Yorkshire set for growth opportunities following Autumn Budget, despite ongoing viability pressures, according to latest Rider Levett Bucknall report

5th January 2026

The Autumn Budget opened several significant construction opportunities for the wider Yorkshire region, according to Rider Levett Bucknall’s (RLB UK) latest Construction Market Intelligence (CMI) report.

New regional analysis from the independent built environment consultancy, highlights that the county is well positioned to benefit from major investment in transport, regeneration and housing, even as the national construction market sees only marginal tender price movements following the Autumn Statement. 

The Budget reaffirmed support for Northern Powerhouse Rail, a commitment that strengthens regional connectivity and could drive substantial construction activity in the coming years.  

David Robinson, an RLB Associate, said: 
 
“Opportunity sits alongside challenge. Rising labour costs, tightening regulatory requirements and tax increases are placing real pressure on project viability. These pressures risk slowing investment decisions and may limit short-term profitability, even in a region now bolstered by new public funding commitments.” 

“While investor confidence should strengthen as policy direction becomes clearer, delivering schemes will still require careful planning and realistic cost strategies.” 

RLB added that the introduction of the Mayor’s Growth Fund is expected to channel targeted investment into business and infrastructure projects across the region, likely stimulating activity around key regeneration zones, commercial centres and transport hubs. 

The Autumn Budget provided renewed optimism for the residential construction sector, with government commitments to accelerate planning reform and maintain ambitious housing targets.  

Although the precise implementation of these measures is yet to be clarified, RLB notes that Leeds and the wider region could see strengthened activity in the medium term, particularly where regeneration and housing strategies align. 

RLB’s CMI shows only marginal movements in Yorkshire and Humber tender price inflation: 

Forecasts for 2025 have remained the same at 3 

Forecasts for 2026 have eased marginally from 3.5 to 3 

Across the UK, near-term market conditions remain challenging as rising input costs, including higher wage rates, continue to place pressure on contractors and outpace tender price movements. 

RLB’s CMI shows only marginal movements in national tender price inflation: 

Forecasts for 2025 have seen a slight uplift from 3.03 to 3.17 
Forecasts for 2026 have eased marginally from 3.41 to 3.27