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CPA Economic and Construction Update

CPA Economic and Construction Update

The CPA’s Economic and Construction Update provides an insightful summary of the latest economic and construction trends in the UK.

The latest weekly update is enclosed, including:

  • CPA View on Middle East Conflict and Potential Effects (28 May 2026)
  • RIBA Future Trends Survey (April 2026)

    The CPA’s Spring forecasts were published on 5 May and FIS members have exclusive access to this via our membership of CPA.

    The update is an excellent resource for anyone interested in the UK construction industry, and the contents page allows readers to easily navigate to the sections that are most relevant to their interests.

      In addition to this update, the CPA also publishes Construction Forecasts twice a year. Members can download these forecasts from the FIS website here.

      See more news likes this

      FIS CEO shares his perspective in Property Week feature

      FIS CEO shares his perspective in Property Week feature

      FIS Chief Executive Iain McIlwee has been featured in a recent Property Week article examining the challenges facing the UK housebuilding market and the pressures being felt across construction supply chains. The article, published on 29 May, explored how major...

      Excellence on display as FIS crowns winners of 2026 Contractors Awards

      Excellence on display as FIS crowns winners of 2026 Contractors Awards

      Today we have announced the winners of our annual Contractors Awards at a gala lunch held at Royal Lancaster Hotel in the heart of London. The ceremony honoured the remarkable craftsmanship, exceptional collaboration and exemplary adherence to best practices within...

      BS 8670-2 Construction Product Competence Standard Opens for Public Review

      BS 8670-2 Construction Product Competence Standard Opens for Public Review

      BS 8670-2 Built environment. Core criteria for construction product competence. Code of Practice is a standard that is being developed by BSI which has entered public review until the 13th July 2026.

      This standard follows the precedent set by the white paper published by the Construction Products Association (CPA) which outlined levels of competence for those working with construction products. The standard is not only for suppliers as it distinguishes between a construction product brought to market by a manufacturer or distributor and a “built environment system” supplied and installed by a contractor.

      A review copy of the standard can be downloaded for free by anyone with a BSI account using the link below.

      British Standards Institution – Project

      If members would prefer to discuss their feedback with the technical team, please contact eitherjamesparlour@thefis.org or damianhill@thefis.org

      FIS highlights housing supply chain pressures in Financial Times coverage

      FIS highlights housing supply chain pressures in Financial Times coverage

      FIS has been featured in a recent Financial Times article examining the growing pressures within the UK housing sector and the often-overlooked impact on the specialist construction supply chain.

      While much of the public discussion around housing focuses on delivery targets, investor confidence and market performance, FIS has reinforced the importance of recognising the role of the supply chain, the businesses and people actually delivering homes on the ground.

      Drawing on recent FIS research into procurement, payment and contract management practices within the housing sector, the article highlights concerns that specialist contractors are increasingly being used as a financial buffer within the system, carrying disproportionate levels of risk and cashflow pressure.

      FIS has consistently warned that these practices are unsustainable and are having wider consequences across the sector, including restricting investment in skills, innovation and business growth, while contributing to rising levels of financial and mental stress within the workforce.

      The article reflects the growing recognition that achieving long-term housing ambitions will require more than headline targets alone. It will also depend on creating a healthier, more sustainable commercial environment throughout the supply chain.

      FIS would like to thank Megan Snaith for covering this important issue and helping bring greater visibility to the challenges faced by specialist contractors across the finishes and interiors sector.

      Government launches call for evidence on future built environment professions strategy

      Government launches call for evidence on future built environment professions strategy

      The Government has launched a new call for evidence to support the development of a future strategy for built environment professions, trades and occupations, alongside the publication of the latest Grenfell Tower Inquiry quarterly progress report and the report from the Building Control Independent Panel.

      The initiative forms part of wider efforts to strengthen standards, improve competence and enhance building safety across the construction sector.

      The call for evidence is intended to gather views and insight on the key challenges, interdependencies and opportunities for reform across the full building lifecycle. It is structured around core stages of the lifecycle, alongside broader themes affecting the wider system.

      Importantly, the scope of the consultation is deliberately broad and seeks input from across the built environment, including professions, trades, occupations, clients, sector bodies and organisations operating across related industries.

      The Government is encouraging industry stakeholders to contribute evidence and practical insight that can help shape future policy, training, competence frameworks and workforce development.

      The consultation will remain open for 12 weeks and closes on 12 August 2026.

      In early June, the Ministry of Housing, Communities and Local Government (MHCLG) will also host two webinars to provide further information on the call for evidence and answer questions from industry participants. Details are expected to be released shortly.

      FIS encourages members to review the consultation and consider responding, particularly where proposals may affect competence, training, workforce development and regulatory expectations within the finishes and interiors sector.

      The consultation can be accessed here:

      Strategy for the Built Environment Professions, Trades and Occupations – Call for Evidence

      FIS Responds to Government Product Safety and Regulatory Reform Consultations

      FIS Responds to Government Product Safety and Regulatory Reform Consultations

      FIS has responded on behalf of its members to both Government consultations on construction product regulatory reform through the White Paper and the General Safety Requirement (GSR). Both of these consultations and the changes to legislation that they propose will affect many across our membership, with particular focus on suppliers as products that are covered by a designated standard (or an ETA/UKTA) are captured by the proposals in the White Paper, whereas products not covered by a designated standard are captured by the new General Safety Requirement.

      FIS engaged with members from across interior sectors at our working group forums to discuss all the proposals and also worked closely with the Construction Products Association (CPA) to determine our response which is closely aligned with the response from the CPA.

      Members who would like to see a copy of our response to either the White Paper or the General Safety Requirement should contact our Technical Director jamesparlour@thefis.org

      FIS Skills Board discusses DWP Youth Guarantee, construction skills reform and industry training investment

      FIS Skills Board discusses DWP Youth Guarantee, construction skills reform and industry training investment

      The latest Skills Board meeting focused on major developments at Department for Work and Pensions (DWP) around construction workforce reform, youth employment support and industry training investment. Members discussed DWP’s £1.5 billion Youth Guarantee programme, which aims to help 16–24-year-olds access education, training and employment opportunities over the next three years. Key measures include expanded Youth Hubs, increased work experience and sector based placements, additional apprenticeship support for SMEs and the introduction of foundation apprenticeships combining paid work with structured learning. Discussions also explored proposals for guaranteed paid work placements for long-term unemployed young people and the importance of sector specific training pathways to improve work readiness before entering construction roles. 

      The meeting also covered ongoing reform across the construction skills system, including discussions around the proposed merger of CITB and ECITB to form a single industry training board and the potential opportunities and risks associated with greater alignment across the sector. Members highlighted possible benefits such as reducing duplication and increasing levy funding available for training and grants, while also raising questions around future governance and long term delivery.

      Updates were also provided on a number of training and workforce initiatives, including new pilot programmes for Steel Framed Systems training, Apprenticeship and qualification reviews, expanded E Learning provision and specialist workforce upskilling support for fit out, drylining and plastering. Wider discussions focused on improving regional training access, strengthening employer confidence to invest in skills and exploring the future development of digital skills passport systems to support workforce planning across construction. 

      Full details of the meeting can be found here 

      If members are interested on joining the FIS Skills Board, please contact Marie Flinter (marieflinter@thefis.org) or Beena Nana (beenanana@thefis.org)

      FIS draft RIDDOR response – final call for member input (by 5 June)

      FIS draft RIDDOR response – final call for member input (by 5 June)

      FIS has prepared a draft response to the HSE consultation on proposed changes to RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations). 

      This follows detailed discussion through our Health & Safety Working Group, with a focus on ensuring the proposals are clear, proportionate and practical for the finishes and interiors sector—particularly in relation to occupational diseases, dangerous occurrences and reporting requirements.

      The consultation is driven by HSE’s aim to modernise RIDDOR so that reporting better reflects today’s working environment, improves data quality, and supports more targeted regulatory intervention. Key themes include expanding the scope of occupational diseases, clarifying definitions such as “work-related,” updating dangerous occurrences, and simplifying the reporting process. FIS’s draft response supports the overall direction of improving clarity and usability but emphasises the need for proportionate, practical requirements that work in a multi-contractor environment. In particular, our response highlights the importance of avoiding unintended increases in reporting burden, ensuring clear guidance to prevent inconsistent interpretation, and focusing on measures that genuinely improve safety outcomes rather than simply increasing reportable incidents.

      We want your input before submission

      Before we finalise our response, we are seeking member feedback to ensure it fully reflects real-world experience across the sector.

      We are particularly interested in your views on:

      • Whether the proposals will improve clarity or create ambiguity
      • Potential unintended consequences (e.g. increased reporting burden)
      • Practical challenges with current RIDDOR reporting
      • Any issues we may have missed

      Deadline: 5 June

      Please send any comments or suggested additions to iainmcilwee@thefis.org by Wednesday 5 June.

      Your feedback will help shape the final FIS submission and strengthen the sector’s voice with HSE.

      FIS draft response available here….

      For more information on the FIS H&S Working Group click here

      (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations

      Mental Health Awareness Week 2026

      Mental Health Awareness Week 2026

      Mental Health Awareness Week provides an important opportunity to reflect on the pressures faced across the construction industry and the role we all play in supporting one another.

      In construction, poor mental health remains one of the biggest risks to our workforce. Long hours, financial pressure, demanding programmes, uncertainty, travel, isolation and the wider pressures of everyday life can all take their toll. Whilst our industry is built on resilience and problem-solving, it is important to recognise that continually “just getting on with it” is not always the answer.

      At FIS, we believe that creating a healthier industry starts with openness, awareness and practical support. Mental wellbeing is not separate from the conversations around quality, competence, leadership and culture, it sits at the heart of them.

      This week, we encourage everyone across the finishes and interiors sector to take small but meaningful steps:

      • Check in with colleagues, friends and family
      • Make time to talk and listen
      • Be aware of changes in behaviour or signs that someone may be struggling
      • Take steps to manage your own wellbeing, both physically and mentally
      • Remember that asking for support is a strength, not a weakness

      We also recognise the importance of addressing some of the wider industry behaviours that contribute to poor mental health, including unreasonable pressure, poor payment practices, uncertainty and conflict within projects. Improving culture across the sector remains a key priority for FIS.

      No one should feel they have to face challenges alone.

      If you or someone you know is struggling, support is available. The construction community has made huge progress in opening conversations around mental health, but there is still more we can all do together.

      FIS remains committed to supporting a safer, healthier and more sustainable industry, not just physically, but mentally too.

      Deaf Awareness Week: Why employers need to listen-up

      Deaf Awareness Week: Why employers need to listen-up

      Deaf Awareness Week (4–10 May 2026) is a timely reminder that hearing loss is one of the most common and most overlooked occupational health risks in construction. Around three in four construction workers are exposed to daily noise levels above 85 dB, yet protective measures often clash with other PPE such as hard hats, leaving workers vulnerable.

       The Hidden Health Impact

      Hearing damage can be temporary or permanent, but even temporary deafness after leaving a noisy environment is a warning sign. Repeated exposure gradually erodes hearing, often going unnoticed until age‑related loss compounds the damage.

      Sudden, extremely loud noises – such as cartridge‑operated tools – can cause instant and irreversible harm. And hearing loss is only part of the story. Many workers develop tinnitus (ringing, buzzing or humming in the ears), a condition that can disrupt sleep and significantly affect quality of life.

       The Psychological Toll

      The impact of hearing loss and tinnitus can run much deeper – they affect people’s mental health.  Workers with untreated hearing issues often withdraw from conversations, avoid group settings and experience increased anxiety, frustration and depression. Communication becomes harder, confidence drops and social isolation grows. Left unaddressed, this becomes a cycle that harms both wellbeing and workplace culture.

      Why Workers Don’t Speak Up

      According to the Royal National Institute for Deaf People (RNID), around 10 million adults could benefit from hearing aids, yet only 3 million use them. Many delay seeking help because they don’t want to appear “difficult”, “old” or “in the way”. In construction’s fast‑paced environment, this silence can be dangerous.

       Your Legal Responsibilities

      Under the Control of Noise at Work Regulations 2005, employers must assess and control noise risks.

      Key thresholds:

      • 80 dB – assess risks, provide information and training
      • 85 dB – provide hearing protection and designate hearing protection zones
      • 87 dB – absolute exposure limit (after accounting for PPE)

       Employers must:

      • Identify and reduce noise risks
      • Provide suitable hearing protection where required
      • Ensure PPE is used correctly
      • Offer information, training and health surveillance
      • Review controls whenever work or equipment changes

       Noise control doesn’t always require major investment – but it does require consistent attention.

       

      Call to Action

      1. Check Your Kit

      FIS is supporting the British Safety Industry Federation (BSIF) campaign “Listen Today, Hear Tomorrow.” Key principles:

      • Hearing protection is a last resort, but essential until noise risks are controlled
      • Choose the right level of protection – more is not always better
      • Ensure compatibility with other PPE and comfort for the user
      • Stress the importance of wearing protection continuously in noisy areas
        • Removing protection for just 5 minutes in an hour halves its effectiveness

       For guidance on selecting the right PPE for hearing safety, click here.

      1. Get Your Hearing Checked – and Encourage Your Team

      RNID offers free, accessible hearing checks. A hearing test takes just three minutes using the RNID online tool – a simple step that could prevent long‑term harm.

      1. Further Reading 

      This excellent resource gives employers a deeper understanding of occupational deafness and managing worker safety

      [1] Construction Site Hearing Issues: How Noise Damages Workers’ Health & Prevention Tips – UK Construction Blog

      Opportunity for FIS Members to Influence National Minimum Wage Policy

      Opportunity for FIS Members to Influence National Minimum Wage Policy

      FIS, as an active member of the Construction Industry Collective Voice, is encouraging members to take part in a unique opportunity to directly influence future National Minimum Wage policy.

      Following ongoing engagement through the CICV Skills & Employment Group, FIS has been involved in discussions with the Low Pay Commission regarding the pace and scale of recent National Minimum Wage increases and the impact this is having on the sector, particularly in relation to the affordability of apprenticeships.

      As a direct result of this engagement, the Low Pay Commission has invited trade body members to attend a series of small, employer-led workgroup sessions to help shape future policy decisions.

      Workgroup Details:

      • Dates: 13–14 May 2026
      • Location: Aberdeen (venue and timings to be confirmed)
      • Format: Small groups of up to six employers
      • Duration: 1 hour sessions

      These sessions are invitation-only and offer a rare opportunity for employers to:

      • Share real-world insight on wage pressures
      • Highlight challenges around recruitment and apprenticeships
      • Help influence future Government thinking

      Have Your Say

      FIS is now gathering interest from members who would like to participate.

      If you would like to be considered for a place, please register your interest as soon as possible. Places are limited and will be allocated based on availability.

      Contact FIS to express your interest

      This is a valuable opportunity to ensure the voice of the finishes and interiors sector is heard at a national level, and to help shape policies that directly impact your business and workforce.

      Major reform proposed for Construction Training Boards

      Major reform proposed for Construction Training Boards

      The Government has launched a consultation on proposals to merge the Construction Industry Training Board (CITB) and the Engineering Construction Industry Training Board (ECITB) into a single, unified Industry Training Board (ITB).

      The consultation will remain open until 14 June 2026, providing a defined window for industry stakeholders to shape the future of skills and workforce development across both sectors.

      The proposed merger could mark a major change in the way training is organised, funded, and delivered across the industry. The consultation looks at important areas such as future skills needs, how accessible and effective current training provision is, and how levy arrangements can best support ongoing investment in the workforce. While bringing the sectors together under a single ITB may offer better alignment, it is vital that the distinct requirements of different parts of the industry are properly recognised.

      As a CITB Prescribed Organisation, FIS is gathering member feedback to inform its formal response. To support this, we have developed a short survey to capture your views on the proposals and their potential impact. Your input will help ensure that our response is evidence based and fully reflects the priorities and challenges faced by our sector.

      This is an important opportunity to influence how industry training and funding will be shaped in the years ahead. We strongly encourage all members to take a few minutes to complete the survey by 29 May and share their views.

      A strong response will enable FIS, in its role as a Prescribed Organisation, to represent our sector with authority and ensure your voice is heard.

      Full details of the consultation are available here Industry Training Board reform – GOV.UK, and members can also submit their views directly via the ITB Reform Consultation portal

      Summary Approved Document B – 2026 Consultation

      Summary Approved Document B – 2026 Consultation

      Why interiors and fit‑out specialists need to engage now

      The government’s 2026 consultation on Approved Document B (Fire Safety Guidance to support compliance with the Building Regulations) proposes a wide‑ranging set of changes that will directly affect interior systems, partitions, ceilings, fire‑stopping, service coordination and refurbishment work.

      While much of the language is technical, the real‑world consequences for FIS members are significant – particularly around responsibility, product selection and buildability.

      We’ve carried out a forensic review of the proposals, and we’re now seeking member feedback to shape the FIS response.

      We’ve carried out a forensic review of the proposals, and we’re now seeking member feedback to shape the FIS response.

      Key headlines for the finishes and interiors sector:

      • Greater scope in existing buildings
      • Minor refurbishment works could now trigger wider fire safety upgrades.
      • New expectations for realistic vertical evacuation of disabled people will affect stair cores, lift lobbies, partitions and interface tolerances.
      • Revised definitions mean some internal walls may now be considered loadbearing during fire, raising questions about specification, testing and liability.
      • Tighter controls on combustible elements and more emphasis on smoke
      • More emphasis on consistency of performance within systems
      • New limits on exposed structural elements, and knock‑on implications for linings and encapsulation, will directly affect interior detailing.
      • Revised and updated guidance on external wall systems and balconies and review the scope of the ban on combustible materials in, and on, external walls and specified attachments
      • Cavity and fire‑stopping rules rewritten
      • The move to performance‑based cavity barriers and higher fire‑stopping standards increases reliance on correct specification, coordination and installation
      • Expanded fire safety information requirements (including service life and O&M data as well as tighter definitions of high‑risk areas) have implications for handover, records and long‑term accountability

      FIS is developing a clear, evidence based response, but it must reflect the real experience of members delivering work on site.  At this stage we are asking members to review the schedule of change.  This will be discussed specifically at relevant upcoming FIS Working Groups, but we will be arranging online events closer to the deadline 1st July so that we can debate any issues raised.

      Please send you questions, comments, concerns or highlights to jamesparlour@thefis.org.

      We are specifically looking for areas where:

      • Where the proposals appear unclear, unrealistic or disproportionate
      • There are obvious omissions or failure to absorb new and better thinking or eliminate existing uncertainty
      • Where buildability, coordination or sequencing will be impacted
      • Any unintended consequences you foresee for interiors and fit out work

      To help navigate changes, FIS has produced a detailed change register for Parts 1 (Dwellings) and 2 (Buildings Other than Dwellings) separately below.

      Please do review, your insight will directly influence the FIS submission and ongoing engagement with regulators.

       

      You can see the full consultation here.  Members are encouraged to respond directly, but to advise FIS of any changes or concerns they have with the consultation so that this can be fed into our wider sectoral response.  To raise concerns, email the technical team on info@thefis.org or phone the FIS on 0121 707 0077.

      Steel Trade Measures Announced: What It Means for FIS Members

      Steel Trade Measures Announced: What It Means for FIS Members

      FIS is highlighting important changes to UK steel import rules, alongside wider global pressures that continue to drive cost volatility across construction supply chains. Members pricing work, particularly on fixed-price contracts, should take note of the potential impact.

      New UK Steel Trade Measure from July 2026

      On 19 March 2026, the Government announced a new steel trade measure, which will come into force on 1 July 2026 under the Taxation (Cross Border Trade) Act 2018.

      The key change is a significant restriction on tariff-free steel imports:

      • Tariff-free quotas will be reduced by 60%
      • Imports above quota will face a 50% tariff
      • The measure applies to steel products that can be manufactured domestically in the UK

      Final product scope and quota levels are subject to confirmation ahead of implementation.

      Global Context: Ongoing Supply Pressure

      This move sits against a backdrop of significant global overcapacity in steel production, which continues to distort markets and pricing.

      According to the Organisation for Economic Co-operation and Development (OECD), the gap between global steel capacity and demand is expected to reach 721 million tonnes by 2027.

      At the same time, UK steel production has declined by over 50% in the past decade, driven by:

      • Persistent global oversupply
      • High domestic operating costs
      • Increased international competition

      The Government’s intervention forms part of a wider strategy to protect domestic production and ensure resilience in critical sectors such as infrastructure, energy and defence.

      Implications for the Finishes and Interiors Sector

      Whilst aimed at supporting UK steelmaking, these measures are likely to contribute to continued price volatility and inflationary pressure across construction materials.

      FIS members should take proactive steps to manage risk:

      • Review Fixed-Price Contracts

      Carefully consider exposure to material price fluctuations, particularly where steel-based products are involved.

      • Assess Fluctuation Clauses

      Check existing contracts for provisions that allow for cost adjustments, and ensure these are clearly understood and applied where appropriate.

      • Engage with Supply Chains

      Maintain close communication with suppliers and manufacturers to anticipate pricing changes and availability risks.

      • Factor Risk into Future Pricing

      Ensure that tender pricing reflects the potential for ongoing market instability.

      What This Means Going Forward

      With global pressures unlikely to ease in the short term, this policy reinforces the need for robust commercial awareness and risk management across the sector.

      FIS will continue to monitor developments and provide updates to support members in navigating these changes

      FIS guidance on managing inflation

      Employment Rights Act Update

      Employment Rights Act Update

      The latest measures under the Employment Rights Act came into force on 6 April 2026, introducing new ‘day one’ rights for employees and placing greater obligations on employers regarding fairness, equality and wellbeing. Described by the Government as the ‘biggest upgrade to rights at work for a generation’, the recent changes include:

      • Employees are now entitled to Statutory Sick Pay from the first day of illness, instead of the fourth day, and the lower earnings limit has been removed.
      • Paternity leave and unpaid parental leave has also become a ‘day one’ right, and the restriction on taking paternity leave after shared parental leave has been removed. There is also a new statutory right to take bereaved partner’s paternity leave.
      • Sexual harassment is now a protected disclosure under whistleblowing law, meaning that employees making a sexual harassment disclosure are protected from unfair dismissal.
      • The maximum ‘protective award’ for failure to meet collective redundancy consultation obligations has doubled from 90 days’ pay to 180 days’ pay.
      • Large employers are being encouraged to publish Equality Action Plans to address their Gender Pay Gap and support employees affected by the menopause. These will become mandatory from spring 2027.

      To assist employers to comply with the changes, the Government has created a dedicated webpage with guidance and practical tools, which will be updated as more measures are introduced under the Act throughout 2026 and 2027. The Government has also launched the Fair Work Agency, combining the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate, and HMRC’s National Minimum Wage enforcement team, to enforce workers’ rights, with penalties for businesses that don’t comply.

      Employment & Workforce Management Toolkit

      FIS members can access a range of services to support them in managing people in their workforce. 

      Building Safety Update: Gateway Two Performance, Remediation Delays and Regulatory Changes

      Building Safety Update: Gateway Two Performance, Remediation Delays and Regulatory Changes

      FIS is highlighting the latest developments in building safety, following the publication of new data and plans from the Building Safety Regulator (BSR), alongside upcoming regulatory changes in Wales.

      Gateway Two Applications – Latest Data

      New data covering the period 5 January to 29 March 2026 shows that the BSR made 284 decisions across Gateway Two applications, including new build, refurbishment and remediation projects, with an approval rate of 67%.

      However, 326 applications were either deemed invalid or withdrawn during the same period, continuing to highlight challenges in the application process.

      It is also worth noting that the BSR has changed how it reports data, making it more difficult to track performance over time. Updates include:

      • Separating out ‘complex cases’ from standard applications
      • Grouping invalid and withdrawn applications together
      • Removing classification of applications managed by account managers

      Within this, the Innovation Unit (responsible for new build applications) reported:

      • 31 decisions with a 61% approval rate
      • 14 invalid or withdrawn applications
      • 18 cases classified as ‘complex’

      Remediation Applications – Delays and Improvements

      The median approval time for remediation applications has increased from 31 to 36 weeks, underlining ongoing delays in progressing remediation works.

      In response, the BSR has published an external remediation improvement plan, which includes:

      • Establishing a multi-disciplinary team (MDT) to support applications
      • Introducing ‘Approval with Requirements’, allowing projects to begin while outstanding technical issues are resolved

      The plan also highlights common issues in applications, including:

      • Insufficient evidence of fire resistance in replacement cladding
      • Missing or inadequate structural loading calculations

      BSR Strategic Plan and Fee Changes

      The BSR has also published its one-year strategic plan, setting out five key priorities for the year ahead, alongside an updated charging scheme for 2026/27.

      From this update:

      • Gateway Two application fees will increase to £195 (up from £189)
      • Hourly review charges will rise to £156 per person (up from £151)
      • Wales: New Regulations Coming into Force

      The Building (Higher-Risk Building Procedures) (Wales) Regulations will come into force on 1 July 2026.

      To support industry understanding, the Welsh Government is hosting webinars on:

      • Tuesday 21 April 2026
      • Tuesday 28 April 2026

      Members wishing to attend should contact the Welsh Government and confirm their language preference (English or Welsh).

      What This Means for FIS Members

      These updates reinforce the importance of:

      • Ensuring complete and compliant Gateway Two applications
      • Allowing for longer approval timelines, particularly for remediation projects
      • Staying informed on regulatory changes and cost implications

      FIS will continue to monitor developments and provide guidance to support members navigating the evolving building safety landscape.

      Are you ready for new HMRC focus on Construction Industry Scheme fraud?

      Are you ready for new HMRC focus on Construction Industry Scheme fraud?

      This tax year HMRC has been handed new powers to help tackle perceived fraud in the administration of the Construction Industry Scheme (CIS).

      From 6 April 2026, if a business makes or receives a payment that it knew or should have known was connected to fraud, HMRC can:

      • immediately remove Gross Payment Status (GPS)
      • assess the business for the related tax loss
      • charge a penalty of 30%, which can apply to the business or its officers

      In addition, those who have GPS removed immediately due to fraud or serious non-compliance will be prevented from reapplying for GPS for a period of 5 years.

      HMRC envisage refinement to CIS will add £205 million to tax collections from the sector in the tax year 2026/2027 alone. 

      Who is this targeting

      Businesses who operate within the Construction Industry Scheme (CIS) who knowingly (or unwittingly due to a lack of due diligence) enter into transactions connected to fraud will be affected by these measures.  

      General description of the measure 

      These measures tackle businesses who knowingly (or unwittingly due to a lack of due diligence) engage in processes which are deemed tax evasion.

      Where it can be shown that a business knew or should have known that they entered into a transaction that was connected with the fraudulent evasion of tax, the measures:  

      1. Provide for the immediate cancellation of Gross Payment Status (GPS).
      2. Make the business who entered into the transaction connected to fraud liable for the lost tax. 
      3. Allows a penalty of 30% of the lost tax to be charged to the business found liable, as well as to its directors and other persons connected to the business.  

      The time limit for reapplication where GPS has been immediately removed is also increased from one year to 5 years. The other grounds for immediate GPS cancellation are where a business has provided false information at registration for GPS, has fraudulently made an incorrect return or provided incorrect information, or knowingly failed to comply with a CIS obligation. 

      Policy objective 

      These measures support the government’s objective to close the tax gap, tackle non-compliance and make the tax system fairer. These measures protect the Exchequer from revenue losses — this will also reduce the large sums of money going to organised criminal gangs involved in supply chain fraud in construction or involving CIS deductions. They also ensure that there is level playing field by preventing fraudulent operators under-cutting the compliant businesses that operate within the rules. 

      Changes to this legislation ensures these businesses undertake the necessary due diligence to prevent illegitimate operators from entering the market. Where businesses do knowingly engage in fraudulent supply chains, GPS will be removed immediately and the business will be made liable for the tax losses, and penalties will be chargeable on the business itself and its directors, or other persons connected to the business.  

      Background to the measure 

      There have been several reforms in recent years to tackle non-compliance within the construction sector. In 2021 changes were made to reduce the abuse of the CIS, and to tackle VAT losses due to supply chain fraud. In 2023, HMRC consulted on measures to further strengthen the scheme and introduced legislation in April 2024 to bolster the GPS tests.  

      These powers are designed to help HMRC tackle fraud and non-compliance within the scheme. However, HMRC assert that serious non-compliance in the construction sector continues to develop and remains a significant risk – this includes sophisticated fraud by criminals.

      The measure was first announced at Budget 2025. 

      Current law  

      The current CIS legislation can be found in Part 3, Chapter 3 and Schedule 11 Finance Act 2004 (FA04) and in the Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045). 

      Proposed revisions 

      Legislation will be introduced in Finance Bill 2025-26 to amend Part 3, Chapter 3 in FA04 and S.I. 2005/2045. Section 66(3) in FA04 will be amended to provide the power to immediately remove GPS where a business knew or should have known that the payments made or received were connected with fraudulent evasion of tax. 

      Section 66(7) of FA04 is amended to prevent re-application for a period of 5 years where GPS is cancelled under Section 66(3) of FA04. 

      New legislation will also be introduced in Part 3, Chapter 3 FA04 and S.I 2005/2045 to allow the business that knew or should have known that the payments made or received were connected with fraudulent evasion of tax liable for the lost tax and penalties of up 30% of the lost tax. The officers of the business could also be liable for these penalties.  

      Practical Steps for Contractors

      To reduce exposure under the strengthened CIS rules, FIS Members should prioritise the following actions:

      Practical Steps for FIS Members to Consider

      To reduce exposure under the strengthened CIS rules, contractors should prioritise the following actions:

      • Strengthen supply‑chain due diligence
        • Map the full labour chain, identifying any umbrella companies, payroll intermediaries or outsourcing partners
        • Verify subcontractor tax registrations, trading history and insurance
        • If using an Agency or Umbrella verify PAYE operation by e.g. reviewing sample payslips, submissions and confirming employment status and entity employing the worker
        • Check for any warning signs such as recent director changes, short‑lived tenures, entities or unusually low pricing
        • Obtain written confirmation that no offshore, mini‑umbrella or non‑compliant payment models are used
        • Reject arrangements lacking transparency or involving intermediaries who cannot clearly explain how workers are paid and taxed
      • Review and tighten labour‑only subcontractor contracts
        • Ensure contracts clearly set out CIS obligations, tax responsibilities and payment terms
        • Require confirmation of correct PAYE operation where applicable
        • Include rights to request evidence of tax compliance and workforce arrangements
        • Build in termination rights where compliance concerns arise
        • Revisit existing contracts to ensure they reflect current CIS risks
      • Review onboarding and procurement processes
        • Embed CIS compliance checks into tendering and subcontractor approval, where appropriate consider declarations confirming tax compliance and payment practices
        • Reassess high‑risk suppliers regularly, not just at onboarding
      • Improve internal governance and oversight
        • Ensure directors and senior managers have visibility of CIS risks
        • Formalise reporting lines and escalation procedures
        • Conduct periodic internal reviews of CIS controls and supply‑chain monitoring
      • Maintain comprehensive documentation
        • Keep records of due‑diligence checks, decisions and follow‑up actions
        • Document any concerns raised and how they were addressed
        • Ensure audit trails exist for all CIS‑related payments
      • Act early when red flags appear
        • Seek clarification or additional evidence from suppliers
        • Replace non‑compliant or high‑risk operators promptly
        • Consider pause payments where compliance thresholds are not met (this is a last resort and should only be done when taking appropriate legal advice!).

      By embedding these controls into everyday operations, contractors can demonstrate that they have taken reasonable steps to prevent fraudulent operators entering their supply chain and significantly reduce the risk of GPS loss, tax assessments and penalties.

      There remains a close link between tax evasion and modern slavery.

      Making Tax Digital for Income Tax Launches from April 2026

      Making Tax Digital for Income Tax Launches from April 2026

      FIS is highlighting an important upcoming change to the UK tax system, with Making Tax Digital (MTD) for Income Tax set to come into force from 6 April 2026.

      The update, highlighted by Build UK, represents a significant shift in how self-employed individuals manage and report their tax, forming part of HMRC’s wider programme to modernise the tax system and reduce errors.

      What is Changing?

      The new system will be introduced in phases over the next three years, beginning with individuals who have an annual turnover above £50,000.

      Under the new requirements, affected individuals will need to:

      • Use HMRC-recognised software to keep digital records of income and expenses
      • Submit quarterly updates to HMRC via their chosen software
      • Receive an estimated tax position based on submitted data
      • Continue to pay a single annual tax bill, with the deadline remaining 31 January

      Both free and paid software options are expected to be available, allowing individuals to select a system that suits their business needs.

      What You Need to Do

      Individuals who meet the criteria will need to:

      HMRC has published further guidance, including a series of frequently asked questions, to support businesses and individuals in preparing for the transition.

      Why This Matters

      This change will affect many self-employed individuals working across the finishes and interiors sector, particularly those operating as sole traders or subcontractors.

      Early preparation will be key to ensuring a smooth transition to digital record keeping and reporting.

      FIS encourages members to review the requirements and consider how the changes may impact their business processes.

      Building Safety Regulator Announces Plan to Accelerate Remediation Gateway Two Applications

      Building Safety Regulator Announces Plan to Accelerate Remediation Gateway Two Applications

      The Building Safety Regulator (BSR) has introduced a new Remediation Improvement Plan aimed at speeding up the processing of Gateway Two applications for remediation projects.

      The regulator has also set a target to clear the majority of outstanding remediation applications submitted in 2024 by 30 April 2026, as part of wider efforts to accelerate progress on higher-risk residential building remediation.

      Key Measures in the Improvement Plan

      The plan introduces several operational changes designed to improve efficiency and reduce application processing times.

      Key measures include:

      • Creation of a Remediation Multi-Disciplinary Team (MDT)

      A dedicated cohort will be established to manage remediation applications, similar to the existing Innovation Unit used for new-build Gateway Two submissions. The MDT will include account managers to streamline communication with applicants.

      • Increased regulatory capacity

      The BSR has launched a recruitment drive to increase the number of Regulatory Leads, helping to reduce individual caseloads and accelerate application reviews.

      • ‘Approval with Requirements’ approach

      Where applications demonstrate substantive compliance with Building Regulations, the regulator may issue conditional approval while allowing certain additional information to be provided later.

      • New guidance for remediation applications

      Specific guidance is being published to clarify requirements for remediation Gateway Two submissions. Build UK guidance sets out the information that must be included when applying for works to existing Higher-Risk Buildings (HRBs).

      Latest Data on Remediation Progress

      Alongside the improvement plan, the Ministry of Housing, Communities and Local Government (MHCLG) has released updated data on remediation progress for residential buildings 11 metres and above in England.

      As of January 2026:

      • Remediation work has been completed on 36% of the 4,191 buildings identified
      • Work is currently underway on a further 16%
      • For buildings 18 metres and over, remediation has been completed on 46% of the 2,355 buildings identified

      The new plan is intended to increase the pace of approvals and help accelerate the delivery of remediation works across the sector.

      FIS will continue to monitor developments and provide updates for members as further guidance and regulatory changes emerge.

      Want to find out more about the Building Safety Act?

      We have put together a toolkit packed with information and documents to help FIS members and the wider community.

      CITB Announces New Training Funding Arrangements from April 2026

      CITB Announces New Training Funding Arrangements from April 2026

      CITB has announced updated arrangements for how in-scope employers will be able to access funding for training from 1 April 2026, with the level of support available depending on the size of the organisation.

      The update follows CITB’s recent decision to pause new training bookings through Employer Networks for courses taking place before 1 April, after confirming that the current year’s budget has been fully committed due to high demand.

      Employer Networks funding from April

      From the start of the 2026/27 financial year, micro to medium-sized employers will continue to be able to access training through Employer Networks, although funding will now be capped depending on business size.

      Training will be available through 50% match funding, or via a fixed contribution for health and safety courses, with the following caps applying:

      • Micro employers: up to £1,500
      • Small employers: up to £2,000
      • Medium employers: up to £4,500

      New funding route for large employers

      Under the revised approach, large employers will no longer access training funding through Employer Networks.

      Instead, CITB is introducing a new Large Employer Fund, which will provide £18,000 per year for eligible businesses to spend on in-scope training.

      Funding will be paid against an approved training plan or on receipt of evidence that training has taken place.

      Other funding routes remain available

      CITB has confirmed that all employers, regardless of size, will still be able to access support through a range of existing funding schemes, including:

      • Apprenticeship grants
      • Travel to Train support
      • Qualification grants
      • Short course grants for certain specialist courses
      • The Industry Impact Fund

      FIS response

      FIS has raised concerns with CITB regarding the level of the funding caps, particularly where the caps are linked to employee numbers despite higher levy contributions associated with CIS workers.

      These concerns will be discussed further with CITB at upcoming meetings, and FIS will continue to represent member feedback as the new arrangements are implemented.

      Further updates will be shared with members as discussions progress.

      Funding Available for NVQs Through FIS Training Provider DMR

      Funding Available for NVQs Through FIS Training Provider DMR

      FIS Training Provider member DMR Training & Consultancy has announced that funding is currently available for a range of construction NVQs, subject to eligibility criteria being met.

      The funding supports individuals working across the finishes and interiors sector, helping operatives and supervisors gain recognised qualifications that demonstrate competence and support career progression.

      Opportunities are currently available for candidates working in Greater Manchester and Greater London, covering a range of Level 2 and Level 3 trade and supervisory qualifications.

      This is a valuable opportunity for employers and individuals looking to formalise skills, improve competency and access funded training support.

      Funded NVQs – Greater Manchester

      Level 2 Trade NVQs

      • NVQ Certificate in Fitted Interiors (Construction)
      • NVQ Certificate in Interior Systems (Construction) – Dry Lining Boarder
      • NVQ Certificate in Interior Systems (Construction) – Dry Lining Finishing
      • NVQ Certificate in Interior Systems (Construction) – Operable Partition Systems
      • NVQ Certificate in Interior Systems (Construction) – Ceiling Fixing
      • NVQ Diploma in Associated Industrial Services Occupations – Passive Fire Protection
      • NVQ Diploma in Wood Occupations (Construction) – Site Carpentry
      • NVQ Diploma in Plastering

      Level 3 Trade NVQs

      • NVQ Diploma in Wood Occupations (Construction) – Site Carpentry
      • NVQ Diploma in Occupational Work Supervision (Construction)
      • NVQ Diploma in Trowel Occupations (Construction)
      • NVQ Diploma in Interior Systems (Construction) – Complex Suspended Ceiling Systems
      • NVQ Diploma in Interior Systems (Construction) – Stretched Ceiling Fixing
      • NVQ Diploma in Plastering (Construction) – Fibrous
      • NVQ Diploma in Plastering (Construction) – Solid

      Funded NVQs – Greater London

      Level 3 Trade NVQs

      • NVQ Diploma in Occupational Work Supervision (Construction)

      Find Out More

      Funding is subject to eligibility criteria, and places may be limited.

      For more information or to discuss suitability, please contact Sarah at DMR Training & Consultancy:

      01942 673047

      sarah@dmrltd.co.uk