Issue 495 | 1 September 2025 - Turner & Townsend alinea

UK construction and property

Construction wages | According to Hudson Contract, the national rate of construction weekly pay rose from £1,022 to £1,064, and in London from £1,080 to £1,141 between June and July. Annually, most regions saw wages fall, with increases only in Yorkshire and the Humber, and the South West.
New homes accelerator | Six more sites have been identified for the accelerator to speed up construction on 12,000 homes. The program has already encouraged development on 100,000 homes considered to be stuck in the planning system.
Prisons | The Ministry of Justice has set aside £1.1 billion to restart the stalled prisons programme, with 14 work packages at 32 prisons across the UK.

Tariff legality | A U.S. appeals court has found that the tariffs introduced by President Trump are unlawful but agreed to leave them in place.
De minimis parcels | Parcels of less than $800 entering the US are now no longer exempt from duties or customs declarations, with analysts expecting shipping delays due to the additional paperwork.
Canada’s GDP fell at an annualized rate of 1.6% as exports and business investment were impacted by additional tariffs.

ONS issues | There are mounting concerns over data from the ONS and the government’s ability to use this data for the upcoming autumn statement, as well as the OBR’s ability to measure the Budget against its rules. Issues have been found with the Labour Force Survey, retail data, and household wealth data.
Business confidence | Lloyds Bank’s poll of companies in the UK showed improved sentiment among manufacturers and retailers. Overall, 54% of companies are feeling confident, an increase of 2% and the fourth consecutive monthly increase. The survey also found that 62% of companies intend to expand their workforce.
Government borrowing | The government’s long-term borrowing costs have reached a near 27-year high as the 30-year bond rose by 0.08% to 5.62%.
Birth rates | Data from the ONS shows that the fertility rate in England and Wales has fallen to 1.41, and to 1.25 in Scotland. For a country to remain stable, without immigration, the birth rate needs to be near 2.1.
Energy bills are set to rise by £35 in October after Ofgem increased the cap by 2%.
Thames Water | To avoid temporary government control, Thames Water has agreed to a payment plan with Ofwat for £123 million in sewage and dividend fines.

Steel capacity | China plans to cut its steel production between 2025 and 2026 as it aims to reduce overcapacity, which has pushed prices down.
Iron ore | Mining company Fortescue’s chief executive has said that China’s investment in infrastructure will support the iron ore market, despite iron ore prices falling recently.
Scrap exports | Much of the UK’s steel-making capacity is shifting to electric arc furnaces (EAF), which use scrap steel as their main input. The majority of the UK’s steel scrap is exported, but the British Metals Recycling Association has suggested that a ban on exports could cost £5 billion in lost economic activity and 20,000 jobs. It also expects scrap demand in the UK to grow by 70% by 2027 as Port Talbot’s EAF starts.
Copper | The U.S. is mulling adding copper to the critical minerals list. The list means that projects involving minerals on the list can apply for federal funding, streamlined permitting processes, or gain competitive advantages due to fees placed on imports.
Copper price | The gap between the price of copper in the US and the UK has narrowed after US futures prices fell by 22%. Sales of copper in the US have boomed in anticipation of tariffs.

Heat deaths | The World Weather Attrition Group of scientists have estimated that the number of heat-related deaths in European cities tripled in the June-July heatwave.
Acidification of the oceans could lead to toothless sharks. Increased carbon dioxide absorption lowers pH levels and current projections suggest that the world’s oceans could fall from a pH of 8.1 to 7.3. with “profound implications for marine organisms”.
Floods | Eastern Punjab is experiencing its biggest flood in history, affecting two million people. Pakistan is one of the countries that are most vulnerable to climate change.