Budget 2026 proposals prompt concerns from tech & construction

The UK's 2026 Budget proposals have drawn attention from multiple business sectors, raising concerns regarding their impact on investment, tax, and public spending. Analysts and business leaders are assessing the effect of the Chancellor's new measures on construction, technology, and other key industries.

Investment impact

The Budget introduces limits on tax thresholds and discusses the potential for new levies. Industry leaders have noted that decisions on public finance and support measures could have knock-on effects for a broad range of sectors. Construction and tech businesses are particularly sensitive to changes in investment incentives and thresholds.

"Construction and building services sit underneath almost every part of the economy, from housing and infrastructure to retrofit and day to day maintenance, so any squeeze on the cost of living or on business investment quickly finds its way onto sites and into supply chains. The Budget's focus on stabilising the public finances and targeting support at people who are still struggling with bills is understandable, but every frozen threshold and new levy risks taking spending power out of the system at the very moment we need demand and confidence to rise, not fall. The government talks a lot about the importance of homebuilding and infrastructure but we need to see promises become reality," said Tom Shorten, Chief Executive Officer, HSS ProService Marketplace.

Sector responses

Shorten addressed potential positives for construction in the Chancellor's pledges related to sector-specific reforms.

"Where the Chancellor backs growth, for example through planning reform, capital investment in housing and infrastructure, and a more modern business rates system for firms with a physical footprint, that is good news for our sector and for the customers who rely on it. The test now will be whether today's decisions translate into a visible pipeline of work and a climate where contractors feel confident to bid on new work and grow their workforce and suppliers happy to invest in fleet. As a digital marketplace that helps trades and facilities teams get the right equipment at the right price, we can do our part on productivity and value, but we need a Budget that gives households and businesses room to breathe," said Shorten.

Tech industry considerations

Tax specialists have also highlighted uncertainties facing the technology sector. Issues such as potential changes to wealth tax, the stability of R&D tax reliefs, and risks to employee incentives are under scrutiny. Analysts warn that signals to offshore investors and global tech players could influence investment decisions in the UK technology sector. Technology businesses are particularly focused on the implications of salary sacrifice rules, NICs, and share scheme modifications for recruitment and retention of top talent.

Looking ahead

The response from business leaders remains cautious. Stakeholders across construction, technology, and broader business services are waiting to see how policy changes will translate into tangible pipeline work, market confidence, and investment decisions in the coming months.