Tag Archive for: Business Insights

Building Safety Regulator concludes legacy cases by year-end.

Building Safety Regulator Set to Conclude Gateway 2 Legacy Cases by Year-End

The Building Safety Regulator (BSR) is on track to resolve the remaining complex legacy cases under the Gateway 2 process by the end of the year, marking a significant milestone in its efforts to enhance building safety across England. This push aims to clear a substantial backlog and transition towards a more streamlined regulatory approach.

Key Takeaways

  • The BSR is actively reviewing the final 29 long-running legacy schemes.
  • Applications that cannot be resolved within the next one to two months will be rejected.
  • The regulator has seen a significant acceleration in Gateway 2 performance, with a 250% increase in decisions in late 2025.
  • The BSR is moving to arm’s-length status, a step towards a single construction regulator.

Clearing the Backlog

The BSR has confirmed it is meticulously reviewing the final 29 legacy schemes on a case-by-case basis. Developers with applications that cannot be resolved within the next one to two months will be required to start afresh with new submissions, as information gaps on some projects are too significant to bridge. This stricter approach is being implemented as the BSR transitions to arm’s-length status under the Ministry of Housing, Communities and Local Government, a move that signals progress towards the establishment of a unified construction regulator, a key recommendation from the Grenfell Tower Inquiry.

Accelerated Progress and Future Outlook

Legacy new-build cases have seen a dramatic reduction, falling from 81 in early November to just 29. While approval rates for viable legacy cases remain high at 87%, the regulator acknowledges that these cases continue to consume disproportionate resources. The BSR’s latest progress report highlights a sharp acceleration in Gateway 2 performance, with the final quarter of 2025 delivering a record 673 decisions, a substantial increase from just over 200 in early 2025. In the 12 weeks leading up to January 24th, an additional 698 decisions were issued, bringing the total live applications across all categories to 1,159.

Broader Responsibilities and Challenges

Charlie Pugsley, acting chief executive officer of the BSR, stated that the move to standalone status represents a significant new chapter, expanding the regulator’s mandate beyond high-rise oversight to encompass broader safety and standards across all buildings in England. The aim is to foster a holistic approach from design through to lifelong building management by enhancing professional competence and refining regulatory guidance. Despite the progress, challenges persist, particularly concerning application quality. Over half of applications submitted to the Innovation Unit fail initial validation due to missing essential design information.

Addressing Remediation and Future Approvals

While new build approvals are gaining momentum, progress on remediation projects remains slower, with over 250 applications covering more than 22,000 homes awaiting clearance. To address this, the BSR plans to establish a new centralised Remediation Unit, modelled on the successful Innovation Unit, supported by additional technical staff and closer collaboration with Homes England. A new batching system has also been introduced to send weekly bundles of new build and remediation cases to engineering service suppliers, aiming to clear the current backlog and expedite future approvals.

Sources

Builder threatens inspectors, claims to be James Bond.

Builder Fined Over £10,000 After Threatening HSE Inspectors and Claiming to Be ‘James Bond’

A site manager, who identified himself to Health and Safety Executive (HSE) inspectors as ‘James Bond’, has been fined over £10,000 for threatening behaviour and obstructing their work. David Robert Lane, 59, refused to cooperate with inspectors investigating unsafe practices at a cottage refurbishment site in Staffordshire.

Key Takeaways

  • A builder claimed to be ‘James Bond’ when confronted by HSE inspectors.
  • He threatened the inspectors and refused to allow them to inspect the site.
  • The builder was fined £3,000, with £6,450 in court costs and a £1,200 victim surcharge.
  • The HSE emphasised its zero-tolerance policy towards the obstruction of its inspectors.

Confrontation and Threats

The incident occurred on February 11, 2025, when two HSE inspectors observed workers accessing a roof from an excavator bucket at a site in Rugeley. When they approached to conduct their inspection, Lane intervened. He refused to provide his real name, stating he was ‘James Bond’, and claimed to be the property owner. He asserted that the workers were unpaid friends and relatives and that the inspectors had no legal right to be there. Lane then made threats of violence, leading the inspectors to withdraw from the site.

Return with Police and Prosecution

The inspectors returned a week later, accompanied by officers from Staffordshire Police. Lane greeted them with a shout of “It’s PC Plod!” and continued to refuse identification. He instructed his staff not to speak to the HSE, reiterating that they were not at work and that the inspectors should leave. Following further inquiries, Lane was identified as the site manager and served with enforcement action. Upon notification of prosecution for obstruction under the Health and Safety at Work etc Act 1974, Lane sent three expletive-laden emails, stating, “I won’t jump through your hoops.”

Court Proceedings and Sentencing

David Robert Lane, of Rugeley, Staffordshire, failed to attend Birmingham Magistrates Court on two separate occasions. He was found guilty in his absence on January 9 and subsequently fined £3,000. He was also ordered to pay £6,450 in court costs and a £1,200 victim surcharge, bringing the total to £10,650.

HSE Statement

HSE inspector Gareth Langston commented on the case, highlighting the challenges faced in ensuring workplace health and safety across Great Britain. He stressed that HSE inspectors have a vital role in safeguarding workers and that while most employers cooperate professionally, obstruction will not be tolerated. “HSE will not tolerate the obstruction of its inspectors, and may prosecute offenders in rare cases such as this, where this is necessary,” Langston stated.

Sources

Minister looking at distant train tracks, Northern Powerhouse Rail project.

Northern Powerhouse Rail: Minister Dodges Deadline for £45bn Project

Rail minister Lord Peter Hendy has declined to provide a specific completion deadline for the £45bn Northern Powerhouse Rail (NPR) project, stating that significant railway improvements “take a very long time.” While acknowledging that benefits will begin to be felt in the 2030s, Lord Hendy could not offer a precise timeline for all components of the scheme, emphasizing the need for careful planning and safe delivery.

Key Takeaways

  • No firm completion date set for the £45bn Northern Powerhouse Rail project.
  • Benefits expected to emerge in the 2030s, with full completion potentially by 2045.
  • Industry bodies call for a clear delivery timetable to enable investment and planning.
  • Government commits to £1.1bn spending by 2029, with a £45bn cap thereafter, in 2026 prices.

Project Timeline Uncertainty

During a House of Lords debate, Baroness McIntosh of Pickering pressed Lord Hendy for a completion date for the ambitious project aimed at improving rail links across the North of England. The minister responded by stating, “I can’t tell her precisely when all the parts of the improvements will be delivered because… we do need to plan this out properly.” He cautioned that railway improvements are lengthy processes, stressing the importance of safe execution, a stark contrast to historical construction methods.

Reports following the initial announcement of the revived NPR plans suggested a completion date of at least 2045. This lack of a definitive timeline has drawn concern from industry stakeholders.

Industry Calls for Clarity

The Civil Engineering Contractors Association (CECA) has urged the government to provide a “clear delivery timetable” for NPR. Ben Goodwin, CECA’s director of policy and public affairs, highlighted that such clarity is “essential for industry to invest and deliver.” He added that maintaining momentum and allowing the industry to plan for “spades in the ground” are crucial for transforming the project from an aspiration into tangible improvements for people’s lives.

Funding and Scope

The NPR proposals outline a £45bn investment to connect cities from Liverpool to Newcastle through a three-stage plan, including a new line between Liverpool and Manchester. The government plans to allocate £1.1bn to the project by 2029, with a spending cap of £45bn for subsequent phases. Lord Hendy confirmed that this £45bn figure is in “2026 pounds,” aiming to avoid the inflationary accounting issues seen with HS2.

Lord Hendy also pushed back against assumptions that NPR would face the same budget overruns as HS2, citing the progress on the Transpennine route upgrade as evidence that substantial enhancements can be achieved with proper planning and within budget constraints.

Future Infrastructure Plans

In addition to NPR, the government intends to construct a new line between Birmingham and Manchester, distinct from the cancelled northern leg of HS2. Lord Hendy confirmed that land is being retained between the West Midlands and Crewe, anticipating that a railway will eventually be needed to address capacity issues. However, he indicated this would likely not be a high-speed line, nor built to the costly specifications of HS2 Phase 1.

Sources

Gavel striking sound block near coins and legal papers.

Contractor’s £22,000 Levy Appeal Fails Amidst System Criticisms

A Surrey-based contractor, MJL Construction Associates, has been ordered to pay nearly £22,000 after losing its appeal against the Construction Industry Training Board’s (CITB) levy system. The company disputed levies for 2021 and 2022, citing concerns over apprenticeship training quality and questioning the assessment of subcontractors.

Key Takeaways

  • MJL Construction Associates was ordered to pay £21,913.27 in CITB levies.
  • The contractor argued that subcontractors should be responsible for their own levy payments.
  • The tribunal ruled that the company was correctly assessed under current legislation.

The Legal Challenge

MJL Construction Associates took the CITB to an employment tribunal, arguing that the levy system was failing. Director Leslie Blay contended that there was a “lack of face-to-face apprenticeship training courses,” questioning their standard, distance, and perceived lack of support. He also disputed the assessment, believing that subcontractors, who were also registered with the CITB, should be liable for the levy themselves.

Blay acknowledged that his only legally viable ground for appeal was the CITB’s assessment of his firm. However, he expressed a desire to critique the broader system, which he felt was not functioning effectively. He claimed that knowledge of the levy was “patchy” and that some eligible companies were not paying, leading to a disproportionate burden on others.

CITB Levy Explained

All firms with employees spending more than half their time on construction activities are mandated to pay the CITB levy. This funding is crucial for developing training within the industry, particularly benefiting smaller enterprises. Contractors are also liable for the levy on payments made to “net paid” subcontractors.

Tribunal’s Verdict

Judge Samantha Moore stated that legislation clearly obliged MJL Construction Associates to pay the levy concerning net-paid bona fide contractors. She clarified that this was not a case of the appellant paying on behalf of others, as many subcontractors should also be liable for their own levies. While acknowledging Blay’s concerns about the system’s fairness, the judge ruled that such arguments held no legal standing in this jurisdiction. Consequently, the tribunal found MJL had been correctly assessed and ordered the payment of £21,913.27.

CITB’s Response

A CITB spokesperson confirmed that MJL Construction Associates had exercised its statutory right to appeal. The spokesperson reiterated that the law requires registered employers to declare and be assessed on all payments made to net CIS subcontractors, irrespective of the subcontractor’s own levy status. This can indeed lead to both parties being assessed on the same work, a practice deemed lawful.

Sources

Cityscape at dusk with illuminated skyscrapers

Higgins Group Surges Back to Profitability with Turnover Exceeding £300 Million

Family-owned contractor Higgins has announced a significant return to profitability, with its annual turnover surpassing the £300 million mark. This marks a strong recovery after two years of losses, driven by a substantial increase in revenue and strategic management of legacy issues.

Key Takeaways

  • Higgins Group reported a pre-tax profit of just over £1 million for the year ending July 2025, a notable increase from £280,000 in the previous period.
  • Turnover surged by 51% to £315 million, exceeding the £300 million threshold.
  • The company allocated £7.3 million towards rectification works on older projects and set aside an additional £3.9 million for remaining repairs.
  • Despite market challenges, sales rates and values remained in line with expectations, demonstrating the desirability of their homes.
  • The firm’s financial health improved, with cash reserves rising to £25 million and debt reducing to £14.7 million.
  • Higgins Homes has entered a not guilty plea to corporate manslaughter charges related to a 2018 incident.

Financial Recovery and Growth

The Essex-based contractor has successfully navigated a challenging period, reporting a pre-tax profit of just over £1 million for the year ending July 2025. This figure represents a substantial improvement from the £280,000 profit recorded in the previous year. The company’s income experienced a significant boost, climbing by 51% to reach £315 million, comfortably surpassing the £300 million milestone.

Addressing Legacy Issues

Higgins acknowledged spending £7.3 million on “rectification works” for older schemes during the reporting year. Furthermore, the company has earmarked an additional £3.9 million to address remaining repair obligations. Despite these costs, the firm expressed confidence in the quality and desirability of its housing developments, noting that sales rates and values were broadly in line with expectations.

Market Challenges and Future Outlook

While celebrating its financial turnaround, Higgins highlighted ongoing challenges within the construction sector. The company noted that regulatory requirements from the Building Safety Regulator, coupled with a complex planning system, have led to project start delays, particularly in London. Nevertheless, the firm’s financial position has strengthened, with cash reserves increasing by over £15 million to £25 million and total debt decreasing from £20 million to £14.7 million.

Legal Proceedings

In a separate development, Higgins Homes has entered a plea of not guilty to charges of corporate manslaughter. The charges stem from a fatal accident that occurred on a Higgins Homes construction site nearly eight years ago, involving the death of 28-year-old pedestrian Michaela Boor. The company stated that its directors believe there is a strong defence. A trial is anticipated to commence later this year.

Higgins was ranked 93rd in Building’s Top 150 Contractors & Housebuilders list last year, marking a rise of 28 places from the previous year.

Sources

Empty office space with reduced staff.

Hawkins Brown Faces Significant Profit Slump, Implements Staff Reductions

Architectural firm Hawkins Brown has announced significant staff cuts following an alarming 80% drop in pre-tax profits for the year ending March 31, 2025. The firm’s financial performance has seen a notable decline, prompting these measures to address the challenging economic climate.

Key Takeaways

  • Pre-tax profit plummeted by 79%, from £1.3m to £267,000.
  • Turnover decreased by 16%, falling from £35.3m to £29.5m.
  • The average number of employees was reduced by 49, a 15% decrease.
  • The firm’s wage bill saw a reduction from £17m to £15.2m.

Financial Performance Decline

Hawkins Brown reported a substantial decrease in its financial standing for the fiscal year 2024-2025. Turnover experienced a 16% fall, dropping to £29.5m from £35.3m in the previous year. More critically, pre-tax profit saw a dramatic slump of 79%, reducing from £1.3m to just £267,000. This significant downturn in profitability has directly led to operational adjustments within the practice.

Staff Reductions and Cost Savings

In response to the financial pressures, Hawkins Brown has reduced its workforce. The average number of employees decreased by 49, representing a 15% reduction from 318 to 269 individuals over the reporting period. These staff cuts have contributed to a decrease in the firm’s wage bill, which fell from £17m in 2024 to £15.2m in 2025, indicating a strategic effort to manage costs effectively.

Market Performance

The firm’s income from its primary market, the UK, also saw a decline, falling from £33.3m to £28m. International revenue also slid from £2m to £1.4m, reflecting a broader challenge across its operational territories. This reduction in income underscores the difficult market conditions the practice has been navigating.

Notable Projects

Despite the financial challenges, Hawkins Brown has been involved in several significant projects. The firm was responsible for the design of Manchester Metropolitan University’s All Saints Library, though plans had to be substantially revised due to escalating construction costs. Other projects undertaken during the accounting period include a refurbishment of the grade II*-listed Norwich City Hall and a major redevelopment of London’s Victoria Station in collaboration with Acme for Network Rail.

Sources

London skyline with construction cranes and unfinished buildings.

London’s Housing Crisis Deepens Amidst Critical Construction Skills Shortage

London is grappling with a severe housing crisis, exacerbated by a significant shortage of skilled construction workers. This deficit is not only delaying new home builds but also prompting potential buyers to opt for older properties, further straining the market. The situation highlights a critical need for workforce development in the capital’s building sector.

Key Takeaways

  • Over 10% of Londoners face waits exceeding a year for essential tradespeople like handymen and electricians.
  • A similar percentage of prospective buyers have delayed moving into new builds due to construction delays caused by a lack of tradespeople.
  • Many are choosing older homes over new builds because of projected longer construction timelines.
  • A tenth of potential buyers have abandoned purchases entirely due to mortgage offer expirations caused by building delays.

The Scale Of The Skills Gap

New data reveals the stark reality of London’s construction labour shortage. Polling indicates that more than one in ten London residents have endured waits of over a year for services from handymen or electricians. The situation is equally dire for other trades, with less than five percent of residents able to secure a roofer within a month, and only three percent finding a bricklayer in the same timeframe.

Impact On New Builds And Homebuyers

The consequences for the new build sector are significant. Thirteen percent of survey respondents reported delays in moving into their new homes because construction was not completed on schedule, directly attributed to a shortage of skilled workers. Furthermore, the same proportion opted to purchase older properties instead of new builds, citing concerns about significantly extended construction periods. Alarmingly, one in ten individuals were forced to withdraw from purchasing a home altogether when their mortgage offers expired due to these persistent building delays.

Challenges For Tradespeople And The Wider Economy

Clive Holland of Fix Radio highlighted that the demand for construction work consistently outstrips the available workforce, a gap that has been widening. He noted that working in London has become increasingly challenging due to factors such as high daily charges, elevated operating costs, the risk of tool and van theft, and general safety concerns. These pressures are leading many tradespeople to relocate to areas like the Midlands or Bristol, where the day-to-day pressures are more manageable.

Government Targets And The Reality On The Ground

The Mayor of London is tasked with delivering 88,000 new homes annually for the next decade. However, last year saw the completion of only 11,600 new properties. The Deputy Mayor for Housing, Tom Copley, has acknowledged a “crisis” in construction skills, expressing concerns about the insufficient number of trained workers and a lack of educators to train the next generation. This shortage impacts not only the quantity but also the quality of new homes, with an increase in snagging and remedial work suggesting a decline in build quality.

Proposed Solutions And Future Outlook

Calls are being made to make London a more viable place for tradespeople, including suggestions to scrap ULEZ and congestion charges for them and to strengthen enforcement against tool theft. While the government has pledged significant funding to create more skilled construction workers by 2029, the immediate impact on London’s ambitious housing targets remains to be seen. The complexity of the issue extends to attracting talent to teach in further education colleges, with current pay scales being insufficient to draw experienced professionals from lucrative building sites.

Sources

Thurston Group building, securing jobs for over 200 employees.

Jobs Secured: Thurston Group Acquired Out of Administration, Safeguarding Over 200 Roles

Wakefield-based modular building manufacturer, Thurston Group, has been successfully acquired out of administration, securing the future of over 200 jobs. The deal, finalised on December 23rd, 2025, sees the company purchased by privately owned industrial firm GCH Corporation Ltd, preventing significant redundancies.

Key Takeaways

  • Over 200 jobs saved at Thurston Group.
  • GCH Corporation Ltd has acquired the modular building specialist.
  • Thurston Group faced “several business challenges” leading to administration.
  • The new owners are committed to stabilising and investing in the business.

Administration and Acquisition

Thurston Group, a manufacturer of modular and offsite buildings for sectors including healthcare, education, commercial, and industrial, had filed a notice to appoint administrators in late November 2025. The company, which employed 275 people at the time, appointed restructuring specialists Leonard Curtis to manage the administration process and identify a potential buyer. The sale to GCH Corporation Ltd was completed swiftly, with administrators confirming that the deal successfully protected over 200 jobs, although some redundancies were unavoidable.

New Ownership and Future Outlook

GCH Corporation Ltd, a London-based industrial manufacturing and distribution firm, acquired Thurston Group for an undisclosed sum. Cassie Hutchings, CEO of GCH Corporation, expressed enthusiasm for the acquisition, stating, “Thurston is a respected UK manufacturer of modular buildings with a strong heritage and deep sector expertise. As a long-term, privately owned industrial group, GCH is committed to stabilising and investing in the business. We are excited to welcome Thurston into the GCH family and look forward to supporting its next phase of growth.”

Business Challenges and Strategic Position

Thurston Group’s most recent annual results, for the year ending October 31, 2024, showed a revenue of £46.5m and a pre-tax profit of £2.5m. However, the company had warned of “numerous external pressures” impacting the construction industry, including decreased client spending, cost inflation, and labour shortages. Despite these challenges, Thurston Group holds positions on several significant public-sector frameworks, such as LHC Procurement Group’s £265m modular buildings framework and the £3bn Major Works Education Framework in London. The company had also made strategic acquisitions in the past year, including Storplan Racking Ltd and Alsim System Building, and had set ambitious turnover targets for 2027.

Sources

Kier Group contract for new Darlington Government Hub building.

Kier Group Secures Major Contract for New Darlington Government Hub

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.

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Henry Group Holdings liquidation: creditor claims and financial distress.

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

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