The Autumn Budget, announced yesterday, has arrived at a pivotal moment for the architecture, engineering and wider built environment industry. Many practices have been looking for firm signals that the government intends to translate its early ambitions into actionable policy. The sector is eager to see visible progress on housing delivery, a national retrofit plan, meaningful planning reform and stronger long-term investment in skills. Some of these priorities have been acknowledged in principle, yet several remain unresolved, and it is not yet clear whether the government intends to deliver them at the scale and speed the industry has called for. As a result, the Budget presents a mixed picture. Certain elements offer reassurance or continuity, while others leave firms waiting for clarity and a more decisive policy direction.
The following sections explore what the industry hoped to see, what the Budget has actually delivered, and where firms should direct their attention over the next twelve months. They also recognise a number of Labour government commitments that were not included in the Budget but remain in active development and may influence the policy landscape in the near future.
What the Industry Wanted From the Autumn Budget 2025
Industry commentary leading up to the Budget showed a high level of alignment around the sector’s priorities. Bodies such as RIBA, the National Retrofit Hub, Architects’ Journal and Construction Wave highlighted four major areas that firms considered essential for creating a stable and investable environment.
1. A long-term national retrofit strategy
The National Retrofit Hub has repeatedly emphasised that the United Kingdom requires a ten-year national retrofit strategy, supported by clear skills pathways, quality standards and coordinated funding. Without this level of structural planning, the Hub warns that the retrofit market will continue to operate in a fragmented manner and will struggle to scale at the speed required for national decarbonisation targets.
Budget outcome: No comprehensive national retrofit plan has been introduced.
Government outlook: Labour continues to reference the Warm Homes Plan, which remains an active pledge and could eventually provide the structure and clarity the retrofit sector needs, although no timelines or details have been published.
2. Progress on planning reform and clearer housing delivery
Planning capacity and housing delivery remain two of the most significant barriers facing the industry. Construction Wave reported that firms were hoping for tangible progress on planning reform, particularly in areas that would accelerate major housing and infrastructure schemes. RIBA echoed this, noting the need for clear housing targets and more effective support for local planning authorities.
Budget outcome: The government reiterated its ambition to deliver 1.5 million new homes and referenced ongoing planning reform. However, detailed implementation plans remain absent.
Government outlook: The Housing Secretary continues to signal changes to the National Planning Policy Framework, and these may provide greater clarity once announced.
3. Long-term certainty for infrastructure and public investment
Many firms, especially larger practices, were seeking consistency and visibility in public investment to help with long-term workforce planning and internal investment. Architects’ Journal highlighted calls for multi-year commitments to infrastructure, which would give firms confidence to plan ahead in areas such as transport, energy networks and public buildings.
Budget outcome: The Budget maintained support for existing national capital programmes, although no major new schemes were introduced.
Government outlook: Labour has reaffirmed its intention to deliver the National Wealth Fund, intended to support energy, transport and industrial decarbonisation. This sits outside the Budget and may shape the investment landscape more significantly in future announcements.
4. Investment in built-environment skills and education
RIBA highlighted long-standing concerns over the skills pipeline, noting the increasing difficulty that practices face when trying to attract graduates or develop specialist technical capability.
Budget outcome: The Budget did not introduce new measures that support built-environment education or training.
Government outlook: Labour’s proposed Growth and Skills Levy remains in development. If implemented, it could give firms more flexibility in how they use training budgets.
What the Autumn Budget 2025 Has Delivered
1. Freeze on personal income tax thresholds until 2030–31
The threshold freeze effectively increases the tax burden as salaries rise. For A&E firms, this will likely contribute to pressure on salaries in mid and senior roles, especially at a time when many practices are already competing for experienced project leads, technical specialists and digital talent.
2. Higher taxes on dividends, investment income and property income
Many practice owners rely on dividends and profit shares as part of their remuneration structure. The increases outlined yesterday may prompt firms to reassess how profits are distributed, and in some cases to explore whether incorporation provides better long-term stability.
3. Salary-sacrifice pension NI cap of £2,000 from 2029
The cap reduces the tax efficiency of pension-heavy packages, which are often used to retain senior staff. Practices may need to review their remuneration frameworks and explore ways to balance pay, pensions and benefits in a more predictable model.
4. New high-value property surcharge from 2028
This surcharge could influence behaviour in the high-end residential market. Some clients may reconsider major refurbishment projects while others may shift their focus towards essential upgrades or energy-efficiency improvements. A&E firms working in this space may wish to prepare for a more value-focused briefing environment.
5. Funding for home heat decarbonisation
The funding confirms that decarbonisation remains a national priority. Firms with capability in retrofit, energy modelling and building performance may see increasing demand for early-stage design, advisory services and feasibility work as homeowners and public bodies explore their options.
6. Continued support for the Affordable Homes Programme
While not new, the ongoing support provides some certainty for firms working with local authorities, registered providers and SME housebuilders. Practices able to demonstrate robust cost management, clear communication and efficient programme delivery will be positioned to benefit from this pipeline.
What These Measures Mean for Larger A&E Firms
Firms with upward of around 25 staff, particularly those with established layers of middle management, now face a landscape where senior pay costs are rising, pipelines remain steady rather than expanding, and structural challenges in planning and skills continue to hold back confidence. The implications for practice leaders include the need to monitor financial performance more closely, build flexibility into resourcing, and ensure that internal forecasting reflects the combined effect of tax changes, delayed projects and recruitment pressure.
How A&E Firms Should Navigate the Next Twelve Months
1. Review remuneration and pension strategies
Reassess how tax and pension changes affect partner drawings, senior salaries and reward structures. Consider whether existing LLP or company structures still meet the needs of the firm and its senior team.
2. Strengthen scenario planning for slower project starts
Introduce scenario planning that accounts for slower planning approvals or phased public investment. Weekly visibility of utilisation and fee burn is essential, and firms may wish to adopt tools that provide clearer real-time insight into project performance.
3. Position early for affordable housing and public-sector work
Map relevant frameworks, update case studies and strengthen early-stage feasibility work. Public-sector clients continue to prioritise value, clarity on programme and strong social value commitments.
4. Build capability in sustainability and retrofit
Audit team capability in building physics, energy modelling and retrofit assessment. Form partnerships with retrofit coordinators or specialists where needed and ensure your firm’s marketing materials reflect these strengths.
5. Improve real-time financial visibility across the practice
Move away from fragmented spreadsheets or multiple systems and adopt simpler options that give project leaders a clear and consistent understanding of resourcing, profitability and forecast performance.
Final Reflection
The Autumn Budget has offered suggestions of continuity in a number of important areas, although it has not resolved many of the more structural issues that the built environment is hoping the government will address. Several major Labour commitments remain active, including the Warm Homes Plan, planning reform and the development of a more flexible skills levy. These sit outside the Budget and may begin to shape the operating environment later in the year.
For now, A&E firms should focus on strengthening financial awareness, improving resource planning and investing in key capabilities that align with housing, sustainability and public-sector priorities. Practices that take these steps will be well placed to adapt when the next set of government decisions arrives.