AUTUMN 2025 DIGITAL - Flipbook - Page 6
NEWS
Construction labour market cools as
regulatory burdens & cost pressures persist
New data signals a sector reset
as contractors face easing
wage pressures but growing
uncertainty over workforce
and project pipelines.
The UK construction sector is
showing clear signs of a cooling
labour market, according to a
report by Southern Construction
Framework, leading construction
procurement framework
delivered by the public sector for
the public sector in the South of
England.
The report found that in Q3
2025, employment increased
by a modest average of 0.1%,
compared to 1.5% in Q3 2024.
Across the trades, drylining
decreased by the largest amount
(-4.0%), with concrete frame
(+1.0%) and windows (+1.6%) all
seeing modest increases.
This is being driven by
multiple forces according to
the report, including regulatory
burdens, cost pressures, and
skills shortages.
The news comes as an ONS
report found that construction
employment sunk to a 24-year
low to 1.3% in the third quarter
to 2.05 million. This marks a 15%
collapse in capacity since a peak
just before Covid.
While this is easing cost
pressures on contractor project
budgets, with wage growth
slowing to 3.9%, down from
6.4% in March, it is indicative of
weak project pipelines.
In an extreme case, SCF’s
report found that a South
West drylining provider has
experienced a -34.3% drop in
employment in a strategic effort
to revise their strategies and
downsized operations.
The survey of over 150
subcontractors found that
average tender workload across
all regions was +1.5% during Q3
2025, signi昀椀cantly lower than
Q3 2021 which saw a quarterly
movement of +5.71%.
Janara Singh, Assistant
Framework Manager at SCF,
said:
“SCF contractors have
reported noticeable shifts in
behaviour across the supply
chain, re昀氀ective of insecurities
in the marketplace. Contractors
and suppliers alike are
reassessing their strategies, with
many adjusting their tendering
approaches, cost structures,
and workforce planning to
remain competitive in a volatile
environment.”
The regulatory landscape
continues to be a de昀椀ning factor
in shaping tender activity and
project delivery timelines, having
a particularly negative effect on
the London housing market. The
implementation of the Building
Safety Act (BSA) Gateway
2 has introduced signi昀椀cant
delays in high-rise residential
developments, contributing to
a -1.9% decline in windowrelated tenders in the capital.
This bottleneck has created
uncertainty for contractors and
developers, with many projects
stalled awaiting compliance
approvals.
While a recovery is
anticipated, over the next year
with the report predicting a 3.7%
increase in tender workload,
the current environment has
forced suppliers to adapt their
strategies.
This shift is evident in the
South West, where curtain
walling and carpentry & joinery
have seen notable increases
in tender volumes, suggesting
a shift toward façade and 昀椀t
out work in areas with fewer
regulatory hurdles.
The lack of good-quality
labour is also adding time to
projects, as contractors struggle
to secure skilled subcontractors.
In response to ongoing skills
shortages in the sector, the
government has published its
Post-16 Education and Skills
White Paper, pledging to invest
£100 million over the next 4
years to expand Construction
Skills Bootcamps.
Top councillors in England and Wales
recognised at annual Cllr Awards
The top councillors across
England and Wales have been
recognised at the 2025 LGIU
& CCLA Cllr Awards, which
took place tonight at London’s
Guildhall. These are the only
national awards dedicated to
celebrating the extraordinary
work of councillors in England
and Wales.
The 2025 winners are:
• Cllr Arooj Shah, Oldham
Metropolitan Borough Council
- Leader of the Year
• Cllr Alex Ehmann, London
Borough of Richmond upon
Thames - Innovator of the Year
• Cllr John-Paul Ennis, Lambeth
Council - Young Councillor of
the Year
• Cllr Fran Oborski, Wyre
6
Forest District Council Lifetime Legend
• Cllr Harry Boparai, Spelthorne
Borough Council & Surrey
County Council - Community
Champion
This year’s competition was
extremely tight with over 400
nominations received across
昀椀ve categories that celebrate
the wide-ranging work of
councillors. From championing
residents’ interests to leading
innovation in public services,
councillors play a crucial role
in shaping communities and
improving lives, dedicating their
time and energy to what is often
a voluntary, unpaid role.
Winners were chosen by
a judging panel of senior
councillors and leading
GOVERNMENT
GOVERNMENT AND
ANDPUBLIC
PUBLICSECTOR
SECTORJOURNAL
JOURNAL AUTUMN
AUTUMN 2017
2025
stakeholders from across
the sector. These important
Awards - a staple in the local
government calendar - are made
possible thanks to the generous
support of founding partner
CCLA.
Jonathan Carr-West, Chief
Executive, Local Government
Information Unit (LGIU) said:
“Councillors work tirelessly to
support their communities and
drive change. These awards
are about celebrating the often
unseen but hugely important
contribution councillors make
every day. This year’s winners
are a real testament to the
dedication, creativity and
leadership shown by councillors
across England and Wales.”
Lee Jagger, Local Government
Relationship Manager, CCLA
said: “Councillors sit at the heart
of our communities, and these
awards are a chance to spotlight
the meaningful, real-world
difference they deliver every
day. Their dedication improves
lives in countless, practical
ways. At a time when councils
are navigating extraordinary
pressures, the Cllr Awards are a
powerful reminder of just how
essential our councillors and
councils are.”
