A new report published today sets out how Scotland can strengthen the flow of new entrants into the construction and built environment workforce, helping ensure the sector has the people and skills needed to deliver against the country’s future ambitions.

The report, Pathways to Productivity, commissioned by Skills Development Scotland on behalf of the Skills and Workforce Group of the Construction Accord and delivered by BE-ST, explores how the industry can attract, recruit, develop, train and retain a new generation of skilled workers.

The research draws on engagement with employers, representative bodies, education and training providers and public sector partners across Scotland. The focus is on exploring what conditions are needed to ensure employers within the sector can recruit and train the future workforce it needs. It provides insight into how the current system supporting workforce entry operates and identifies how to strengthen and scale these pathways in the years ahead, creating more opportunities for employers to recruit and overcome skills imbalances.

Construction plays a vital role in Scotland’s economic, environmental and social priorities, from delivering homes and hospitals to upgrading infrastructure and supporting the transition to net zero. Ensuring the sector has a strong and resilient workforce will be key to delivering these ambitions.

Forecasts suggest the construction workforce could grow to around 214,500 by 2029. However, with the Construction Industry Training Board estimating that around 8% of the workforce must be replaced each year due to natural attrition, continued focus on attracting and developing new entrants will remain essential.

At the same time, the sector is evolving rapidly, with increasing demand for skills linked to digitalisation, modern methods of construction and new performance standards. This creates an opportunity to design workforce pathways that not only increase participation in the sector but also support the development of the competencies required for a modern built environment.

The report highlights the importance of strengthening collaboration across the construction skills ecosystem including employers, training providers, representative bodies and public partners to ensure pathways into the industry are accessible, flexible and aligned with future workforce needs.

It identifies six shared measures of success that stakeholders see as central to strengthening the flow of new entrants: workforce capacity, competence, employer confidence, sector culture, workforce composition, and long-term continuity in workforce planning.

The findings form part of wider work under the Construction Leadership Forum’s Skills and Workforce Mission to support workforce development and strengthen the long-term resilience of Scotland’s construction industry.

The research was informed by sector engagement events delivered in partnership with Skills Development Scotland and the Construction Leadership Forum’s Skills and Workforce Group, alongside a survey distributed through networks including BE-ST and the Construction Leadership Forum.

The Executive Summary for Pathways to Productivity is available to read now.

Douglas Morrison, Deputy CEO at BE-ST said:

“Scotland’s construction sector faces long term challenges in both workforce capacity and capability, set against rapidly evolving client and industry requirements. Through engagement with stakeholders across the system, there is clear motivation to increase the flow of new entrants and strengthen lifelong learning.

“However, while there is broad agreement on the challenges, perspectives on solutions vary significantly. This report does not seek to prescribe a single answer but instead sets out a range of practical levers to transform and optimise how we recruit, develop and sustain the workforce for the future. We intend for it to inform longer term discussions on evolving our approach and to encourage active engagement from all those involved across the system.”

Elaine Ellis, Skills Planning Manager (Construction and Net Zero) at Skills Development Scotland, said:

“Workforce and skill shortages persist across many key roles in construction, yet individuals wishing to train for these positions encounter significant barriers to entry and often struggle to secure the new entrant roles necessary for developing competence.

“This research explores some of the reasons behind this paradox. Its aim is to act as a catalyst for change and to set out some of the barriers that need to be addressed. Supporting people to enter the sector – and, crucially, ensuring they can develop the skills required for the future – is not only a win for those aspiring to join a sector rich with opportunity, but also a win for the sector itself and our wider built environment.”

Iain McIlwee, CEO Finishes and Interiors Sector said:

“This report is excellent – it captures the essence of the skills challenge for construction clearly and vitally makes some practical recommendation. Encouraginly too findings are consistent with conversations that have happened through the Contruction Skills Mission Board. Whilst it remains a challenge, I am encouraged that the industry across the UK is starting to pull together and that the support we need is being mobilised. In the backdrop of all that is going on in the world, it is easy for skills to slip down the agenda, but we can’t let this happen or we find ourselves lurching from crisis to crisis and transformation is forever on tomorrow’s list.”

A copy of the report Pathways to Productivity is available here.

To find out how FIS is helping members manage competency and support recruitment, visit FIS Skills Hub here.

If you want to put questions about Skills that you want to put to the runners and riders in the Scottish Elections, why not attend the construction virtual hustings on the 25th March – secure your spot here.

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:

• Check their eligibility for the new service
• Sign up in advance, as enrolment will not happen automatically

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.

A new report from the Finishes and Interior Sector (FIS), Procurement, Payment and Contract Management: The Challenges in the Low and Mid-rise Housing Sector, exposes the structural barriers facing the UK’s housebuilding supply chain and calls for urgent reform in procurement, payment and contract management practices.

The report highlights concerns raised directly by specialist contractors about the way that current commercial behaviours are restricting capacity, inhibiting workforce development, and diminishing the sector’s ability to perform and invest in more modern construction methods.  FIS warns that without decisive action, these pressures could threaten the industry’s ability to meet national housing targets.

Key insights from the report include:

• Specialist contractors typically provide 60–78 days of credit due to payment terms and delays.
• Two-thirds face post-award price reductions despite agreed contracts.
• Retention practices continue to restrict cashflow and create friction.
• Training investment is constrained as a result, limiting the future skills pipeline.
• 41% report frequent cashflow stress, highlighting the human impact.

Iain McIlwee, CEO of FIS said:

‘For too long, the specialist supply chain has operated under conditions that limit growth and stifle innovation. This report gives voice to the people who deliver our homes, highlighting the changes needed to unlock a resilient, skilled workforce capable of meeting the UK’s ambitious housing targets. It is not a point of more needs to be done; it a point of more has to be done as we are significantly behind schedule on national targets.”

The consequences of inaction are already being felt. When a major contractor enters administration, the impact can be severe. In one recent case, over £43m of debt was left across the supply chain with SME contractors and suppliers bearing the brunt and affordable housing developments left at risk of demolition. This is a prime example of not just one company failing but the consequential ripple effect it has on the economy and the wider market.

FIS is calling on housebuilders, commissioning bodies, and policymakers to work collaboratively with the supply chain to address these challenges, restore confidence, and create a sustainable environment for future workforce investment.

The full report Procurement, Payment and Contract Management: The Challenges in the Low and Mid-rise Housing Sector, is available to download from the FIS website here.

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.

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.