# Budget summary for construction workers
You can think of the latest Budget/Spring Statement as "more of the same" with a few numbers you need to clock: fuel duty still a problem in September, van perks a bit pricier, skills money pushed through CITB, and not much direct help for small builders.
Quick rule of thumb: if you're a small builder, don't expect a sudden flood of grants or tax breaks: the message from FMB is "same old, missed opportunity". The numbers that actually hit your pocket are fuel duty (September), van BIK (April), and the CITB training changes.
1. Fuel, vans and getting to site
Fuel duty
- The big freeze from earlier years is due to end · a 5p per litre fuel duty rise is still pencilled in for September 2026, which with VAT comes out at about 6p/litre extra unless the government changes course again.
- For anyone running a van every day, that is a straight hit to your margins. Build it into day-rates/price work now rather than eating it later.
Van benefit-in-kind (for those with company vans)
| 2025/26 | 2026/27 | |
|---|---|---|
| Annual van benefit charge | £4,020 | £4,170 |
| Van fuel benefit | £769 | £798 |
| Zero-emission vans | £0 | £0 |
What it means for you
- If you're PAYE with a "free van", your personal tax bill will creep up a bit from April. Make sure the benefit is still worth it compared with running your own motor.
- If you're CIS/self-employed, the key number is that fuel is set to be dearer from September unless the Chancellor U-turns · price your jobs on that basis.
2. Tax, NI and thresholds (headline for small firms and CIS)
- Income tax & NIC: the heavy lifting is in the separate tax-year guide, but the Budget/Spring Statement didn't bring big extra shocks beyond previously announced freezes and tweaks.
- VAT: the VAT registration threshold went up to £90,000 from April 2024 and stays there · so once your rolling 12-month turnover tips over £90k, you must register.
What it means for you
If your books are edging towards £80–90k turnover, you're in the zone where VAT registration will bite. You need a plan, either stay under deliberately, or register and adjust your pricing properly.
3. Capital allowances, tools and kit
Autumn 2025 Budget and the latest statements keep the push on investment and modernisation:
- Full expensing / boosted capital allowances for plant, machinery and digital kit are being kept and extended, aimed at encouraging firms to invest in new tools, MMC, green tech.
What it means for you
- If you run a limited company, buying bigger bits of kit (vans, plant, serious tools, IT) can often be written off faster against profits than before · worth a proactive chat with your accountant before any big spend.
- As a sole trader, you still have the Annual Investment Allowance · these reliefs mainly matter once you're profitable enough that tax savings are real money, not theory.
4. Skills, CITB and training money
The fiscal stuff sits alongside a big skills push aimed at construction:
- Government has put over £600m into tackling skills shortages with a target to train 60,000 new workers, including via Adult Skills Fund and apprenticeships.
- From 1 April 2026, CITB is changing how it funds training:
- Most short-course grants are going, replaced by Employer Networks and 50% match-funding for training, plus a new Large Employer Fund.
- Aim is more flexible, local, employer-led training (including modern methods, net-zero skills).
- The Federation of Master Builders called the 2026 Spring Statement a "missed opportunity" for small builders · lots of big talk, not much immediate, simple help on planning, retrofit or day-to-day costs.
What it means for you
- If you're a small firm paying CITB levy, you'll need to work through your local Employer Network to pull some of that money back as funded training. The casual "claim a day-course grant" days are ending.
- Keep an eye on funded routes into retrofit, insulation, energy-efficient kit · that's where the grant money will be, even if the Budget didn't spell out a simple "green homes" scheme.
5. Pipeline and work, housing, infrastructure, retrofit
Nothing in the latest Statement fundamentally changes the work picture, but a few signals matter:
- Government is still talking about 1.5m homes this Parliament, backed by planning reform and infrastructure spend, but trade bodies like FMB and HBF say the Spring Statement didn't add new fiscal help to actually unlock SME housebuilding.
- The Autumn Budget 2025 set out continued backing for major transport, energy and social infrastructure programmes, reinforcing a decent medium-term pipeline for civils and large contractors.
What it means for you
- If you're a small builder, don't expect a sudden flood of grants or tax breaks · the message from FMB is "same old, missed opportunity".
- If you're in civils/infrastructure, the public-sector pipeline still looks solid, but you'll be dealing with more complex procurement and carbon rules over time.
What to do next
- Price for the September fuel duty rise now · add it to your day-rate calculations and quotes so you're not eating 6p/litre on every van mile from autumn.
- If you're near £90k turnover, talk to your accountant about VAT registration timing and pricing · getting caught unaware is worse than planning for it.
- If you're CITB-registered, find out which Employer Network covers you and what training they're funding · the grant system is changing and you need to adapt.
- If you run a limited company, ask your accountant about full expensing before any big kit purchases · it could save you real tax.
Sources
- Autumn Budget 2025 and Spring Statement 2026 · headline construction measures, fuel duty, van BIK, skills funding, capital allowances.
- GOV.UK fuel duty rates · 5p/litre rise pencilled for September 2026.
- GOV.UK van benefit-in-kind rates · £4,170 (2026/27), fuel benefit £798.
- VAT registration threshold · £90,000 from April 2024, unchanged.
- CITB 2026 training changes · Employer Networks replacing short-course grants, 50% match-funding model.
- FMB Spring Statement response · "missed opportunity" for small builders on planning, retrofit and day-to-day costs.
- HBF commentary · housing pipeline and fiscal support gaps.
- Government skills commitment · £600m+ for 60,000 new construction workers.
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