid directly into bank accounts for help with rising energy bills.<\/p>\n

The government will also extend the VAT cut on electricity through the winter and spring to July.<\/p>\n

Healey said: \u201cThis action will take \u00a350 off the annual price cap.\u201d<\/p>\n

Removing Biodiversity Net Gain from brownfield sites<\/h3>\n

The chancellor has announced that the Government will remove\u00a0Biodiversity Net Gain (BNG) requirements\u00a0from developments on brownfield\u00a0sites.<\/p>\n

BNG was set up to ensure developers avoid harm to important wildlife habitats, make up for unavoidable losses, and go further by giving back to nature, creating new habitats and wild spaces where people and wildlife can thrive.<\/p>\n

Done well, it can protect wildlife and support nature recovery, yet today\u2019s announcement further strips this once-promising policy of ambition.<\/p>\n

Dom Higgins, head of health and education at The Wildlife Trusts, explained: \u201cExempting brownfield developments from Biodiversity Net Gain reduces access to nature in the communities that need it the most and will remove one of the biggest opportunities to bring trees, ponds, wildlife and parks back into towns and cities.<\/p>\n

“Access to nature should not be a luxury. Designing housing and infrastructure with trees, parks, and space for nature has been shown to improve mental and physical health and boost people\u2019s pride in their communities. These habitats also provide vital shade and cooling during heatwaves and help reduce flood risk.<\/p>\n

\u201cFor a Budget that promised \u2018breathing space\u2019, this decision risks undermining the very thing that could give millions of people living in urban areas more space to breathe.\u201d<\/p>\n

Local leaders set to hold more power over projects<\/h3>\n

The chancellor began addressing devolution by citing several smaller multi-million investments across England, including \u00a310m for a new market hall in Stafford.<\/p>\n

He also said devolved governments will receive the equivalent funding, including \u00a32.5m for a science park in North Wales.<\/p>\n

While London is the UK’s “economic powerhouse”, Healey says, growth would be “transformed” if other cities matched their counterparts in France and Germany.<\/p>\n

“Local leaders shouldn’t have to come cap in hand to Whitehall to build a new tram or concert hall,” he stated.<\/p>\n

Sarah Young, executive director for planning at LUC, commented: \u201cWe welcome the government’s commitment to giving local leaders greater powers and resources to drive growth, including new Good Growth funding and \u00a3150 million to strengthen the capacity and capabilities of strategic authorities.<\/p>\n

“However, funding and devolved powers alone will not deliver the homes, infrastructure and regeneration that communities need. Success will depend on whether local authorities have the expertise and resources to turn investment into well-planned, sustainable development.\u201d<\/p>\n

She concluded: \u201cInvestment in planning capacity is therefore essential, including the planners, urban designers, landscape architects and environmental specialists who help shape development and ensure economic growth goes hand in hand with environmental protection.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

PBC Today explores policies announced for housing, energy prices, devolution and development announced as part of the Autumn Budget and what they mean for 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