Autumn budget 2025: What construction businesses need to know

The Autumn Budget is a key moment for construction businesses. From tax changes to government infrastructure investment, the announcements could directly affect your projects, costs, and profitability.

At A4G, we help construction businesses understand the implications of the Budget and turn insights into action. Here are some predictions and practical steps to prepare your business.

Tax and allowance changes

Construction businesses can be particularly sensitive to changes in corporation tax, capital allowances, and R&D relief. The Budget might include:

• Corporation tax changes affecting your profits and cashflow

• Enhanced capital allowances for plant, machinery, or sustainable construction equipment

• R&D tax relief updates for innovative building techniques or energy-efficient designs

What to do now
Review planned investments and major projects to take advantage of any reliefs or incentives quickly.

Infrastructure spending and public projects

Government investment in infrastructure drives demand for construction businesses. Expect announcements that could influence your workload:

• Increased funding for roads, schools, and public buildings could create new opportunities

• Cuts or delays in projects could reduce available contracts

• Policy changes on planning or procurement may affect timelines and margins

What to do now
Identify upcoming projects and client relationships that might be affected. Being prepared allows your business to respond quickly and strategically.

Employment and contractor considerations

Changes to employment taxes, National Insurance, or contractor rules can impact labour costs and project planning:

• Using subcontractors or mixed workforce models may require adjustment

• Pension and benefits changes could affect overall staffing costs

• Compliance requirements may change, increasing administrative work

What to do now
Review your workforce structure and contracts to maintain efficiency and profitability. Planning ahead ensures flexibility when rules change.

Cashflow and finance planning

Construction businesses are highly dependent on predictable cashflow. Budget announcements could impact:

• VAT schemes for construction, including reverse charge rules

• Business rates and allowable deductions

• Timing of capital expenditure and project billing

What to do now
Check your financial position and cashflow projections. Consider whether invoice timing or project planning needs adjusting to manage any potential tax or cost changes.

Preparing for the budget

To stay ahead, construction businesses should take the following steps before the Autumn Budget:

• Review current and planned projects for tax and allowance opportunities

• Assess workforce and contractor arrangements for cost efficiency

• Monitor infrastructure and public project announcements to anticipate demand

• Book a consultation with your accountant to translate the Budget into actionable plans

Thought to consider
If a major public contract is delayed due to government funding changes, how will that affect your business cashflow and resources? Planning scenarios now can help mitigate risk and take advantage of opportunities as soon as they appear.

Join our Autumn Budget event

Understanding the budget in theory is one thing. Knowing how it directly affects your practice is another.

Join our Autumn Budget event on 3rd December, where our experts will break down the announcements, explore the practical impact on your practice, and specific advice. Spaces are limited, so register today to secure your place.

Register for the Autumn Budget event