News
Optimism is fragile as skills gap and project delays dominate construction industry Budget demands
25 Nov 2025
Gavin Mason
Operations Director
The UK construction industry is demanding long-term certainty from the upcoming Autumn Budget, according to a new market insight report from multi-disciplinary consultancy Pick Everard.
While 81 per cent of the sector maintains a positive or neutral business outlook for 2026, this confidence is underpinned by significant hesitation, with the industry demanding immediate intervention to unstick delayed projects and address a critical skills shortage.
The findings revealed 35 per cent of firms were reviewing or putting projects on hold ahead of the Autumn Budget, highlighting how fiscal policy uncertainty is translating directly into site-level delays.
When asked to describe the current state of the construction industry, 59 per cent said the sector was ‘static’ and 21 per cent answered ‘contracting’. Developers, in particular, cited taxation and end-user demand as their primary concerns.
An overwhelming 92 per cent of the 200 respondents anticipated that tender prices would continue to rise over the next year, driven by inflation, material volatility, and the increasing cost of compliance with the Building Safety Act (BSA).
The report also analysed the industry workforce, with the skills gap remaining acute. 53 per cent of firms reported specific skills gaps, and 90 per cent of those find the roles difficult to fill.
Respondents voted the most in-demand roles as specialist trades, building services, site management and supervision, project management and sustainability and environmental.
In addition, 69 per cent of the sector believes the government's £600m training pledge is insufficient, stating that sustained, multi-year funding (targeted at both trades and management roles) is needed to future-proof the workforce.
The sector is unified in its demand for: pro-growth tax policies, infrastructure commitment, targeted housing support and regulatory clarity, and removal of VAT on listed building repairs.
Gavin Mason, Operations Director at Pick Everard, commented: "From the survey results, it’s clear the industry is ready to deliver but is being held back by a lack of long-term certainty at government level. Instead of a ‘wait and see’ approach, we drastically need a strategic commitment to skills and infrastructure, not just short-term gestures, to ensure the workforce can deliver the necessary buildings and infrastructure the UK needs."
