Unlocking Growth: Why The Autumn Budget Must Tackle Planning & Pipeline Uncertainty

Paul Dodsworth, Group Managing Director of Caddick Construction Group

“Two years into Labour’s term, we’re still waiting to see the step change in rental housing delivery that was promised. There’s plenty of appetite to invest, particularly in low-rise Build-to-Rent (BTR), but appetite alone won’t get homes built. We need to get the private housing market moving again, and that means the public and private sectors working much more closely together. If we’re serious about unlocking the potential of our towns and cities, we need to make it easier to turn good schemes into viable developments on the ground.

“Planning remains one of the biggest sticking points. Local planning authorities are under real pressure, and without the right resources in place, decisions take too long and schemes that could be progressing are left sitting in the system. We need to address that. There’s also something to be said for how we work together more broadly. Construction is a people business, and some of the toughest challenges are solved by getting the right people around a table, having an honest conversation and working through the problem together. Good collaboration isn’t just a nice-to-have; it makes a real difference to how effectively we deliver projects.

“The other big challenge is knowing what’s coming next. Developers and contractors are being asked to make significant investment decisions without enough certainty around the future pipeline of work. Add the complexity of scheme viability and the requirements of the Building Safety Act, and it becomes increasingly difficult to plan with confidence. That uncertainty doesn’t stop with the developer or contractor; it runs right through the supply chain. If businesses can’t see a reliable pipeline ahead, it’s much harder for them to invest in people, develop skills and create secure jobs.

“At Caddick, we’ve recently welcomed another 19 apprentices across the business. That’s a commitment we’re proud of, because investing in the next generation is the right thing to do for our industry. But it’s also a long-term commitment, and one that businesses need the confidence to make. We can’t expect the wider industry to keep bringing people through if the market remains so unpredictable. If we want to tackle skills shortages and open up opportunities for young people, we need to give businesses a more stable foundation on which to invest.

“Then there’s the pressure on costs. Rising taxes, alongside persistent inflation in materials and energy, are making it harder to get schemes over the line. The increase in Employer National Insurance contributions has added another layer of cost, particularly for SMEs and smaller supply chain businesses that are already working with tight margins. These are often the very businesses we need to be creating jobs, taking on apprentices and giving young people who are not in education, employment or training (NEET) a route into the industry. Every additional cost matters when you’re making decisions about whether you can afford another member of staff.

“Government grant schemes can certainly help, but businesses need clarity on where the funding is coming from, how it will be allocated and when it will make a difference. Equally, proposed changes to business rates on high-value business properties need to be considered carefully, so that measures intended to raise revenue don’t end up discouraging the very investment and development we’re trying to encourage.

“Ultimately, we need to make the numbers work. Lower interest rates and more affordable borrowing would help bring forward schemes that are currently struggling to secure financial approval, particularly where high construction costs are already putting pressure on viability. There’s only so much value engineering can achieve; at some point, if the underlying economics don’t stack up, a project simply won’t proceed. We need to be realistic about that.

“As we approach the Autumn Budget, the Government has an opportunity to make a tangible difference. That means targeted support for first-time buyers, properly resourced planning departments and a more manageable tax environment for SMEs, alongside a clearer, more consistent approach to housing delivery. None of these challenges can be solved in isolation, and there isn’t one silver bullet. But with the right decisions, better collaboration and a more predictable environment for investment, we can get stalled schemes moving, give businesses the confidence to invest in their people and, most importantly, deliver the homes our communities need.”