CPA Weekly Notes – 28th November 2025

Issue No. 1179, 28th November 2025 FOR MEMBERS ONLY

Association Activities

CPA Reacts to the Budget 

With speculation in advance of the Autumn Budget at an all-time high and for longer than usual, the Budget couldn’t come quickly enough, if only to get rid of the uncertainty that had negatively affected homebuyers, home movers, the supply chain, clients and investors. The majority of the Budget was unsurprisingly focused on where the tax rises would be and how financial markets would react, rather than on capital investment, which was the focus of the government’s Spending Review earlier in the year. The Budget tax rises were backend-loaded towards the end of the parliament and not matched by spending cuts, which may be of concern to financial markets. However, on the positive side, the government did not make the same mistake as last year, when the burden fell largely on businesses through increases in employers’ National Insurance Contributions and lower the thresholds. However, it did announce an increase in the National Living Wage by 4.1% in April 2026, which means that it will have increased by 43% in the space of just five years.
 
In terms of key policies directly affecting construction and product manufacturing, the government published its response to the Landfill Tax, stating that it will not proceed with transitioning to a single rate of Landfill Tax by 2030, though the lower rate will essentially double to £8.65 per tonne in 2026/27. In addition, the government said that the Energy Company Obligation (ECO) will end in March 2026 to reduce household energy bills in the near term, while simultaneously announcing an additional £1.5 billion in capital investment for the Warm Homes Plan. However, it did not state what the £1.5 billion would be used for, except to note that further details would be available in the Warm Homes Plan.

Finally, while the government will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home, we were disappointed at the lack of a more comprehensive policy announcement to support those buyers. The CPA has warned that government has no chance of meeting its housing targets without a time limited, targeted policy to enable demand, and we now fear that its omission will lead to worsening job losses, skills shortages and manufacturing capacity in this essential sector.

The CPA Weekly Notes Special is available here.
CPA Weekly Calendar of Meetings 

• Adam Turk, CPA Chairman and CEO of Siderise Group, will chair a regular meeting of the Industry Principals Council (IPC).
• Jeff May, CPA Deputy Chief Executive, will present to the IPC; will attend the ACE Parliamentary Reception; will represent CPA members at a meeting of Make UK Affiliates; and meet with the Construction Inclusion Coalition about plans for 2026; will join a regular meeting of the Construction Leadership Council.
• Professor Noble Francis, CPA Economics Director, will present to the IPC.
• Mark Wilkinson, CPA Senior Technical Manager, will meet with the OPSS to develop the joint progress on white labels / private labels guidance; attend an OPSS Business Reference Panel; and join a regular meeting of the Scottish government’s Building Standards Energy Review Working Group Meeting 8.
• Jane Thornback, CPA Sustainability Policy Advisor, will present to the IPC and host a regular meeting of the Sustainability Policy Group.
• Hanna Clarke, Digital and Policy Manager, will have a variety of meetings with industry colleagues and civil servants around both competence and digitalisation of product information.
• Rob Lee, CPA Senior External Affairs Manager, will attend the ACE Parliamentary Reception; join a roundtable discussion with Richard Tice MP (Boston and Skegness; Deputy Leader of Reform UK).

Economics Update

CPA Weekly UK Economic and Construction Update
In light of the government’s Autumn Budget, the CPA’s Weekly Notes Special summarising key policies in the Autumn Budget and the accompanying Office for Budget Responsibility (OBR) economic forecasts can be found above. The CPA’s Autumn forecasts, published before the Autumn Budget, were able to take account of the impact of pre-Budget uncertainty but not the effect of the tax rises themselves (given the lack of clarity on which taxes would be increased, how much taxes would increase and over what time period taxes would increase, plus a lack of clarity beforehand on whether there would also be substantial spending cuts). The CPA’s Winter forecasts will be published in January and take account of the impacts of the Autumn Budget as the full implications become clearer.

The link to the HM Treasury Autumn Budget document is here, and the link to the OBR Economic and Fiscal Outlook document is here.

The latest weekly update is enclosed, with only one update:

• RIBA Future Trends Survey (October 2025)

 The Autumn Forecasts were published on Monday 27th October and can be found here.

Government Update

Government Consultations re London Housebuilding Relief
The Government is seeking views on two proposals to support housebuilding in London. These are:

• temporary relief from the Community Infrastructure Levy (CIL)
• changes to the Mayor of London’s planning powers

Part 1: temporary relief from the CIL
Part 1 of the consultation is about a proposal to give eligible developments in Greater London temporary relief from the CIL. It covers:

• the rationale for emergency CIL relief in London
• the developments that will qualify for relief
• how that relief will be accessed and administered
• the next steps the government proposes to take to implement the relief

Part 2: changes to the Mayor of London’s planning powers
Part 2 of the consultation is about a proposal to make permanent changes to the Mayor of London’s existing planning powers to strengthen oversight of planning applications of potential strategic importance. It covers:

• a new application of potential strategic importance category, which will be subject to a streamlined process, for development of 50 or more homes where Boroughs are minded to refuse
• bringing applications involving development of over 1,000 square metres within Green Belt or Metropolitan Open Land within scope of his call-in power

Further information:

• This consultation closes at 11:59pm on 22 January 2026
• Respond online
• Email: londonhousingconsultation@communities.gov.uk

BSR Seek New Chair for Building Advisory Committee
The Building Safety Regulator (BSR) is seeking an independent Chair for its Building Advisory Committee (BAC). They would like your help in advertising the role and ask if you can share among your members and networks. The successful candidate will demonstrate proven leadership to drive the BAC, which advises BSR on building functions, focusing on:

• emerging issues
• industry trends
• engagement to inspire change

The BAC operates via a high-level steering group and dedicated subgroups. This is an ongoing fixed-term appointment for up to three years. Applications close midday on Monday 5 January 2026. Applications can be made here.

Government Increases Discount for Energy Intensive Manufacturers
CPA is pleased that government plans to increase the discount on electricity network charges for businesses in sectors including CPA members like steel, cement, glass, and chemicals from 60 percent to 90 percent. Around 500 of the UK’s most energy-intensive businesses are set to save on their electricity bills from next April. The increased discount under the Network Charging Compensation (NCC) Scheme will bring down electricity bills for businesses by cutting the prices they pay to access the UK’s electricity network. Some of these businesses currently pay the highest industrial electricity prices in the G7, making it harder to stay competitive on the international stage. To learn more, click here.

MHCLG have published further information regarding launching the Social and Affordable Homes Programme 2026 to 2036. 
The Government have confirmed a number of programme details that providers have told them will be key to effective delivery. The whole document can be found here. It includes:

• The Government will also make available £2.5bn of low-interest loans to support the delivery of new social and affordable housing. These will be open to private registered providers, and a substantial allocation of the loans will be targeted at London in light of the acute challenges facing PRPs in the capital.
• The Government have allocated £5.5m in new funding through the Council Housebuilding Support Fund to help councils develop bids to the SAHP.
• Strategic Partnerships (SP) can offer long-term, multi-year funding agreements with some larger providers to support scale, innovation, and delivery of a pipeline of affordable homes, with enhanced reporting and alignment to national priorities.
• Continuous Market Engagement (CME) is a rolling, flexible route for providers to bid for funding on a scheme-by-scheme basis, assessed on value for money, deliverability, and local need – ideal for smaller or one-off developments. Following engagement with the sector, we have also implemented a new CME ‘portfolio’ approach, which contains some features of Strategic Partnership working by enabling smaller portfolios of schemes through the CME route.

Government Sends Out EPR Bills
These first-year invoices, based on 2024 packaging data submitted by producers, will cover recycling and disposal costs for the assessment year April 2025 to March 2026.  
Guidance has been published here to help producers prepare and government have also launched a Customer Service Desk to support with questions: eprcustomerservice@defra.gov.uk The helpdesk is open Monday to Friday 8am to 4.30pm.  

Review published setting new course for mainstreaming property flood resilience
The CPA have contributed to the FloodReady Review and Action Plan that provides recommendations and practical steps to improve the take up of property flood resilience (PFR) measures. The Review, led by Professor Peter Bonfield, brought together leaders from across various sectors who all have an important role in improving the PFR uptake.
Property flood resilience measures – such as flood doors, non-return valves and air bricks – can help to keep as much water out of a property as possible. They also include measures like tiled floors and raised electrics, so if water does enter, it minimises damage and helps people get back on their feet quicker. The use of Sustainable Drainage Systems at property level, for example permeable paving and rain gardens, can also reduce the risk of surface water flooding.

Government consultation on water efficiency requirements in building regulations
Government is proposing a plan to strengthen Water Efficiency Standards in the Building Regulations 2010, Part G, to require tighter standards in new homes.  It also seeks more information on enabling water reuse systems in new developments to enable even greater water efficiency in homes. The deadline is 16 December.  Find the documents here Water Efficiency Standards: a review of Building Regulations 2010 Part G2 – GOV.UK

Industry News

The Built Environment Competence Hub
The Hub, developed by BSI in collaboration with Industry Competence Steering Group (ICSG), is almost ready to launch and  is open for people to register ahead of the official start date in the new year. Launching  in January 2026, the hub is a central space for professionals to access the latest competence frameworks, standards and practical guidance—all in one trusted location.
The Hub is designed for all those working in the built environment sector, including designers, contractors, regulators and anyone involved in competence development or oversight. It brings together the work of all the ICSG Sector Led Groups and provides curated tools, resources and insights from ICSG, BSI and wider stakeholders of competence. You can register at the Hub here.

 

CPA in the News

How Reeves’ autumn budget dealt a brutal blow to Labour’s 1.5 million new homes pledge
Noble Francis, economics director at the Construction Products Association, said the autumn budget forecasts show the government is likely to miss its 1.5 million home target “significantly. The OBR’s latest economic forecasts alongside the budget say that net additional new homes in 2023-24 and 2024-25 were lower than expected, but they will be much higher than expected this year (2025/26), which is strange,” said Francis.
Big Issue | 27/11/2025 | Online

Industry reacts to Chancellor’s Autumn Budget and insists more could have been done
Professor Noble Francis, CPA Economics Director said speculation in advance of the Autumn Budget had been at an all-time high and it couldn’t come quickly enough, if only to get rid of the uncertainty.“The majority of the Budget was unsurprisingly focused on where the tax rises would be and how financial markets would react, rather than on capital investment, which was the focus of the government’s Spending Review earlier in the year…” 
Specification Online | 27/11/2025 | Online

What the Autumn Budget Means for UK Housebuilders Read More
In the weeks leading up to the announcement, the Construction Products Association highlighted sharp downward revisions to construction output expectations, citing widespread hesitation as firms waited for clarity from the Treasury. The construction sector, already the most heavily affected by insolvencies over the past year, is braced for further strain if investment decisions continue to be delayed.
Showhome | 26/11/2025 | Online

UK government’s housebuilding target under threat as councils face exodus of planners
The Construction Products Association, a trade body, said employment in the construction industry was expected to fall further over the next 12 months. It said this was because of the subdued level of demand for housebuilding, the rise in employers’ national insurance contributions as well as a high degree of uncertainty for businesses in the lead-up to the Budget. Noble Francis, economics director of the CPA, said: “Building what we built even just a few years ago is going to be very difficult, never mind the government’s fanciful targets over the next five years, despite its moves to ease planning.”
The FT | 19/11/2025 | Online

Brick Deliveries up in September
Month-on-month Brick deliveries surged by 12% in September, according to an analysis by Noble Francis, the economics director at the Construction Products Association. Although brick deliveries were up 4.4% on last year, they are still 21% lower than the 2018-19 average, and nearly a third down on the post-pandemic peak in 2022.House builders continue to report subdued demand and unit sales have slowed sharply since March.
Fix Radio | 19/11/2025 | Online

Construction employment sinks to 24-year low
Noble Francis, economics director at the Construction Products Association, said the slowdown in house building since April and the rise in employers’ National Insurance Contributions had hit confidence and hiring. He warned: “The longer employment remains at these historically low levels, the greater the permanent loss of skills and experience. Even getting back to 2019’s house building levels will be incredibly difficult, never mind meeting the government’s targets.”
Construction Enquirer | 27/11/2025 | Online