FIS continues to work closely with the International Powered Access Federation (IPAF) through a reciprocal agreement aimed at strengthening safety standards across the finishes and interiors sector. As part of this collaboration, both organisations are monitoring key risk areas and sharing guidance to support safer working practices.

One ongoing concern is the risk of crushing and entrapment incidents associated with Mobile Elevating Work Platforms (MEWPs). These risks are particularly prevalent when using scissor lifts and 3A-type machines, where operators may be working in close proximity to overhead structures or within restricted work envelopes.

Secondary guarding technology has emerged as a potential control measure to help reduce these risks. However, while recognising the possible safety benefits of these systems, IPAF has confirmed that it is not currently advocating the mandatory adoption of specific secondary guarding devices.

This position reflects the fact that an international draft ISO standard is still in development. IPAF advises that contractors should await the outcome of this process before implementing blanket requirements, ensuring that any future adoption is aligned with globally recognised best practice.

In the meantime, FIS encourages members to continue focusing on robust risk assessment, appropriate equipment selection, and operator training when planning work at height involving MEWPs.

Through our partnership with IPAF, FIS will continue to keep members informed as further guidance and standards emerge, helping businesses make informed decisions that prioritise both compliance and workforce safety.

Members with questions relating to MEWP safety or working at height can contact the FIS technical team for further support.

The EU Carbon Border Adjustment Mechanism (CBAM) came into effect on 1 January 2026. The aim of CBAM is to protect homegrown industries which are subject to decarbonisation policies from imports that are not. Its purpose is to prevent carbon leakage.

If you are exporting from the UK into the EU you will need to understand whether the EU CBAM is relevant and applicable to you.

The UK government has produced guidance for UK exporters into the EU: What do I need to know about selling to Europe

You can also find out more information on the EU legislation and guidance at : CBAM Legislation and Guidance – Taxation and Customs Union

Background

CBAM is effectively a new tax aimed at reducing carbon emissions. It will impact companies exporting products to the EU and specifying products made with aluminium, cement, iron and steel (it is likely to be extended to cover other products such as glass in the future).

CBAM imposes a carbon cost to ensure imports face a comparable carbon price to goods produced domestically. This mechanism is designed to prevent “carbon leakage,” where companies might relocate production to countries with less stringent emissions regulations.

Significant legislative changes are on the horizon for employers, following the Employment Rights Bill receiving Royal Assent on 18 December 2025. Now enacted as the Employment Rights Act, the legislation introduces wide-ranging reforms that will reshape employment practices over the next two years.

Alongside this, the Government has confirmed new measures to strengthen HMRC’s powers to tackle fraud within the Construction Industry Scheme (CIS), signalling increased scrutiny across the construction supply chain.

Preparing for the Employment Rights Act

The reforms broadly focus on three key areas:

• New rights and protections for workers
• Fair pay, terms, and working conditions
• Enforcement and trade union legislation

Some changes have already taken effect, particularly those aimed at modernising trade union laws, including provisions affecting strike action.

Further updates are scheduled in phases:

From April 2026

• Introduction of ‘day one’ rights to Statutory Sick Pay (SSP), paternity leave, and unpaid parental leave
• Removal of the Lower Earnings Limit for SSP, expanding eligibility

From January 2027

• Reduction of the qualifying period for unfair dismissal from two years to six months

These developments will require employers to review internal policies, employment contracts, and management processes to ensure compliance.

FIS partner Citation has updated its guidance to help employers understand the practical implications of the Act and identify the steps needed to prepare.

Tackling Fraud in the Construction Industry Scheme (CIS)

The Government has also announced tougher measures to combat tax fraud within the CIS framework.

From 6 April 2026, businesses that knew, or should reasonably have known, that payments were linked to fraudulent tax evasion risk:

• Immediate loss of Gross Payment Status
• Financial penalties of up to 30% of the lost tax

For businesses operating within the finishes and interiors sector, this reinforces the importance of robust financial controls, due diligence across the supply chain, and clear governance over payment practices.

What This Means for FIS Members

Together, these changes highlight a continued shift toward stronger regulatory oversight in employment and financial compliance. Early preparation will be essential to minimise disruption and protect business operations.

FIS encourages members to:

• Review employment policies and procedures
• Strengthen payroll and CIS compliance processes
• Seek professional advice where necessary
• Stay informed as further guidance emerges

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

FIS is inviting industry partners to support Phase 2 of its award-winning FIS Project Reuse Initiative, a pilot project accelerating the reuse of fit-out products in commercial buildings.

Launched in 2024 through the FIS Sustainability Leadership Group, the initiative responds to growing evidence that repeated fit-out cycles generate embodied carbon emissions that can exceed those of a building’s shell and core. With accreditation schemes and the Net Zero Carbon Building Standard now prioritising reuse and circular economy principles, the need for practical, scalable solutions has never been greater.

Phase 1 of the pilot successfully tested the reuse of suspended ceilings and luminaires through live projects, supported by a physical reuse hub. The project has gained strong industry traction and was recognised with the Build Back Better Green Award.

With initial funding ending in January 2026, FIS is now seeking financial and in-kind support to deliver Phase 2, which will focus on:

• Creating more ceiling and luminaires case studies to demonstrate reuse in action
• Continuing to establish cost and business case
• Continuing to drive demand and uptake
• Documenting testing protocols
• Reviewing flexibility of specification process
• A more detailed review of commercial models that will support re-use
• Publishing guidance documents which include flow charts
• Further advocating to Government and the industry

Organisations supporting Phase 2 will join the Governance Board, helping to shape the project’s direction. Supporters will also benefit from profile-raising opportunities and direct involvement in shaping the future reuse market.

We are calling on contractors, manufacturers, distributors, architects and wider stakeholders to get involved and help normalise reuse in commercial fit-out.

To find out more or to support Phase 2 contact Flavie Lowres at flavielowres@thefis.org or Hattie Emerson at reuse@thefis.org

Forecasts for UK construction output growth have been revised down in the Construction Products Association’s Winter forecasts, published today. According to the latest forecasts, overall construction output is expected to rise by just 1.7% in 2026, a significant downgrade from the 2.8% growth forecast in October.

Firms operating across the construction supply chain have all reported that the slowdown in activity in key sectors has persisted since Spring. Weak fundamentals and geopolitical developments are expected to keep decision-makers risk-averse and lengthen the period of uncertainty that is holding back output growth in the private housing, private housing repairs, maintenance and improvement (rm&i) and commercial sectors. In addition, as in 2025, there remains a vast array of risks that could have a major impact on near-term forecasts for each construction sector and sub-sector.

In private housing – the largest construction sector – there is little to suggest a large increase in house building activity this year. For house builders, there is an increasing trade-off between buyer affordability and development viability. In areas where demand has been sustained, properties are affordable, but site viability has been affected by a growing list of additional costs imposed by the government, especially for smaller house builders. In areas where site viability has been maintained due to higher house prices, demand and affordability remain the key constraints. An increase in current house building volumes would require a sharp rise in demand during the key Spring selling season for the major house builders, and at this stage, this appears unlikely in the absence of demand-side stimulus. Private housing output is forecast to grow by only 1.5% in 2026, revised down from a forecast of 4.0% in Autumn.

Private housing rm&i is the second-largest construction sector and activity was subdued throughout 2025, despite a sustained period of real income growth, reductions in interest rates and households with accumulated savings. Therefore, the sector’s outlook is heavily dependent on when homeowners who have the finance available feel confident enough to spend on home improvements. Furthermore, activity will be negatively affected by the government’s announcement in the Autumn Budget that the ECO programme of energy-efficiency improvements to existing homes will now finish in March 2026 and measures included in the Warm Homes Plan are unlikely to lead to notable growth in the near-term. Overall, the forecast for private housing rm&i output has been revised down to a contraction of 1.0% in 2026, marking a second year of decline.

In infrastructure, the third-largest construction sector, activity remains strong, driven by energy generation and distribution and increased investment in water infrastructure under AMP8. This is balanced with work in Hinkley Point C passing its peak, concern that the HS2 ‘reset’ will delay near-term rail activity and the gap in the roads pipeline that is forming, given a cut in nominal funding and a lack of detail on the next Road Investment Strategy (RIS3), which is due to start in April. Overall, infrastructure output is forecast to rise by 3.9% in 2026, unchanged from the Autumn 2025 forecast publication.

Commenting on the Winter Forecasts, CPA Head of Construction Research, Rebecca Larkin said: “We enter 2026 with little to suggest that the conditions that held back construction over the last 12 months are improving: slow economic growth, weak business and consumer confidence and risk aversion resulting in subdued activity in the major sectors of construction. With hopes of a recovery consistently dashed last year, firms in the construction supply chain are bracing themselves for another difficult year that is still laced with risks, challenges and uncertainty. However, there are two main primary questions remaining. Firstly, when will confidence improve enough to see homebuyers, homeowners and investors press ahead with large spending decisions and drive a pickup in house building, home improvements and large private sector projects. Secondly, will government introduce a much-needed policy to enable demand in a housing market and house building sector given that affordability remains a key constraint? Until then, the 1.7% growth that is forecast for construction is pinned on niche areas of activity such as commercial fit-out and refurbishment, infrastructure work on energy and water networks, as well as the effective delivery of public sector building programmes for schools, hospitals and prisons.”