The Scottish Government has published a new Infrastructure Delivery Pipeline, as part of the Scottish Budget 2026/27.
The pipeline details £11.1 billion of investment across major projects and programmes over the next four years, including 36,000 new homes, the A9 Dualling Programme, and HMP Glasgow and HMP Highland, with progress reports to be published every six months.
UK government has announced that it is scrapping the long-awaited Audit and Corporate Governance Reform Bill saying that the rule changes would be too costly for large companies. This is a blow to the construction supply chain who bore the brunt of the failure of Carillion, has been impacted by persistently high levels of insolvency, the recent news of the escalating exposure to ISG and serious governancee failings being investigated following the failure of Henry Construction,
The Bill had, among other reforms, aimed to hold company directors to account for existing corporate reporting responsibilities and to create a new regulator with stronger powers. According to Department of Business and Trade the decision to scrap the Bill was made to “avoid significant new costs” for large organisations.
A letter from the Minister for Small Business and Economic Transformation, Blair McDougall, to the Chair of the parliamentary Business and Trade Committee, has also been published and further explains the change of direction.
McDougall confirms that with the government’s key priority being to promote growth and reduce administrative burdens, that it would “not be right” to prioritise the introduction of measures that would increase costs on businesses.
“We intend to focus instead on the simplification and modernisation of corporate reporting. We want to make the UK’s reporting regime the most streamlined and proportionate in the world,”
he wrote.
Another key factor in the decision, according to McDougall, was supposed progress in audit quality and regulation since the collapse of Carillion.
Reacting to the news ICAEW’s Chief Executive, Alan Vallance, has stated:
“We cannot hide our disappointment that after many false dawns, the government has decided to scrap the Audit and Corporate Governance Bill. The government had itself recognised that an Audit Reform Bill would increase global investor confidence in UK companies and increase the prospects of growth.”
FIS Chief, Iain McIlwee added his concerns to this decision reflecting:
“We continue to underestimate from a policy perspective how important the construction supply chain is to delivery and growth at our peril. It is all very well to consider the cost to large corporations, but SMEs are the backbone of the construction sector and economy and there is little consideration here to them. The uncertainty added by the risk of insolvency further undermines our ability to innovate, and to invest in skills and does not take into account the confidence of investors who will be taking a view on the viability of projects based on the resilience of the supply chain. The backdrop to all of this is that failure to build protection also impacts confidence in the loan, bond and credit insurance market, further removing much needed support from the supply chain..
Almost 8 years after the failure of Carillion it is a disgrace that nothing tangible has been done to protect our supply chain from exposure here. This announcement comes at a time when our community continues to deal with the fall-out from ISG, the evident lack of controls were in place and frankly this another kick in the teeth to those that are footing the bill for the failure of others. We need stability to support growth. Whilst I remain optimistic about the interventions proposed to improve payment and put a nail in the coffin of retentions, we have missed a huge opportunity here to help stabalise the sector. FIS has fed these views into the Construction Minister.”
Ministry of Justice owes contractors £20m after ISG collapse
Letter from the Minister for Small Business and Economic Transformation explaining the decision
FIS CEO Letter Audit and Corporate Governance Reform Bill
We are delighted to announce the appointment of Davinder Jhamat to the newly created role of Chief Operating Officer. Davinder is a dynamic and commercial minded leader and joins FIS during an exciting time of transformation.
This role is key to helping lead our organisation and members into an increasingly digitally enabled future. Davinder will play a pivotal role in reimagining how we serve the industry, and our members, championing the adoption of emerging technologies, developing our digital offering and the commercial performance of FIS.
With a career built in real estate and the built environment, Davinder has worked at the intersection of policy, strategy and leadership, driving organisations to deliver meaningful impact. She has 18 years of senior leadership experience, building organisational resilience and influencing at the highest levels of government to drive needed change enabling sectors to thrive. She is an avid golfer, swimmer and now learning to ski.
Commenting on the new role, Iain McIlwee, FIS Chief Executive said:
“This is an exciting time for the FIS as we stand on the precipice of a new information age with Artificial Intelligence and E-Learning providing opportunities that can transform the way we work and how our members are able to engage with the content and resources that are being developed through our working groups. In many ways this is a relief as the compliance landscape is becoming ever more complex and it certainly isn’t getting easier out there. We have to step up and be more effective in protecting our members from risks, poor behaviour and helping them to navigate change. Davinder is joining our team at a critical time and bringing with her a wealth of experience to ensure that we focussed and structured in delivery and harnessing the full potential of technology and the information we hold to further improve the support we give to this vital community.”
Davinder added:
“It is a pleasure to be joining the FIS at this exciting time where the construction sector, like many other sectors, is not immune to technological change that we all must stay abreast of. Indeed, in how we can ensure the finishes and interiors industry – a fundamental part of the construction sector – can effectively respond to this change, taking a proactive step to futureproof. And how we do this? Through investing in our skills and our future talent pipeline, challenging the negative perceptions the wider construction sector perhaps does battle with, and showcasing the wealth of rewarding opportunities and careers this sector has to offer. And FIS is here to collaborate and work with you as we jointly embark on this journey.
“I am fervently looking forward to meeting and working with our members and the wider sector, of how we can collectively come together and build a better and resilient finishes and interiors industry, ensuring that it prospers and thrives for both the now, and for future generations to enjoy”.
FIS is reminding members of the importance of carrying out correct Right to Work checks, as the Government continues to step up immigration enforcement across the UK, with construction identified as a priority sector.
According to the Home Office, arrests for illegal working are now at a record high. This increase in enforcement activity means employers must be confident that their processes for checking an individual’s right to work in the UK are compliant and up to date.
What Employers Can Do
There are three accepted routes for carrying out Right to Work checks, depending on the individual’s status and documentation:
Digital checks via a certified Identity Service Provider (IDSP)
Employers can use an approved digital identity service to check individuals holding a valid British or Irish passport (or Irish passport card). Employers must still confirm that the person presenting for work matches the verified identity, which can be done via a video call.
Online checks using Home Office services
Where an individual holds an eVisa or certain other documentation, checks can be completed using the Home Office online service. In specific circumstances, such as where an application or appeal is outstanding, employers can use the Employer Checking Service.
In-person manual document checks
Employers may also conduct manual checks by physically obtaining, checking and copying acceptable documents. However, FIS highlights that not all commonly presented documents are valid. A Home Office report found that 70% of construction employers incorrectly accept a driving licence, which is not an acceptable Right to Work document.
Why This Matters
Employers who carry out Right to Work checks correctly, in line with Home Office guidance, gain a statutory excuse, protecting them from liability if an individual is later found to be working illegally.
Without this protection, employers face significant financial risk, with civil penalties of up to £60,000 per worker.
FIS encourages all members to review their Right to Work procedures, ensure managers are properly trained, and seek professional advice where there is any uncertainty. Getting this right is critical to protecting your business, workforce and reputation.
The Finishes and Interiors Sector (FIS) has developed a series of industry Competency Frameworks to provide clear, practical guidance to support competence, compliance and best practice across the built environment.
Developed in collaboration with FIS members and the wider industry, these frameworks are reflective of real working practice, defining the skills, knowledge, experience and behaviours required for individuals working in key finishes and interiors occupations.
Their availability marks an important milestone in ensuring compliance with the Building Safety Act, which requires individuals to be able to demonstrate competence for the work they undertake.
The following Competencey Frameworks are now available from the FIS website at www.thefis.org/skills-hub/competence-frameworks/
Each Competence Framework sets out a consistent, structured approach to competence and includes:
Together, these elements give employers, individuals and clients confidence that roles are being carried out safely, effectively and in line with legal and industry expectations.
These frameworks aim to support the sector in meeting regulatory requirements, improve workforce capability and raise standards across the finishes and interiors industry.Top of Form
To underpin the Competence Frameworks, CITB, in partnership with Build UK and fire industry experts, have developed a free Fire Safety in Buildings e-learning course to improve an individual’s knowledge of fire safety measures in buildings. The course is suitable for anyone working in the design, construction, or maintenance of buildings, with a specific focus on installers and can be accessed here https://www.thefis.org/skills-hub/training-offers-for-members/fis-training-modules/fire-safety-in-buildings/
The Building Safety Regulator (BSR) has published its latest data on Gateway Two applications, covering the period 25 November to 22 December 2025, showing continued progress in addressing the backlog of applications and the work of the new Innovation Unit. While this is a positive step, the data highlights ongoing challenges that remain highly relevant for specialist contractors operating in the finishes and interiors sector.
Gateway Two – Progress and Ongoing Challenges
During this reporting period, the BSR made 347 decisions across all application types, bringing the total number of decisions since 29 September 2025 to 727.
For applications submitted under the previous Gateway Two model, the approval rate has increased to 83%, up from 73% in the previous reporting period, with a further 20 approvals issued. This improvement is welcome, particularly for projects that have experienced delays due to regulatory bottlenecks.
However, there remain 40 ‘legacy’ new build applications awaiting determination. While the BSR had intended to reduce this figure to just three by the end of 2025, progress has been slower than anticipated. In parallel, the Innovation Unit is now managing 102 live new build applications.
Of particular concern to FIS members is that 48% of applications assessed by the Innovation Unit to date have been deemed invalid, largely due to incomplete or missing documentation. This reinforces the importance of early engagement, coordinated design development and robust information management across the supply chain, areas where fit-out contractors are increasingly exposed to risk despite having limited control over upstream processes.
FIS continues to highlight the need for clearer guidance and better alignment between design responsibility, product specification and installation requirements. Members are reminded that Build UK’s Gateway Two guidance clearly sets out the information required for applications relating to both new and existing Higher-Risk Buildings (HRBs), and early awareness can help avoid costly delays.
New Fire Safety Regulations – PEEPs from April 2026
The Government has also published guidance to support the Fire Safety (Residential Evacuation Plans) (England) Regulations, which will come into force on 6 April 2026.
The regulations require Responsible Persons to develop and implement Residential Personal Emergency Evacuation Plans (PEEPs) for residents who may need assistance in an emergency. This applies to:
For the finishes and interiors sector, this has implications for design coordination, fire compartmentation, door sets, signage, and other life safety systems that form part of the internal fit-out. FIS will continue to review the guidance and highlight any practical implications for members involved in residential work.
New Government Communications on Building Safety
The Ministry of Housing, Communities and Local Government (MHCLG) has announced the launch of a quarterly Building Safety Newsletter, which will provide updates on legislation, guidance and remediation progress. Members can sign up to receive the newsletter directly and stay informed as the regulatory framework continues to evolve.
Call for Experts – Construction Products Regulation
The Office for Product Safety and Standards (OPSS), now the national regulator for construction products, is seeking experts to join its Register of Specialists. The register will be used to commission ad-hoc scientific and technical work to support regulatory activity.
Professionals with expertise in:
are encouraged to apply. This is a valuable opportunity for experienced specialists within the finishes and interiors supply chain to contribute directly to shaping product regulation and enforcement.
FIS Support
FIS continues to engage directly with regulators, government departments and industry partners to ensure that the voice of specialist contractors is heard. We recognise that regulatory delays, unclear guidance and shifting responsibilities place disproportionate pressure on the fit-out sector.
Members with concerns relating to Gateway approvals, documentation requirements, or the practical application of new building safety guidance are encouraged to contact the FIS technical team for support.
