Reaction to 2026 autumn budget

[edit] CIOB response

The Chartered Institute of Building (CIOB) has reacted to the 28 October 2026 Budget announcement.

David Barnes, head of policy and public affairs at the Chartered Institute of Building (CIOB), said: “This Budget was an opportunity for the Government to set out how its ambitions for the built environment will translate into proper action through its devolution and local growth agenda.

“Devolution must mean more than a transfer of powers or a change in governance. It must give local leaders the resources, long-term certainty, and capacity to deliver tangible improvements, including in housing, infrastructure and construction skills. We look forward to reading the finer details in 'The Fiscal Devolution Roadmap' to understand how long-term funding will work.

“We welcome efforts to reduce red tape and make it easier for businesses to operate. However, changes to business administration need to save time and resources rather than add unnecessary additional burdens. The Government must commit to reviewing its proposed changes to understand the impact they have on already time- and resource-poor organisations such as those in construction. The cost of employing people remains a concern for construction businesses, particularly SMEs. If rising employment costs outweigh the benefits of regulatory reform, employers will have less scope to recruit, invest in training and take on apprentices.

“Addressing persistent skills shortages and bringing more people into construction must be central to the Government’s plans. We welcome the £15m funding announced for the Leeds College of Building as an investment in construction training and the skilled workforce the country needs. However, this must form part of a sustained commitment to construction education nationwide. Colleges across the country are offering essential training for the sector which would also greatly benefit from targeted investment.

“Finally, attracting more people into construction is only part of the challenge. We must also ensure construction offers progression opportunities, with clear financial incentives for workers to develop their skills and move into more senior roles. Building a skilled workforce is essential to delivering the UK’s housing and infrastructure ambitions and that skilled workforce must be made up of people of all career levels.”

[edit] CIAT response

CIAT President Usman Yaqub said:

"CIAT strongly supports measures to reform energy pricing, by removing standing charge and implementing a new cost control framework, so that households that invest in energy efficiency or clean heating measures are not penalised with higher costs.

"We also welcome measures to invest in local communities, including through lower council borrowing rates, VAT relief on land sold to social housing providers and the allocation of a further £1.5 billion for the Social and Affordable Housing Programme, as well as devolution of tax and spending powers to local leaders over the longer term.

"Yet these steps fall far short of what is needed to deliver the council housing revolution promised by the Prime Minister.

"Meanwhile, the Chancellor’s efforts to unlock housing delivery fail to get to the root of the housing supply crisis and are likely to have significant unintended consequences.

"Excluding all brownfield development up to 1.5 hectares in size from Biodiversity Net Gain (BNG) requirements risks fatally undermining the burgeoning nature recovery marketplace. And it does nothing to support the SME developments least able to compete in the housing market, which already benefitted from the BNG small sites’ exemption.

"Similarly, committing to no major changes to Building Regulations, except where these are safety critical, reduces the government’s capacity to tackle those regulations which do not protect the public, but continue to stifle high-quality development.

"And, most alarming, the Chancellor has sought to smuggle through a £1 billion cut to the Warm Homes Plan to fund defence, even though climate mitigation and adaptation are fundamental pillars of the UK’s national security.

"The Chancellor has sought to offer ‘breathing space for today and fresh hope for the future’. Today’s budget falls far short of this ambition."

[edit] ECA response

As a continuity budget, with relatively small changes, the Chancellor’s emphasis was on energy reform and incremental measures. Electrical businesses will be pleased with the continuing commitment to the electrification of the UK and the offer of some respite from increasing costs, including the extension of the fuel duty freeze for a further nine months.

The Electrical Contractors' Association (ECA) also welcomes the £500 million backing for AI safety and security, support for sovereign AI, and the new Data Centre Covenant. ECA Member businesses are critical to delivering the electrical systems that underpin data centres and other critical infrastructure.

For family-owned electrical contracting firms inheritance tax is a key concern. Changes to the IHT system, announced today and which ECA has pressed for, will make it easier for owners to pass viable businesses on to the next generation, safeguarding business continuity, jobs and investment.

ECA has long campaigned for lower electricity costs to bring the UK closer to our European neighbours and bringing gas and electricity bills to parity.

Jane Dawson, ECA’s Head of External Affairs said: “The budget announcements reforming standing charges on energy bills is welcome. But we need clarity on when in 2027 domestic electricity levy changes will match the changes to gas pricing announced today, and which businesses will qualify for the proposed 25% reduction in electricity costs.”

The Good Growth Funds and devolution of tax revenues are expected to offer local opportunities for businesses. However, there are many questions about how fiscal devolution will work in practice, what that means for electrical firms in different areas, and how contractors operating across local boundaries will be treated.

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