The Week That Was - 8 May 2026

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

Building Safety Regulator Strategic Plan 2026 to 2027

A Building Safety Regulator (BSR) policy paper sets out its strategic plan for 2026-27 as it becomes a standalone regulator and prepares to form part of a future single construction regulator.  Noting its aims of protecting residents, improving building safety, and raising standards across England's built environment, while supporting the delivery of safe, high quality homes, it outlines key priorities, including: improving operational efficiency; supporting unsafe cladding remediation; using building safety gateways to strengthen oversight during construction and at completion; monitoring emerging risks and updating building standards; and raising professional competence.  It also commits to clearer guidance, better use of data and technology, greater transparency, and proportionate regulation that supports both safety and economic growth.  The plan also lays the groundwork for a fuller reform strategy for 2027-30, aimed at continuous improvement, cultural change, and restoring public confidence in building safety.

A copy of the Strategic Plan can be found here.

Near-50% jump in construction companies in 'critical' financial distress

The number of UK construction companies in critical financial distress jumped by nearly 50 per cent year on year in the first quarter of 2026, according to insolvency specialist BTG Begbies Traynor (Central) LLP (BTG), formerly Begbies Traynor.

BTG’s latest Red Flag Alert report identified 9,466 construction businesses in the 'critical' category between January and March 2026, up 49 per cent from 6,367 in the same period in 2025.  Although the figure fell 5 per cent compared with the final quarter of 2025, BTG said this reflected a seasonal pattern rather than an underlying improvement in the sector’s health.

The Red Flag Alert system tracks companies showing sustained or marked deterioration in key financial ratios and indicators, including working capital, contingent liabilities, retained profits and net worth.

Critical distress increased most sharply among firms registered at Companies House under 'construction of domestic buildings' and 'electrical installation', where cases rose by 55 per cent and 51 per cent respectively year on year.  Across the wider sector, the number of construction firms in 'significant' distress – the next tier down – rose to 95,355, making construction the UK industry with the highest volume of troubled businesses.

Please find further information, here.

Calls for greater transparency surrounding material price increases

The Material Supply Chain Group of the Construction Leadership Council has called for greater transparency surrounding material cost increases.

Construction material costs have risen by around 5.1% this year when combining standard January increases with additional conflict‑related rises, and higher energy and fuel costs are feeding through in the form of transport surcharges and operational cost pressures.  Energy‑intensive and petrochemical‑based products (such as steel, bricks, concrete, glass, insulation, adhesives, bitumen, PIR and PVC pipe) are seen as legitimately exposed to cost pressures, but increases in other categories, including bathrooms and kitchens, are harder to justify without clearer evidence.

SMEs, housebuilders, and specialist subcontractors locked into 6–12 month fixed‑price arrangements are under acute pressure as material prices rise mid‑contract, compounded by further risks from UK tariffs and quotas on imported steel and disruptions to aluminium supply from Gulf smelter attacks.  The Group calls for transparent, evidence‑based price notifications, for conflict‑related increases to be treated as exceptional and reversible where possible, and for the industry to intensify planning, collaboration and early sharing of forecasts and requirements to maintain project delivery and sector resilience.

A copy of the most recent update from the Group can be found here.

Use of hydrogen in the construction sector

Tom Jennings, a senior consultant at the Building Research Establishment, argues that we can't ignore hydrogen's potential in construction. Heavy-duty construction machinery such as large excavators and articulated dump trucks are difficult to decarbonise through electrification alone because these machines operate at sustained high power, over long duty cycles and often on temporary or remote sites with limited grid access.  Battery systems at this scale face constraints on weight, charging downtime and site power capacity, meaning that while electrification is important, it cannot fully eliminate diesel use in high-duty plant.

Hydrogen is a possible alternative to battery systems. In the near term, dual-fuel hydrogen–diesel systems can displace a share of diesel in existing engines, enabling emissions reductions without wholesale fleet replacement.  In the longer term, dedicated hydrogen engines and fuel cells could remove diesel entirely from heavy plant. Hydrogen use would also cut nitrogen oxides and particulate emissions from diesel, improving local air quality and public health.

However, hydrogen only delivers genuine climate benefits if it is produced to robust low-carbon standards; otherwise, the lifecycle emissions reductions are limited.  The adoption of hydrogen in the sector will also require the production of green hydrogen supply to be scaled up in tandem with vehicle technology, and to co-ordinate energy providers, equipment manufacturers and construction clients so that supply and demand align.

For further reading, please click here.

Plans announced for the first purpose-built women's football stadium

Brighton & Hove Albion has confirmed that it will build a 10,000 capacity women's football stadium.  The club has said this would be the first purpose-built stadium for women's football in the UK and Europe.  The land on which the stadium will be built sits next to the American Express Stadium and will include underground parking, changing rooms, recovery areas, concourses, social spaces and facilities for families and first-time attendees.  The club has already invested in dedicated training and administration facilities and this announcement forms part of its 2030 vision for its women's team.  A planning application is still in the works, but the club has said it aims to open the stadium by the 2030/31 season.

Please find further information, here.

Mace Construct wins Baltic Exchange design-risk ruling

A Building Safety Regulator (BSR) policy paper sets out its strategic plan for 2026-27 as it becomes a standalone regulator and prepares to form part of a future single construction regulator.  Noting its aims of protecting residents, improving building safety, and raising standards across England's built environment, while supporting the delivery of safe, high quality homes, it outlines key priorities, including: improving operational efficiency; supporting unsafe cladding remediation; using building safety gateways to strengthen oversight during construction and at completion; monitoring emerging risks and updating building standards; and raising professional competence.  It also commits to clearer guidance, better use of data and technology, greater transparency, and proportionate regulation that supports both safety and economic growth.  The plan also lays the groundwork for a fuller reform strategy for 2027-30, aimed at continuous improvement, cultural change, and restoring public confidence in building safety.

A copy of the Strategic Plan can be found here.

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.

With thanks to:  Ella Crawley-Till, Richard Tosh and Charlie Underwood

If you have any queries please do get in contact with a member of the team, or your usual RPC contact.