This horizon scanner, formerly known as the ‘Construction future developments tracker’, identifies key upcoming changes relevant to construction lawyers, including in relation to legislation, fire safety, contracts/standards, dispute resolution, appeal cases and infrastructure and energy projects. For past events, see the 2020, 2019, 2018, 2017 and 2016 archives. Legislation and policy What’s happening? When? Find out more Ban on construction retention and action against late payment—Commercial Payments Bill Ongoing Between July and October 2025, the government consulted on a package of proposed legislative measures to address late, long and disputed business to business payments. These included specific proposals referring to the use of retention clauses within construction contracts.The government published its response to the consultation on 24 March 2026. It proposed a ban on retention payments in construction contracts, subject to further consultation on its implementation. It also stated that it would introduce other legislation to take action against late payment.In the King’s Speech delivered on 13 May 2026, the Small Business Protections (Late Payments) Bill was announced, in furtherance of these proposals. The proposed

ARCHIVED: This Practice Note has been archived and is not maintained. The Construction horizon scanner tracks key upcoming developments of interest to construction lawyers. Once a development occurs, it is moved into the archive for the relevant year. This is the archive for events that occurred in 2016 (from March onwards). For a summary of 2016's key events, see our Construction end of year recap—2016. For a comprehensive list of cases handed down in 2016, see the: Construction case tracker—2016 [Archived]. Legislation What happened? When? Find out more Planning: Provisions of the Housing and Planning Act 2016 concerning the Secretary of State’s intervention in local and neighbourhood plan-making (ss 143–147) came into force 1 October 2016 The measures reform the Secretary of State’s powers to intervene in local plan-making, with the aim of ensuring that every local planning authority has a local plan in place. This is of particular importance for boosting housing supply, because local plans are key to housing delivery. See News Analysis: Housing and Planning Act 2016—changes to development plans in force on 1 October. Insurance

ARCHIVED: This Practice Note has been archived and is not maintained. The Construction horizon scanner tracks key upcoming developments of interest to construction lawyers. Once a development occurs, it is moved into the archive for the relevant year. This is the archive for events that occurred in 2017. For case law, see the: Construction case tracker—2017 [Archived]. Legislation What happened? When? Find out more Tax: Outcome of consultation on supply chain fraud 22 November 2017 HMRC ran a consultation from 20 March to 9 June 2017 on options to combat supply-chain fraud in supplies of labour within the construction sector. In the Autumn Budget 2017 (see below), the government announced the introduction of a VAT domestic reverse charge to prevent VAT losses. See News Analysis: Fraud on provision of labour in construction sector—consultation on VAT and other policy options. Payment reporting: First deadline to report on payment practices 4 November 2017 (for organisations with a first reporting period beginning on 6 April) The Reporting on Payment Practices and Performance Regulations 2017, SI 2017/395 and

ARCHIVED: This Practice Note has been archived and is not maintained. The Construction horizon scanner tracks key upcoming developments of interest to construction lawyers. Once a development occurs, it is moved into the archive for the relevant year. This is the archive for events that occurred in 2018. For case law, see: Construction case tracker—2018 [Archived]. Legislation What happened? When? Find out more Invoice assignment: Ban on contract terms prohibiting the assignment of a receivable, or preventing the assignee from determining the validity or value of a receivable, or hindering their ability to enforce a receivable 31 December 2018 The Business Contract Terms (Assignment of Receivables) Regulations, SI 2018/1254 introduced the prohibition for contracts entered into on or after 31 December 2018.Draft regulations were published in September 2017 (see: LNB News 18/09/2017 97) but were withdrawn in November 2017 (see News Analysis: Business Contract Terms (Assignment of Receivables) Regulations 2017: Unexpected consequences for lenders and LNB News 24/11/2017 73).New regulations were published in July 2018—see LNB News 06/07/2018 82 and News Analysis: Updated draft

ARCHIVED: This Practice Note has been archived and is not maintained. The Construction horizon scanner tracks key upcoming developments of interest to construction lawyers. Once a development occurs, it is moved into the archive for the relevant year. This is the archive for events that occurred in 2019. For case law, see the: Construction law case tracker. Legislation What happened When? Find out more VAT reduced rate for energy-saving materials: Value Added Tax (Reduced Rate) (Energy-Saving Materials) Order 2019, SI 2019/958 came into force 1 October 2019 See: LNB News 21/05/2019 49.Note that the Order replaces SI 2019/954, which was withdrawn and re-registered as SI 2019/958 (see: LNB News 21/05/2019 84). Fire safety What happened? When? Find out more Building regulations (Scotland): Amendment to Building (Scotland) Regulations 2004, SSI 2004/406 pursuant to Building (Scotland) Amendment Regulations 2019, SSI 2019/210 1 October 2019 The amendment required buildings to be designed and constructed in such a way that the spread of fire and smoke within cavities in the structure and fabric

ARCHIVED: This Practice Note has been archived and is not maintained. The Construction horizon scanner tracks key upcoming developments of interest to construction lawyers. Once a development occurs, it is moved into the archive for the relevant year. This is the archive for events that occurred in 2020. Legislation What happened? When? Find out more CIGA 2020: Corporate Insolvency and Governance Act 2020 published 26 June 2020 (Royal Assent 25 June 2020) The CIGA 2020 make various changes to insolvency law in response to the coronavirus (COVID-19) pandemic. A key change for the construction industry is that, subject to certain exclusions, suppliers of goods or services will be unable to rely on contractual clauses allowing for the termination of the contract or supply in the event of the counterparty’s insolvency or restructuring—see News Analysis: Corporate Insolvency and Governance Bill—restrictions

Tax analysis: In Exchequer Solutions Ltd v HMRC, the First-Tier Tax Tribunal (FTT) agreed with HMRC that there was no mutuality of obligation between individuals working in the construction industry and the umbrella company employing them under an overarching contract. Each individual job was effectively a separate employment, and individuals were therefore commuting between their home and a permanent workplace, meaning that travel expenses were not deductible.

The Federation of Master Builders (FMB), the Chartered Institute of Building (CIOB), the Royal Institution of Chartered Surveyors (RICS) and the UK Green Building Council (UKGBC) have responded to the 2026 King’s Speech, outlining their views on the government’s legislative agenda for housing, infrastructure, energy and the wider built environment. The organisations broadly welcomed the continued prominence of the sector within the government’s growth plans, particularly measures relating to infrastructure investment, building safety and housing reform.

Following the publication of the Spending Review on 11 June 2025, several construction industry bodies have released their responses.

The Chartered Institute of Building (CIOB) and the Federation of Master Builders (FMB) have welcomed the UK government’s Warm Homes Plan, which sets out measures to improve energy efficiency across the housing stock, reduce household energy bills and support the transition to low-carbon homes. It includes a £15bn commitment to upgrade up to five million homes by 2030. CIOB said large-scale energy efficiency improvements are vital for meeting net zero goals and reducing costs for consumers. It warned, however, that success depends on sustained investment in skills and training, a competent workforce and close engagement with the construction sector. Without this, CIOB noted, poor‑quality installations and low consumer confidence could repeat mistakes seen in past stop‑start schemes.

STOP PRESS: Following an announcement at Budget 2025, Finance Act 2026 introduced powers for HMRC to tackle fraud by businesses operating within the construction industry scheme (CIS). Modelled on the VAT measures that restrict input tax recovery where the supplier knew or should have known that the supply was connected to the fraudulent evasion of VAT, these CIS measures, which took effect on 6 April 2026, will: • provide for the immediate cancellation of gross payment status for a business • make a business liable for lost tax, and • allow a penalty of 30% of the lost tax to be imposed on the business, its directors, and other connected persons where it can be shown that the business knew or should have known that it entered into a transaction connected with the fraudulent evasion of tax. Further, the waiting period to reapply for gross payment status that has been immediately removed will be increased from one year to five years. This Practice Note explains that penalties may be payable for: • failing to: ◦ submit

FORTHCOMING CHANGES: At Budget 2025, the government announced that it will legislate in Finance Bill 2026 (also known as Finance (No 2) Bill 2024–26) for the introduction of new powers for HMRC to tackle fraud by businesses operating within the CIS. Modelled on the VAT measures that restrict input tax recovery where the supplier knew or should have known that the supply was connected to the fraudulent evasion of VAT, the new CIS measures will: • provide for the immediate cancellation of a business’ gross payment status • make a business liable for lost tax, and • allow a penalty of 30% of the lost tax to be imposed on the business, its directors, and other connected persons where it can be shown that the business knew or should have known that it entered into a transaction connected with the fraudulent evasion of tax. Further, the waiting period to reapply for gross payment status that has been immediately removed will be increased from one year to five years. The government has