The UK’s 2026 Budget proposals have sent ripples through the business landscape, with the construction and technology sectors particularly attuned to the potential impacts on investment, tax, and public spending. As analysts and industry leaders dissect the Chancellor’s new measures, the focus is on how these changes might reshape the economic terrain for key industries.
At the heart of the debate is the Budget’s approach to public finance and support measures, which industry leaders argue could have far-reaching consequences. The construction sector, a backbone of the economy, is acutely sensitive to shifts in investment incentives and thresholds. Tom Shorten, Chief Executive Officer of HSS ProService Marketplace, underscores this point, noting that construction and building services are integral to various economic domains, from housing and infrastructure to retrofit and maintenance. “Any squeeze on the cost of living or on business investment quickly finds its way onto sites and into supply chains,” Shorten warns. He acknowledges the government’s focus on stabilizing public finances and targeting support for those struggling with bills but cautions that frozen thresholds and new levies risk dampening demand and confidence at a critical juncture.
Shorten also highlights potential positives for the construction sector, pointing to the Chancellor’s pledges on planning reform, capital investment in housing and infrastructure, and a more modern business rates system. “Where the Chancellor backs growth, that is good news for our sector and for the customers who rely on it,” he says. However, he stresses the need for these promises to translate into a visible pipeline of work and a climate where contractors feel confident to bid on new projects and grow their workforce. As a digital marketplace, HSS ProService Marketplace is poised to contribute to productivity and value, but Shorten emphasizes the importance of a Budget that allows households and businesses the breathing room to invest and expand.
The technology sector is also grappling with uncertainties, particularly around potential changes to wealth tax, the stability of R&D tax reliefs, and risks to employee incentives. Analysts warn that the Budget’s signals to offshore investors and global tech players could influence investment decisions in the UK technology sector. Technology businesses are especially focused on the implications of salary sacrifice rules, National Insurance Contributions (NICs), and share scheme modifications for recruitment and retention of top talent.
As the dust settles on the Budget proposals, the response from business leaders remains cautious. Stakeholders across construction, technology, and broader business services are waiting to see how policy changes will translate into tangible pipeline work, market confidence, and investment decisions in the coming months. The path forward is fraught with challenges, but also opportunities for those sectors ready to adapt and innovate in response to the evolving economic landscape.