London Councils and Budget 2026: ‘exciting opportunities’ for devolution and growth, but £5.2 billion funding gap ‘looms large’

London Councils and Budget 2026: ‘exciting opportunities’ for devolution and growth, but £5.2 billion funding gap ‘looms large’

The prospect of the government devolving more powers and resources could bring “exciting opportunities” to the capital, London Councils has declared. In its submission to the Autumn Budget, the cross-party group highlights the many priorities boroughs share with the government – including building council housing, helping more Londoners into work and generating good growth in every postcode. Through more fiscal autonomy for London and local government, boroughs emphasise that faster progress can be made achieving these ambitions. However, London Councils also warns of a growing funding gap in town hall budgets that threatens to destabilise local services and undermine delivery. London Councils’ latest analysis of local government finances in the capital forecasts up to a £1.2 billion funding gap this year (2026-27). London boroughs face a cumulative budget shortfall of £5.2 billion between now and 2030. Boroughs in the capital remain disproportionately reliant on emergency borrowing to avoid bankruptcy through the government’s Exceptional Financial Support (EFS) scheme. Nine of London’s 33 local authorities receive EFS.   Cllr Stephen Cowan, Chair of London Councils, said: “The government’s devolution agenda offers exciting opportunities for the capital. “London is a leading global city and the powerhouse of the UK economy, but granting London more autonomy is critical to sustaining this success. “Strengthening London boroughs by devolving new fiscal resources would put us in a much stronger position to tackle London’s challenges, grow the economy, and maximise London’s contribution to the public coffers. The benefits would be felt not only by Londoners but by communities around the country. “Boroughs have a vital role to play, but are too often held back by enormous budget pressures. As we plan how best to invest in local services, to build housing, and to grow our economies, a worsening funding gap looms large over everything we do. For too long, the funding available to us has failed to keep pace with skyrocketing costs and demand for services. “Everyone knows the local government finance system is broken. The upcoming Budget is an opportunity to help stabilise town hall finances, give boroughs more fiscal tools, and support the local delivery we all want to see.” Policy priorities to help boost delivery in London On devolution, boroughs welcome the government’s recognition that strong local authorities are essential to the success of its devolution plans. Boroughs want to play a full and active part in shaping the next stages of London’s devolution journey. London Councils strongly believes that new fiscal devolution powers must apply to local authorities, with the design of devolved fiscal arrangements in the capital jointly decided between the Mayor and the boroughs. Boroughs’ fiscal devolution priorities include ensuring local authorities are able to retain and have a say in allocating at least 50% of revenues raised from an overnight visitor levy, retain more revenue from business rates and business rates growth, and ensure involvement in any new devolved income tax arrangements for the capital. On housing, London boroughs are determined to take the lead in delivering the largest council housing programme since the post-war period. To support this, London Councils is calling for further increases to grant funding, building on the investment previously announced for the Social and Affordable Homes Programme. With one in 50 Londoners homeless and living in temporary accommodation, the housing crisis is having a devastating impact on individuals but also on borough finances. London boroughs collectively spend £5.5m daily on homelessness provision. To relieve homelessness pressures, London Councils is seeking an end to the temporary accommodation subsidy gap through a lifting of the freeze on the Local Housing Allowance (LHA) rate payable for boroughs’ temporary accommodation costs, as well as an uplift of LHA to the 30th percentile of market rents. Almost 1.3 million Londoners are economically inactive, so employment and skills are another priority concern for boroughs. London Councils is asking the government to create a single, multi-year funding pot for all skills and employment support to be co-designed by boroughs alongside the GLA. London’s five Get Britain Working Trailblazers supported more than 6,000 Londoners in their first year. Boroughs are pushing for guaranteed funding for a third year of the trailblazers so that proven programmes due to end next year are not lost to a funding cliff-edge. On infrastructure, London Councils highlights the Bakerloo line extension and West London Orbital as priority transport projects. Boroughs also want London empowered to invest in its own growth by allowing the capital to retain land value uplift generated by infrastructure projects. This would support investment in the next generation of growth-enabling infrastructure. Funding gap analysis According to London Councils’ analysis of data supplied by boroughs, London local government faces a cumulative budget shortfall of £5.2 billion between now and 2030 (2026-27 until 2029-30). This is a worse picture than the £4.7 billion gap identified in October 2025, which itself was more than twice the £2.2 billion shortfall forecast the previous year, showing that the medium-term funding gap is continuing to grow. In the short-term, London boroughs are grappling with an almost £1.2 billion shortfall in this financial year (2026-27). Finance pressures are driven by the fast-rising cost of providing services and growing need from vulnerable Londoners. Adults’ and children’s social care, homelessness, and special educational needs and disabilities (SEND) services continue to see increasing levels of demand. Many of these services are statutory, meaning councils have a legal responsibility to provide them. Because local authorities also have a legal duty to balance their budgets (i.e. they cannot carry a deficit into the next financial year), boroughs will need to deliver savings to address this gap or face using their one-time financial reserves.  The government’s 2025 Fair Funding Review improved funding levels for some London boroughs, but saw London’s overall share of national funding for local authorities reduce. After adjusting for inflation, per-capita funding for London boroughs will be almost 17% lower in 2028 than in 2010. Exceptional Financial Support London local government is disproportionately reliant on the government’s Exceptional Financial Support (EFS) scheme compared to other

Read More »
Sector and regional bright spots remain reveals latest RLB report

Sector and regional bright spots remain reveals latest RLB report

Sector and regional bright spots remain despite a softer national demand outlook beginning to feed through to tender prices reveals the latest Construction Market Intelligence Q3 2026 report from leading construction and property management consultant, Rider Levett Bucknall (RLB UK). While RLB is observing sectorial differences in output, there is a backdrop of persistent global and domestic uncertainties influencing sentiment and forward expectations. This has led to RLB’s weighted average Tender Price Index forecast uplift for 2026 shifting from 3.98% in Q2 to 3.54% for Q3. While the supply chain may be absorbing some of the input cost increases, analysis by RLB experts found that it is not at any cost, with contractors acutely aware of the risk profiles of the work that they are taking on. Demand and opportunity are primed  Construction output stabilised in Q2 to 0.3%, driven by repair and maintenance and infrastructure spending. Sector recovery remains mixed with advanced tech and data centres continuing at pace and capital to deploy in sectors such as residential but pivoted away from development. Longer term pipelines in many regions including Wales, the North West and Yorkshire remain strong with many developments primed pending improved viability. Supply Chain adapting and absorbing While the Middle East conflict continues to affect input costs, the supply chain has adapted with many absorbing costs and early engagement recommended. Paul Beeston, RLB’s Head of Service Industry and Service Insight comments,  “While global challenges are more broadly leading to secondary impacts on pipelines, sectors and regions each have bright spots carrying construction momentum. In many sectors cost absorption into 2027 will be a feature of the market and pipelines are primed for activity when viability allows.  Tender price levels indicate it is a good time to engage the market, but clients should be cognisant that it is risk profile and client governance that are key determinants of both pricing levels and appetite to bid.” Click here to read RLB’s full Construction Market Intelligence Q3 report. Building, Design & Construction Magazine | The Choice of Industry Professionals

Read More »
Delancey's 'Proactive Core' approach attracts further £400m of investment capacity from UK pension scheme

Delancey’s ‘Proactive Core’ approach attracts further £400m of investment capacity from UK pension scheme

Real estate investment firm Delancey has expanded its mandate with one of the UK’s largest corporate defined benefit pension schemes, providing up to £400 million of additional investment capacity for UK real estate. The additional value-add commitment takes the mandate size to just under £1bn, following three years of outperformance against the MSCI Quarterly Property Index. The discretionary capital is available for immediate deployment and will target value-add, sector-agnostic opportunities, complementing the existing portfolio. The further investment is an endorsement of Delancey’s success in repositioning and right-sizing the portfolio since taking over in December 2022. Delancey has utilised its ‘Proactive Core’ approach – a differentiated approach to managing core portfolios underpinned by its belief that core real estate assets don’t have to be managed passively. This approach delivers improved performance without increasing risk, and is anchored by five pillars: Since taking over management of the core portfolio, Delancey has delivered strong outcomes for scheme members through sustained outperformance, reduced arrears, improved environmental performance, the successful resolution of fire remediation issues, and a systematic reduction in portfolio operating expenses. Dan Berger, Chief Investment Officer, at Delancey said: “We measure ourselves by whether we deliver what our client set out to achieve. They backed our ‘Proactive Core’ approach to revitalise their portfolio in 2022, and subsequently we’ve delivered three years of outperformance against the MSCI Quarterly Property Index. The decision to provide a further £400 million of investment capacity is a strong endorsement of that progress. Our focus now is on deploying that capital responsibly and delivering the same level of performance and service on behalf of the scheme’s members.” Building, Design & Construction Magazine | The Choice of Industry Professionals

Read More »
John Lawson named 2026 National Lifetime Achievement winner after more than 70 years at Lawsons

John Lawson named 2026 National Lifetime Achievement winner after more than 70 years at Lawsons

Lawson took charge of the family business in the early 1950’s at just 20 and remains actively involved at the age of 94. John Lawson, who has dedicated more than 70 years to his family’s business, builders’ merchant Lawsons, has been named the winner of the 2026 National Lifetime Achievement Award by Family Business United. John also received a Regional Lifetime Achievement Award at Family Business United’s annual Family Business Dinner in London, where ten individuals were recognised for their longstanding contribution to their family businesses. John was selected as the overall national winner and received a standing ovation from the family business community as he collected his award John took charge of Lawsons at the age of just 20 and has worked in the business for more than 70 years. He remains actively involved today at the age of 94. Lawsons was founded in 1921 as a timber merchant in Whetstone, north London, and is now the  largest independent timber, building materials, fencing and landscaping merchants in London and the South East, employing more than 700 people across around 35 branches. The judges selected John as the national winner from the regional recipients. A factor in their decision was a significant governance change made in April 2026, when John gifted his majority shareholding into an independent non-family employee benefit trust. The move reflected the family values that have shaped the business throughout John’s leadership and was designed to protect Lawsons’ independence and ensure its continuity for future generations. John Lawson, Founder and Director, Lawsons, said: “I am extremely honoured to receive this award. Lawsons has never been about one person. Everything we have achieved over the years has been possible because of the people who have worked alongside us and their families who have supported them. The mutual responsibility and interaction between the family and the business fosters relationships and lifelong friendships. Protecting that for the future and our people is very important to me, and I hope Lawsons will continue to provide opportunities and serve its customers and communities for many generations to come.” Paul Andrews, Managing Director, Family Business United, said: “John’s story stood out to the judges as an exceptional example of what building a family business is all about. His commitment to the people around him, the values that have guided Lawsons and the steps he has taken with his gift to fully preserve that legacy for Lawsons’ People and future generations embody the very spirit of this award. John is an inspirational figure in the family business community and a hugely deserving winner of the National Lifetime Achievement Award.” Building, Design & Construction Magazine | The Choice of Industry Professionals

Read More »
Drawings, Decisions and Lead Times: What Really Delays a Bathroom Fit-Out

Drawings, Decisions and Lead Times: What Really Delays a Bathroom Fit-Out

Ask a contractor why a bathroom fit-out overran and the answer usually involves a trade. The tiler turned up late, the plumber found something behind the wall, the units arrived in the wrong finish. Look at it properly and the cause is almost always older than that. Someone deferred a decision, or took one without knowing what it committed the rest of the project to. The bathroom then absorbs the consequences, because it has less room to absorb anything than any other space in the building. Where the time actually goes Refurbishment work is not in short supply. Mears alone reported a record order book of £4.2bn this summer, on long-term repairs, planned maintenance and improvement contracts. A sign of how much residential upgrade work is now in the pipeline as providers invest in existing homes.  Bathrooms carry more of that risk than their floor area suggests. Drainage falls, service runs, waterproofing, fixing substrates, ventilation and electrical zoning all land within a few square metres, and every one of them depends on where the sanitaryware sits. Move one item and several other decisions move with it. The decisions that have to be locked early Layout comes first, and it decides far more than where things sit. Fixing the position of the WC, basin and shower sets the drainage runs, the pipe routes and the wall build-ups that follow. Once the first fix is in, changing any of them means opening up work that has already been paid for. Product selection is the second. A wall-hung unit needs a frame and a substrate capable of carrying it. A large-format tile needs a flatter background than a small one, while a shower tray dictates the former beneath it. These are structural consequences dressed up as aesthetic choices, and they need resolving before the wall goes up rather than after. Programme pressure makes all of this worse. The NHBC Foundation has set out what happens to build quality when output rises, noting the historic pattern of defect numbers climbing as volume climbs with them. Handling the sequence deliberately works. On the £50m Plymouth Civic Centre conversion, the council and its development partner are splitting complex refurbishment into separate work packages, a decision expected to prevent up to a year of delay by letting investigation and enabling works run while second-stage design continues. What the installer actually receives Here is the part that gets skipped. A rendered visual and a buildable drawing are not the same document. One shows a client how the room will look, while the other tells a fitter where the waste sits, what the substrate needs to be, which fixings the unit requires and how to handle the junction where two finishes meet. Hand over the first and call it information, and the questions arrive on site instead, one at a time, each costing half a day. That gap is worth closing before anyone lifts a floorboard. A bespoke bathroom design service that models the room properly can give the installer a complete pack rather than a picture. Pier1 Bathrooms works this way, issuing full plans and layouts along with technical notes and product specifications, plus rendered views from several angles so the client signs off the same room the fitter is building. Lead times come with that. The company quotes 2 to 5 working days on stock items and 4 to 8 weeks on bespoke pieces, which is the sort of detail that belongs on a programme rather than in an email three weeks before the trades arrive. Lead times should shape the layout Most projects run this backwards. The layout gets fixed, the products get chosen to suit it, and then somebody discovers the vanity unit is eight weeks out. At that point there are two options and neither is good. Hold the programme, or substitute something that no longer fits the space it was designed around. The better order treats lead time as a design constraint from the start. If a bespoke item takes eight weeks, that is a fact about the programme rather than an inconvenience to be discovered later. Knowing it early lets the drawing accommodate it, or lets the specification change while changing it is still free. None of this is complicated, and the sums involved are not small. The Get It Right Initiative puts the cost of avoidable error across the sector at somewhere between 10 and 25 per cent of project cost once indirect costs and latent defects are counted. Its research is a few years old now, but nobody is arguing the figure has collapsed since. Most of that is a question of resolving things on paper while paper is still where they live. Bathroom rework is far more often an information failure than a workmanship one, and information is cheap to fix.

Read More »
Planning Temporary Fuel Storage for Construction Sites

Planning Temporary Fuel Storage for Construction Sites

Temporary fuel storage can help when construction plant needs regular refuelling but off-site trips or frequent deliveries would disrupt work. It should be planned as part of site logistics: capacity depends on real demand, while location depends on delivery access, vehicle routes and the changing layout. Temporary use still requires a site-specific assessment and clear operating responsibilities. When can temporary fuel storage help a construction project? On-site storage may be useful where generators, excavators or other plant operate for extended periods, particularly if work areas are remote from public roads. It may also help when access restrictions make repeated fuel deliveries difficult to coordinate. The key question is whether storing fuel on site improves the refuelling workflow enough to justify the space, supervision and controls it requires. That decision can change as the project progresses. Groundworks may use different equipment from later phases, when space is tighter and traffic routes have moved. Review the arrangement when work fronts or neighbouring activities change. Where demand is modest and delivery access is straightforward, scheduled deliveries or off-site refuelling may be simpler. How should teams estimate capacity and duration? Start with the equipment that will draw from the tank. Identify the fuel type, expected operating patterns and periods when several machines may need refuelling at once. Plant schedules, subcontractor input and records from comparable work are more useful than estimating from the number of machines alone. A continuously used generator, for example, creates a different demand pattern from plant on site for only part of the programme. Factor in replenishment: supplier lead times, delivery access and the effect of a delayed delivery. Aim for enough capacity to support operations between deliveries without committing more site space and management effort than necessary. Record the assumptions, compare them with actual consumption and revisit the estimate if the programme, plant mix or delivery arrangements change. These changes may also affect how long storage is needed. Where should a temporary tank sit on site? A convenient gap on a site plan may be difficult to serve in practice. Trace how the delivery vehicle will enter, reach the tank and leave. Check for conflicts with pedestrian movements, loading areas and routes used by large plant. Consider access for the machines and authorised personnel that will refuel; repeated journeys should not interfere with other operations. Assess the proposed position in relation to buildings, boundaries, work areas, potential ignition sources and activities nearby. Ground conditions, vehicle-impact protection, security and spill response also need consideration. These are site-specific questions, not reasons to apply one standard layout to every project. Construction sites change. A position that works during excavation may later obstruct a lifting operation or fall within a pedestrian route. Mark the tank and access routes on the live logistics plan, and identify what changes would prompt relocation or a fresh assessment. What needs to be assessed for safe operation? Temporary use does not itself remove the need to assess risk. The Health and Safety Executive’s guidance on storing flammable liquids in tanks explains that a workplace risk assessment should be carried out regardless of the quantity present and should include non-routine activities such as maintenance. The controls needed depend on the fuel, equipment, location and work involved, so the arrangement should be reviewed for the particular site. Consider capacity and tank contents alongside delivery frequency, filling and dispensing, staff competence, inspection and maintenance. Think through less frequent events too: a delivery arriving while an access route is closed, damaged dispensing equipment, or a change to nearby work. The people using the system should know the agreed response and how to raise a concern. Smaller containers need consideration in their own right. The HSE’s guidance on flammable liquids in containers addresses storage and handling risks, including potential environmental consequences of a release. Before use, review the proposed arrangement against relevant UK requirements; do not assume that one tank or procedure addresses every site risk. How can fuel storage fit into the site logistics plan? Plan delivery windows, who will receive fuel, how delivery vehicles will be managed and when refuelling can take place without conflicting with other movements. Contractors should know which equipment may use the supply and who keeps the dispensing area accessible. Where multiple contractors share access, an agreed procedure is easier to manage than informal, separate arrangements. Assign responsibility for routine checks, reporting damage or leaks, inspection, maintenance and records. Agree supplier and site-team roles rather than assuming who is responsible. Review the arrangement at coordination meetings: a revised traffic plan, new subcontractor, changed working hours or different plant can alter demand or introduce a conflict. Treat the tank position and refuelling procedure as working parts of the logistics plan. Hire or purchase: which route fits a temporary project? The choice depends on how long storage is needed and whether the equipment has a credible use afterwards. Hire may suit a defined phase or an uncertain programme; purchase may be considered where equipment is expected to serve repeated projects. Neither choice removes the need to assess the tank and its operation at each site. The Petrol Tank Company lists construction among the sectors it supplies and offers fuel tank hire for temporary requirements. These questions can help frame the discussion; responsibilities and equipment suitability should be confirmed for the particular project. Planning question Hire Purchase How long is it needed? Consider for a defined project or phase. Consider when future use is expected. Could demand change? Discuss requirements and changes with the hire provider. Assess whether equipment will suit future sites. Who manages ongoing work? Clarify inspection, maintenance, delivery and return responsibilities in the agreement. Plan for storage, upkeep and transport between projects. Whichever route is chosen, confirm capacity, position and responsibilities before delivery. A procurement arrangement cannot compensate for a location that delivery vehicles cannot safely reach. Questions to settle before mobilisation A short discussion between site management, plant users and the fuel supplier can expose assumptions before they become operational problems. Which fuel and plant

Read More »