UK steel imports will be cut by 60% from 1 July under the government’s new Steel Strategy, with any volumes above the reduced tariff-rate quotas facing a 50% duty. The move is likely to raise prices for rebar, structural sections and plate used in major UK infrastructure and building projects, particularly where designs rely on imported grades or mill sizes. Contractors and designers may need to recheck cost plans, procurement schedules and material specifications for projects tendering or breaking ground in late 2026.

The UK government’s proposed ban on cash retentions in construction, following a year-long consultation, is being hailed by trade bodies such as the ECA and NFRC as a long-fought win for specialist contractors previously exposed to withheld payments used as free working capital. Legal and commercial advisers including Kennedy’s Amanda Hanmore and Osborne Clarke’s Daniel Cashmore warn the ban could drive higher project costs via performance bonds, more back‑loaded payment schedules and milestone‑only payments, and trigger more disputes over incomplete or defective works. BCIS chief economist David Crosthwaite points to project bank accounts and alternative defects and quality mechanisms as critical to maintaining delivery standards and payment security across supply chains.

Government plans to ban cash retentions in construction contracts aim to “prevent the abuse of retention payments in construction”, signalling a major shift in how risk and defects liability are managed across UK projects. The move would directly affect standard forms such as NEC and JCT, where 3–5% retentions are commonly withheld through practical completion and defects periods. Contractors and subcontractors could see significant changes to cashflow, security instruments (bonds, project bank accounts) and commercial negotiation of quality and defect-remedy provisions.