Heating and housing see spotlight in Autumn budget

The Autumn budget, announced today by Chancellor of the Exchequer John Healey, touched on many key issues effecting the building materials sector, inspiring cautious optimism from figures across the building materials sector.

As part of the Autumn budget, Healey announced plans to scrap standing charges on household gas bills, a move that could save millions of households money, but risks leaving those living in cold, poorly insulated homes paying more.

Under the proposals, the fixed costs currently covered by standing charges will instead be added to the price of gas consumed.

Ed Thomas, head of government and external affairs at Worcester Bosch comments; “the end of the gas standing charge is welcome news to consumers worried about their energy bills.

“While the costs will be added to the unit price of gas instead, this will still result in lower bills for many households who consumer smaller amounts of gas.”

However, while the Treasury estimates that 60% of households could save an average of £45 a year, Anna Moore, chief executive of retrofit consultancy Domna, highlights that those who need more energy to heat their homes could face higher bills.

“People living in cold, leaky homes could end up paying more simply because their homes need more energy to stay warm. This is why the government must not just tackle the symptom, but the cause of high heating bills — our ageing, underinvested homes.

“We cannot keep shifting charges around while heat escapes through the country’s poorly insulated roofs, walls, and windows.

“The Warm Homes Plan is welcome but to go even further, removing VAT on the full range of retrofit works would make it cheaper for households and housing providers to invest in warmer, more efficient homes. So too would sticking the landing with higher EPC minimums — mooted to come into force in 2030.”

Healey’s budget also announced that the government will be providing a £100 energy payment directly into bank accounts to support consumers with higher energy bills.

Thomas says; “The Chancellor’s announcement of direct support on energy bills will help many households. Paired with his extension of the VAT zero-rating, these interventions will help restrain the expected rise in energy costs over the next few months, although they will not eliminate it.

“Alongside this immediate relief, it’s crucial we help households use less energy without compromising on comfort.

“Longer term, the government should consider how to make upgrading heating technology and retrofitting homes simpler, more affordable and attractive to the consumer. This will empower people to stay warm while reducing emissions.”

Thomas also highlighted the Chancellor’s stated ambition to get energy costs in line with Europe. “It might not get as many headlines, but it is far more significant- and welcome- in the long run. His promise of a new Cost Control framework to drive down prices is extremely positive and his announcement that “green levies” will be removed from bills and funded directly from Government is a good start to this process.

“This kind of long-term Government action to reduce energy costs will help households, support the energy transition and boost economic growth. If he can deliver this, the Chancellor will have made an impressive achievement.”

Addressing the Budget’s impacts on housing, Huws Gray CEO Daksh Gupta celebrated the news of the Your First Home scheme, set to start in April 2027, which is intended to support first time home buyers, which the company hopes will inspire renewed interest in housing developments.

“The introduction of the Your First Home scheme is a welcome step towards stimulating demand for new housing,” says Gupta, “with the potential to provide a much-needed boost to the wider construction supply chain, including builders’ merchants.

“However, its success will depend on ensuring the scheme reflects the different economic and housing market conditions across the country. As a national builders’ merchant working closely with housebuilders, we recognise that supporting demand is only one part of the equation, and the scheme must also give developers the confidence and commercial incentive to bring forward new projects.

“Ultimately, the true measure of success will be whether this increased demand translates into more homes being built across the UK at a time when mortgage rates are 4 to 5 times higher than when previous schemed have been launched.”

Huws Gray also welcome the increased focus the Government has placed on addressing the skills gap across construction, addressing the well documented shortage of key roles as we scale up construction across the country.

“While the Government’s policies around addressing NEETs (those not in employment, education or training) and shortages in key construction trades are important, we continue to advocate for providing businesses with increased flexibility around their individual training and development programmes, for example investing Apprenticeship Levy funding in the areas where they need increased skills. With each business facing unique circumstances and challenges, providing this autonomy would provide a critical boost enabling operators to drive tailored professional development.”

“The Budget today was one of a positive, growth focussed outlook, easing some, but not all, of the pressures for businesses” adds Bradfords Building Supplies CEO David Young.

“As a Southwest based business, I welcome the additional powers and funding being given to regions. The Southwest has always been a region built on entrepreneurship, skilled trades and long-term investment.

“The construction sector has been waiting for a clear signal that housing delivery remains a national priority, and today’s Budget provides some welcome ambition. Commitments around housebuilding, planning reform and infrastructure investment have the potential to unlock projects that have been stalled for too long. That is good news not only for builders and developers, but also for communities across the Southwest that are crying out for more homes.

“For merchants, builders and tradespeople, confidence is often just as important as specific measures. While challenges remain around costs and market conditions, a stable policy environment gives companies the foundation they need to look ahead rather than simply manage the present.”