Advancements in UK Construction Sector | July 2025 Update on Industry Growth and Innovation
In a significant move, the UK government has published its 10-year Infrastructure Strategy, which aims to transform the energy sector and support the country's transition to net zero emissions by 2030. The strategy, serving as both policy and manifesto, will influence planning decisions and government support for various projects.
The strategy focuses on large-scale investment in clean and nuclear energy, reducing industrial energy costs, and addressing energy infrastructure bottlenecks. Key impacts include a £725 billion investment over the next decade, with a strong emphasis on clean and nuclear energy to meet the UK’s 2030 net zero commitments.
One of the strategy's highlights is the introduction of schemes like the British Industrial Competitiveness Scheme and the British Industry Supercharger. These initiatives aim to cut electricity costs for energy-intensive industries, such as automotive, steel, and chemicals, by up to £40/MWh, translating to electricity bill cuts of up to 25%. These reductions will not lead to increased household energy bills, as they are funded instead by energy system reforms.
Another significant aspect of the strategy is the launch of a Connections Accelerator Service. This service aims to speed up grid connection times for new factories and large projects, reducing delays that currently hinder industrial expansion and investment. This will alleviate supply chain constraints and improve production efficiency.
The strategy also acknowledges the need for reliable, affordable, and rapidly accessible energy infrastructure to support digital and tech sectors, including data centers. Reforming the energy grid is seen as critical to avoid bottlenecks that risk stalling investment worth billions of pounds.
In addition to the energy sector, the UK government is making strides in other areas. The Procurement Act 2023 introduces new mandatory exclusion grounds from UK public bids for tax penalties. This act aims to ensure fair competition and promote ethical business practices.
Moreover, a new corporate offence of failure to prevent fraud is being introduced, further strengthening corporate accountability. The Data (Use and Access) Act also becomes law, marking the first changes to UK GDPR since its implementation.
The infrastructure programme offers substantial private investment opportunities, with multi-billion pound investments and accelerated delivery plans. The draft Planning and Infrastructure Bill is progressing through Parliament, providing updates on key stages and estimated dates.
The UK is also creating a high-integrity voluntary carbon market in the context of environmental marketplaces. This move aligns with the EU and UK's efforts towards copycat Emissions Trading Systems (ETSs) and Carbon Border Adjustment Mechanisms (CBAMs) in environmental marketplaces.
The UK government is also focusing on managing the risk of psychiatric injury to employees in disciplinary proceedings, ensuring a safe and fair work environment. The Employment Rights Bill is being implemented, and guaranteed hours and 'day one' employment rights for UK agency workers are deferred to 2027.
The government is also proposing the abolition of upwards only rent reviews in new commercial leases in England and Wales, aiming to provide more flexibility to businesses.
Upcoming events include the Future of Infrastructure 2025 event, scheduled for 24 September, focusing on managing change in the infrastructure industry. The Employment Law Coffee Break is another event discussing the above topics.
The Great Jackson ruling emphasizes the importance of balancing development and control in UK urban projects, highlighting the need for thoughtful and sustainable urban planning.
The UK's ambitious energy strategy, along with its other initiatives, positions the country as a leader in sustainable development and economic growth. Continued oversight and regulatory clarity will be essential to meeting these goals.
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- The UK's 10-year Infrastructure Strategy is not limited to the energy sector; it also includes measures to promote fair competition and ethical business practices, such as the Procurement Act 2023 that introduces new mandatory exclusion grounds from UK public bids for tax penalties.
- In the realm of real-estate and finance, the government is proposing the abolition of upwards only rent reviews in new commercial leases in England and Wales, aiming to provide more flexibility to businesses. Additionally, the strategy highlights the importance of balancing development and control in UK urban projects, ensuring thoughtful and sustainable urban planning.
