NEWSROUND BMF and CPA write to Chancellor pre-Budget


The Builders Merchants Federation and the Construction Products Association have written to the Chancellor of the Exchequer, Rachel Reeves MP, asking her and fellow Ministers to consider certain policy topics In the lead-up to the Autumn Budget.


Both organisations had previously welcomed the Labour Government’s ambitions to build 1.5 million new homes during this Parliament, and so are now seeking a Budget that will foster business- friendly conditions, with proposals that lead to a real increase in housing delivery.


The policy areas covered in the BMF’s submission are:


Inheritance Tax Business Property Relief, New Home Ownership, Business Packaging Waste, Decarbonising Homes and Low Carbon Heating.


BMF CEO John Newcomb said:


Pre-Budget uncertainty slows down construction forecasts


Pre-Budget jitters have seen growth expectations for construction output revised substantially down in the Construction Products Association’s Autumn Forecasts. Total construction output is now only forecast to grow by 1.1% in 2025 and 2.8% in 2026, which is a significant revision down from the 1.9% in 2025 and 3.7% in 2026 in the previous forecast.


In private housing, which is the largest sector of construction, output is forecast to rise by 2.0% in 2025 and 4.0% in 2026, a revision down from the previous forecast of 4.0% in 2025 and 7.0% in 2026. Private housing RM&I output is expected to now remain flat in 2025 and only rise by 2.0% in 2026.


In infrastructure, output is expected to rise by 1.9% in 2025 and 4.4% in 2026. Water & sewerage, as well as energy generation and distribution, are set to become key drivers of growth next year as activity ramps up under record investment plans. In contrast, road spending is expected to


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“Our pre-Budget submission reflects our focus on increasing construction activity in Britain following several years of little or no growth. BMF members play a vital role in the construction industry, particularly by supplying materials and building products needed for new housing and property upgrades to meet current energy and thermal efficiency standards. In writing to the Chancellor, we are not only communicating members’ concerns, but we are also providing suggestions for potential solutions.” The CPA letter points out that approximately 75% of all


BMF hosts MP visits to encourage flood action The Builders Merchants


decline over the next few years as the next Road Investment Strategy (RIS) is not only delayed but headline funding has been cut compared to the previous RIS2. In rail, there are rising concerns regarding whether the government’s HS2 ‘reset’ may lead to delays going forward, whilst question marks continue over when major projects such as Euston station will commence given the intention for it to be privately financed.


CPA head of construction research, Rebecca Larkin, said: “The effects of pre-Budget uncertainty are being felt now but the impact of the Budget tax rises will be felt most strongly as we head into 2026. The extent of the government’s tax rises and spending cuts, and who bears the brunt of them, will heavily determine whether 2026 is a year of growth or contraction for the industry.”


Federation has organised visits by MPs to local merchants as part of its industry and Parliament programme, in connection to a wider review into Property Flood Resilience led by Professor Peter Bonfield OBE.


MKM Building Supplies welcomed Emma Hardy MP to its Anlaby branch on October 17, and Lee Pitcher, MP for Doncaster East and the Isle of


IBC joins NBG in strategic alliance


Independent Buying Consortium (IBC) Ltd has joined National Buying Group (NBG) LLP in a new strategic partnership that will enhance the buying power of both organisations and their collective network of merchants across the UK.


The partnership sees the IBC central organisation become one single NBG Partner. As a result, it will gain access to all NBG Supplier deals and a single vote


construction products used in the UK are made here, meaning the industry underpins nearly every construction project in the country. Construction product manufacturing accounts for 11% of total UK manufacturing and a third of all UK construction turnover – a £68.6 billion industry of 27,500 companies employing 407,000 people.


The CPA’s suggestions cover: Building Safety, Housing – both the new build and the RMI sectors, Infrastructure Delivery, and Investment, Productivity and the Regulatory Environment.


Axholme, visited Howarth Timber & Building Supplies in Thorne. Hardy said: “Flooding isn’t just a headline, it’s a reality for thousands of families, and I’ve seen first-hand the impact it has had right here in Hull. That’s why it was so encouraging to see a local business like MKM stepping up, not just selling the right products to help alleviate the potential for flooding, but starting the right conversations.”


under the terms of NBG’s Limited Legal Partnership.


All 220 IBC members will


remain independent businesses in their own right. Managing director at NBG, Mark Hughes, said: “We’re always looking for ways we can enable our network of independent merchants to remain as competitive as possible and by welcoming IBC into our Partner network, we feel we can work with our Suppliers to secure better pricing in return for significantly greater sales volumes.”


www.buildersmerchantsjournal.net November 2025


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