Autumn Budget 2026 & Construction Costs: What Could Change?

Businesses in the UK are eagerly awaiting the upcoming 2026 Autumn Budget, which will outline government plans for the next fiscal year. The construction industry has faced increased costs and decreased material production in the past year. Once the Autumn Budget is announced, construction companies can plan financially and review project viability.

When is the Autumn Budget 2026?

Chancellor John Healey will deliver the Budget on 28th October.

The Prime Minister has said he will honour the 2024 manifesto pledge to not increase income tax, employee National Insurance, and VAT. However, the government will be looking to rebuild their fiscal headroom through increasing other taxes. This could include industry-specific taxes for banks, energy and utilities companies.

There are also predictions that the Budget will bring increased defence spending and cost of living support.

The Impact on the Construction Industry

The construction industry has faced increased labour costs and less demand from buyers in 2026. This is strongly due to the cost of living crisis, economic instability, and high mortgage rates.

The Autumn Budget could be promising for the construction industry. Industry leaders predict the government will introduce planning incentives in the Budget. This should increase demand from prospective buyers. The Prime Minister has said he won’t reform or abolish Stamp Duty in the upcoming Budget but this could be on the horizon.

While it is unlikely to be announced in the upcoming Budget, the Prime Minister has expressed interest in introducing Land Value Tax in the future.

The Budget should also outline the government’s plans for infrastructure spending and regional development. This could be very beneficial for the industry.

More information and detailed financing will be possible when the Budget is announced on 28th October. At FormFive, we collaborate with our clients to create modern and straightforward construction. For more information, email hello@formfivegroup.co.uk or call 01604 218700.