Tag Archive for: Business Insights

HMRC official points at contractor, supply chain collapsing.

HMRC Cracks Down on CIS Fraud: Contractors Now Liable for Supply Chain Tax Evasion

/in , /by

HM Revenue & Customs (HMRC) has significantly tightened its grip on tax fraud within the construction sector, introducing new rules that hold contractors accountable for fraudulent activities occurring anywhere within their supply chains. These stringent measures, effective from April 6, 2026, represent the most substantial overhaul of the Construction Industry Scheme (CIS) in two decades, aiming to close the tax gap and combat organised criminal gangs.

Key Takeaways

  • Contractors face severe penalties, including loss of Gross Payment Status (GPS) for at least five years, significant fines, and personal liability for tax losses if they “knew or should have known” about fraud in their supply chain.
  • The “should have known” principle, mirroring VAT countermeasures, means ignorance is no longer a defence; proactive due diligence is now mandatory.
  • These changes are expected to raise substantial revenue for the Treasury and are partly influenced by lessons learned from past corporate failures like Carillion.

Increased Contractor Accountability

Under the revised CIS regulations, contractors are now legally obligated to conduct thorough due diligence on their subcontractors. Failure to do so, or turning a blind eye to suspicious activities, can result in the loss of Gross Payment Status (GPS). GPS allows contractors to pay subcontractors without deducting tax at source, and its revocation can severely impact a company’s cash flow and ability to secure future work, as it is often a prerequisite for tender processes.

Companies found to be knowingly engaging with fraudulent operators or failing to identify tax evasion within their supply chains will face losing their GPS for a minimum of five years. Furthermore, they could be liable for the full amount of tax evaded, plus financial penalties of up to 30% of that sum. In some cases, directors may also face personal penalties.

The “Should Have Known” Principle

A cornerstone of the new rules is the “should have known” principle, adapted from existing VAT fraud countermeasures. This means that a contractor’s defence of not being aware of a subcontractor’s fraudulent activities will not be accepted if evidence suggests they ought to have been aware. This places a significant onus on businesses to implement robust monitoring and verification processes for all entities within their supply chain.

Experts advise that companies must adopt a structured onboarding process for subcontractors, verifying their CIS status, VAT registration, company details, and bank account ownership. Maintaining a clear audit trail of these checks is crucial for demonstrating due diligence.

Broader Implications and Revenue Generation

The Treasury anticipates that these enhanced enforcement measures will generate an additional £205 million in tax revenue in their first year. The reforms are designed to disrupt sophisticated scams, including those involving missing traders and contrived supply chains, which have been draining millions from the Exchequer.

In addition to the focus on supply chain fraud, two other changes to CIS have been implemented: contractors are now legally required to file a monthly CIS return, even if no subcontractors were paid, and payments to local and public authorities will be excluded from the CIS scope.

A Shift Towards Proactive Compliance

These changes signal a significant shift in how HMRC approaches CIS compliance, moving from a reactive stance to one that demands proactive vigilance from contractors. The aim is to create a more transparent and secure construction industry, ensuring that tax obligations are met throughout the entire supply chain and holding businesses accountable for their role in preventing fraud.

Sources

New 24-storey tower proposed for Manchester's Green Quarter.

Manchester’s Green Quarter Set for Major Transformation as 24-Storey Tower Proposed

/in , /by

A long-vacant site in Manchester’s Green Quarter is poised for a dramatic change, with developer Linear Living submitting plans for a striking 24-storey residential building. The scheme aims to deliver 251 new homes and contribute to the broader regeneration of the area, adjacent to the city centre.

Key Takeaways

  • Proposal is for a 24-storey tower with 251 homes at One Lord Street.
  • Includes four townhouses and seven adaptable homes for residents with additional needs.
  • Marks Linear Living’s first venture into Manchester city centre.
  • Subject to approval, construction is hoped to begin before the end of 2026.
  • Project aligns with wider regeneration goals for the Green Quarter and surrounding districts.

One Lord Street: The New Arrival Gateway

The proposed tower, to be named One Lord Street, is situated at a prominent site bordered by Cheetham Hill Road, Lord Street, and Fernie Street. Historically home to shops and business units, the land has remained underused for years after partial demolition of existing structures.

Linear Living, seeking to make a significant architectural impression, has worked with AEW Architects on designs that both honour the area’s industrial heritage and introduce a contemporary living approach. The design includes a red brick façade, dual-aspect apartments, and active streetscape at ground level.

Creating Diverse and Accessible Homes

Out of the 251 homes planned, seven units are specifically designed to be adaptable, ensuring that the scheme is inclusive for residents with mobility needs, such as wheelchair users. Four townhouses are also included to provide alternative housing options within the high-rise context.

Residents would enjoy communal amenities such as a lounge and roof terrace, while several of the apartments and townhouses would feature private outdoor spaces. This mix aims to foster a sense of community and offer high-quality urban living for a diverse population.

Supporting Manchester’s Regeneration Vision

The site is located at the northern gateway of Manchester city centre and stands adjacent to the ambitious Strangeways and Cambridge Regeneration Framework. That long-term initiative, jointly led by Manchester and Salford councils, seeks to deliver more than 7,000 homes, business spaces, and a major city park over the next three decades.

Linear Living’s project complements neighbouring developments already underway and is aligned with the vision of enhancing the Green Quarter as a vibrant, accessible, and sustainable urban area.

Next Steps and Timeline

Following public consultations held in late 2025 and early 2026, the application is now awaiting council approval. Should the project receive the green light, construction could begin before the close of 2026 and is targeted for completion in early 2029.

The plans underscore Linear Living’s growth strategy after their recent Trafford Gardens project and highlight strong confidence in the continuing demand for city centre homes.

Sources

Government project portfolio reduced significantly.

Government Slashes Major Projects Portfolio by Two-Thirds to 81 Schemes

/in , /by

The National Infrastructure and Service Transformation Authority (Nista) has significantly reduced the Government’s Major Projects Portfolio (GMPP) from over 200 schemes to just 81. This strategic move aims to enhance focus and ensure expert advice is directed where it can have the greatest impact, streamlining oversight and strengthening departmental accountability.

Key Takeaways

  • The GMPP has been cut from over 200 projects to 81.
  • Projects must now support a top government priority, have a whole-life cost exceeding £1bn, and benefit most from central support.
  • The reduction is intended to allow Nista to provide more targeted and agile support.
  • Major civils projects largely remain within the portfolio, but some road and specific infrastructure projects have been removed.
  • Nista is collaborating with industry leaders to improve project delivery and alignment.

Streamlining for Impact

Nista, which took over management of the GMPP from the Infrastructure and Projects Authority (IPA) last year, has implemented new criteria for inclusion. Projects must now “support a top government priority,” possess a whole-life cost exceeding £1 billion, and be projects that would “benefit most from central support and scrutiny.” This rigorous selection process is designed to concentrate Nista’s resources and expertise on the most critical and impactful initiatives.

Projects Remaining and Excluded

The majority of significant civil engineering projects, including HS2 Phase 1, East West Rail, Sizewell C, Northern Powerhouse Rail, Lower Thames Crossing, and the Midlands Rail Hub, remain within the revised GMPP. However, some schemes, such as the A428 Black Cat to Caxton Gibbet and A417 Missing Link road projects, along with the Sellafield product and residue store retreatment plant project and the public sector decarbonisation fund, have been removed. Nista clarified that projects not included still receive support and are delivered according to government priorities, with provisions for adding strategically vital projects in exceptional circumstances.

Collaboration with Industry

To further bolster project delivery, Nista has been engaging with leaders from major UK contractors. A recent roundtable, co-hosted by Balfour Beatty and Nista CEO Becky Wood, brought together executives from firms like Kier, Costain, Galliford Try, and Mace, alongside government representatives. The discussions focused on aligning industry and government efforts, exploring shared approaches to benchmarking, and enhancing productivity to deliver resilient, affordable, and sustainable infrastructure. Participants acknowledged that collaboration is key to achieving meaningful progress and committed to continued joint action.

Driving Economic Growth

Andy Beard, managing director for infrastructure in Europe at Mace Consult, noted that while the UK possesses world-leading delivery capabilities, it often lags behind international peers in project completion times. He highlighted that a more focused portfolio, with targeted support for high-impact programmes, is a positive step towards addressing challenges such as external economic volatility. The progress of these 81 key programmes is expected to serve as a significant indicator of effective government delivery and its contribution to economic growth.

Sources

Industrial conveyor belt system in a quarry setting.

Huws Gray Fined £2.2 Million After Tragic Conveyor Belt Fatality

/in , /by

Building merchant Huws Gray has been fined £2.2 million following the tragic death of a worker, Paul Coulson, who was crushed by a three-tonne pallet of timber at their Herringswell Sawmills site in Suffolk in May 2024. The incident occurred when a colleague unknowingly started a conveyor belt while Mr Coulson was inside its framework, leading to fatal crush injuries.

Key Takeaways

  • Huws Gray pleaded guilty to breaching the Health and Safety at Work Act.
  • The company was fined £2.2 million and ordered to pay £9,929 in costs.
  • The incident highlights failures in safeguarding machinery and preventing access to dangerous areas.

The Fatal Incident

The tragic event unfolded on May 22, 2024, when 56-year-old labourer Paul Coulson was tasked with removing plastic packaging from timber pallets before they entered the mill’s processing machinery. Mr Coulson climbed inside the conveyor’s framework to access some of the packaging. However, another operative, unable to see him, started the conveyor. The pallet of timber moved forward, colliding with Mr Coulson. The operative attempted to reverse the pallet, but this resulted in a second collision, causing fatal crush injuries.

Investigation and Findings

An investigation by the Health and Safety Executive (HSE) revealed that Huws Gray had previously identified employees accessing the danger zone within the conveyor and had placed signage instructing them not to. Despite this, CCTV analysis showed that between April 14 and May 23, 2024, operatives entered the conveyor framework on 19 separate occasions. While warning stickers were placed on the machinery, no further action was taken to prevent access until after the tragedy.

Sentencing and Company Response

At Chelmsford Magistrates’ Court on March 26, 2026, Huws Gray Limited pleaded guilty to breaching the Health and Safety at Work etc Act 1974. The company was fined £2.2 million and ordered to pay full costs. In a statement, Huws Gray acknowledged the judgment, expressed deep regret, and stated that their thoughts remain with Mr Coulson’s family. They emphasised that additional safety measures have been swiftly implemented to prevent future occurrences.

HSE Statement and Recommendations

HSE inspector Joanne Williams described the incident as a “staggering failure” that cost a man his life. She highlighted that the company chose to control a serious risk through instruction alone, rather than implementing proper safeguarding measures. The HSE stressed that all companies must follow the hierarchy of control for guarding dangerous machinery. Following the incident, Huws Gray introduced physical guards on the conveyor, procedural changes to ensure pallets are unwrapped before processing, and increased CCTV coverage.

Sources

Government construction framework blueprint for public sector projects.

Government Unveils £120bn Construction Framework: A New Era for Public Sector Projects

/in , /by

The UK government, through the Crown Commercial Service (CCS), has launched a significant tender for its next major public sector construction framework, estimated to be worth a colossal £120 billion before VAT. This eight-year agreement, known as Construction Works and Associated Services 3 (CWAS3), is set to commence in January 2027 and will consolidate several existing frameworks, including the NHS ProCure route.

Key Takeaways

  • A new eight-year public sector construction framework valued at an estimated £120 billion (excluding VAT).
  • The framework, CWAS3, will run from January 2027 to January 2035.
  • It integrates existing CCS construction frameworks and the NHS ProCure platform.
  • The scope is broad, covering general construction, civil engineering, infrastructure, offsite solutions, defence, international projects, and nuclear work.
  • The tender process is open, with enquiries due by 30 April and tenders by 21 May.

A Consolidated Approach to Public Construction

The CWAS3 framework is designed to streamline procurement for central government departments and a wide array of public sector bodies across the UK. This includes local authorities, health bodies, police, fire and rescue services, educational institutions, housing providers, charities, defence organisations, and devolved administrations. The framework aims to provide a single, simplified route for procuring construction works, associated goods, and services for all types of built assets and infrastructure.

Extensive Lotting Structure for Diverse Needs

To cater to the varied requirements of public sector projects, the framework has been meticulously divided into seven core lots, further broken down into 41 specific lots and sub-lots. These cover general construction and civil engineering, which are further segmented by region and value band, ranging from projects under £5 million to those exceeding £250 million. Specialised areas such as demolition, offsite solutions, health, justice, defence (including maritime, airfields, and nuclear projects), international work, and nuclear projects are also addressed in dedicated lots.

Integration of NHS ProCure and Offsite Solutions

A significant aspect of CWAS3 is its incorporation of the next generation of the NHS ProCure route, known as ProCure 24. This ensures continuity for major healthcare capital programmes. Additionally, the framework absorbs the Offsite Construction Solutions agreement, reflecting a growing emphasis on modern methods of construction. CCS anticipates that the framework will allow for call-offs both with and without competition, a feature designed around the principles of the Construction Playbook and industry ‘Gold Standards’.

Procurement Timeline and Evaluation Criteria

The procurement process is being managed as an open procedure. Suppliers are invited to submit enquiries by 30 April, with tenders due by 21 May. CCS expects to make award decisions by 11 January 2027. The evaluation of bids will consider price as a significant factor (30%), alongside crucial elements such as lifecycle value, supply chain management, delivery capabilities, social value, accessibility, innovation, and alliancing strategies. Suppliers will be subject to a fee of 0.2 per cent of charges invoiced under call-off contracts.

Sources

HS2 construction site with cranes and machinery.

HS2 Costs Soar Past £43 Billion as Contractors Prepare for Scrutiny

/in , /by

The High Speed 2 (HS2) project has now surpassed an astonishing £43 billion in expenditure, with contractors bracing for significant criticism over escalating budget increases. The Department for Transport has revealed that £43.6 billion has been spent to date, a substantial rise from previous figures, as the government commits to a renewed effort to control costs and streamline the construction programme.

Key Takeaways

  • Over £43 billion has been spent on HS2, with the latest figures showing a significant increase.
  • The government is undertaking a “reset” of the project to control costs and improve productivity.
  • Reducing the top speed of trains is being considered as a potential cost-saving measure.
  • Revised cost and schedule estimates are expected by the summer recess.

Escalating Expenditure and Government Response

The Department for Transport’s latest six-month update indicates that £43.6 billion has been spent on the HS2 scheme as of the end of last month. This figure rises to £46.2 billion when accounting for the £2.6 billion spent on the now-abandoned Phase 2 of the project. The majority of the expenditure, £30.9 billion, has been allocated to civil engineering works, with an additional £2.9 billion directed towards station construction.

HS2 chief executive Mark Wild, who assumed leadership in 2024, has been actively engaged in renegotiating construction contracts with firms in an effort to curb rising costs. Transport secretary Heidi Alexander has previously voiced concerns about “uncontrolled costs and extremely poor productivity and performance from the supply chain.”

Efforts to Reset and Reduce Costs

In response to the ongoing budget challenges, the government is implementing a “reset” of the project. This initiative includes reshaping HS2 Ltd and continuing dialogue with suppliers to review contracts. Recommendations from an independent review are also being implemented to ensure the railway is delivered safely and at the lowest feasible cost.

One significant proposal under consideration is reducing the top speed of the trains. Currently designed to operate at 360 kph (224 mph), this specification is higher than any existing railway in the UK or globally. The current approach necessitates the construction of HS2 tracks before train testing can commence, potentially increasing costs and delaying completion. An alternative would involve testing trains abroad on existing high-speed tracks.

Mr. Wild’s initial assessment suggests that reducing train speeds could save “low billions” and expedite the railway’s entry into service by mitigating risks associated with programme delivery and testing. A final decision on this matter, along with revised cost and schedule estimates, is expected from Mr. Wild before Parliament’s summer recess in mid-July.

Future Outlook

The government will review the outcomes of these assessments and supplier engagements before publishing the new cost and schedule estimates, pending full assurance and approval. While acknowledging that these measures will not rectify past failures, they are intended to establish a realistic and controlled pathway for completing the remaining work on the HS2 project.

Sources

Plymouth Civic Centre undergoing transformation into flats and skills hub.

Plymouth Civic Centre Set for £50m Transformation into Flats and Skills Hub

/in , /by

Plans have been officially submitted for a significant £50 million redevelopment of Plymouth’s iconic Civic Centre. The ambitious project aims to breathe new life into the long-empty building, transforming it into a vibrant hub featuring 144 new apartments and a state-of-the-art campus for City College Plymouth. This initiative is poised to be a cornerstone of the city centre’s regeneration.

Key Takeaways

  • £50 Million Investment: The project is backed by substantial public funding and corporate borrowing.
  • Dual Purpose: The Civic Centre will house both residential apartments and an educational facility.
  • Skills Development: City College Plymouth’s new campus will focus on future-proof industries.
  • Revitalised Public Space: The surrounding area will undergo landscaping and refurbishment.

A New Era for the Civic Centre

The lower floors of the Civic Centre are earmarked for City College Plymouth’s “Blue-Green Skills Hub.” This facility is designed to train up to 2,000 students annually, offering a wide array of courses from apprenticeships to higher education. The curriculum will focus on key growth sectors such as marine engineering, renewable energy, and sustainable construction, preparing students for the jobs of the future.

The upper levels of the tower will be converted into 144 one and two-bedroom apartments. These homes are being designed to meet modern living standards, incorporating elements of the building’s original structure, including the distinctive concrete “waffle” ceilings, to create a stylish, contemporary aesthetic.

Funding and Development Details

The project has secured approximately £47.5 million for the initial shell and core works from various public sources, including the Future High Streets Fund, the Levelling Up Fund, and the Homes England Brownfield Infrastructure and Land Fund. City College Plymouth and a private residential developer will separately fund the fit-out of their respective spaces.

Councillor Mark Lowry, city centre champion, expressed his excitement, stating, “The Civic was symbolic of the city’s post-war regeneration and it is playing a leading part in our new vision for the city centre.” The surrounding area will also be enhanced with new planting, seating, and a refurbished pond.

Public Engagement and Future Vision

While a small percentage of the population responded directly to surveys, public engagement efforts saw significant online interaction, with hundreds of thousands viewing social media posts and visiting the consultation website. Feedback indicated strong support for the project, particularly from younger demographics eager for new living and learning opportunities in the city centre. Despite some lingering desires for demolition, the building’s listed status means preservation and redevelopment are the chosen path forward.

The transformation of the Civic Centre, originally opened by Queen Elizabeth II in 1962, marks a significant step in Plymouth’s ongoing urban regeneration, aiming to create a dynamic and functional heart for the city.

Sources

Modern co-living building and health hub in Elephant Park.

Elephant Park Regeneration Enters Final Phase with New Co-Living and Health Hub Approved

/in , /by

The final phase of the extensive Elephant Park regeneration project in South East London has received approval, marking a significant step forward for the 3,000-home development. This latest phase, known as Chords, will introduce a substantial co-living component alongside much-needed community infrastructure, including a new NHS health centre.

Key Takeaways

  • The final phase will deliver 695 co-living flats and 20 family homes.
  • A new NHS health centre will be integrated into the development.
  • All affordable housing will be provided at social rent.
  • The project aims to create London’s first purpose-built co-living scheme.

Chords Development Details

The 1.2-acre mixed-use development, named Chords, will be brought forward by developer Hub. Designed by Allford Hall Monaghan Morris (AHMM), the scheme will comprise three buildings. It will feature 695 co-living flats and 20 three-bedroom family homes. Alongside the residential units, the development will include essential community infrastructure, most notably a new NHS health centre.

The health hub is set to occupy the lower floors of one of the blocks, addressing the growing demand for local healthcare facilities as the neighbourhood’s population expands. Hub’s managing director, Damien Sharkey, expressed excitement about moving forward with the site, highlighting it as their largest co-living-led approval to date and a significant contribution to both the Elephant Park neighbourhood and the wider co-living sector.

Affordable Housing and Community Spaces

Plans submitted for the final phase include the delivery of 678 co-living homes and affordable housing. Crucially, all affordable housing on this site will be designated for social rent, comprising one, two, and three-bedroom family homes. This commitment ensures that essential housing needs within the community are met.

Landscape architect Gillespies has designed the communal areas, which will include a shared podium courtyard, a dedicated children’s play area, and two rooftop terraces. These elements, along with public realm improvements, aim to enhance the quality of life for residents and integrate the new development seamlessly with the existing Elephant Park.

Wider Elephant and Castle Regeneration

The Elephant Park development is a key component of the broader regeneration of the Elephant and Castle area in the borough of Southwark. This extensive programme encompasses 26 projects, including the creation of a new town centre. Previous phases of Elephant Park, including Trafalgar Place, South Gardens, and West Grove, have already been completed by developer Lendlease. The area now boasts an open park, new shops, restaurants, cafes, and community spaces, with the final phase set to round off this transformative regeneration effort.

Sources

British steelworks facility with industrial machinery and raw materials.

British Steel Bailout Costs Soar: Taxpayer Exposure Nears £1.5 Billion

/in , /by

The UK government’s intervention to save British Steel is proving significantly more expensive than initially anticipated, with potential taxpayer costs escalating towards £1.5 billion. The National Audit Office (NAO) has revealed that daily operational costs for the bailed-out company are substantial, and steel production has consistently fallen short of targets, raising concerns about the long-term financial implications.

Key Takeaways

  • The government’s support for British Steel could reach £1.5 billion by 2028.
  • Daily operating costs are approximately £1.3 million, nearly double the rate under previous Chinese ownership.
  • Steel production has been behind schedule almost every week since the government takeover.
  • Ageing infrastructure is contributing to operational issues and safety concerns.

Escalating Financial Burden

The Department for Business and Trade (DBT) has already spent £377 million to prevent the closure of the Scunthorpe steelworks. This figure is projected to rise, with daily costs estimated at £1.4 million. The NAO report highlights that there is no defined end date for this support, leading to uncertainty about the total financial commitment.

Operational Challenges

British Steel’s production has been hampered by ageing infrastructure, leading to unplanned outages and operational problems. An incident involving a gas leak and molten steel eruption at the basic oxygen steelmaking plant in May 2025, which injured an employee, underscores these challenges. Despite efforts to improve health and safety, reported incident rates have not yet shown demonstrable improvement.

Economic Impact and Future Uncertainty

Even with government backing, British Steel is forecast to incur significant losses. The company’s liabilities are expected to exceed its assets, with a projected deficit of £866 million by June. The intervention, while preventing immediate job losses and disruption to major projects, may reduce funding for other initiatives within the steel sector. A ministerial decision on the future ownership and a broader industry strategy have been delayed.

Government Response

A government spokesperson stated their commitment to supporting British steelmaking and protecting jobs. They confirmed regular updates to Parliament on spending and ongoing discussions with the current owner, Jingye, to find a sustainable solution for the company’s future.

Sources

Construction of the Hereford bypass road project.

Graham Secures Design Contract for £35 Million First Phase of Hereford Bypass

/in , /by

Construction firm Graham has been awarded a significant contract to design the initial phase of the Hereford bypass, a project valued at £35 million. This development marks a crucial step forward for the long-awaited Western Bypass, aimed at alleviating traffic congestion in the city and improving regional connectivity.

Key Takeaways

  • Graham will lead the design and delivery strategy for a 3.6km link road.
  • The project is the first phase of the 8km Western Bypass.
  • Construction is anticipated to commence in December, with completion by the end of 2028.

Project Overview

The newly rebranded Phase 1 of the 8km Western Bypass project will see Graham develop the design and delivery strategy for a new 3.6km link road. This road will connect the A49 and A465, aiming to significantly ease congestion on the southern approaches to Hereford. By diverting traffic away from busy urban routes, the bypass is expected to improve traffic flow within the city and enhance connections to South Wales and the Hereford Enterprise Zone.

Design and Delivery Strategy

Graham will collaborate with AtkinsRéalis to undertake the early-stage design and technical development work. The scope of this phase includes the planning for several structures and underpasses, notably a bridge designed to span the Hereford–Newport railway line. This early involvement is seen as critical for mitigating potential risks and ensuring a successful project execution.

Future Plans

A separate tender process will be initiated this summer to appoint the main contractor responsible for the full construction package. Following the design and planning stages, construction is slated to begin on site in December. The revived scheme, which had been previously paused in 2019, is now on track for completion of its first phase by the end of 2028.

Sources

RECENT POSTS

CONTACT US

  01425 657289

  info@gcsconstructionmedia.com

SUBSCRIBE

GCS Construction Media delivers trusted UK construction news, insights, and project updates, connecting industry professionals through expert editorial, digital platforms, and sector-focused publications across the built environment.

© GCS Construction Media  |  all rights reserved 

Privacy Policy  |  Cookie Policy