The Week That Was - 7 November 2025

Welcome to The Week That Was, a round-up of key events in the construction sector over the last seven days.

Modern slavery risks in housebuilding

A 2025 report commissioned by the Director of Labour Market Enforcement and the Modern Slavery and Human Rights Policy and Evidence Centre finds that modern slavery risks in the UK housebuilding sector are poorly understood, despite its significant share of construction output. 

Common exploitation types include unpaid wages, health and safety breaches, debt bondage, forced labour, and “bogus” self-employment  particularly affecting migrant workers who face language barriers and limited rights. Enforcement challenges stem from high levels of informal work, widespread use of labour intermediaries, and weak monitoring, with accountability often unclear. The report highlights major gaps in quantitative data and a lack of worker-focused research, noting that most studies centre on organisational responses. 

Key recommendations include investing in better data collection, improving worker reporting pathways, strengthening enforcement protocols, and enhancing intelligence-sharing between agencies such as HMRC, GLAA, the Home Office, and HSE to prevent severe exploitation.

The full article can be found here [Subscription Required].

Construction firms experiencing financial distress

A recent analysis, conducted by Begbies Traynor, on industry data has revealed a 70% year-on-year rise in UK construction firms experiencing critical financial distress – with over 6,000 companies now affected, marking the highest level recorded since the pandemic. The surge has been attributed to persistent inflationary pressures, rising interest rates, and escalating material and labour costs, which have eroded margins and strained cash flow. 

Delays in payment and project cancellations have further compounded financial difficulties, particularly for smaller contractors. The sector’s vulnerability is heightened by ongoing economic uncertainty and subdued demand, with many firms struggling to secure new work or refinance existing debt. 

Experts warn that this trend could lead to increased insolvencies, job losses, and disruption across the supply chain, threatening the delivery of major infrastructure and housing projects. The situation underscores the urgent need for robust financial management and industry-wide support to safeguard the sector’s stability.

The full article can be found here.

Fraud prevention and safety: construction’s digital revolution

Recent legislative changes have significantly raised the bar for compliance and safety in UK construction. The new Failure to Prevent Fraud Law, introduced under the Economic Crime and Corporate Transparency Act, means construction clients may be criminally liable if fraud is committed by staff or associates for company benefit. 

To avoid prosecution, clients must demonstrate robust fraud prevention measures throughout their supply chain. The Building Safety Act (BSA), enacted in response to the Grenfell tragedy, imposes strict requirements for safety culture, documentation, and workforce competence, with severe penalties for non-compliance - including fines and reputational damage. For clients, these laws heighten compliance risk and demand greater oversight of contractors and site operatives. Tools such as CSCS Smart Check enable clients to verify worker qualifications and identity in real time, ensuring only properly trained personnel access their sites. This reduces legal liabilities, supports safer project delivery, and helps protect client reputation in a more accountable industry.

The full article can be found here.

Bridging the divide: why construction needs inclusive AI training

Skills England has published new research titled "AI skills for the UK workforce", which highlights that low digital literacy and limited access to tailored training are the major barriers to effect AI adoption. The report covers AI skills needs across a number of key UK industries including construction. 

AI technologies are gradually being adopted in construction, supporting activities such as drone-assisted surveying, project planning, retrofit design, and on-site safety simulations using VR and AR. However, the sector remains one of the least digitally mature, with the 2024 Lloyds Bank UK Consumer Digital Index revealing that 65% of construction workers lack essential digital skills. 

AI is beginning to influence entry-level roles through digital planning and hazard detection, while mid-career professionals are seeing increased use of data modelling and automated scheduling. Managerial and sustainability-focused roles require skills in interpreting environmental data and guiding teams through AI-driven transitions, yet relevant training is limited. 

Key challenges include digital exclusion, lack of tailored CPD, and gaps in green skills. Inclusive, modular training and partnerships between employers and training providers are needed to ensure equitable AI adoption and support productivity and sustainability across the industry.

The full report can be found here.

Company prosecuted for failing to comply with Improvement Notice

Birmingham City Council have successfully prosecuted Freehold Managers (Nominees) Limited ("the Company") after they failed to undertake remedial works that had been specified in an Improvement Notice issued in September 2023. The Improvement Notice required the Company to undertake improvement works required to make the building safe . The specified works included repairs to fire doors, improvements to emergency lighting and the provision of a suitable means of escape in the event of a fire. 

The Company plead guilty at Birmingham Magistrates' Court and was fined £50,000. It represents the second such prosecution of this type by a local authority, and the first in the West Midlands. 

For further reading please click here.

New approach to environmental regulations to support new homes drive 

The changes introduced by the Government to the environmental permitting system will reduce the waiting times for permits, in a bid to speed up the new delivery of new housing and infrastructure.

Currently, certain activities which are required at the early stages of construction projects, such as site investigation works and storage of waste materials, require environmental permits to be obtained, despite the minimal risk imposed by these activities. This creates a delay at the outset of a project, which is often considered to be disproportionate to the relevant risk. 

The Environmental Agency will be empowered to consider which activities should be exempt from requiring a permit, making the permitting regime more flexible and proportionate for low risk activities. While some activities may be exempt from requiring permits, there will be safeguards in place to ensure that the environment is not degraded. The objectives already in the regulations will continue to apply, in order to uphold environmental protections. The Environmental Agency will be required to consult on any proposed exemptions before they are introduced. 

For further reading, please click here.

With thanks to Charlie Underwood, Xiao Chen and Brendan Marrinan

Disclaimer: The information in this publication is for guidance purposes only and does not constitute legal advice.  We attempt to ensure that the content is current as at the date of publication, but we do not guarantee that it remains up to date.  You should seek legal or other professional advice before acting or relying on any of the content.