In our latest monthly construction news roundup, there are key talking points from the government’s Autumn Budget, a new skills shortage report from the Centre for Social Justice, and the latest quarterly employment figures from the Office for National Statistics.
How does the autumn budget impact the construction industry?
November saw Chancellor Rachel Reeves reveal the government’s Autumn Budget. Within it were several developments and announcements directly impacting the construction industry.
Amongst the most noteworthy points, was a £1.5bn allocation for funding placements, training and apprenticeships for under 25s, as well as a commitment of £8.3bn for major infrastructure projects, and £1.2bn for brownfield development.
The budget also reaffirmed a £39bn pledge for the Social and Affordable Homes programme, as well as an additional £48m investment dedicated to boosting capacity in the planning system to help speed up the housebuilding process and unlock stalled projects.
In a move that has been largely welcomed by the construction industry, the government also confirmed that it would not be moving forward with proposals to implement a single rate of landfill tax. Instead, the existing two-rate system will still apply, which currently stands at £4.05 per tonne for less polluting landfill, compared to the standard rate of £126.15 per tonne.
The Centre for Social Justice shares skills shortage report
The Centre for Social Justice (CSJ) has published a report titled ‘Skills to Build: Fixing Britain’s construction workforce crisis’. Within the report, are 26 recommendations of ways the industry can tackle issues that are contributing to skills shortages.
These recommendations cover a variety of areas, ranging from new training incentives and planning reforms to introducing changes to the Growth and Skills Levy, allowing self-employed workers to access funding for training.
You can read the full CSJ report here.
Construction workforce shrinks further
The Office for National Statistics (ONS) has shared its latest quarterly employment data, revealing that the UK construction workforce shrank to its lowest level in nearly 25 years in the third quarter of 2025.
There were 2,054,009 workers in construction in the third quarter, signalling a 1.3% decrease on the previous quarter, and a 1.6% drop year-on-year. This figure is 12% lower than it was pre-pandemic in the third quarter of 2019, with 280,855 fewer people now working in the sector.
The ONS’ figures also highlighted the major gender imbalance in construction, with 85% of all construction workers being men during this period.