Tag Archive for: Breaking News

Kier Group contract for new Darlington Government Hub building.

Kier Group Secures Major Contract for New Darlington Government Hub

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Kier Group has been awarded a significant contract by the Government Property Agency (GPA) to construct a new civil service office in Darlington. This development marks a key milestone in the Government Hubs Programme, aiming to decentralise government functions and boost regional economies. The project is set to create a modern, collaborative workspace for over 1,500 civil servants.

Key Takeaways

  • Kier Group will lead the construction of a new government hub in Darlington.
  • The hub will house over 1,500 civil servants from multiple government departments.
  • Construction is scheduled to begin in early 2026, with completion expected in the first quarter of 2028.
  • The project is part of the wider Darlington Economic Campus initiative.

Project Overview

The new government hub, located on Brunswick Street, will be a state-of-the-art facility designed to foster collaboration and smarter working practices among civil servants. It is part of the Government Hubs Programme, which aims to establish modern, efficient, and sustainable workplaces across the UK, moving jobs away from London and supporting the government’s ‘levelling up’ agenda.

The project involves the construction of a five-storey building on the site of a former car park. Kier’s initial involvement included preliminary ground remediation works, such as clearing debris and removing remnants of previous structures. These early works, which began in September and are expected to conclude in December, have helped to de-risk the project and prepare the site for main construction.

Timeline and Occupation

Main construction works are slated to commence in early 2026 and are anticipated to last approximately two years. The hub is projected to be ready for occupation in the first quarter of 2028. This timeline ensures the project aligns with the broader development of the Darlington Economic Campus (DEC), which already includes Feethams House and Bishopsgate House.

Departments and Impact

Staff from seven government departments will eventually be based at the new hub. These include HM Treasury, the Office for National Statistics (ONS), and the Department for Culture, Media and Sport (DCMS). The relocation of these roles is seen as a significant boost for the North East, contributing to economic growth and creating new job opportunities within the region. Darlington already hosts a substantial number of civil service roles, with ten major government departments represented in the town.

Collaboration and Future Growth

The Government Property Agency (GPA) is leading the development, working closely with Kier Group. This partnership aims to deliver a high-quality, inclusive, and digitally-enabled workspace. The project is expected to create substantial regional economic benefits and contribute to a more representative Civil Service workforce.

Planning permission for the five-storey building was approved in August 2024, following archaeological surveys. The development is a key component of the DEC, reinforcing Darlington’s position as a significant hub for central government operations outside of London.

Sources

Henry Group Holdings liquidation: creditor claims and financial distress.

Henry Group Holdings Faces £141 Million in Creditor Claims Amidst Liquidation

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Administrators for Henry Group Holdings (HGH) have reported receiving claims totalling £141.15 million from unsecured creditors. The London-headquartered company, established in 2016 and solely owned by Mark Henry, entered liquidation on August 18, 2023. HGH is the parent company of Henry Construction Projects, which is also currently in administration.

Key Takeaways

  • Unsecured creditors have lodged claims amounting to £141.15 million against Henry Group Holdings.
  • The parent company, HGH, entered liquidation in August 2023.
  • Its subsidiary, Henry Construction Projects, is also under administration.
  • Administrators are working to assign some claims to the subsidiary’s administration process.
  • A separate £31 million High Court claim has been filed against former directors of Henry Construction.

Claims Against Henry Group Holdings

Joint liquidators Kevin Coates and Robert Starkins from Grant Thornton UK Advisory are managing the winding-up progress for HGH. Their report indicates efforts are underway to assign certain claims to the administrators of Henry Construction Projects Ltd. The primary remaining tasks involve monitoring the progress of these assigned claims, which includes seeking advice from their legal team. Future realisations are currently uncertain and will depend on the successful pursuit of these claims.

Legal Action Against Henry Construction

Meanwhile, the administration of Henry Construction is being handled by FRP Advisory. This firm has initiated a £31 million High Court claim against six family members and former directors of Henry Construction, including Mark Henry. The claim alleges unlawful payments were made from the firm for a family home and relatives’ tax bills, with administrators seeking repayment. A defence document filed with the court asserts that the parties deny all accusations of wrongdoing and argue that the payments were part of a legitimate intercompany arrangement.

The defence document further states that the defendants deny liability on all fronts. The administrators’ claim highlights a “pattern of conduct by Mark Henry” to transfer sums from his companies to “connected persons shortly before they entered insolvency”.

Financial Performance and Insolvency

Henry Construction Projects previously reported a turnover of £402.2 million and a pre-tax profit of £14 million in its financial accounts for the year ending June 30, 2021. However, the firm appointed administrators in June 2023, at which point it owed more than £40 million to suppliers. The next report to creditors from HGH’s liquidators is expected by December 25, 2026.

Sources

New housing estate development in London with apartment buildings.

London Set for Major Housing Boost as 1,000-Home Estate Regenerations Get Green Light

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Two significant estate regeneration projects in London, set to deliver nearly 2,000 new homes, have received planning approval. These developments, spearheaded by housing associations and developers, aim to transform existing estates into vibrant communities with a substantial proportion of affordable housing and improved public amenities.

Key Takeaways

  • Two major London housing developments, totalling almost 2,000 homes, have secured planning permission.
  • Both projects emphasize a significant commitment to affordable housing, including social and London Affordable rent.
  • The schemes will introduce new public green spaces, community facilities, and improved amenities for residents.

Northwick Park Regeneration Moves Forward

Housing association Network Homes has been granted approval for a scheme comprising nearly 1,000 homes on land adjacent to Northwick Park Hospital in north-west London. This project is the second phase of a larger £450 million development that will ultimately deliver 1,600 homes. The overall development, designed by PRP, will feature 19 buildings and include student facilities, commercial spaces, and a nursery. A key feature of this phase is the commitment to 40% affordable homes.

The first phase of this development, which included 654 homes, received approval last year. The partnership behind this regeneration includes Network Homes, London North West Hospitals NHS Trust, Brent Council, and the University of Westminster. This collaboration has also secured £500,000 from the One Public Estate programme to optimize land use.

Friary Park Estate Transformation

In west London, Ealing council has given the go-ahead for a 990-home regeneration of the Friary Park estate. This project is a collaboration between housing association Catalyst and developer Mount Anvil. Subject to the signing of section 106 agreements, construction is expected to commence next year.

The scheme, designed by Levitt Bernstein, will introduce four new tower blocks, with heights ranging from 14 to 24 floors. A significant aspect of the plans is the commitment to delivering 45% genuinely affordable housing, which includes 237 social rent homes and 28 London Affordable rent homes. Beyond housing, the regeneration will significantly enhance green spaces, offering residents private balconies and terraces, podium gardens, play trails, and a new community centre with an improved multi-use games area.

Sources

UK Construction Output Falters in October 2025, Showing Fragile Recovery

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UK construction output experienced a decline in October 2025, falling by 0.6% compared to the previous month. This downturn follows a modest increase in September, highlighting the ongoing fragility of the sector’s recovery. Both new construction projects and repair and maintenance work contributed to the monthly decrease.

Key Takeaways

  • Monthly construction output fell by 0.6% in October 2025.
  • The three-month period to October saw a 0.3% decrease in total output.
  • Private housing repair and maintenance was the main contributor to the decline.
  • Concerns remain over planning system delays and developer confidence.

Monthly Output Decline

The Office for National Statistics (ONS) reported that monthly construction output contracted by 0.6% in October 2025. This followed a 0.2% rise in September. The decrease was driven by a 0.7% fall in new work and a 0.6% drop in repair and maintenance activities.

Three-Month Trends

Over the three months leading up to October 2025, total construction output saw a decrease of 0.3%. Within this period, repair and maintenance work fell by 1.0%, while new work experienced a slight growth of 0.1%. Four out of the nine sectors surveyed reported a decline.

Sectoral Performance

The private housing repair and maintenance sector was identified as the primary negative contributor to the overall decrease, experiencing a significant drop of 2.3%. Private new housing also saw a decline of 1% during the three-month period.

Industry Expert Opinions

Industry professionals expressed concerns about the sector’s stability. Jo Streeten, managing director for buildings & places at Aecom, noted that the dip underscores the fragility of the recovery and that clients are awaiting clearer signs of faster progress before committing to major projects. She suggested that practical measures like increasing the number of planners, alongside the adoption of AI and digital tools to expedite review processes, could boost confidence and create a more robust pipeline for 2026.

Neil Leitch, managing director of development finance at Hampshire Trust Bank, echoed these sentiments, stating that housebuilding has struggled for momentum. He highlighted that developers face tightening viability conditions and a lack of clarity and support from the surrounding system. Leitch pointed to planning system pressures, with a significant number of planners considering leaving the profession, which could further lengthen decision times and widen the gap between granted permissions and actual site starts. He emphasized the need for consistency, capacity, and follow-through from policymakers, alongside collaboration between policymakers, developers, and lenders, to ensure construction underpins economic growth.

Sources

Construction of new social homes in West Lothian.

New Social Homes Underway in West Lothian to Tackle Housing Crisis

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Construction has officially begun on a significant number of new social homes across West Lothian, aiming to address the region’s pressing housing needs. This initiative involves multiple developments, including projects in Winchburgh and Livingston, and represents a collaborative effort between housing associations, local councils, and government funding.

Key Takeaways

  • 69 new energy-efficient homes for social rent are being built in Winchburgh by Lovell Partnerships for Wheatley Homes East.
  • A separate £9 million project in Livingston will deliver 48 new homes, including supported accommodation for young people.
  • The Deans South estate in Livingston is undergoing regeneration, with 46 affordable homes being built by Springfield and Wheatley Group.
  • These developments aim to increase affordable housing provision, ease pressure on waiting lists, and support local communities.

Winchburgh Development

Lovell Partnerships has broken ground on 69 new energy-efficient homes for social rent in Winchburgh, a project for Wheatley Homes East. These homes are scheduled for completion by summer 2027. The development is part of a broader £1 billion Winchburgh masterplan, which includes new schools, green spaces, and community amenities. The new homes will comprise two and three-bedroom terrace houses and two-bedroom flats. Each property will achieve an Energy Performance Certificate (EPC) of B and meet Silver Aspects 1, the Scottish benchmark for sustainable building, incorporating features like high-specification wall insulation, air source heat pumps, and water-efficient fixtures to reduce energy usage by approximately 30%. Electric vehicle charging points and sprinkler systems will also be included. Lovell has also designed a bespoke ‘colony-style’ house type to meet local needs, featuring bungalows on the ground level with two-storey homes above, each with its own entrance and garden. The construction process is expected to support local employment and training, with Lovell also contributing to local community groups.

Livingston Projects

In Livingston, a £9 million project is underway to construct 48 new homes, including supported housing for young people and affordable rental properties. This development, located near local amenities and West Lothian College, will utilise modular construction methods to accelerate delivery and help alleviate pressure on the council’s housing waiting lists. The first residents are anticipated to move in by September. The supported housing component will consist of 28 one-bedroom flats, complete with flexible office space and overnight accommodation for staff. The affordable housing element will provide 20 homes, including 18 houses (a mix of two and three bedrooms) and two flats. This project marks West Lothian Council as one of the first in the UK to employ modular construction for building homes.

Deans South Regeneration

Springfield, in partnership with Wheatley Group, has commenced construction on the regeneration of the Deans South estate in Livingston. This long-awaited project will deliver 55 new homes, with 46 designated as affordable homes for Wheatley Homes East tenants and nine private homes for existing homeowners. The properties will be built using sustainable timber kits, featuring air source heat pumps for efficiency. This development is particularly significant as it provides new homes for residents who have lived on the previously condemned estate since 2004. The project signifies a commitment to transforming the site and providing secure, high-quality housing for the community.

Sources

Historic Sheffield building 'The Mount' undergoing renovation.

Historic Sheffield Building ‘The Mount’ Set for Residential Transformation

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Plans to convert the historic, grade II*-listed building known as The Mount in Sheffield’s Broomhill area into new homes have received official approval from Sheffield City Council. The landmark structure, dating back to the 1830s and designed by William Flockton, will be transformed into 39 apartments and eight townhouses, breathing new life into a vacant building of significant architectural merit.

Key Takeaways

  • The Mount, a grade II*-listed building in Sheffield, will be converted into 39 apartments and 8 townhouses.
  • The conversion aims to preserve the building’s character and contribute to the Broomhill Conservation Area.
  • Works include extensions and landscaping, with a vehicular route removal.
  • Previous plans for 55 apartments had also been approved.

A New Chapter for The Mount

The Mount, a prominent building in Sheffield’s Broomhill Conservation Area, has been granted planning permission for a significant conversion project. The grade II*-listed property, originally built in the 1830s and designed by architect William Flockton, has a rich history, having served as housing and later being owned by various businesses including John Walsh Ltd and Norwich Union, before its most recent use as a language school.

The approved plans will see the building transformed into a mix of residential units, comprising 39 apartments and eight townhouses. The development will involve a single-storey infill extension at ground floor level, new entrance provisions, single-storey rooftop extensions to existing office annex buildings, and the creation of internal and external residents’ parking, alongside associated landscaping. A notable change will be the removal of the through vehicular route from Newbould Lane.

Preservation and Public Benefit

Sheffield City Council granted approval under delegated powers, subject to conditions. A planning officer’s report highlighted the public benefits of the development, including the “occupation and appropriate re-use of a vacant building of significant townscape merit.” The report also emphasised the preservation of the character of the listed building and the Broomhill Conservation Area, alongside the contribution of “a good number of high-quality apartments of an acceptable density in a very sustainable location.”

This latest approval follows a previous consent granted to Broomgrove Properties, supported by Axis Architecture, for the conversion of The Mount into 55 apartments. The current decision signifies a positive step towards the regeneration of this important local landmark.

Sources

Empty office building with a 'For Lease' sign.

Versarien PLC Faces Administration Amid Financial Woes

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Advanced engineering materials group Versarien PLC has regrettably filed a notice of intention to appoint administrators, signalling significant financial difficulties. This move follows a warning last week that administration was a possibility after a potential UK quoted public company withdrew its interest in the struggling firm.

Key Takeaways

  • Versarien PLC has filed a notice of intention to appoint administrators.
  • The company cited financial concerns and withdrawal of interest from a potential acquirer.
  • Trading of its shares on AIM has been suspended.
  • Non-executive directors have resigned.

Financial Distress and Administration Notice

Versarien PLC, headquartered in Gloucestershire, has resolved to serve a notice of intention to appoint Leonard Curtis as administrators. This decision comes after the company warned last week that it might be forced into administration. The primary reason cited for this drastic step is the withdrawal of interest from a UK quoted public company that had been considering acquiring the business.

While the company’s board acknowledges that interest in acquiring its assets continues, it is heavily reliant on the support of its creditors to maintain operations. The notice of intention to appoint administrators (NOIA) serves as a temporary measure to shield the company from creditor enforcement actions for a period of ten working days. This timeframe also allows secured creditors the option to appoint an alternative administrator.

Seeking a Transaction Amidst Uncertainty

During the protection period afforded by the NOIA, Leonard Curtis will work to finalise a transaction with interested parties. The company has stressed that such a transaction may not necessarily lead to a full administration. However, if a deal cannot be concluded within the specified timeframe, the administration process will proceed.

The trading of Versarien’s ordinary shares on the AIM market has been suspended. In a related development, the non-executive directors of the company, Sir Iain Gray CBE, Diane Savory OBE, and Susan Bowen, have resigned from their positions with immediate effect.

Sources

Cemex factory closure due to HS2 compensation payout.

HS2 Compensation: Cemex Secures £30m Payout Over Birmingham Factory Closure

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The High Court has ordered the government to pay nearly £30 million in compensation to Cemex UK, a major supplier of cement and concrete. The payout follows the compulsory purchase of the company’s Washwood Heath business in Birmingham, which was required for the construction of the High Speed 2 (HS2) rail project.

Key Takeaways

  • Cemex UK awarded £29.9 million in compensation by the High Court.
  • The compensation is for the compulsory purchase of its Birmingham factory for HS2.
  • The factory housed operations including railway sleeper manufacturing, an asphalt plant, and an aggregate supply business.
  • The dispute centred on compensation for the railway sleeper facility, which took two years to relocate.

The Compulsory Purchase

The transport secretary acquired Cemex’s Washwood Heath site in 2020, as the land was designated for a control centre for the HS2 megaproject. The site was crucial for Cemex, housing a factory for railway sleepers, an asphalt plant, and an aggregate supply business. The compulsory purchase order necessitated the relocation of all three operations to different sites.

Compensation Dispute

While Cemex and the transport secretary initially agreed on terms for two of the three business activities, a significant disagreement arose over the compensation for the railway sleeper facility. Cemex took two years to move this operation to a new location in Rochester, Kent, which the company described as inferior. This dispute led Cemex to take legal action against the government over the offered compensation amount.

Cemex initially sought over £59 million in compensation. However, the government contended that the company had actually made a gain of £4.5 million due to a market downturn for railway sleepers. During court proceedings, Cemex revised its estimated loss to £30.5 million, while the government’s representatives acknowledged a loss but valued it at £10.4 million.

High Court Ruling

In their final judgment, Judges Elizabeth Cooke and Peter D McCrea ruled in favour of Cemex, ordering the government to pay £29.9 million. The judges determined that Cemex was entitled to compensation covering the value of the land, relocation costs, loss of profit, professional fees, and other associated expenses under the terms of the compulsory purchase order.

The court noted that the Washwood Heath site was strategically advantageous for Cemex due to its proximity to the West Coast Mainline and its operational efficiency. An interim decision had previously highlighted concerns about the limited capacity of the new Rochester factory and the difficulty in predicting the future of Cemex’s business in this sector. The final judgment took into account projected future demand for specialist sleepers and ongoing sales to Transport for London.

Judges expressed dismay that the parties could not reach an agreement themselves, describing the case as “long and extremely complicated” with “subject matter bordering on impenetrable.”

Sources

Heathrow Airport with a new third runway under construction.

Heathrow’s £49bn Third Runway Plan Gets Government Green Light, Amidst Controversy

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The UK government has officially approved Heathrow Airport’s ambitious £49bn plan to construct a third runway, a decision that promises to significantly expand the nation’s busiest hub. The project, slated for completion by 2035, aims to boost flight capacity by 57% and accommodate an additional 66 million passengers annually. However, the approval comes with considerable challenges, including a hefty price tag, environmental concerns, and the complex rerouting of the M25 motorway.

Key Takeaways

  • The government has given its blessing to Heathrow’s £49bn expansion plan, including a third runway.
  • The project aims for completion by 2035, potentially increasing flight movements by 57% and passenger numbers by 79%.
  • A significant portion of the cost, £1.5bn, is allocated to diverting the M25 motorway.
  • Airlines express concerns about increased passenger charges to fund the expansion.
  • Environmental groups strongly oppose the plan, citing climate impact and disruption.

A Transformational Project with a High Price Tag

The approved plan involves the construction of a new 3,500m runway, estimated to cost £21bn. An additional £12bn is earmarked for new terminal infrastructure, with other expansion works bringing the total projected cost to £49bn. The government asserts that this expansion will enhance connectivity, support trade and tourism, and create over 100,000 jobs, thereby bolstering the UK economy. Transport Secretary Heidi Alexander stated that the project will “enable quicker, quieter, and greener flights.”

M25 Diversion and Alternative Proposals

A major engineering feat within the plan is the diversion of the M25 motorway, estimated to cost £1.5bn. This complex manoeuvre is necessary to accommodate the new runway. The government selected Heathrow Airport Ltd’s proposal over a rival £25bn plan from the Arora Group, which featured a shorter runway and did not require moving the M25. Despite the rejection of their specific proposal, the Arora Group has indicated a willingness to remain involved in the project.

Concerns and Opposition

The significant cost of the expansion has raised concerns among airlines, which fear that current passengers will bear the brunt through increased charges. Already one of the world’s most expensive airports, further hikes are a worry. Environmental groups have voiced strong opposition, labelling the project an “act of national self-harm.” They argue that any expansion is incompatible with the UK’s legally binding climate targets and will lead to the demolition of villages and displacement of residents. Paul McGuinness of the No 3rd Runway Coalition highlighted the potential demolition of villages and the displacement of up to 15,000 residents.

The Path Forward

The government is updating the Airports National Policy Statement to align with the new plans. A development consent order must be secured before construction can commence. Ministers are hopeful that work can begin within the current parliamentary term, potentially by the summer of 2030, with the runway operational by 2035. The Climate Change Committee will be consulted to ensure the expansion aligns with the UK’s net-zero framework.

Sources

Unfinished hospital construction site with scaffolding.

Work Halted on £33m Berwick Hospital as Merit Enters Administration

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Work on the new £33 million hospital in Berwick has been abruptly halted after its appointed offsite construction specialist, Merit, filed for administration. The Northumberland-based firm, which was contracted in 2023 to build the state-of-the-art facility, ceased operations last Friday. This development also impacts a separate £30 million NHS Medicines Manufacturing Centre in Seaton Delaval, also being designed and fitted out by Merit.

Key Takeaways

  • Construction on the £33m Berwick Community Hospital has stopped.
  • Merit Holdings Ltd and Merit Health Ltd have filed for administration.
  • A £30m NHS Medicines Manufacturing Centre in Seaton Delaval is also affected.
  • Northumbria Healthcare remains committed to completing both projects.

Project Disruption

The halt in construction comes after Merit Holdings Ltd, the company’s primary trading entity, and its subsidiary Merit Health Ltd, both applied to appoint administrators. This move followed a winding-up petition lodged by HMRC against Merit Group Services in August, which was heard in the High Court in October. Merit had previously cited delays on customer projects due to this petition, leading to significant cash flow pressures and the decision to seek administration to protect the business while exploring options.

Northumbria Healthcare’s Response

Northumbria Healthcare Facilities Management confirmed the work stoppage and issued a statement expressing regret over the situation. They assured stakeholders that the trust remains committed to delivering both the Berwick Community Hospital and the Seaton Delaval Medicines Manufacturing Centre. The organisation stated it has adhered to contractual agreements and is working closely with Merit and its advisors. Robust plans are reportedly in place to ensure construction work continues on both sites, despite the far-reaching effects of Merit’s administration.

Merit’s Financial Performance

In its most recent full-year audited accounts for the period ending June 30, 2024, Merit Holdings reported a significant drop in pre-tax profit, which fell by 72 per cent from £8.4 million to £2.3 million. Turnover also decreased by 8 per cent, from £94.3 million to £86.6 million. Despite these figures, the company’s accounts had previously described its future as “tremendously exciting.”

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